SP PowerAssets Limited Directors’ statement Year ended 31 March 2022 1 Directors’ statement We are pleased to submit this annual report to the member of SP PowerAssets Limited (the “Company”) together with the audited financial statements for the financial year ended 31 March 2022. Opinion of the Directors In our opinion, (a) the financial statements set out are drawn up so as to give a true and fair view of the financial position of the Company as at 31 March 2022 and the financial performance, changes in equity and cash flows of the Company for the year ended on that date in accordance with the provisions of the Companies Act 1967 (the “Act”) and Singapore Financial Reporting Standards (International) (“SFRS(I)”); and (b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due. Directors The directors in office at the date of this statement are as follows: Mr Stanley Huang Tian Guan Mrs Jeanne Cheng Mr Ong Teng Koon Ms Amelia Champion Ms Loong Hui Chee Mr Kenneth Soh Yew Chin Directors’ interests According to the register kept by the Company for the purposes of Section 164 of the Act, particulars of interests of directors who held office at the end of the financial year (including those held by their spouses and infant children) in shares, debentures, warrants and share options in the Company and in related corporations are as follows: SP PowerAssets Limited Directors’ statement Year ended 31 March 2022 2 Name of director and related corporations in which interests (fully paid ordinary shares unless otherwise stated) are held Holdings at beginning of the year Holdings at end of the year Mrs Jeanne Cheng Singapore Telecommunications Limited Singapore Technologies Engineering Ltd 11,180 10,000 11,180 10,000 Ms Amelia Champion Singapore Telecommunications Limited CapitaLand Limited CapitaLand Investment Limited CapitaLand Integrated Commercial Trust – units 1,430 5,000 – – 1,430 –* 5,000* 773* Ms Loong Hui Chee Ascendas Real Estate Investment Trust – units Ascott Residence Trust – units CapitaLand Limited CapitaLand Investment Limited CapitaLand Integrated Commercial Trust – units Mapletree North Asia Commercial Trust – units Mapletree Treasury Services Limited - 3.95% Perpetual Bond Singapore Airlines Limited Singapore Technologies Engineering Ltd Singapore Telecommunications Limited Temasek Financial (IV) Private Limited - 2.70% T2023 Temasek S$ Bond due 25 October 2023 14,615 159,248 21,531 – 57,344 59,471 S$250,000 20,669 1,495 117,108 S$13,000 14,615 159,248 –* 21,531* 71,680* 60,321 S$250,000 20,669 1,495 117,108 S$13,000 * Scheme of arrangement by CapitaLand Limited (“CapitaLand”), pursuant to which every 1 CapitaLand share was exchanged for 1 share in CapitaLand Investment Limited, 0.154672686 unit in CapitaLand Integrated Commercial Trust, and S$0.951 in cash. SP PowerAssets Limited Directors’ statements Year ended 31 March 2022 3 Except as disclosed in this statement, no director who held office at the end of the financial year had interests in shares, debentures, warrants or share options of the Company, or of related corporations, either at the beginning of the financial year, or at the end of the financial year. Neither at the end of, nor at any time during the financial year, was the Company a party to any arrangement whose objects are, or one of whose objects is, to enable the directors of the Company to acquire benefits by means of the acquisition of shares or debentures of the Company or any other body corporate. Share Options During the financial year, there were: (i) (ii) no options granted by the Company to any person to take up unissued shares in the Company; and no shares issued by virtue of any exercise of option to take up unissued shares of the Company. As at the end of the financial year, there were no unissued shares of the Company under option. On behalf of the Board of Directors MR STANLEY HUANG TIAN GUAN Chairman MS LOONG HUI CHEE Director 1 June 2022 SP PowerAssets Limited Independent auditor’s report Year ended 31 March 2022 4 Independent Auditor’s Report For The Financial Year Ended 31 March 2022 Independent Auditor’s Report to the Member of SP PowerAssets Limited Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of SP PowerAssets Limited (the “Company”) which comprise the balance sheet as at 31 March 2022, the income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements of the Company are properly drawn up in accordance with the provisions of the Companies Act 1967 (the “Act”) and Singapore Financial Reporting Standards (International) (“SFRS(I)”) so as to give a true and fair view of the financial position of the Company as at 31 March 2022 and of the financial performance, changes in equity and cash flows of the Company for the year ended on that date. Basis for Opinion We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Accounting and Corporate Regulatory Authority (“ACRA”) Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For the matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled our responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report, including in relation to the matter. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to SP PowerAssets Limited Independent auditor’s report Year ended 31 March 2022 5 address the matter below, provide the basis for our audit opinion on the accompanying financial statements. Goodwill impairment review The Company has recorded an asset of $2,166.8 million which represents goodwill on the acquisition of the transmission business as discussed in Note 6. The goodwill balance is reviewed annually for impairment based on fair value which is determined by discounting expected future cash flows as discussed in Note 6. The assessment of fair value requires significant management judgement in establishing future cash flows, the terminal value and the discount rate. Our audit procedures included assessing the key assumptions used in arriving at the fair value, including the terminal value, forecast future cash flows, and the discount rate. In performing our audit procedures, we assessed the reasonableness of cash flow projections by assessing the reliability of management’s budgeting process, the Company’s own historical data and performance and the impact of Covid-19 pandemic on market and economic conditions prevailing at the reporting date. In relation to other key inputs, such as the terminal value and discount rate, we compared these inputs to externally available industry, economic and financial data. We further reviewed the adequacy of the disclosure in the financial statements in Note 6 of the financial statements. Other Information Management is responsible for other information. The other information comprises the directors’ statement. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of Management and Directors for the Financial Statements Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Act and SFRS(I), and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair financial statements and to maintain accountability of assets. SP PowerAssets Limited Independent auditor’s report Year ended 31 March 2022 6 In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The directors’ responsibilities include overseeing the Company’s financial reporting process. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. SP PowerAssets Limited Independent auditor’s report Year ended 31 March 2022 7 We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on Other Legal and Regulatory Requirements In our opinion, the accounting and other records required by the Act to be kept by the Company have been properly kept in accordance with the provisions of the Act. The engagement partner on the audit resulting in this independent auditor’s report is Philip Ling Soon Hwa. Ernst & Young LLP Public Accountants and Chartered Accountants Singapore 1 June 2022 SP PowerAssets Limited Financial statements Year ended 31 March 2022 8 Balance sheet As at 31 March 2022 Non-current assets Property, plant and equipment Intangible assets Derivative assets Current assets Inventories Trade and other receivables Current tax receivable Derivative assets Cash and cash equivalents Total assets Regulatory deferral accounts (“RDA”) debit balances Total assets and RDA debit balances Note 4 6 7 8 9 7 10 11 2022 $ million 10,647.7 2,169.3 124.6 12,941.6 34.8 340.0 − 55.6 0.2 430.6 13,372.2 223.2 13,595.4 2021 $ million 10,473.5 2,171.1 176.1 12,820.7 35.0 281.2 13.7 1.1 1.8 332.8 13,153.5 222.3 13,375.8 Equity Share capital Hedging reserve Accumulated profits Total equity 12 13 2,512.4 81.6 2,595.4 5,189.4 2,512.4 52.4 2,511.5 5,076.3 Non-current liabilities Debt obligations Derivative liabilities Deferred tax liabilities Deferred income Deferred construction cost compensation Lease liabilities 14 7 15 16 17 5 2,416.7 160.4 1,442.3 133.8 256.2 0.4 4,409.8 3,320.1 63.9 1,386.5 142.3 256.2 − 5,169.0 Current liabilities Debt obligations Derivative liabilities Current tax payable Trade and other payables Lease liabilities Total liabilities Total equity and liabilities Regulatory deferral accounts (“RDA”) related deferred tax liabilities Total equity, liabilities and RDA related deferred tax liabilities 14 7 18 5 11 777.8 5.2 50.6 3,121.3 3.4 3,958.3 8,368.1 13,557.5 37.9 13,595.4 − 4.4 − 3,088.3 − 3,092.7 8,261.7 13,338.0 37.8 13,375.8 The accompanying notes form an integral part of these financial statements. SP PowerAssets Limited Financial statements Year ended 31 March 2022 9 Income statement Year ended 31 March 2022 Note 2022 $ million 2021 $ million Revenue Other income Expenses - Depreciation of property, plant and equipment - Amortisation of intangible assets - Maintenance - Management fees - Property taxes - Agency fee - Support services - Other operating expenses Operating profit Finance income Finance costs Profit before taxation Tax expense Profit for the year Net movement in RDA balances related to profit or loss and the related deferred tax movement Profit for the year and net movement in RDA balances 19 20 4 6 21 22 23 24 11 1,660.4 73.3 (622.2) (2.8) (101.8) (153.9) (60.2) (27.6) (36.1) (54.3) 674.8 0.1 (135.8) 539.1 (100.7) 438.4 0.8 439.2 1,438.1 81.4 (591.7) (9.0) (96.2) (153.2) (60.4) (26.2) (33.4) (47.2) 502.2 # (132.3) 369.9 (68.7) 301.2 170.2 471.4 # Less than $0.1 million The accompanying