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4647.0 - Alternative View of Electricity and Gas Supply Activity , 2006-07 to 2007-08 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 29/09/2009  First Issue
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GLOSSARY

ABN unit

The statistical unit used by the ABS to represent businesses, and for which statistics are reported, in most cases. The ABN unit is the business unit which has registered for an ABN, and thus appears on the ATO administered Australian Business Register. In most cases, the ABN unit represents the legal entity. This unit is suitable for ABS statistical needs when the business is simple in structure. For more significant and diverse businesses where the ABN unit is not suitable for ABS statistical needs, the statistical unit used is the type of activity unit (TAU).

Alternative Activity View

An alternative activity view provides a measure of economic activity by business activity. Primary and secondary activities of businesses are reassigned to their corresponding activity instead of all being assigned to the predominate activity of the business (which is the approach taken in official industry statistics). This involves identifying and reclassifying existing statistics based on activity.

Alternative Industry View

An alternative industry view (or "alternative view") aims to provide a measure of economic activity for a segment of the economy that comprises a combination of industry classes as defined by the ANZSIC. This involves identifying and reclassifying existing statistics.

Australian and New Zealand Standard Industrial Classification

The Australian and New Zealand Standard Industrial Classification (ANZSIC) is the standard classification used in Australia and New Zealand for the collection, compilation, and publication of statistics by industry. The 2006 edition is currently being used.

Business

A business is generally considered to be a person, partnership, or corporation engaged in business or commerce; for example, an electricity generating business.

In this publication, the term represents the ABN unit or type of activity unit (TAU), which are the two standard statistical units for the 2007-08 EAS collections (these two units are explained under separate entries).

Electricity Supply Activity

Electricity supply activity consists of electricity generation, electricity transmission, electricity distribution, and on selling electricity and electricity market operation.

  • Electricity Generation- Consists of units mainly engaged in the generation of electricity. ANZSIC 2006 industry classes include fossil fuel electricity generation, hydro-electricity generation and other electricity generation.
  • Electricity Transmission- Consists of units mainly engaged in operating high voltage electricity transmission systems including lines and transformer stations. These units transmit or facilitate the transmission of electricity from the generating source to the low voltage electricity distribution system.
  • Electricity Distribution- Consists of units mainly engaged in operating low voltage electricity distribution systems, including lines, poles, meters and wiring, that deliver electricity to final consumers.
  • On Selling Electricity and Electricity Market Operation- Consists of units mainly engaged in on selling electricity via power distribution systems operated by others. It also includes units mainly engaged in providing services to the electricity market which facilitate the matching of supply and demand for electricity.

Electricity Supply Chain

Electricity is produced at power stations (generators) using renewable and non-renewable fuel sources, including coal, gas, water (hydro), biomass and wind. The electricity is transported from power stations through the high-voltage transmission network. Electricity leaves the power stations at a very high voltage (up to 330,000 volts) so it can travel long distances efficiently. As the electricity gets closer to where it will be used, its voltage is reduced to a lower voltage (110,000 to 132,000 volts) at high-voltage substations. In some cases, electricity goes directly to some very large customers, such as aluminium smelters. High-voltage transmission networks transfer electricity to a local electricity distribution network via a 'bulk supply' substation in the region where it will be used. The distribution network consists of transformers, overhead powerlines, underground cables, circuit breakers and other network equipment. Various substations and transformers within the distribution network reduce the level of the electricity voltage in a series of steps as it is transported to connection points at homes and businesses.

Employment (as at the end of the financial year)

This refers to the number of persons employed during the last pay period ending in June of the given year. It excludes persons paid by commission only, non-salaried directors, and self-employed person such as consultants and contractors.

Gas Supply

In this publication the term 'gas supply' refers to the alternative view of gas supply activity, defined as ANZSIC 2006 codes 0700, 5021 and 2700.

Gas Supply Activity

Gas Supply Activity consists of gas extraction, gas transport and gas distribution.
  • Gas Extraction - consists of units mainly engaged in extracting natural gas through the extraction of gas deposits.
  • Gas Transport - consists of units mainly engaged in the transportation of natural gas via pipelines. Note that the terms gas transport and gas transmission both refer to the transportation of natural gas via pipelines and are often interchangeably used.
  • Gas Distribution, wholesaling and retailing - consists of units primarily engaged in the distribution of gas such as natural gas or liquefied petroleum gas through mains systems. Along with units mainly engaged in on selling gas via gas distribution systems operated by others. It also includes units mainly engaged in providing services to the gas market which facilitate the matching of supply and demand for gas.

