Revenue reporting problems at HKEX listed CLP Group's wholly-owned subsidiary Energy Australia persist. A recent query to Energy Australia CEO Mark Collette about metering in the May-July quarter 2021 has been responded to with the following:
At your address, you have a manually read basic meter. Ultimately, the meter counts upwards and usage is calculated by taking away the prior meter reading from the current meter reading. This provides us with limited information on the electricity use at the address.
EA insists that there is nothing wrong with its metering and revenue recording systems.
To Be Read With
To Be Read With
Wednesday, May 27, 2020
HKEX listed CLP Group reported earnings in doubt given revenue recording issues at wholly-owned subsidiary Energy Australia: Accounting issues add to problems created by EA's closure of its Wallerawang power station in Lithgow, NSW
by Ganesh Sahathevan
Sir Michael Kadoori's CLP owns Energy Australia
Sir Michael Kadoori's CLP owns Energy Australia
By accident rather than design this writer found himself not once but twice a customer of Sir Michael Kadoorie and his CLP Group's Energy Australia Ltd (EA). EA is CLP's wholly-owned Australian subsidiary.
Tuesday, September 3, 2019
On both occasions the first being in 2008, the second in the recent past, over-billing was the issue.
In 2008 EA laid blame on the meter reading contractor, on the second a query about over billing resulted in a credit being offered, and then explained away as, in fact, a likely under billing. The credit however remained, as a gesture of goodwill.
All this piqued the curiosity of this writer, given his many years of reporting on South East and East Asian companies, like CLP and so a query was sent first to EA's CEO Catherine Tanna.
The query was simply this: how did EA account for under and over billing, and what provisions did it make for these issues. Ms Tanna refused to provide an answer to that simple question. The same query was then sent CLP in Hong Komg,given the implications for CLP's consolidated reports but again, answers to the simple query was refused.
What has been received however are a number of emails from EA's PR department which have not addressed the accounting issues.
In light of the above, questions now arise as to the quality of the earnings reported in CLP's consolidated financial statements. published to the HKEX and shareholders. These issues add to the matter of the consequences for EA and CLP arising out of its closure of the Wallerawang power station in Lithgow, NSW (see story below).
TO BE READ WITJ
Tuesday, September 3, 2019
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