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Financial Statements
4. Operating costs
Before exceptional items and remeasurements |
Exceptional items and remeasurements |
Total |
|||||||
|---|---|---|---|---|---|---|---|---|---|
| 2007 £m |
2006* £m |
2005* £m |
2007 £m |
2006* £m |
2005* £m |
2007 £m |
2006* £m |
2005* £m |
|
| Depreciation of property, plant and equipment | 830 | 844 | 743 | - | - | - | 830 | 844 | 743 |
| Amortisation of intangible assets | 41 | 44 | 39 | – | – | - | 41 | 44 | 39 |
| Payroll costs (note 6(a)) | 794 | 807 | 795 | 26 | 47 | 91 | 820 | 854 | 886 |
| Other operating charges: | |||||||||
| Purchases of electricity | 1,674 | 1,928 | 1,451 | (81) | 49 | 38 | 1,593 | 1,977 | 1,489 |
| Purchases of gas | 544 | 566 | 357 | - | - | - | 544 | 566 | 357 |
| Rates and property taxes | 472 | 437 | 403 | - | - | - | 472 | 437 | 403 |
| Electricity transmission services scheme direct costs | 558 | 536 | 301 | - | - | - | 558 | 536 | 301 |
| Payments to Scottish electricity transmission network owners | 237 | 259 | - | - | - | - | 237 | 259 | - |
| Other operating charges | 1,174 | 1,070 | 751 | (4) | (13) | 159 | 1,170 | 1,057 | 910 |
| 4,659 | 4,796 | 3,263 | (85) | 36 | 197 | 4,574 | 4,832 | 3,460 | |
| 6,324 | 6,491 | 4,840 | (59) | 83 | 288 | 6,265 | 6,574 | 5,128 | |
| Operating costs include: | |||||||||
| Research expenditure | 6 | 7 | 9 | ||||||
| Operating lease rentals | |||||||||
| Plant and machinery | 21 | 23 | 20 | ||||||
| Other | 63 | 53 | 36 | ||||||
| * Comparatives have been adjusted to reclassify amounts relating to discontinued operations | |||||||||
| Auditors’ remuneration | |||||||||
| Audit services | |||||||||
| Audit of parent company and consolidated financial statements | 1.2 | 1.4 | 1.1 | ||||||
| Other services | |||||||||
| Audit of subsidiary financial statements pursuant to legislation | 2.8 | 2.0 | 2.6 | ||||||
| Other services supplied pursuant to legislation | 2.2 | 0.8 | 1.1 | ||||||
| Services relating to tax compliance | 0.6 | 0.5 | 0.5 | ||||||
| Services relating to tax advisory | 0.7 | 0.9 | 0.8 | ||||||
| Services relating to corporate finance transactions | 1.4 | 0.4 | 0.3 | ||||||
| All other services | 1.3 | 0.8 | 1.3 | ||||||
| Fees paid by associated pension schemes | |||||||||
| Audit of pension schemes of the company pursuant to legislation | 0.2 | 0.1 | 0.1 | ||||||
| 10.4 | 6.9 | 7.8 | |||||||
| Total services pursuant to legislation | 6.4 | 4.3 | 4.9 | ||||||
| Total other services | 4.0 | 2.6 | 2.9 | ||||||
| 10.4 | 6.9 | 7.8 | |||||||
Other services supplied pursuant to legislation represent fees payable for services in relation to other statutory filings or engagements that are required to be carried out by the auditor. In particular, this includes fees for reports under section 404 of the US Public Company Accounting Reform and Investor Protection Act of 2002 (Sarbanes-Oxley) and audit reports on regulatory returns.
Services relating to corporate finance transactions primarily relate to the proposed acquisition of KeySpan in 2007.
All other services include costs relating to market and financial analysis, treasury related projects together with sundry services, subject to Audit Committee approval.