AusNet Services (ASX:AST)

Nino Ficca
Market Cap (AUD): 6.88B
Sector: Utilities
Last Trade (AUD): 1.845 -0.02 (-1.07%)
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1. About

Ausnet Services owns and operates the Victorian electricity transmission network, one of five electricity distribution networks, and one of three gas distribution networks in Victoria.

As well as the network businesses, its Commercial Energy Services group provides a range of energy and infrastructure products and services to business, government, communities, and households.

These services include metering, asset intelligence, and telecommunication solutions, as well as advanced energy management solutions enabling community energy hubs and solar mini grids.

AusNet Services is 31.1% owned by Singapore Power, 19.9% owned by State Grid of China and 49% publicly owned.  

The Company operates its three networks in a regulated environment meaning the Australian Energy Regulator (AER) sets the price movements for the electricity and gas networks once every five years by reviewing proposals submitted by electricity and gas businesses across Australia.

2. Business model


The Company operates the following divisions:[1]



Revenue ($M)

% of Revenue

% of Profit (before Int, Tax, Depn & Amort)

Profit drivers[2]

Electricity distribution




  • Increased revenues of $23.2 M are primarily due to $19.3 M increase in customer contributions as a result of a change in the National Electricity Rules
  • Regulated revenues have increased by $16.7 M (excluding metering) due to favourable weather and increase in prices as a result of the price path in the 2016-20 Electricity Distribution Price Review (EDPR)
  • In FY2018, the Company received $31.0 M of incentive revenues under the Service Target Performance Incentive Scheme (STPIS)

Gas distribution




  • $5.0 M increase in customer contributions due to the completion of the Avoca rollout under the Victorian Government’s Energy for the Regions program
  • Operating expenditure increased by $2.4 M primarily due to $1.8 M write-off relating to billing adjustments for gas adjoining tariffs recognised in FY2017. Capital expenditure increased due to spending on the mains renewal program, which experienced delays in the prior year due to timing of council approvals

Electricity transmission




  • Higher transmission revenues were due to the $25.1 M increase in easement tax pass-through, which increased both revenue and expenses, offset by lower revenues resulting from the first year under the Transmission Revenue Reset (TRR) Final Determination for 2017-22
  • Total transmission expenses decreased $7.6 M (excluding easement tax) relative to FY2017, which included an additional $5.2 M restructuring and redundancy costs, as well as lower labour costs in FY2018 as a result of a 14% decrease in headcount across the AusNet Services Group

Commercial Energy Services




  • Total equity of the Group was $3,556.0 M as at 31 March 2018, a decrease of $142.4 M compared to the previous financial year, primarily attributed to the hedge reserve movement for the year

Inter-segment eliminations





3. Strategy


The Company’s “Focus 2021” Corporate Strategy responds to the new energy environment, which is characterised by a wave of industry change, focused on modernisation and transformation of all aspects of the energy market[3]


The ‘Focus 2021’ Corporate Strategy accelerates its efforts to:

  • Lead network transformation and embrace change
  • Grow commercial services
  • Drive efficiency and effectiveness throughout the portfolio to maximise value
  • Generate trust and respect with customers and partners to build its reputation with all stakeholders


The key objectives of its “Focus 2021” Corporate Strategy are:

  • To grow its contracted energy infrastructure asset base to $1 billion
  • To operate all three core networks in the top quartile of efficiency benchmarks


A core objective of its strategy is to deliver sustainable and growing returns to shareholders, through investment in its regulated and contracted asset base, with a continued focus on cost management. Its asset base for both the core regulated networks and contracted businesses provides significant and predictable long-term cash flows, enabling maintenance of prudent and sustainable financial settings and a strong investment-grade credit rating

4. Markets


The Company operates in the following industries:[4]


Industry (Australia)

Industry Revenue

Growth Rate (annual 13-18)

Electricity Transmission

$3 billion (2017)


Electricity Distribution

$17 billion (2017)


Gas Supply

$11 billion (2018)


5. Competition


Major competitors Include:[5]


  • Origin Energy Ltd (ASX: ORG)
  • Spark Infrastructure Group (ASX: SKI)
  • AGL Energy Ltd (ASX: AGL)
  • ERM Power Ltd (ASX: EPW)