notes form an integral part of these financial statements. SP PowerAssets Limited Financial statements Year ended 31 March 2022 10 Statement of comprehensive income Year ended 31 March 2022 2022 $ million 2021 $ million Profit for the year and net movement in RDA balances 439.2 471.4 Other comprehensive income Items that are or may be reclassified subsequently to profit or loss: Effective portion of changes in fair value of cash flow hedges, net of tax 31.7 24.2 Net change in fair value of: - Cash flow hedges reclassified to profit or loss, net of tax (2.6) 1.0 - Cash flow hedges on recognition of the hedged items on balance sheet, net of tax 0.1 (1.2) Other comprehensive income for the year, net of tax 29.2 24.0 Total comprehensive income for the year 468.4 495.4 The accompanying notes form an integral part of these financial statements. SP PowerAssets Limited Financial statements Year ended 31 March 2022 11 Statement of changes in equity Year ended 31 March 2022 Note Share capital $ million Hedging reserve $ million Accumulated profits $ million Total equity $ million At 1 April 2020 2,512.4 28.4 2,384.8 4,925.6 Total comprehensive income for the year Profit for the year and net movement in RDA balances − − 471.4 471.4 Other comprehensive income Effective portion of changes in fair value of cash flow hedges, net of tax − 24.2 − 24.2 Net change in fair value of: - Cash flow hedges reclassified to profit or loss, net of tax − 1.0 − 1.0 - Cash flow hedges on recognition of the hedged items on balance sheet, net of tax − (1.2) − (1.2) Total other comprehensive income Total comprehensive income for the year − 24.0 471.4 495.4 − 24.0 − 24.0 Transaction with owner, recognised directly in equity Contributions by and distribution to owner Dividends declared 29 − − (344.7) (344.7) At 31 March 2021 2,512.4 52.4 2,511.5 5,076.3 The accompanying notes form an integral part of these financial statements. SP PowerAssets Limited Financial statements Year ended 31 March 2022 12 Statement of changes in equity Year ended 31 March 2022 (cont'd) Note Share capital $ million Hedging reserve $ million Accumulated profits $ million Total equity $ million At 1 April 2021 2,512.4 52.4 2,511.5 5,076.3 Total comprehensive income for the year Profit for the year and net movement in RDA balances − − 439.2 439.2 Other comprehensive income Effective portion of changes in fair value of cash flow hedges, net of tax − 31.7 − 31.7 Net change in fair value of: - Cash flow hedges reclassified to profit or loss, net of tax − (2.6) − (2.6) - Cash flow hedges on recognition of the hedged items on balance sheet, net of tax − 0.1 − 0.1 Total other comprehensive income − 29.2 − 29.2 Total comprehensive income for the year − 29.2 439.2 468.4 Transaction with owner, recognised directly in equity Contributions by and distribution to owner Dividends declared At 31 March 2022 29 − − (355.3) (355.3) 2,512.4 81.6 2,595.4 5,189.4 The accompanying notes form an integral part of these financial statements. SP PowerAssets Limited Financial statements Year ended 31 March 2022 13 Statement of cash flows Year ended 31 March 2022 2022 $ million 2021 $ million Cash flows from operating activities Profit for the year and net movement in RDA balances 439.2 471.4 Adjustments for: Tax expense 23 100.7 68.7 Depreciation and amortisation 625.0 600.7 Loss on disposal of property, plant and equipment and intangible assets 24 4.0 0.6 Deferred income 16 (8.8) (8.7) Inventories written down, net 8 4.3 5.3 (Write-back of allowance) / allowance for expected credit loss on trade receivables, net 9 (2.3) 7.5 Finance income 21 (0.1) # Finance costs 22 135.8 132.3 Exchange gain, net 24 (0.3) (0.2) Net movements in RDA balances related to profit or loss and the related deferred tax movement 11 (0.8) (170.2) 1,107.4 Changes in working capital: Inventories (4.1) (0.7) Trade and other receivables (56.8) (37.0) Trade and other payables 76.0 (6.2) Cash generated from operations 1,311.8 1,063.5 Interest received 0.1 # Income tax refunded / (paid) 13.4 (10.0) Net cash generated from operating activities 1,325.3 1,053.5 Cash flows from investing activities Purchase of property, plant and equipment (860.6) (832.0) Purchase of intangible assets (1.0) (0.9) Proceeds from disposal of property, plant and equipment and intangible assets 6.2 5.5 Net cash used in investing activities (855.4) (827.4) Note 1,296.7 Cash flows from financing activities Interest paid (56.6) (85.9) Commitment fees paid (0.1) (1.5) Repayment of related company loans (411.5) (129.9) Payment of principal portion of lease liabilities 5 (3.3) (7.0) Net cash used in financing activities (471.5) (224.3) Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at beginning of the year (1.6) 1.8 1.8 – Cash and cash equivalents at end of the year 10 0.2 1.8 # Less than $0.1 million During the financial year, tax-exempt dividend declared to the immediate holding company in relation to the financial year ended 31 March 2021 of $355.3 million (2021: $344.7 million) were settled via loans from a related company. In 2021, the Company repaid two of its bonds amounting to $780.0 million. The amounts were settled via loans from a related company. The accompanying notes form an integral part of these financial statements. SP PowerAssets Limited Financial statements Year ended 31 March 2022 14 Notes to the financial statements These notes form an integral part of the financial statements. The financial statements were authorised for issue by the Board of Directors on 1 June 2022. 1 Domicile and activities SP PowerAssets Limited (the “Company”) is incorporated in the Republic of Singapore and has its registered office at 2 Kallang Sector, SP Group Building, Singapore 349277. The principal activities of the Company are those relating to the provision of services in connection with the transmission and distribution of electricity. The immediate and ultimate holding companies are Singapore Power Limited and Temasek Holdings (Private) Limited respectively. Both companies are incorporated in the Republic of Singapore. 2 Basis of preparation 2.1 Statement of compliance The financial statements have been prepared in accordance with the Singapore Financial Reporting Standards (International) (“SFRS(I)”). 2.2 2.3 2.4 Basis of measurement The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies set out below. Functional and presentation currency The financial statements are presented in Singapore dollars, which is the Company’s functional currency. All financial information presented in Singapore dollars has been rounded to the nearest 0.1 million, unless otherwise stated. Use of estimates and judgements The preparation of financial statements in conformity with SFRS(I) requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying amounts of assets and liabilities that are not readily apparent from other sources. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is discussed below: SP PowerAssets Limited Financial statements Year ended 31 March 2022 15 Impairment of goodwill and indefinite-lived intangible assets Impairment reviews in respect of goodwill and intangible assets are performed at least annually. More regular reviews are performed if changes in circumstances or the occurrence of events indicate potential impairment. The Company uses the present value of future cash flows to determine the recoverable amounts of the cash generating units. In calculating the recoverable amounts, significant management judgement is required in forecasting cash flows of the cash generating units, in estimating the terminal growth values and in selecting an appropriate discount rate. Details of key assumptions made are set out in Note 6. Regulatory deferral accounts Regulatory deferral account debit or credit balances represent timing differences between revenue recognised for financial reporting purposes (as set out in Note 3.14) and revenue earned for regulatory purposes. Revenue earned for regulatory purposes is estimated based on the revenue allowed by the Energy Market Authority (“EMA”) (in accordance with the price regulation framework), taking into consideration the services rendered and volume of electricity delivered to consumers. Note 3.12 sets out the accounting policy for regulatory deferral accounts. 2.5 Changes in accounting policies Adoption of new and revised SFRS(I)s and Interpretation to SFRS(I) The Company has applied the Amendments to SFRS(I) 9, SFRS(I) 1-39, SFRS(I) 7, SFRS(I) 4, SFRS(I) 16: Interest Rate Benchmark Reform – Phase 2 which is effective for annual financial periods beginning on or after 1 April 2021. The Phase 2 amendments provide practical relief from certain requirements in SFRS(I) Standards. The amendment most relevant to the Company is where it provides for a series of temporary exceptions from certain hedge accounting requirements when a change required by the interest rate benchmark reform occurs to a hedge item and /or hedging instrument that permit the hedge relationship to be continued without interruption. The Company applies the following reliefs as and when uncertainty arising from the interest rate benchmark reform is no longer present with respect to the timing and the amount of the interest rate benchmark-based cash flows of the hedged item or hedging instrument: • the Company amends the designation of a hedging relationship to reflect changes that are required by the reform without discontinuing the hedging relationship; and • when a hedged item in a cash flow hedge is amended to reflect the changes that are required by the reform, the amount accumulated in the hedging reserve is deemed to be based on the alternative benchmark rate on which the hedged future cash flows are determined. The details of the accounting policies and related disclosures on financial risk management are disclosed in Notes 3.4 and 26. There was no significant financial impact to the Company as a result of these amendments. SP PowerAssets Limited Financial statements Year ended 31 March 2022 16 3 3.1 Significant accounting policies The accounting policies set out below have been applied consistently for all periods presented in these financial statements, and have been consistently applied by the Company, which addresses changes in accounting policies due to the adoption of new and revised standards. Foreign currencies Foreign currency transactions Transactions in foreign currencies are translated to the functional currency of the Company at the exchange rate at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the exchange rate at the reporting date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and the amortised cost in foreign currency translated at the exchange rate at the end of the year. