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Retrieving Data

Note 31

For The Year Ended 31 March 2012

EMISSION RIGHTS

Kyoto Carbon Credits

The Group has received 1,476,000 (2011:1,476,000) tonnes of carbon emission rights from the New Zealand Government issued pursuant to the Kyoto protocol in relation to completed generation facilities. This represents the maximum rights based upon specified levels of generation output from the new facilities for the period 1 January 2008 to 31 December 2012 and is reliant on the ongoing support of the Kyoto protocol and emission rights within the international community. The Group believes that it will be able to utilise 1,310,000 tonnes of these carbon emission rights. This potential revenue source is taken into consideration in the evaluation of generation development projects and in the valuation of the generation assets.

A contract has been signed with Electrabel, a European energy company, for the sale of 228,000 tonnes of carbon emission rights over five years from 2008-2012. This sale is dependent on the Group’s Tararua Stage II wind farm producing a minimum level of output. A contract has been signed with The Kansai Electric Power Company, a Japanese energy company, for the sale of 300,000 tonnes of carbon emission rights over five years from 2008-2012. Further contracts have been signed covering emission rights generated over the same period. These sales are dependent on the Group’s Tararua Stage III wind farm producing a minimum level of output.

GROUP PARENT
2012 2011 2012 2011
    $000 $000 $000 $000
Kyoto Carbon Credits (Tonnes CO2-e)        
Balance at beginning of year 157,000 98,000 157,000 98,000
Rights earned during the year 222,000 227,000 222,000 227,000
Rights sold during the year (192,000) (168,000) (192,000) (168,000)
Rights unsold at end of year 187,000 157,000 187,000 157,000
         

Included in other receivables (note 19) is $7,360,000 relating to Kyoto Carbon Credits generated and pre-sold (2011: $11,226,000). In addition $1,178,000 is included relating to Kyoto Carbon Credits generated but unsold at the end of the reporting period (2011: $3,844,000).

The Group also earns Renewable Energy Credits (RECs) from renewable electricity generation in South Australia. Included in other receivables (note 19) is $1,438,000 relating to RECs generated and pre-sold (2011: $1,862,000). In addition $1,734,000 is included relating to RECs generated but unsold at the end of the reporting period (2011: $1,884,000).