Gas Supply Chain

The supply chain for gas begins with the extraction of gas from wells in gas fields. The extracted gas often requires processing to separate the methane from liquids and gases that may be present, and to remove any impurities. The gas extracted from a well can be used on site as a fuel for electricity generation or other purposes. More commonly, however, gas fields and processing facilities are located some distance from the cities, towns and regional centres where the gas is consumed. High pressure transmission pipelines are used to transport natural gas from source over long distances. A network of distribution pipelines are then used to deliver gas from points along the transmission pipelines to industrial customers and from gate stations (or city gates) for the reticulation of gas in cities, towns and regional communities.

Industry value added (IVA)

IVA represents the value added by industry to the intermediate inputs used by the industry. IVA is the measure of contribution by businesses to gross domestic product.

The derivation of IVA is as follows:

Diagram: 1.5 ABS DATA AVAILABLE ON REQUEST

However, it should be noted that IVA is not a measure of operating profit before tax (OPBT). Wage and salary expenses and most of the labour costs are not taken into account in its calculation, and nor are most insurance premiums, interest expenses or depreciation and a number of lesser expenses.

Sales and service income

Includes:

Sales of goods, whether or not produced by the business (including goods produced for the business on a commission basis). Includes export sales, sales or transfers to related businesses or to overseas branches of the business, progress payments relating to long term contracts if they are billed in the period, delivery charges not separately invoiced to customers, sales of goods produced by the business from crude materials purchased, and income from 'specific' rates (e.g. water, sewerage, irrigation and drainage rates). Excludes excise and duties received on behalf of the government (e.g. the petroleum production excise duty), sales of assets, natural resource royalties income, interest income, and delivery charges separately invoiced to customers. Exports are valued free on board (f.o.b.), i.e. export freight charges are excluded.

Income from services, includes income from consulting services, repair, maintenance and service income and fees, contract, subcontract and commission income, management fees/charges from related and unrelated businesses, installation charges, delivery charges separately invoiced to customers and royalties from intellectual property (e.g. patents and copyrights) and natural resource royalties income. For the electricity supply and gas supply industries, also includes transmission and distribution income. Excludes interest income, and delivery charges not separately invoiced to customers.

Rent, leasing and hiring income, derived from the ownership of land, dwellings, buildings and other structures, motor vehicles, plant, machinery and other equipment. Excludes royalties from mineral leases, income from finance leases and payments received under hire purchase arrangements.

These are valued net of discounts given and exclusive of goods and services tax (GST). Extraordinary items are also excluded.

Type of activity unit (TAU)

The TAU is the statistical unit used by the ABS to represent businesses, and for which statistics are reported, in cases where the ABN unit is not suitable for ABS statistical needs.

The TAU comprises one or more business entities, sub-entities or branches of a business entity within an enterprise group that can report production and employment data for similar economic activities. When a minimum set of data items are available, a TAU is created which covers all the operations within an industry subdivision (and the TAU is classified to the relevant subdivision of the ANZSIC). Where a business cannot supply adequate data for each industry, a TAU is formed which contains activity in more than one industry subdivision.

Wages and salaries

The gross wages and salaries (including capitalised wages and salaries) of all employees of the business. The item includes severance, termination and redundancy payments, salaries and fees of directors and executives, retainers and commissions of persons who received a retainer, bonuses, and annual and other types of leave. Provision expenses for employee entitlements (e.g. provisions for annual leave and leave bonus, long service leave, sick leave, and severance, termination and redundancy payments) are also included, as are salary sacrificed earnings and remuneration of employees in the form of share based payments and stock options. (Note that in issues of this publication prior to 2006-07, salary sacrificed earnings and remuneration of employees in the form of share based payments and stock options were reported under related expense items. For example, salary sacrificed for superannuation was included in employer contributions into superannuation.)

Payments related to self-employed persons such as consultants, contractors and persons paid solely by commission without a retainer are excluded. The drawings of working proprietors and partners are also excluded.


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