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to the functional currency at the exchange rate prevailing on the date which the fair value was determined. Non-monetary items in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction. Foreign currency differences arising on translation are recognised in profit or loss, except for differences arising on the translation of qualifying cash flow hedges, which are recognised in other comprehensive income. 3.2 Property, plant and equipment Recognition and measurement Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located and capitalised borrowing cost. Capitalisation of borrowing costs will cease when the asset is ready for its intended use. Cost may also include transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and is recognised net within other income/other operating expenses in profit or loss. SP PowerAssets Limited Financial statements Year ended 31 March 2022 17 Subsequent costs The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Company, and its cost can be measured reliably. The carrying amount of the replaced component is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred. Depreciation Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of that asset, that component is depreciated separately. Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. Freehold land and construction-in-progress are not depreciated. The estimated useful lives for the current and comparative periods are as follows: Leasehold land Buildings, office and tunnels Transformers and switchgear Other plant and machinery - Works and other equipment - Standby electricity generator and other machinery Mains Other fixed assets (principally meters and motor vehicles) Over the term of the lease ranging from 30 to 99 years 30 to 40 years or the lease term, if shorter 30 years 3 to 10 years 15 to 25 years 30 years 3 to 10 years Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate. 3.3 Intangible assets Goodwill Goodwill arising from acquisition represents the excess of the cost of acquisition over the fair value of identifiable net assets acquired. Subsequent measurement Goodwill is measured at cost less accumulated impairment losses and is tested for impairment on an annual basis as described in Note 3.5. SP PowerAssets Limited Financial statements Year ended 31 March 2022 18 Other intangible assets Deferred expenditure relates mainly to contributions paid by the Company in accordance with regulatory requirements towards capital expenditure costs incurred by electricity generation companies, and is stated at cost less accumulated amortisation and accumulated impairment losses. Deferred expenditure is amortised on a straight-line basis over the period in which the Company derives benefits from the capital contribution payments, which is generally the useful life of the relevant equipment ranging from 7 to 19 years. Computer software is stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful life of 5 years. Computer software development in-progress is stated at cost. No amortisation is provided until it is ready for use. 3.4 Financial instruments Non-derivative financial assets Initial recognition and measurement Financial assets are recognised when, and only when the entity becomes party to the contractual provisions of the instruments. At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Trade receivables are measured at the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third party, if the trade receivables do not contain a significant financing component at initial recognition. Subsequent measurement Investments in debt instruments Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the contractual cash flow characteristics of the asset. Financial assets that are held for the collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Financial assets are measured at amortised cost using the effective interest method, less impairment. Gains and losses are recognised in profit or loss when the assets are derecognised or impaired, and through the amortisation process. SP PowerAssets Limited Financial statements Year ended 31 March 2022 19 Derecognition The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. Cash and cash equivalents Cash and cash equivalents comprise cash balances and bank deposits. Non-derivative financial liabilities Initial recognition and measurement Financial liabilities are recognised when, and only when, the Company becomes a party to the contractual provisions of the financial instrument. The Company determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognised initially at fair value plus in the case of financial liabilities not at fair value through profit or loss, directly attributable transaction costs. For financial liabilities at fair value through profit or loss, directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent measurement After initial recognition, financial liabilities that are not carried at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the liabilities are derecognised, and through the amortisation process. Financial liabilities at fair value through profit or loss are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. On derecognition, the difference between the carrying amounts and the consideration paid is recognised in profit or loss. Offsetting Financial assets and liabilities are offset and the net amount presented on the balance sheet when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The rights of offset must not be contingent on a future event and must be enforceable in the event of bankruptcy or insolvency of all the counterparties to the contract. SP PowerAssets Limited Financial statements Year ended 31 March 2022 20 Ordinary shares Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects. Derivative financial instruments and hedge accounting The Company holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met. Derivatives are initially measured at fair value and any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are generally recognised in profit or loss. The Company designates certain derivatives and non-derivative financial instruments as hedging instruments in qualifying hedging relationships. At inception of designated hedging relationships, the Company documents the risk management objective and strategy for undertaking the hedge. The Company also documents the economic relationship between the hedged item and the hedging instrument, including whether the changes in cash flows of the hedged item and hedging instrument are expected to offset each other. The Company applies hedge accounting for certain hedging relationships which qualify for hedge accounting. For the purpose of hedge accounting, hedges are classified as: • cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognised firm commitment; or • fair value hedges when hedging the exposure to changes in fair value of a recognised asset or liability or an unrecognised firm commitment Cash flow hedges When a derivative is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction that could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognised in other comprehensive income and presented in the hedging reserve in equity. Any ineffective portion of changes in the fair value of the derivative is recognised immediately in profit or loss. When the hedged item is a non-financial asset, the amount accumulated in equity is included in the carrying amount of the asset when the asset is recognised. In other cases, the amount accumulated in equity is reclassified to profit and loss in the same period that the hedged item affects profit or loss. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. SP PowerAssets Limited Financial statements Year ended 31 March 2022 21 When a cash flow hedge is discontinued, the cumulative gain or loss previously recognised in other comprehensive income will remain in the cash flow hedge reserve until the future cash flows occur if the hedged future cash flows are still expected to occur or reclassified to profit or loss immediately if the hedged future cash flows are no longer expected to occur. Fair value hedges Changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognised in profit or loss. The hedged item is adjusted to reflect changes in its fair value in respect of the risk being hedged; the gain or loss attributable to the hedged risk is recognised in profit or loss with an adjustment to the carrying amount of the hedged item. Hedges directly affected by interest rate benchmark reform Phase 1 amendments: Prior to interest rate benchmark reform – when there is uncertainty arising from interest rate benchmark reform For the purpose of evaluating whether there is an economic relationship between the hedged item(s) and the hedging instrument(s), the Company assumes that the benchmark interest rate is not altered as a result of interest rate benchmark reform. For a cash flow hedge of a forecast transaction, the Company assumes that the benchmark interest rate will not be altered as a result of interest rate benchmark reform for the purpose of assessing whether the forecast transaction is highly probable and presents an exposure to variations in cash flows that could ultimately affect profit or loss. In determining whether a previously designated forecast transaction in a discontinued cash flow hedge is still expected to occur, the Company assumes that the interest rate benchmark cash flows designated as a hedge will not be altered as a result of interest rate benchmark reform. The Company will cease to apply the specific policy for assessing the economic relationship between the hedged item and the hedging instrument (i) to a hedged item or hedging instrument when the uncertainty arising from interest rate benchmark reform is no longer present with respect to the timing and the amount of the contractual cash flow of the respective