G-MW loss not to affect operations

By Geoff Adams

G-MW has reported a loss of $96 million in its annual report released last week, but the figure is not expected to cause any operational problems for the corporation.

The authority customarily reports an annual loss, which includes large book amounts for depreciation.

G-MW's business and finance general manger Michael Gomez said in 2018-19 G-MW reported depreciation of $100.4 million (of this $93.4 million was depreciation of infrastructure assets).

“This book loss will not have any effect on operations and G-MW continues with its commitment to transform the business and reduce customer prices.”

Mr Gomez said G-MW had assets of $5 billion, primarily made up of irrigation infrastructure assets.

“Each year G-MW negotiates with customers to rationalise parts of the irrigation infrastructure. Where assets are no longer in use, the book value of these assets is written off. In addition, all infrastructure and other non-current assets that have a limited useful life are depreciated.”

Mr Gomez said depreciation rates were calculated on the asset’s value, less any estimated residual value, over its estimated useful life.

Last year's deficit was $118 million and prior to that, $90 million.

G-MW delivered 1174 Gl to irrigation customers, 261,000 Ml less than the previous year.

A total of 93 per cent of orders were delivered on the day requested by the customer and about 65 per cent were lodged electronically.

G-MW reported the Connections modernisation project was on track for completion by October next year. At the end of the past financial year the project had completed 8000 service points, decommissioned 1325km of channel and made 342Gl of audited water savings, plus 307km of channel remediated.

G-MW reported 652 payment by instalment plans were approved for customers undergoing hardship.

The number of customer complaints in 2018-19 decreased by 25 per cent to 50 complaints. The most common complaints were about fees and charges, followed by supply and then administration.

¦ Crunch time for system efficiency goals; see page 42.