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Group Financial Statements

Notes to the Accounts

5. Operating costs

  Before exceptional items
and remeasurements
Exceptional items and
remeasurements
Total
  2006
£m
2005
£m
2006
£m
2005
£m
2006
£m
2005
£m
Depreciation of property, plant and equipment 895 774 895 774
Amortisation of intangible assets 57 45 57 45
Payroll costs (note 7(a)) 844 828 48 91 892 919
Other operating charges:            
Purchases of electricity 1,928 1,458 49 38 1,977 1,496
Purchases of gas 566 357 566 357
Rates and property taxes 443 406 443 406
Electricity transmission services scheme direct costs 536 301 536 301
Payments to Scottish network owners under BETTA 259 259
Other operating charges 1,218 840 (9) 172 1,209 1,012
  4,950 3,362 40 210 4,990 3,572
  6,746 5,009 88 301 6,834 5,310
Operating costs include:            
Research expenditure         7 9
Operating lease rentals            
Plant and machinery         36 20
Other         84 36
Auditors’ remuneration            
Statutory audit services            
Annual audit         4 5
Regulatory reporting         1 1
Further audit related services         1
Tax compliance services         1
Tax advisory services         1 1
Other non-audit services         1