item or instrument or (ii) when the hedging relationship is discontinued. For its highly probable assessment of the hedged item, the Company will no longer apply the specific policy when the uncertainty arising from interest rate benchmark reform about the timing and the amount of the interest rate benchmark-based future cash flows of the hedged item is no longer present, or when the hedging relationship is discontinued. Phase 2 amendments: Replacement of interest rates – when there is no longer uncertainty arising from interest rate benchmark reform When the basis for determining the contractual cash flows of the hedged item or the hedging instrument changes as a result of interest rate benchmark reform and therefore there is no longer uncertainty arising about the cash flows of the hedged item or the hedging instrument, the Company amends the hedged documentation of that hedging relationship to reflect the change(s) required by interest rate benchmark reform. A change in the basis for determining the contractual cash flows is required by interest rate benchmark reform if the following conditions are met: • the change is necessary as a direct consequence of the reform; and • the new basis for determining the contractual cash flow is economically equivalent to the previous basis – i.e. the basis immediately before the change. SP PowerAssets Limited Financial statements Year ended 31 March 2022 22 For this purpose, the hedge designation is amended only to make one or more of the following changes: • designating an alternative benchmark rate as the hedged risk; • updating the description of hedged item, including the description of the designated portion of the cash flows or fair value being hedged; or • updating the description of the hedging instrument. The Company amends the description of the hedging instrument only if the following conditions are met: • it makes a change required by interest rate benchmark reform by changing the basis for determining the contractual cash flows of the hedging instrument or using another approach that is economically equivalent to changing the basis for determining the contractual cash flows of the original hedging instrument; and • the original hedging instrument is not derecognised. The Company amends the formal hedge documentation by the end of the reporting period during which a change required by interest rate benchmark reform is made to the hedged risk, hedged item or hedging instrument. These amendments in the formal hedge documentation do not constitute the discontinuation of the hedging relationship or the designation of a new hedging relationship. If changes are made in addition to those changes required by interest rate benchmark reform described above, then the Company first considers whether those additional changes result in the discontinuation of the hedge accounting relationship. If the additional changes do not result in discontinuation of the hedge accounting relationship, then the Company amends the formal hedge documentation for changes required by interest rate benchmark reform as mentioned above. When the interest rate benchmark on which the hedged future cash flows had been based is changed as required by interest rate benchmark reform, for the purpose of determining whether the hedged future cash flows are expected to occur, the Company deems that the hedging reserve recognised in other comprehensive income for the hedging relationship is based on the alternative benchmark rate on which the hedged future cash flows will be based. 3.5 Impairment Non-derivative financial assets The Company recognises an allowance for expected credit losses (“ECLs”) for all debt instruments not held at fair value through profit or loss and financial guarantee contracts. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is recognised for credit losses expected over the remaining life of the exposure, irrespective of timing of the default (a lifetime ECL). SP PowerAssets Limited Financial statements Year ended 31 March 2022 23 For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The Company considers a financial asset potentially in default when contractual payments are 180 days past due. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. Non-financial assets The carrying amounts of the Company’s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. For goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, recoverable amount is estimated each year at the same time. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (“CGU”) exceeds its estimated recoverable amount. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGU. Subject to an operating segment ceiling test, for the purposes of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Such reversal of impairment is recognised in profit or loss. SP PowerAssets Limited Financial statements Year ended 31 March 2022 24 3.6 Inventories Inventories are measured at the lower of cost and net realisable value. Cost is determined based on the weighted average method, and includes expenditure in acquiring the inventories and other costs incurred in bringing them to their existing location and condition. Cost may also include transfers from other comprehensive income of any gain or loss on qualifying cash flow hedges of foreign currency purchases of inventories. Allowance for obsolete, deteriorated or damaged stocks is made when considered appropriate. 3.7 Accrued revenue Revenue accrual estimates are made to account for the unbilled amount at the reporting date. 3.8 Provisions A provision is recognised if, as a result of past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. 3.9 Government grants Capital grants are recognised on a straight-line basis and taken to profit or loss over the periods necessary to match the depreciation of the assets purchased with the government grants. Operating grants are presented within other income and are taken to profit or loss on a systematic basis in the same periods in which the expenses are incurred. 3.10 Deferred construction cost compensation Deferred construction cost compensation received to defray costs relating to the construction of an asset are accounted for as a government grant. Note 3.9 sets out the government grant accounting policy. 3.11 Deferred income Deferred income comprises (i) government grant for the purchase of depreciable assets and (ii) contributions made by certain customers towards the cost of capital projects received prior to 1 July 2009. Government grants and customer contributions Deferred income is recognised on a straight-line basis and taken to profit or loss over the periods necessary to match the depreciation of the assets purchased with the customers’ contributions and government grant. SP PowerAssets Limited Financial statements Year ended 31 March 2022 25 3.12 Regulatory deferral account (“RDA”) debit or credit balances Use of system charges Regulatory deferral account debit or credit balances represent timing differences between revenue recognised for financial reporting purposes and revenue earned for regulatory purposes. Movements in the regulatory deferral account debit or credit balances are recognised in profit or loss over the periods necessary to adjust revenue recognised for financial reporting purposes to revenue earned for regulatory purposes based on services rendered. At the end of each regulatory period, adjustments for amounts to be recovered or refunded are taken to profit or loss as net movement in regulatory deferral account balances. 3.13 Price regulation and licence The Company’s operations in Singapore are regulated under the Electricity Licence for Transmission Licensee issued by the EMA of Singapore. Allowed revenue to be earned from the transmission of electricity is regulated based on certain formulae and parameters set out in the licence, relevant acts and codes. Revenue recognised for financial reporting purposes may differ from revenue earned for regulatory purposes due to volume variances. This may result in adjustments that may increase or decrease tariffs in succeeding periods. Amounts to be recovered or refunded are brought to account as adjustments to net movement in regulatory deferral account debit or credit balances in the income statement in the period in which the Company becomes entitled to the recovery or liable for the refund. The Company’s capital expenditure may differ from its regulatory plan and is subject to a review by the EMA. The results of the variances in capital expenditure may be translated into price adjustments, if any, in the following reset period. The use of system charges are approved by the EMA for a 5-year regulatory period in accordance with the price regulation framework. 3.14 Revenue recognition Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring promised services to a customer, excluding amounts collected on behalf of third parties. Revenue is recognised when the Company satisfies a performance obligation by transferring the promised service to the customer, which is when the customer obtains control of the service. A performance obligation may be satisfied at a point in time or over time. The amount of revenue recognised is the amount allocated to the satisfied performance obligation. Use of system charges Revenue for financial reporting purposes is recognised over time based on tariff billings to customers when the volume of electricity is delivered. SP PowerAssets Limited Financial statements Year ended 31 March 2022 26 3.15 Leases The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. As lessor Leases in which the Company does not transfer substantially all the risks and rewards of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term. Rental income under operating leases are recognised in profit or loss over the term of the lease. As lessee The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. (i) Right-of-use assets The Company recognises right-of-use assets at the commencement or on modification date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. Refer to Note 3.5 for the accounting policy. (ii) Lease liabilities At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. SP PowerAssets Limited Financial statements Year ended 31 March 2022 27 Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. (iii) Short-term leases The Company applies the short-term lease recognition exemption to its short-term leases of leasehold land (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). Lease payments on short-term leases are recognised as expense on a straight-line basis over the lease term. 3.16 Finance income and costs Finance income comprises interest income on funds invested. Interest income is recognised as it accrues, using the effective interest method. Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions, fair value gains or losses on financial assets and liabilities at fair value through profit or loss, impairment losses recognised on financial assets (other than trade receivables), gains or losses on hedging instruments that are recognised in profit or loss, amortisation of transaction costs capitalised and interest expense on lease liabilities. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the effective interest method. 3.17 Tax expense Tax expense comprises current and deferred tax. Current and deferred taxes are recognised in profit or loss except to the extent that it relates to items recognised directly in equity or in the other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. SP PowerAssets Limited Financial statements Year ended 31 March 2022 28 Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for: • temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; and • taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. In determining the amount of current and deferred tax, the Company takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. The Company believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Company to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made. The movement in a deferred tax asset or liability that arises from the temporary differences created as a result of recognising regulatory deferral account balances are presented in the income statement net of the movement in regulatory deferral account balances related to profit or loss. 3.18 Segment reporting The Company determines and presents operating segments based on the information that is provided internally to the chief operating decision maker. The Company has only one operating segment – electricity transmission and distribution, and hence no separate disclosures are made in the financial statements. SP PowerAssets Limited Financial statements Year ended 31 March 2022 29 3.19 New standards and interpretations not yet adopted A number of new amendments to standards that are effective for annual periods beginning after 1 April 2021 have not been applied in preparing these financial statements. The following amended standards are not expected to have a significant impact on the Company’s financial statements: • Amendments to SFRS(I) 1-37: Onerous Contracts—Cost of Fulfilling a Contract • Amendments to SFRS(I) 1-1 and SFRS(I) Practice Statement 2: Disclosure of Accounting Policies • Amendments to SFRS(I) 1-8: Definition of Accounting Estimates • Amendments to SFRS(I) 1-12: Deferred Tax related to Assets and Liabilities arising from a Single Transaction SP PowerAssets Limited Financial statements Year ended 31 March 2022 30 4 Property, plant and equipment Cost At 1 April 2020 Additions Disposals Transfers from intangible assets Reclassification At 31 March 2021 Additions Disposals Reclassification At 31 March 2022 Accumulated depreciation At 1 April 2020 Depreciation Disposals At 31 March 2021 Depreciation Disposals At 31 March 2022 Carrying amounts At 31 March 2021 At 31 March 2022 Freehold land $ million Leasehold land $ million Buildings and tunnels $ million Switchgear $ million Transformers $ million Other plant and machinery $ million Mains $ million Other fixed assets $ million Constructionin-progress $ million Total $ million 0.3 500.8 1,652.6 3,262.1 1,725.5 453.3 6,123.4 219.7 2,234.6 16,172.3 − − − 1.0 − 2.2 − 16.0 808.9 828.1 − − − (39.9) (10.9) (14.1) (0.5) (6.0) − (71.4) − − − − − − − − 0.7 0.7 − 3.6 39.8 127.8 125.7 38.4 1,130.4 26.0 (1,491.7) − 0.3 504.4 1,692.4 3,351.0 1,840.3 479.8 7,253.3 255.7 1,552.5 16,929.7 − − 7.2 1.2 − 3.2 − 19.6 775.4 806.6 − − (0.1) (30.1) (30.4) (7.0) (106.7) (9.3) (3.2) (186.8) − (0.4) 154.8 123.8 86.9 27.7 308.0 9.0 (709.8) − 0.3 504.0 1,854.3 3,445.9 1,896.8 503.7 7,454.6 275.0 1,614.9 17,549.5 − 162.8 626.1 1,615.0 626.3 265.1 2,530.3 105.1 − 5,930.7 − 9.9 56.1 144.4 65.7 40.7 248.8 26.1 − 591.7 − − − (37.3) (8.6) (14.1) (0.5) (5.7) − (66.2) − 172.7 682.2 1,722.1 683.4 291.7 2,778.6 125.5 − 6,456.2 − 10.1 61.9 148.8 67.7 43.6 255.7 34.4 − 622.2 − − (0.1) (26.2) (27.9) (6.9) (106.7) (8.8) − (176.6) − 182.8 744.0 1,844.7 723.2 328.4 2,927.6 151.1 − 6,901.8 0.3 331.7 1,010.2 1,628.9 1,156.9 188.1 4,474.7 130.2 1,552.5 10,473.5 0.3 321.2 1,110.3 1,601.2 1,173.6 175.3 4,527.0 123.9 1,614.9 10,647.7 SP PowerAssets Limited Financial statements Year ended 31 March 2022 31 Expenses capitalised The following expenses were capitalised in property, plant and equipment during the year: Management fees (staff cost) 2022 $ million 78.8 2021 $ million 76.1 As at 31 March 2022, property, plant and equipment includes right-of-use assets of $325.0 million (2021: $331.7 million) relating to leasehold land, building and office under leasing arrangements. Details are presented in Note 5. 5 Right-of-use assets / Lease liabilities Set out below are the carrying amounts of right-of-use assets recognised within property, plant and equipment and the movements during the year: Leasehold land $ million Buildings and tunnels $ million Total $ million At 1 April 2020 Additions Depreciation At 31 March 2021 Additions Reclassification Depreciation At 31 March 2022 338.0 3.6 (9.9) 331.7 − (0.4) (10.1) 321.2 3.5 − (3.5) − 7.2 − (3.4) 3.8 341.5 3.6 (13.4) 331.7 7.2 (0.4) (13.5) 325.0 Set out below are the carrying amounts of lease liabilities (included under trade and other payables) and the movements during the year: At 1 April Additions Accretion of interest Payments At 31 March Current Non-current # Less than $0.1 million 2022 $ million − 7.1 0.1 (3.4) 3.8 3.4 0.4 2021 $ million 7.1 − # (7.1) − − − The maturity analysis of lease liabilities is disclosed in Note 26. SP PowerAssets Limited Financial statements Year ended 31 March 2022 32 The following are the amounts recognised in profit or loss: Depreciation expense of right-of-use assets Interest expense on lease liabilities Expenses relating to short-term leases (included in other operating expenses) 2022 $ million 13.5 0.1 1.7 15.3 2021 $ million 13.4 − 2.2 15.6 The Company had total cash outflow for leases of $5.1 million (2021: $9.3 million) for the financial year ended 31 March 2022. 6 Intangible assets Goodwill on acquisition $ million Deferred expenditure $ million Computer software $ million Computer software development in-progress $ million Total $ million Cost At 1 April 2020 Additions Disposals Transfers to property, plant and equipment Reclassification At 31 March 2021 Additions Disposals Reclassification At 31 March 2022 2,166.8 109.4 46.4 1.9 2,324.5 − 0.8 − 0.1 0.9 − − (7.6) − (7.6) − − − (0.7) (0.7) − − 0.3 (0.3) − 2,166.8 110.2 39.1 1.0 2,317.1 − 1.0 − − 1.0 − (0.3) − − (0.3) − − 0.9 (0.9) − 2,166.8 110.9 40.0 0.1 2,317.8 Accumulated amortisation At 1 April 2020 Amortisation Disposals At 31 March 2021 Amortisation Disposals At 31 March 2022 − 102.9 40.8 − 143.7 − 4.6 4.4 − 9.0 − − (6.7) − (6.7) − 107.5 38.5 − 146.0 − 2.4 0.4 − 2.8 − (0.3) − − (0.3) − 109.6 38.9 − 148.5 Carrying amounts At 31 March 2021 At 31 March 2022 2,166.8 2.7 0.6 1.0 2,171.1 2,166.8 1.3 1.1 0.1 2,169.3 SP PowerAssets Limited Financial statements Year ended 31 March 2022 33 Impairment test for goodwill The Company as a whole is considered a CGU. The recoverable amount of the CGU is based on the higher of fair value less costs to sell and value in use. The recoverable amount of the CGU is determined to be higher than its carrying amount hence no impairment is necessary. Fair value is determined by discounting future cash flows generated from the continuing use of the CGU and is based on the following key assumptions: 1. Cash flows are projected based on a 5-year business plan. 2. Cash flows are discounted using a pre-tax discount rate of 6.28% (2021: 5.23%) per annumthat reflects current market assessments of the time value of money and risks specific to the CGU. 3. Terminal value is calculated based on a multiple of 1.3 times (2021: 1.2 times) of the carrying amounts of property, plant and equipment. SP PowerAssets Limited Financial statements Year ended 31 March 2022 34 7 Derivative assets and liabilities Current: Cross-currency interest rate swaps Interest rate swaps Foreign exchange forwards Outstanding notional amounts $ million 623.8 200.0 224.0 2022 2021 Assets $ million Liabilities $ million Outstanding notional amounts $ million Assets $ million Liabilities $ million 53.6 − − − − 1.1 − 1,285.6 − (1.1) 0.9 (5.2) 215.4 1.1 (3.3) 55.6 (5.2) 1.1 (4.4) Non-current: Cross-currency interest rate swaps 2,149.1 − (160.4) 2,772.9 116.0 (62.5) Interest rate swaps 2,599.1 124.6 − 2,799.1 59.6 − Foreign exchange forwards 1.2 − # 58.8 0.5 (1.4) 124.6 (160.4) 176.1 (63.9) # Less than $0.1 million SP PowerAssets Limited Financial statements Year ended 31 March 2022 35 Offsetting financial assets and financial liabilities The Company’s derivative transactions are entered into under International Swaps and Derivatives Association (“ISDA”) Master Agreements. The ISDA agreements create a right of set-off of recognised amounts that is enforceable only following an event of default, insolvency or bankruptcy of the Company or the counterparties. As such, these agreements do not meet the criteria for offsetting under SFRS(I) 1-32 Financial Instruments: Presentation. The Company and its counterparties do not intend to settle on a net basis or to realise the assets and settle the liabilities simultaneously but have the right to set off in the case of default and insolvency or bankruptcy. The Company’s financial assets and liabilities subject to an enforceable master netting arrangement that are not otherwise set-off are as follows: Types of financial assets 2022 Derivative assets 2021 Derivative assets Gross amounts of recognised financial assets $ million Related amounts not offset in the balance sheet – financial instruments $ million Net amounts $ million 180.2 (108.9) 71.3 177.2 (20.8) 156.4 Types of financial liabilities 2022 Gross amounts of recognised financial liabilities $ million Related amounts not offset in the balance sheet – financial instruments $ million Net amounts $ million Derivative assets 2021 Derivative assets 165.6 (108.9) 56.7 68.3 (20.8) 47.5 SP PowerAssets Limited Financial statements Year ended 31 March 2022 36 Hedge Accounting As at 31 March 2022 and 2021, the Company held various types of derivative financial instruments and formally designated a portion of them in cash flow and fair value hedge relationships for accounting purposes, in accordance with the requirements of SFRS(I) 9. The following table summarises the derivative financial instruments in the balance sheet and the effects of hedge accounting on the Company’s financial position and performance. Hedge instrument Hedged item Changes in fair value used for calculating hedge ineffectiveness Outstanding notional amounts $ million Assets / (liabilities) $ million Carrying amount of Assets / (liabilities) $ million Financial statement line that includes the hedged item Accumulated amount of fair value adjustments $ million Hedging instrument $ million Hedged item $ million Hedge ineffectiveness recognised in profit or loss $ million Hedge rates Maturity (Year) 2022 Cash flow hedge Interest rate risk – Finance cost 5,197.0 158.0 − − − 52.4 (52.4) − 0.2780% - 2.3450% Up to 2027 Foreign exchange risk - Refer to Note 26 under Foreign currency risk 225.2 (4.3) − − − 3.6 (3.6) − CHF/SGD: 1.397 - 1.501 CNY/SGD: 0.187 - 0.196 EUR/SGD: 1.537 - 1.656 JPY/SGD: 0.011 - 0.013 MYR/SGD: 3.031 USD/SGD: 1.334 - 1.382 Up to 2022 Up to 2023 Up to 2024 Up to 2023 Up to 2022 Up to 2022 Fair value hedge Interest rate risk 375.0 6.0 (281.7) Debt obligations (7.1) (13.8) 14.0 0.2 6 month SOR/SORA Up to 2029 Foreign exchange risk 2,149.1 (145.1) (1,986.5) Debt obligations 156.5 (113.1) 108.6 (4.5) Refer to footnotes of Note 14 Up to 2027 SP PowerAssets Limited Financial statements Year ended 31 March 2022 37 Hedge instrument Hedged item Changes in fair value used for calculating hedge ineffectiveness Outstanding notional amounts $ million Assets / (liabilities) $ million Carrying amount of Assets / (liabilities) $ million Financial statement line that includes the hedged item Accumulated amount of fair value adjustments $ million Hedging instrument $ million Hedged item $ million Hedge ineffectiveness recognised in profit or loss $ million Hedge rates Maturity (Year) 2021 Cash flow hedge Interest rate risk – Finance cost 6,482.6 114.5 − − − 37.0 (38.6) (1.6) 0.2780% - 2.3450% Up to 2027 Foreign exchange risk - Refer to Note 26 under Foreign currency risk 274.2 (3.1) − − − (6.9) 6.9 − CHF/SGD: 1.397 CNY/SGD: 0.187 - 0.199 EUR/SGD: 1.537 - 1.656 JPY/SGD: 0.011 - 0.013 MYR/SGD: 3.028 - 3.040 USD/SGD: 1.334 - 1.425 Up to 2021 Up to 2023 Up to 2024 Up to 2023 Up to 2021 Up to 2022 Fair value hedge Interest rate risk 375.0 19.8 (295.6) Debt obligations (21.1) (6.4) 7.0 0.6 6 month SOR Up to 2029 Foreign exchange risk 2,149.1 (22.3) (2,103.6) Debt obligations 38.2 (92.5) 98.5 6.0 Refer to footnotes of Note 14 Up to 2027 SP PowerAssets Limited Financial statements Year ended 31 March 2022 38 8 Inventories 2022 $ million 2021 $ million Cables Transformers Switchgear Spare parts and accessories 24.6 1.6 7.4 1.2 34.8 24.8 3.2 4.7 2.3 35.0 In the financial year ended 31 March 2022, inventories recognised as an expense in the income statement amounted to $4.2 million (2021: $4.5 million). The write-down of inventories to net realisable value amounted to $4.3 million (2021: $5.3 million). The utilization of inventory obsolescence provision upon sale of the inventory items amounted to $3.1 million (2021: $2.1 million). 9 Trade and other receivables 2022 $ million 2021 $ million Trade receivables: - Third parties - Related companies - Immediate holding company Impairment loss Accrued revenue Deposits Prepayments 123.9 63.5 0.1 187.5 (6.5) 181.0 117.6 0.4 299.0 41.0 119.3 38.9 0.3 158.5 (8.8) 149.7 101.7 0.3 251.7 29.5 340.0 281.2 Trade receivables The average credit term is between 8 to 30 calendar days (2021: between 7 to 30 calendar days). Collateral in the form of bank guarantees and deposits are obtained from counterparties where appropriate. There were no amounts called upon during the year. SP PowerAssets Limited Financial statements Year ended 31 March 2022 39 The maximum exposure to credit risk for trade receivables at the reporting date by types of customer is as follows: Contestable transmission / distribution customers Non-contestable transmission / distribution customers Project-based customers Others 2022 $ million 133.0 22.9 22.3 2.8 181.0 2021 $ million 103.2 6.2 36.7 3.6 149.7 The Company provides for lifetime expected credit losses for all trade receivables using a provision matrix. The provision rates are determined based on the evaluation of collectability and ageing analysis of trade receivables and on the estimation of the management. A considerable amount of estimation is required in assessing the ultimate realisation of these receivables, including the current creditworthiness and the past collection history of each customer. The Company categorises trade receivables for potential write-off on the overdue trade receivables of customers that have failed to make contractual payments for more than 180 days. Where trade receivables have been impaired or written off, the Company continues to engage enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in profit or loss. The maximum exposure to credit risk for trade receivables by geographic region, relates mainly to Singapore at the reporting date. There is no significant concentration of credit risk of trade receivables. The Company has policies in place to monitor its credit risk. Contractual deposits are collected and sufficient collaterals are obtained to mitigate the risk of financial loss from defaults. The Company’s customers are spread across diverse industries and ongoing credit evaluation is performed on the financial condition of receivables to ensure minimal exposure to bad debts. The ageing of trade receivables at the reporting date is as follows: Not past due Past due 0 - 30 days Past due 31 - 90 days Past due 91 - 180 days Past due more than 180 days 2022 $ million 167.7 5.3 2.9 0.6 11.0 187.5 2021 $ million 134.3 1.4 5.2 2.2 15.4 158.5 SP PowerAssets Limited Financial statements Year ended 31 March 2022 40 Expected credit losses The movement in allowance for expected credit losses of trade receivables computed based on lifetime ECL are as follows: At 1 April Impairment loss recognised Impairment loss written back At 31 March 2022 $ million 8.8 − (2.3) 6.5 2021 $ million 1.3 9.0 (1.5) 8.8 Trade and other receivables are denominated predominantly in the functional currency of the Company. 10 Cash and cash equivalents 2022 $ million 2021 $ million Cash at bank and in hand 0.2 1.8 As at reporting date, cash and cash equivalents are denominated in the functional currency of the Company. 11 Regulatory deferral accounts Net movement in RDA balances related to profit or loss RDA related deferred tax movement Net movement in RDA balances related to profit or loss and the related deferred tax movement 2022 $ million 0.9 (0.1) 0.8 2021 $ million 205.1 (34.9) 170.2 SP PowerAssets Limited Financial statements Year ended 31 March 2022 41 RDA debit balances At 1 April 2021 $ million Balances arising in the period $ million (Recovery) / reversal $ million At 31 March 2022 $ million Deferral of revenue based on service rendered 256.9 106.4 (49.3) 314.0 Under recovery of volume variance (34.6) (78.6) 22.4 (90.8) 222.3 27.8 (26.9) 223.2 RDA related deferred tax liabilities RDA related deferred tax liabilities (37.8) (4.7) 4.6 (37.9) RDA debit balances Deferral of revenue based on service rendered Under recovery of volume variance RDA related deferred tax liabilities RDA related deferred tax liabilities At 1 April 2020 $ million Balances arising in the period $ million (Recovery) / reversal $ million At 31 March 2021 $ million (38.6) 266.7 28.8 256.9 55.8 1.5 (91.9) (34.6) 17.2 268.2 (63.1) 222.3 (2.9) (45.6) 10.7 (37.8) The recovery / reversal period of RDA debit and credit balances are directed by EMA. The Company is currently the sole electricity transmission and distribution company in Singapore. The EMA may not terminate the Company’s Transmission Licence except by giving 25 years’ notice, or otherwise revoking the Transmission Licence in accordance with the Electricity Act (including where the EMA is satisfied that the Company has gone into compulsory liquidation or voluntary liquidation other than for the purpose of amalgamation or reconstruction, or the public interest or security of Singapore requires). The Company therefore considers the exposure on recovery of regulatory deferral debit balances to be minimal. SP PowerAssets Limited Financial statements Year ended 31 March 2022 42 12 Share capital 2022 No. of shares $ million 2021 No. of shares $ million Ordinary shares Issued and fully-paid, with no par value At 1 April and 31 March 2,512.4 2,512.4 The holder of ordinary shares is entitled to receive dividends as declared from time to time and is entitled to one vote per share at meetings of the Company. All shares rank equally with regard to the Company’s residual assets. 