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Notes To The Accounts
Annual Report 2001

Contents

Financial Statements

Consolidated Profit & Loss Account

Balance Sheet

Consolidated Cash Flow Statement

Consolidated Reconciliation Of Net Cash Flow To Movement In Net Debt

Consolidated Statement Of Total Recognised Gains And Losses

Reconciliation Of Movements In Shareholders' Funds - Equity

Notes To The Accounts

Five-Year Financial Summary

Index

30. Contingent Liabilities
31. Related Party Transactions
32. Post Balance Sheet Events
33. Details Of Principal Subsidiary Undertakings, Associates & Joint Ventures

 

30. CONTINGENT LIABILITIES

a) Legal proceedings against the Company
The Company is aware of the following matters, which involve or may involve legal proceedings against the Group:

i) Claims and potential claims by or on behalf of current and former employees, including former employees of the Central Electricity Generating Board (CEGB), and contractors in respect of industrial illness and injury.

Innogy has agreed to indemnify the Company on an after-tax basis to the extent of 50% of any liability that we may incur whether directly or indirectly as a consequence of those proceedings to the extent such liability is not insured by Electra Insurance Limited.

ii) In June 1994 a complaint was made by the National Association of Licensed Opencast Operators (NALOO) to the European Commission against the Company, PowerGen plc, British Coal Corporation and HM Government. The complaint alleges violations of EU Competition law arising out of the coal purchasing arrangements entered into by the CEGB prior to 1 April 1990 and requests the Commission to find that the CEGB's practices violated EU law. NALOO alleges that such a finding would be grounds for a claim for damages in the English courts by members of NALOO. The European Court has ruled that the Commission is under an obligation to investigate the complaint by NALOO. The Company, PowerGen plc, British Coal Corporation and the Commission are appealing against the ruling. It is not practicable to estimate legal costs or possible damages, at this stage.

Innogy has agreed to indemnify the Company on an after-tax basis to the extent of 50% of any liability that the Company may incur whether directly or indirectly as a consequence of those proceedings.

The Directors are of the opinion, having regard to legal advice received, the Group's insurance arrangements and provisions carried in the balance sheet, that it is unlikely that the matters referred to above will, in aggregate, have a material effect on the Group's financial position, results of operations, and liquidity.

b) Bonds and guarantees
Various growth and expansion projects are supported by bonds and letters of credit issued by the Company totalling £384 million.

The Company has issued guarantees totalling £74 million. £10 million of this is in respect of the loan facilities of its Elcogas investment. This facility is repayable by Elcogas in 2003. The guarantee relating to Elcogas was provided for in the year ended 31 December 2001.


 

31. RELATED PARTY TRANSACTIONS

Operations and maintenance contracts
In the course of normal operations, International Power Global Developments Limited, a wholly-owned subsidiary undertaking, has contracted on an arms length basis to provide power station operation and maintenance services to joint ventures and associated undertakings. During the year the Group derived income of £16 million (nine month period ended 31 December 2000: £12 million) from these arrangements. Included in creditors is £3 million in relation to these contracts.


 

32. POST BALANCE SHEET EVENTS

There were no material post balance sheets events to the date of this report.


 

33. DETAILS OF PRINCIPAL SUBSIDIARY UNDERTAKINGS, ASSOCIATES AND JOINT VENTURES

Subsidiary undertakings

Name and nature of business Country of
incorporation and
registration
Percentage
shareholding

Hazelwood Finance Limited Partnership (financing company) * Australia     Partners' Capital     75%

Hazelwood Power Partnership (power generation) * Australia Partners' Capital 92%

Elektrárny Opatovice AS (power generation) * Czech Republic Ordinary Shares 99%

International Power Global Developments Limited (project development - overseas) England and Wales Ordinary Shares 100%

Pelican Point Power Limited (power generation) England and Wales Ordinary Shares 100%

Rugeley Power Limited (power generation) England and Wales Ordinary Shares 100%

Deeside Power Development Company Limited (power generation) England and Wales Ordinary Shares 100%

National Power International Holdings BV (investment holding company) * The Netherlands ** Ordinary Shares 100%

Synergen Power Pty Limited (power generation) * Australia Ordinary Shares 100%

Thai National Power Company Limited (power generation) * Thailand Ordinary Shares 100%

Midlothian Energy Limited Partnership (power generation) * US Partners' Capital 100%

Milford Power Limited Partnership (power generation) * US Partners' Capital 100%

ANP Funding I LLC (financing company) * US Ordinary Shares 100%

International Power (Cayman) Limited (financing company) Cayman Islands ** Ordinary Shares 100%

International Power (Europe) Limited (financing company) England and Wales Ordinary Shares 100%

ANP Blackstone Energy Company, LLC (power generation) * US Ordinary Shares 100%

ANP Bellingham Energy Company, LLC (power generation) * US Ordinary Shares 100%

Hays Energy Limited Partnership (power generation) * US Partners' Capital 100%

Al Kamil Power Company SAOC (power generation) * Oman Ordinary Shares 100%

All subsidiary undertakings operate in their country of incorporation, except as indicated below.
All subsidiary undertakings have December year ends except as indicated below.
* Held by an intermediate subsidiary undertaking.
Subsidiary undertakings with March year ends.
Operates in Australia.
** Operates in the UK.

 

Associates
Name and nature of business  
Country of
incorporation,
registration
and operation
  Accounting
period end
  Percentage
shareholding
 

Malakoff Berhad (power generation)
Malaysia
31 August Ordinary Shares 19%

The Hub Power Company Limited (power generation) *
Pakistan
30 June Ordinary Shares 26%

Carbopego - Abastecimento de Combustiveis, SA (fuel supplies) *
Portugal
31 December Ordinary Shares 33%

Pegop-Energia Electrica, SA (power station operations) *
Portugal
31 December Ordinary Shares 45%

Tejo Energia - Producao e Distribuicao de Energia Electrica, SA (power generation) *
Portugal
31 December Ordinary Shares 45%

Shuweihat CMS International Power Company (power generation) *
UAE
31 December Ordinary Shares 20%

Uni-Mar Enerji Yatirimlari AS (power generation)
Turkey
31 December Ordinary Shares 33%

* Held by an intermediate subsidiary undertaking.
Joint ventures
   
Name and nature of business
Country of
incorporation,
registration
and operation
Accounting
period end
Percentage
shareholding

Prazská Teplárenská AS (power generation) *
Czech Republic
31 December Ordinary Shares 47%

Hartwell Energy Limited Partnership (power generation) *
US
31 December Partners' Capital 50%

Oyster Creek Limited Partnership (power generation) *
US
31 December Partners' Capital 50%

* Held by an intermediate subsidiary undertaking.

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