6. History



Listed on ASX



Acquired Alinta assets from Singapore Power International



Gas access arrangement review final decision released



Entered into agreements to operate and maintain the Victorian desalination project’s electricity line



State grid acquired 19.9% holding in SP AusNet from Singapore Power



SP Ausnet changed name to Ausnet Services  



AusNet Services priced a EUR 560 million, 12-year Euro (“EUR”) bond issue to raise approximately A$825 million



AusNet Services priced a 375 million, 60-year USD Dollar hybrid security issue in the form of non-convertible subordinated notes, to raise the equivalent of approximately AUD500 million



AusNet Services successfully pricing A$ 425M Offer

AusNet Services successfully pricing USD 80M Offer

AusNet Services successfully pricing NOK 1B Offer



AusNet Services to develop $140M Terminal Station and Transmission Line for Goldwind’s Stockyard Hill Wind Farm

7. Team


Board of Directors[7]


Peter Mason AM – Chairman and Independent Non-Executive Director

Nino Ficca – Managing Director

Dr. Ralph Craven – Non-Executive Director

Sally Farrier – Independent Non-Executive Director

Alan Chan Heng Loon – Non-Executive Director

Robert Milliner – Independent Non-Executive Director

Dr. Nora Scheinkestel – Independent Non-Executive Director

Tan Chee Meng – Non-Executive Director

Mr. Li Lequan – Non-Executive Director


Management Team


Nino Ficca – Managing Director

Adam Newman – Executive General Manager and Chief Financial Officer

Dr. Matt Guthridge – Executive General Manager, Strategy and Transformation

Claire Hamilton – Executive General Manager, Governance and Company Secretary

Chad Hymas – Executive General Manager, Commercial Energy Services

Geraldine Leslie – Executive General Manager, People, Safety, and Customer

Alistair Parker – Executive General Manager, Regulated Energy Services

Mario Tieppo – Executive General Manager, Technology

read more

8. Financials


2019 Half Year Results Presentation


Financial Year 2017/2018 (ended 31 March):[8]



Revenue ($M)

% Change

Profit (before Int, Tax, Depn & Amort) ($M)

% Change

Electricity distribution





Gas distribution





Electricity transmission





Commercial Energy Services





Intersegment eliminations










9. Risk


Major risks include:[9]


Material risks and uncertainties

The Company is committed to understanding and effectively managing risk to provide greater certainty and confidence for its shareholders, employees, customers, suppliers and communities in which it operates. The Company maintains oversight of its material business risks (financial and non-financial) at an enterprise-wide level, with regular reporting to the Audit and Risk Management Committee and the Board of Directors on the effectiveness of the management of these risks. It is cognisant of the following principal risks which may materially impact the execution and achievement of its business strategy and financial prospects.


Industry and regulatory risks

Industry Development

The energy industry is currently experiencing a period of unprecedented change and uncertainty, with a significant focus on energy security, reliability and affordability. Various political, regulatory and industry bodies continue to debate, recommend and implement various reform programs that will have significant impacts on the operation of the energy market and could have significant impacts on its business.

A number of regulatory and policy reviews are in progress, including (but not limited to)

  • Review of the Rate of Return Guideline – the AER is currently reviewing the Rate of Return Guideline for electricity network regulatory determinations. The National Electricity Rules require a review to be completed within five years of publishing the current guidelines (due December 2018). The Rate of Return Guideline is currently a non-binding guideline, however, the Council of Australian Governments (COAG) Energy Council is likely to make the guideline binding. This review may have significant implications for future revenue determinations.
  • Retail pricing review – at the direction of the Treasurer of the Australian Government, the Australian Competition and Consumer Commission (ACCC) is conducting an inquiry into the supply of retail electricity and the competitiveness of retail electricity prices. Whilst the primary focus of the review is on the market elements of the supply chain, the review is also examining the contribution of network costs to customer bills. This inquiry and the “Independent Review into the Future Security of the National Electricity Market” (“the Finkel Review”) both explore the need to examine ways to reduce the existing network costs embedded in the system.
  • In October 2017, the Federal Government announced the National Energy Guarantee (NEG), a proposed energy policy to address rising energy prices in Australia and provide clarity for energy infrastructure investments. The NEG will require the support of all state governments in order to activate the scheme, which has yet to occur. The Guarantee is made up of two parts that together will require energy retailers and some large users across the NEM to ensure reliability and deliver lower-emissions energy generation each year. The impact on its network as a result of any implementation of the NEG is not yet known given uncertainty as to its detailed design and adoption.
  • The Security of Critical Infrastructure Act 2018 comes into effect in July 2018. This Act will create a critical assets register to provide the Government with greater visibility and understanding of who controls and has access to critical infrastructure assets. As an owner and operator of critical infrastructure assets, the Company will be impacted by the Act. The Company continues to work through its reporting obligations of the Act to ensure compliance.