13 Hedging reserve The hedging reserve comprises the effective portion of the cumulative net changein the fair value of cash flow hedging instruments related to highly probable forecast transactions. Hedging reserves At beginning of year Effective portion of changes in fair value of cash flow hedges: - Interest rate risks - Foreign exchange risks Net change in fair value of cash flow hedges reclassified to profit or loss, net of tax: - Interest rate risks Net change in fair value of cash flow hedges, on recognition of the hedged items on balance sheet, net of tax: - Foreign exchange risks 2022 $ million 52.4 34.8 (3.1) (2.6) 0.1 2021 $ million 28.4 28.7 (4.5) 1.0 (1.2) At end of year 81.6 52.4 SP PowerAssets Limited Financial statements Year ended 31 March 2022 43 14 Debt obligations Principal amount Date of maturity 2022 $ million 2021 $ million Fixed rate notes SGD 100 million USD 500 million (1) JPY 15 billion (2) SGD 75 million USD 700 million [3] JPY 7 billion (4) USD 600 million (5) SGD 100 million SGD 250 million August 2022 September 2022 April 2024 May 2024 November 2025 October 2026 September 2027 May 2029 September 2032 100.7 677.1 162.7 77.3 937.7 78.2 807.8 103.7 249.3 103.5 671.7 182.4 81.0 987.7 87.3 846.2 111.1 249.2 3,194.5 3,320.1 (1) USD 500 million swapped to SGD 623.8 million (2) JPY 15 billion swapped to SGD 230.0 million (3) USD 700 million swapped to SGD 996.0 million (4) JPY 7 billion swapped to SGD 114.7 million (5) USD 600 million swapped to SGD 808.5 million The debt obligations are on bullet repayment terms. Interest rates on debt obligations denominated in Singapore dollars range from 3.14% to 5.07% (2021: 3.14% to 5.07%) per annum. Interest rates on foreign currency debt obligations range from 1.95% to 3.25% (2021: 1.95% to 3.25%) per annum. SP PowerAssets Limited Financial statements Year ended 31 March 2022 44 A reconciliation of liabilities arising from financing activities is as follows: 2021 Cash flows Non-cash changes 2022 $ million Repayment $ million Interest paid $ million Additions / (reduction) $ million Foreign exchange movement $ million Changes in fair value $ million Interest $ million Reclassification $ million $ million Debt obligations Current Non-current Interest payable − 3,320.1 11.1 − − − − − (55.6) − − − − (4.9) − − (120.7) − − − 54.0* 777.8 (777.8) − 777.8 2,416.7 9.5 Loans from a related company Current 2,471.8 (411.5) (0.9) 355.3 − − 75.3 − 2,490.0 Lease liabilities Current Non-current − − 5,803.0 − (3.3) (414.8) − (0.1) (56.6) − 7.1 362.4 − − (4.9) − − (120.7) − 0.1 129.4 3.4 (3.4) − 3.4 0.4 5,697.8 * Comprises interest on debt obligations and net change in fair value of cash flow hedges reclassified from equity as disclosed in Note 22. SP PowerAssets Limited Financial statements Year ended 31 March 2022 45 2020 Cash flows Non-cash changes 2021 $ million Repayment $ million Interest paid $ million Additions / (reduction) $ million Foreign exchange movement $ million Changes in fair value $ million Interest $ million $ million Debt obligations Current Non-current Interest payable 780.6 3,588.3 28.1 − − − − − (85.6) (780.0) − − − (162.6) − (0.6) (105.6) − − − 68.6* − 3,320.1 11.1 Loans from a related company Current 1,411.4 (129.9) (0.2) 1,124.7 − − 65.8 2,471.8 Lease liabilities Current 7.1 (7.0) (0.1) − − − − − 5,815.5 (136.9) (85.9) 344.7 (162.6) (106.2) 134.4 5,803.0 * Comprises interest on debt obligations and net change in fair value of cash flow hedges reclassified from equity as disclosed in Note 22. SP PowerAssets Limited Financial statements Year ended 31 March 2022 46 15 Deferred taxation Movements in deferred tax assets and liabilities during the year are as follows: At 31 March 2020 $ million Recognised in profit or loss (Note 23) $ million Recognised in other comprehensive income (Note 23) $ million At 31 March 2021 $ million Recognised in profit or loss (Note 23) $ million Recognised in other comprehensive income (Note 23) $ million At 31 March 2022 $ million Deferred tax liabilities Property, plant and equipment Intangible assets Set off of tax Net deferred tax liabilities Deferred tax assets Deferred income Derivative liabilities Unutilised capital allowances Others Set off of tax Net deferred tax assets (1,316.4) (159.6) – (1,476.0) 28.1 – (1,447.9) (2.4) 1.7 – (0.7) 0.3 – (0.4) (1,318.8) (157.9) – (1,476.7) 28.4 – (1,448.3) 22.5 90.2 6.0 (1,296.3) (1,386.5) (1,442.3) 28.3 (4.0) – 24.3 (1.5) – 22.8 (5.9) – (4.9) (10.8) – (6.0) (16.8) – 76.6 – 76.6 (76.6) – – 0.1 – – 0.1 (0.1) – – 22.5 72.6 (4.9) 90.2 (78.2) (6.0) 6.0 (22.5) (90.2) (6.0) – – – 16 Deferred income 2022 $ million 2021 $ million Customers’ contributions Government grant for depreciable assets Accumulated accretion 265.9 0.3 (132.4) 133.8 265.9 − (123.6) 142.3 Movements in accumulated accretion are as follows: At 1 April Accretion for the year At 31 March 123.6 8.8 132.4 114.9 8.7 123.6 17 Deferred construction cost compensation 2022 $ million 2021 $ million Deferred construction cost compensation 256.2 256.2 SP PowerAssets Limited Financial statements Year ended 31 March 2022 47 18 Trade and other payables 2022 $ million 2021 $ million Trade payables: - Third parties - Related companies - Immediate holding company Interest payable Commitment fees payable Deposits received Advance receipts Accrued operating expenditure Accrued capital expenditure Loans from a related company - Loan balances - Interest payable 80.9 32.0 1.8 9.5 − 54.4 175.4 95.6 181.7 2,422.7 67.3 3,121.3 43.4 21.1 13.0 11.1 0.2 24.4 144.8 91.2 267.3 2,408.5 63.3 3,088.3 Payables denominated in currencies other than the Company’s functional currency comprise $9.5 million (2021: $0.1 million) of payables and accruals denominated in United States dollar (“USD”), $0.7 million (2021: $0.3 million) in Chinese Yuan (“CNY”), $1.7 million (2021: $0.5 million) in Japanese yen (“JPY”), $0.3 million (2021: nil) in Euro (“EUR”) and nil (2021: $1.2 million) in Malaysian Ringgit (“MYR”). As at 31 March 2022, the loans from a related company are unsecured, repayable on demand and bear interest at rates ranging from 1.59% to 3.93% (2021: 0.83% to 3.93%) per annum. 19 Revenue Revenue comprises use of system charges and the service is transferred over time. Transaction price allocated to remaining performance obligations The Company has applied the practical expedient not to disclose information about its remaining performance obligations as the Company recognises revenue in the amount to which the Company has a right to invoice customers in amounts that correspond directly with the value to the customer of the Company’s performance completed to date. SP PowerAssets Limited Financial statements Year ended 31 March 2022 48 20 Other income 2022 $ million 2021 $ million Rental income Leasing income Disbursement recoverable jobs Sale of scrap Accretion of deferred income Grant income Others 3.2 5.3 21.9 26.4 8.8 0.6 7.1 73.3 3.6 6.0 27.5 10.1 8.7 13.9 11.6 81.4 21 Finance income 2022 $ million 2021 $ million Interest income receivable / received from banks 0.1 # # Less than $0.1 million 22 Finance costs 2022 $ million 2021 $ million Interest expense on loans from a related company Interest expense on debt obligations Net change in fair value of cash flow hedges reclassified from equity Amortisation of fair value adjustments on cash flow hedges reclassified from equity Loss / (gain) arising from financial assets / liabilities in a fair value hedge: - hedged items - hedging instruments Net change in fair value of financial assets / liabilities at fair value through profit or loss Amortisation of capitalised transaction costs Ineffective portion of changes in fair value of cash flow hedges Amortisation of fair value adjustments on fair value hedges Commitment fees Interest expense on lease liabilities 75.3 57.2 (3.2) − (122.6) 126.9 − 2.0 − − 65.8 69.1 (0.5) 0.1 (105.5) 98.9 1.7 2.3 1.6 (2.7) 0.1 1.5 0.1 # 135.8 132.3 # Less than $0.1 million SP PowerAssets Limited Financial statements Year ended 31 March 2022 49 23 Tax expense Tax recognised in profit or loss 2022 $ million 2021 $ million Current tax expense Current year Under / (over) provision in respect of prior years Deferred tax expense Origination and reversal of temporary differences Under provision in respect of prior years Total tax expense 50.6 0.3 50.9 49.3 0.5 49.8 100.7 − (16.6) (16.6) 68.7 16.6 85.3 68.7 Tax recognised in other comprehensive income Before tax $ million 2022 Tax (expense) / credit $ million Net of tax $ million Before tax $ million 2021 Tax (expense) / credit $ million Net of tax $ million Effective portion of changes in fair value of cash flow hedges Net change in fair value of: - Cash flow hedges reclassified to profit or loss - Cash flow hedges on recognition of the hedged items on balance sheet 38.2 (6.5) 31.7 29.1 (4.9) 24.2 (3.1) 0.5 (2.6) 1.2 (0.2) 1.0 0.1 # 0.1 (1.4) 0.2 (1.2) 35.2 (6.0) 29.2 28.9 (4.9) 24.0 # Less than $0.1 million Reconciliation of effective tax rate 2022 $ million 2021 $ million Profit before taxation 539.1 369.9 Tax calculated using Singapore tax rate of 17% (2021: 17%) Non-deductible expenses Non-taxable income Under / (over) provision in respect of prior years - current tax - deferred tax 91.6 8.9 (0.6) 0.3 0.5 100.7 62.9 7.5 (1.7) (16.6) 16.6 68.7 SP PowerAssets Limited Financial statements Year ended 31 March 2022 50 24 Profit for the year The following items have been included in arriving at profit for the year: 2022 $ million 2021 $ million Exchange gain, net Loss on disposal of property, plant and equipment and intangible assets 0.3 (4.0) 0.3 (0.6) 25 Related parties For the purpose of the financial statements, parties are considered to be related to the Company if the Company has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Company and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. The immediate and ultimate holding companies are Singapore Power Limited and Temasek Holdings (Private) Limited (“Temasek”) respectively. These companies are incorporated in the Republic of Singapore. Temasek is an investment company headquartered in Singapore with a diversified investment portfolio. Accordingly, all the subsidiaries of Temasek are related corporations and are subject to common control. The Company engages in a wide variety of transactions with related corporations in the normal course of business on terms similar to those available to other customers. Such transactions include but are not limited to sales and purchases of power, provision of consultancy and engineering services, leasing of cables and ducts, agency services and financial and banking services. The related party transactions are carried out on terms negotiated between the parties which are intended to reflect competitive terms. All electricity supplied to companies in the Temasek group are related party transactions. The Temasek group has extensive interests in a large number of companies. As the Company’s rates for electricity transmission and distribution are based on tariffs approved by the EMA, the Company has concluded that it is not meaningful to present information relating to such revenue. Other than as disclosed elsewhere in the financial statements, transactions with related parties are as follows: Related companies - management fee expenses - maintenance expenses - agency fee expenses - support service expenses - service expenses, including leases - leasing income - service income - trustee fee income Immediate holding company - maintenance expenses - support service expenses 2022 $ million (232.7) (3.7) (27.6) (1.6) (4.3) 5.3 1.1 0.4 (17.1) (34.5) 2021 $ million (229.4) (3.1) (26.2) (1.6) (3.7) 6.0 1.7 0.4 (15.0) (31.8) SP PowerAssets Limited Financial statements Year ended 31 March 2022 51 26 Financial risk management The Company’s activities expose it to foreign currency, interest rate, credit and liquidity risks which arise in the normal course of business. Generally, the Company’s overall objective is to manage and minimise exposure to such risks. The Company adopts the risk management policies and guidelines established by its immediate holding company, Singapore Power Limited, and has established processes for monitoring compliances with such policies. The Company uses forward foreign currency exchange contracts, interest rate swaps and cross currency interest rate swaps to manage its exposure to foreign currency and interest rate risks respectively. