S.L. 545.34 Art. 45Unbundling of accounts.  Cap. 386.

(1) The Regulator shall take the necessary steps to ensure that the accounts of electricity undertakings are kept in accordance with sub-regulations (2) and (3).

(2) Electricity undertakings, whatever their system of ownership or legal form, shall draw up, submit to audit and publish their annual accounts in accordance with the rules of the Companies Act or other applicable legislation concerning the annual accounts of limited liability companies.

Undertakings which are not legally obliged to publish their annual accounts shall keep a copy of these at the disposal of the public in their head office.

(3) Electricity undertakings shall, in their internal accounting, keep separate accounts for each of their generation, transmission, distribution and supply activities as they would be required to do if the activities in question were carried out by separate undertakings, with a view to avoiding discrimination, cross-subsidisation and distortion of competition. They shall also keep accounts, which may be consolidated, for other electricity activities not relating to transmission or distribution. Revenue from ownership of the transmission or distribution system shall be specified in the accounts. Where appropriate, they shall keep consolidated accounts for other, non-electricity activities. The internal accounts shall include a balance sheet and a profit and loss account for each activity and notes to the separate internal accounts as detailed in sub-regulation (6).

(4) The audit referred to in sub-regulation (2) shall, in particular, verify that the obligation to avoid discrimination and cross-subsidisation referred to in sub-regulation (3) is respected.

(5) The annual accounts shall indicate in the notes any transaction of a certain size conducted with related undertakings.

(6) (a) Electricity undertakings shall specify in the notes to the separate accounts referred to in sub-regulation (3) the rules for the allocation of assets and liabilities and expenditure and income which they follow in drawing up the separate accounts required in sub-regulation (3). Such rules shall be used only after the approval of the Regulator;

(b) The rules referred to in paragraph (a) may be amended only with the approval of the Regulator and such amendments shall be mentioned in the notes and shall be duly substantiated;

(c) The electricity undertakings shall indicate in the notes to the separate accounts the details of any transaction of a certain size (being of a size which, in the opinion of the Regulator, would have a commercial impact) conducted with any:

(i) related undertaking;

(ii) associated undertakings within the meaning assigned by the Companies Act.