The Company continues to closely monitor developments and play an active advocacy role in the shaping of the industry. The impacts of these developments on AusNet Services, if any, cannot be stated with certainty at this stage.

In addition to policy development, traditional energy models are changing with the closure of coal-fired power stations and the increase in renewable and distributed generation and storage. These changes are driven by changes in technology, environmental and regulatory policies, customer expectations, and cost. These changes are expected to continue in the future and impact its networks’ regulatory framework and the need to adapt and provide services to customers.

The Company continues to play a key role in the reform of the industry in terms of its active contribution in the current reviews and the trial of new technologies on its network. Its objective is to actively participate in shaping industry development and to lead and deliver network transformation.


Transition to metering competition in Victoria

On 26 November 2015, the Australian Energy Market Commission (AEMC) published its final determination and final rule on expanding competition in metering and related services (Power of Choice). In March 2017, the Victorian Government deferred the adoption of metering competition in Victoria. Victorian electricity distributors will remain responsible for metering services for all small customers until at least 1 January 2021 and the Victorian smart metering specification will remain in place.

The Victorian Government proposed that a review be undertaken prior to 1 January 2021 to determine whether metering competition should be introduced in Victoria. The review will examine the benefits to Victorian electricity users of switching to the national regime, the impact of competition in metering services on particular customer groups, how potential barriers to distributors’ access to metering data can be addressed and the experience of other jurisdictions in implementing metering competition.

During FY2018, AusNet Services completed the implementation of Power of Choice, which required us to invest in new systems and processes, and make significant changes to existing metering systems. This lays the foundation to allow us to accommodate any future changes beyond metering contestability, including cost-reflective pricing, new business-to-business processes and interaction with a new market gateway.


Rapid Earth Fault Current Limiter (REFCL) Program

On 1 May 2016, the Electricity Safety (Bushfire Mitigation) Amendment Regulations 2016 (Amended Bushfire Mitigation Regulations) came into effect in Victoria. The amended regulations require Victorian distributors to install REFCLs at designated zone substations. The purpose of the REFCL devices is to reduce the risk of a bushfire caused by a fallen powerline. AusNet Services is required to meet a defined quota of zone substations with operational REFCLs by 1 May 2019 (30 points) with an additional quota to be operational by 1 May 2021 (53 points) and the remaining designated zone substations fitted with REFCLs by 1 May 2023 (63 points in total). In total, the Regulations require AusNet Services to install REFCL devices at 22 zone substations by 1 May 2023. Each zone substation is attributed a point score from 1 to 5, with the highest value attributed to those zone substations where fire mitigation measures would provide the greatest benefit, depending on the degree of bushfire risk.

The Victorian Government subsequently introduced the Electricity Safety Amendment (Bushfire Mitigation Civil Penalties Scheme) Act 2017 (Amendment Act). This Amendment Act amended the Electricity Safety Act 1998 (Vic) (ESA) to provide for significant financial penalties if AusNet Services fails to achieve the number of points prescribed by the Regulations by the applicable deadline.

The penalties legislation prescribes a penalty of $2,000,000 per point that AusNet Services falls short. Accordingly, penalties of up to $10 million per zone substation can apply if AusNet Services fails to achieve the required capacity by the prescribed dates. Additionally, a daily penalty of $5,500 can be applied for each day AusNet Services remains non-compliant.

The REFCL program presents several risks, including technology risk, network risk, vendor risk and funding risk. In August 2017, the AER made a final decision on AusNet Services’ contingent project application for tranche one of the REFCL installation program, approving total capital expenditure of $97 million. This was $7 million lower than its original application. The proposed expenditure for tranche one, which is due to be completed by April 2019, comprises:

  • installation of REFCL devices at nine zone substations;
  • replacement of equipment in the 22kV distribution network that is incompatible with REFCL operation; and
  • installation of isolating transformers to protect high voltage (HV) customers’ equipment from damage due to increased voltages as a result of REFCL operation.

