Auditor-General's report published, Energy sector: Results of the 2014/15 audits

The Auditor-General’s report Energy sector: Results of the 2014/15 audits was presented to the House of Representatives today. This is the first report that the Office has published that focuses on the audits of public entities in the energy sector.

Many of these entities are asset intensive entities responsible for electricity generation, distribution, and supply. They must plan and carry out good asset management.

Most companies in the energy sector, such as electricity distribution businesses, are monopolies and are subject to regulation. We are often told that the regulations are complex and require significant effort to ensure staff understand the detail of the regulations. It is also important that auditors have a good understanding of the regulations.

Some electricity distribution businesses have made, or are planning to make, investments seeking revenue from sources beyond their core business, for example investment in telecommunications fibre networks and commercial property. The governors of these businesses need to be cautious and undertake appropriate due diligence so they fully understand the risks of their potential investments.

ENDS

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