Distribution policies and objectives
Projected distributions to owners have been based on the requirements of the shareholders’ Letter of Expectation and consultation with the Owners’ Representatives. This has resulted in an initial smoothing approach to distributions. As a minimum, the 2010-2013 Corporate Plan supports priority distributions to our owners of $14.612M. It will be distributed to our owner councils in accordance with the Treasurer’s Allocation Order.
If the revenue path for the corporation remains at the level in the IPO, distributions for years two and three of this plan will exceed the priority levels and provide normal distributions to all owner councils in accordance with their equity in Southern Water. The level of dividend for these years will be based on the Shareholders’ Letter of Expectation directive of 50% of net profit after tax. Distributions to owner councils in the 2010-2013 Corporate Plan exceed $46M over three years.