During FY2018, AusNet Services spent $49 million on REFCL tranche one, with the projects remaining on schedule in order to meet the defined quota of 30 points by 1 May 2019. Funding for tranches two and three of the REFCL program will be subject to future contingent applications. REFCL devices in service may result in parts of the network operating outside of the voltage standards set out in the Victorian Electricity Distribution Code. A review of voltage standards is underway by the Essential Services Commission in order to align the Code to its obligations under the Amendment Act and Amended Bushfire Mitigation Regulations. The Company is currently working with affected high voltage customers to protect their assets from increased voltages, including modifications to its network where required. There is a risk that delays in working with HV customers and implementing acceptable modifications to their assets may result in delays to the delivery of the overall program.


Price Determinations

The energy industry in Australia is highly regulated. The regulated component of its revenues (approximately 86 per cent of total revenues for the year ended 31 March 2018) are subject to periodic pricing resets by the AER, where revenue or prices will be determined for each of the networks for the specified regulatory period. The upcoming regulatory reset dates for its electricity transmission network, gas distribution network and electricity distribution network are 1 April 2022, 1 January 2023 and 1 January 2021, respectively. Under legislation recently passed, network service providers are no longer able to have a final regulatory decision from the AER reviewed by the Australian Competition Tribunal. Regulated charges do not necessarily reflect actual or projected operating costs, capital expenditure or the costs of capital. If the regulated charges set by the AER are lower than its costs, this may adversely affect its financial performance and position. In addition, the Company is exposed to cost changes within a regulatory control period and bear the risk of any shortfall in allowances for costs provided by regulatory determinations. The regulator applies benchmarking as it considers appropriate to each network business, having regard to an overall objective that only capital expenditure that is efficient should form part of the regulated asset base. Operating expenditure is particularly subject to benchmarking comparisons to set efficient levels going forward. The Company carefully manages these risks in a number of ways. Prior to the commencement of a regulatory period, the Company developed a detailed plan of works to be undertaken and costs to be incurred as well as energy and maximum demand forecasts. Particular emphasis is placed on ensuring that the Company continues to maintain safe, resilient and reliable networks and that the costs to be incurred are efficient and prudent. This information is submitted to the AER as part of the determination process, and, where appropriate, the views of industry and other external experts are sought to be included in the submission. AusNet Services will be the first Australian energy business to trial a new process that places customers at the heart of developing its expenditure plans. The new process involves the establishment of a Customer Forum which will form part of its 2021-25 EDPR proposal. This draft process is called New Reg: Towards Consumer-Centric Energy Network Regulation, more details of which can be found on the AER’s website (https:// During the regulatory period the Company continuously monitors and manages its costs through processes and systems which produce high-quality data and enable efficiency, effectiveness and control. In addition, through its organisation-wide efficiency program, the Company aims to improve its benchmark performance.


Network risks

Its energy transmission and distribution networks and information technology systems are vulnerable to human error in operation, equipment failure, natural disasters (such as bushfires, severe weather, floods and earthquakes), sabotage, terrorist attacks (including cyber-attacks) or other events which can cause service interruptions to customers, network failures, breakdowns or unplanned outages. Certain events may occur that may affect electricity transmission or distribution lines or gas mains in a manner that would disrupt the supply of electricity or gas. Failures in its equipment may cause supply interruptions or physical damage. Any service disruption may cause loss or damage to customers, who may seek to recover damages from AusNet Services, and this could harm its business and reputation. Its emergency response, crisis management and business continuity management system is the approved methodology to guide response and recovery activities. However, it may not be able to effectively protect its business and operations from these events. The Company is also exposed to the cost of replacing faulty equipment. On rare occasions, faults in plant items are discovered only after the item has been installed within a network, requiring a large-scale replacement program. Only some such incidents are covered by plant warranties and in some instances these warranties may only be partial. Additionally, incidents in its zone substations and terminal stations have property cover to insure against failure, but incidents outside the boundaries of its zone substations and terminal stations are self-insured. Any forced replacement program, particularly if not insured or covered by warranties, could be costly and adversely affect its financial performance and position. The changing generation mix in Victoria and the location of generators in the future may impact the configuration of the electricity transmission network and increases the risk of redundant assets in the event of significant network configuration changes. The Company continues to work closely with all stakeholders associated with the planning and development of generational capacity to manage such risk.


