Note 19 – Creditors (amounts falling due after more than one year)
| Group | Company | |||||
|---|---|---|---|---|---|---|
| |
2005 £m |
2004 £m |
2005 £m |
2004 £m |
||
| Borrowings (note 20) | 10,963 | 11,542 | 1,020 | 746 | ||
| Purchased power obligations | 90 | 149 | – | – | ||
| Liability for index-linked swap contracts | 228 | 291 | – | – | ||
| Other creditors | 282 | 289 | – | – | ||
| Deferred income | 1,237 | 1,193 | 8 | 13 | ||
| 12,800 | 13,464 | 1,028 | 759 | |||
Other creditors include £nil (2004: £9m) of corporate tax.
Purchased power obligations
As part of the sale of substantially all its non-nuclear generating business, National Grid USA entered into purchased power transfer agreements with the purchasers whereby the purchasers took over a number of long-term contracts between National Grid USA and owners of various generating units. In exchange, National Grid USA committed to make fixed monthly payments to the purchasers towards the above-market cost of the contracts. The creditor relating to purchased power obligations, which is also reflected in regulatory assets (note 17), represents the net present value of these monthly payments discounted at 4.5%. At 31 March 2005, amounts falling due after more than five years totalled £nil (2004: £1m).
Liability for index-linked swap contracts
National Grid USA has entered into indexed swap contracts that expire in 2008. A further three swap contracts expired in June and September 2003. National Grid USA has recorded a liability in respect of these contractual obligations and recorded a corresponding regulatory asset as losses on these instruments will be recovered from customers. The amount of the liability and regulatory asset will fluctuate over the remaining terms of the swaps as nominal energy quantities are settled and may be adjusted as periodic assessments are made of energy prices.