Funding and market risks

The Company relies on access to financial markets as a significant source of liquidity for growth capital requirements not satisfied by operating cash flows. Its access to financial markets could be adversely impacted through various factors, such as a material adverse change in its business or a reduction in its credit rating. The inability to raise capital on favourable terms, particularly during times of uncertainty in the financial markets, could impact its ability to sustain and grow its capital intensive businesses, and would likely increase its cost of capital. AusNet Services has operated the DRP since 2008, with discount levels that have varied between zero and 2.5 per cent. The use of a DRP and the level of discounting is dependent upon funding requirements at a point in time. Furthermore, the Company has a large amount of debt, with a net debt to Regulated and Contracted Asset Base ratio at 31 March 2018 of 67 percent (excluding equity credit for the $706 million of hybrid instruments). The degree to which the Company may be leveraged in the future could affect its ability to service debt and other obligations, to pay dividends to shareholders, to make capital investments, to take advantage of certain business opportunities, to respond to competitive pressures or to obtain additional financing. In addition, the Company is exposed to a number of market risks associated with this debt, including interest rate and foreign currency risk. The Company effectively manages these risks in accordance with its Treasury Risk Policy, which is approved by the Board and reviewed by the Audit and Risk Management Committee periodically. Under this policy, the Company aims to have a diverse funding mix in terms of source and tenor and proactively monitor and manage its credit metrics. This enables us to maintain an “A” range credit rating, ensures continued access to various markets and limits the funding requirement for any given year. In addition, through the use of derivative financial instruments the Company aims to hedge 90 to 100 per cent of its interest rate risk.


Climate change and sustainability risks

As an energy transmission and distribution company, AusNet Services is actively assisting the industry address climate change risks. Risks associated with climate change include the implications of energy policy developments and changes to regulations as outlined in the industry and regulatory risks section above. In particular, the Federal Government announcement of the NEG proposed energy policy to provide clarity for energy infrastructure investments and require some large users across the NEM to deliver reliable and lower emissions energy generation each year. AusNet Services will play an active role in operationalizing this policy and helping the industry to de-carbonise. Other risks include the physical impacts of changing environmental conditions on its network assets and sustained interruptions from severe weather events such as storms, bushfires or floods. Risk management for these risks includes reviewing engineering standards and ratings for equipment, a significant investment in bushfire mitigation activities and the ongoing development and testing of emergency response plans.


Information and communication technology risks

The drive to reduce carbon emissions, customers’ increasing needs for higher levels of reliability and the reduction in the cost of digital technology have resulted in a greater role for technology in the enablement, management and operations of utility networks. The greater role of technology comes with an increased risk and potential impact of cyber-attacks. This increased focus on the role technology plays in the management and operations of utility networks will require the introduction of new digital technology platforms. In the event there is any significant delay in the development of new technology, this may negatively impact its revenue or require unforeseen capital investment to replace obsolete technology. In addition, as with all new business solutions, there are risks associated with solution design, implementation, budgeting, planning, integration, future maintenance, upgrades and support. The realisation of any such risks could adversely impact the effectiveness and cost of such a solution and business continuity. On 28 November 2017, the AEMC made a final rule to change the settlement period for the electricity spot price from 30 minutes to five minutes, starting on 1 July 2021. This rule may require additional investment in metering and IT systems, with increased data collection and management requirements. Similar to metering contestability, the application of the AEMC rule is subject to approval from the Victorian Government. To mitigate these risks, the Company have established a centralised architecture, delivery and governance capability to ensure technology needs are delivered successfully through an architecturally-led approach with appropriate governance applied.


Financial risk management


Interest rate risk

The Company is exposed to the risk of movements in interest rates on its borrowings. In addition, its regulated revenues for the transmission and distribution businesses are directly impacted by changes in interest rates. This is a result of the “building block” approach where interest rates are a major input in the determination of the regulatory weighted average cost of capital and consequently regulated revenues. The AER use a Trailing Average Portfolio approach to setting the weighted average cost of capital. This approach assumes that 10 per cent of the debt for each network is refinanced each year. As such, the average cost of capital is reset each year to take into account this assumed refinancing. The objective of hedging activities carried out by us in relation to interest rate risk is to minimise the exposure to changes in interest rates by aligning the actual cost of debt with the cost of debt assumed by the regulator. The exposure is managed by maintaining the percentage of fixed rate debt to total debt at a level between 90 per cent and 100 per cent for the relevant business. The Company therefore consider net interest rate exposure, after hedging activities, to be minimal for the Group. The percentage of fixed rate debt to total debt (on a net debt basis) as at 31 March 2018 was 98.8 per cent (2017: 98.3 per cent). The Company utilises interest rate swaps to manage its exposure to cash flow interest rate risk and achieve the targeted proportion of fixed rates on its debt portfolio. Under interest rate swaps, the Company agrees to exchange the difference between fixed and floating rate interest amounts calculated on agreed notional principal amounts. Such contracts enable us to mitigate the risk of changing interest rates on debt held.


Currency risk

The Company are exposed to currency risk due to funding activities in offshore debt markets as a means of providing cost effective and efficient funding alternatives, as well as a result of undertaking certain transactions denominated in foreign currencies. Exchange rate exposures are managed within approved policy parameters. The objective of its currency risk management program is to eliminate all foreign exchange risk on funding activities and material foreign exchange related transaction risk by utilising various hedging techniques as approved by the Board. Therefore, the Company considers its currency risk exposure to be minimal.


Liquidity risk

The Company manages liquidity risk by maintaining adequate cash reserves, committed banking facilities and reserve borrowing facilities and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. These practices are governed by its liquidity management policies, which include Board-approved guidelines covering the maximum volume of long-term debt maturing in any one year, the minimum number of years over which debt maturities are to be spread and the timing of refinancing. In addition, short-term bank debt and commercial papers must not represent more than an agreed percentage of the total debt portfolio. The liquidity management policies ensure that the Company has a well -diversified portfolio of debt, in terms of maturity and source, which significantly reduces reliance on any one source of debt in any particular year. In addition, its investment grade credit rating ensures ready access to both domestic and offshore capital markets. Financing facilities will be put in place at least six months before maturity of the debt being replaced or in the case of new debt at least six months before funding is required. “In place” is defined as meaning all documentation has been completed and settlement has occurred or if settlement has not occurred (e.g. committed but undrawn bank debt facilities) funding is committed and is not subject to a material adverse change in the market.


Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to us and arises from its financial assets, comprising cash and cash equivalents, trade and other receivables and derivative financial instruments. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults (refer to note B.3). Its exposure and the credit ratings of its counterparties are continuously monitored and the aggregate values of transactions concluded are spread amongst approved counterparties. Revenues from a single customer, AEMO (which is majority Government owned), in its electricity transmission segment, represents 29 per cent (2017: 26 per cent) of its total revenues. The Company is licensed to transmit electricity in Victoria, whereas AEMO is the provider of shared network services and the planner, authoriser, contractor and director of augmentation of the declared shared network in Victoria. A network agreement is in place between both parties whereby the Company receives network charges from AEMO for the use of its transmission network to transmit electricity to participants in the market. Due to the nature of this network agreement, the Company does not believe that there is any significant credit risk exposure on this customer. Therefore, the Company considers the credit risk exposure to be minimal. In accordance with the Treasury Risk Policy, treasury counterparties each have an approved limit based on the lower of Standard & Poor’s or Moody’s credit rating. Counterparty limits are reviewed and approved by the Audit and Risk Management Committee and any changes to counterparties or their credit limits must be approved by the Chief Financial Officer and the Managing Director and must be within the parameters set by the Board as outlined in the Treasury Risk Policy. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. At balance date the Company had $650.0 million on term deposit and $393.0 million of cross currency and interest rate swaps with ‘A’ rated or higher Australian and international banks. Credit risk is included in the fair value of derivative financial instruments based on a bilateral credit risk adjustment obtained using credit default swap curves. The difference between the fair value of derivatives and their transaction price at inception due to credit valuation adjustments is recognised progressively over the period to maturity.


  1. ^ Annual Report 2018, P.71
  2. ^ Annual Report 2018, P. 29-31
  3. ^ Annual Report 2018, P. 28
  4. ^
  5. ^
  6. ^
  7. ^
  8. ^ Annual Report 2018, P.71
  9. ^ Annual Report 2018, P.33-36, 88, 89, 95, 100