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The material financial risks associated with the Company’s activities are each described below, together with details of the Company’s policies for managing the risks. Foreign currency risk The Company is exposed to foreign currency risks from borrowing activities, purchase, supply and installation contracts, and trade creditors which are denominated in a currency other than Singapore dollars. The objective of the Company’s risk management policies is to mitigate foreign exchange risk by utilising various hedging instruments. The Company therefore considers avoidable currency risk exposure to be minimal for the Company. The Company enters into cross-currency interest rate swaps to manage exposures arising from foreign currency borrowings including the United States Dollar (“USD”) and Japanese Yen (“JPY”). Under cross-currency interest rate swaps, the Company agrees to exchange specified foreign currency principal and interest amounts at an agreed future date at a pre-determined exchange rate. Such contracts enable the Company to mitigate the risk of adverse movements in foreign exchange rates. Except where a foreign currency borrowing is taken with the intention of providing a natural hedge by matching the underlying cash flows, all foreign currency borrowings are swapped back to Singapore dollars. For foreign currency swaps that do not meet the requirements of hedge accounting, changes in fair value are recorded in profit or loss. The Company uses forward foreign currency exchange contracts to substantially hedge foreign currency risk attributable to purchase transactions. The maturities of the forward foreign currency exchange contracts are intended to match the forecasted progress payments of the supply and installation contracts. Whenever necessary, the forward foreign exchange contracts are either rolled over at maturity or translated into foreign currency deposits, whichever is more cost efficient. As at 31 March 2022, the Company has outstanding forward foreign currency exchange contracts with notional amounts of approximately $225.2 million (2021: $274.2 million). The net fair value of forward foreign currency exchange contracts as at 31 March 2022 is $4.3 million net liabilities (2021: $3.1 million net liabilities) comprising assets of $0.9 million (2021: $1.6 million) and liabilities of $5.2 million (2021: $4.7 million). These amounts were recognised as derivative assets and liabilities respectively. SP PowerAssets Limited Financial statements Year ended 31 March 2022 52 Sensitivity analysis for foreign currency risk As at 31 March 2022 and 2021, if the functional currency of the Company had moved against each of the currencies as illustrated in the table below, with all other variables held constant, equity would have been affected as below: Judgements of reasonably possible movements – increase / (decrease) 2022 USD Increase of the SGD by 5 per cent against US Dollar Decrease of the SGD by 5 per cent against US Dollar EUR Increase of the SGD by 7 per cent against EUR Dollar Decrease of the SGD by 7 per cent against EUR Dollar JPY Increase of the SGD by 9 per cent against Japanese Yen Decrease of the SGD by 9 per cent against Japanese Yen 2021 USD Increase of the SGD by 5 per cent against US Dollar Decrease of the SGD by 5 per cent against US Dollar EUR Increase of the SGD by 7 per cent against EUR Dollar Decrease of the SGD by 7 per cent against EUR Dollar JPY Increase of the SGD by 10 per cent against Japanese Yen Decrease of the SGD by 10 per cent against Japanese Yen Equity (hedging reserve) $ million (6.7) 6.7 (1.9) 1.9 (2.7) 2.7 (6.5) 6.5 (2.8) 2.8 (4.5) 4.5 The judgements of reasonably possible movements were determined using statistical analysis of the 90th percentile of the best and worst expected outcomes having regard to actual historical exchange rate data over the previous five years. Management considers that past movements are a reasonable basis for estimating possible movements in foreign currency exchange rates. Interest rate risk The Company manages its interest rate exposure by maintaining a significant portion of its debt at fixed interest rates. This is done by the (i) issuance of fixed rate debt; (ii) use of interest rate swaps to convert floating rate debt to fixed rate debt; or (iii) use of cross-currency interest rate swaps to convert fixed or floating rate non-functional currency denominated debt to fixed rate functional currency denominated debt. The use of derivative financial instruments relates directly to the underlying existing and anticipated indebtedness. SP PowerAssets Limited Financial statements Year ended 31 March 2022 53 Managing interbank offered rates reform and associated risks A fundamental reform of major interest rate benchmarks is being undertaken globally, to replace interbank offered rates (IBORs) with alternative nearly risk-free rates (referred to as “IBOR reform”). The Company holds interest rate swaps and cross-currency interest rate swaps indexed to the Singapore Swap Offer Rate (“SOR”) for risk management purposes which are designated in hedging relationships. SOR will cease publication after 30 June 2023, and it will be replaced by t

[●insert name of contractor●] Date: [●] [●insert address of contractor●] Co. Registration No.: [●] Your Ref: [●] Our Ref: [●] Dear Sir REQUIREMENTS FOR EARTHWORKS AT [●insert location●] 1. We refer to your Notice for Commencement of Earthworks (“NCE”) at the above-mentioned location ("Worksite") dated [●] and note that you will commence earthworks (as defined in Section 2 of the Gas Act (Cap. 116A) (the “Act”)) ("Earthworks") from [●]to [●]. 2. Pursuant to Section 32(3)(a) of the Act, you are required to comply with the following requirements when carrying out the Earthworks: 2.1. Trial Holes 2.1.1. As the gas plan obtained from SP PowerGrid Limited (“SPPG”) (which shows the necessary information on the location of the gas plant (as defined in Section 2 of the Act) ("Gas Plant") and gas pipes (conveying gas in a gas pipeline network as defined in Section 2 of the Act) ("Gas Pipes")) ("SPPG Gas Plans") only indicate the approximate location of Gas Pipes, you shall dig an adequate number of appropriate trial holes by manual means to determine the exact location of medium pressure (“MP”) Gas Pipes and low pressure (“LP”) Gas Pipes prior to the carrying out of any Earthworks. 2.1.2. When working in the vicinity of a MP Gas Pipe or a LP Gas Pipe you shall only use powered mechanical equipment for the initial breaking of the surface layer of hardcore/premix. You shall not use powered mechanical equipment below the surface layer of hard-core/premix and shall only use manual excavation with hand tools. 2.1.3. You shall contact Distribution Pipelines Operations and Maintenance section, SPPG (“DPOM”) if you are unable to locate the MP Gas Pipe and/or the LP Gas Pipe by digging the trial holes. 2.1.4. You shall not dig any trial holes in the vicinity of gas transmission pipeline (as defined in Section 2 of the Act) (“GTP”) without the written consent from Transmission Pipelines Operations and Maintenance section, SPPG (“TPOM”). You shall comply with any additional requirements that may be imposed by SPPG. Page 1 of 9 2.1.5. After the trial holes have been dug, you shall ensure that photographs of the trial holes are taken showing the dimensions of trial holes and their location. You shall make these photographs available to SPPG upon request. 2.2. Marking of Gas Pipes, Engagement of Surveyor and Purchase of Surveyed Drawings 2.2.1. Prior to the carrying out of any Earthworks when working in the vicinity of a GTP, you are required to schedule a meeting with TPOM officers to present the details of the Earthworks to be carried out and to purchase the as-surveyed drawing from the Mapping & Earthworks Administration section, SPPG (“MEA”). 2.2.2. After purchasing the as-surveyed drawing, you shall engage a registered land surveyor to peg out the Gas Pipe positions for GTP and provide adequate and prominent markings to show the Gas Pipe positions. You shall ensure that all Gas Pipe markings are durable and prominent and are not disturbed, removed or tampered with. You shall also ensure that the Gas Pipe markings are reapplied from time to time to ensure that they remain conspicuous. 2.3. Risk Management (For MP & GTP) 2.3.1. You shall assess the impact of carrying out the intended Earthworks on any Gas Plant or Gas Pipe and prepare a report detailing such assessment. 2.3.2. If there are changes to the schedule for the carrying out of the Earthworks or changes in Earthworks work methods, you shall study the implications, review the earlier assessment that had been carried out and promptly notify SPPG in writing if there are any changes to the earlier assessment. 2.3.3. The report of such assessment shall be made available to SPPG on request. Such report shall also be made known to all personnel of all working levels in the team handling the project in which the Earthworks are or are to be carried out ("Project"), including sub-contractors and any third party who are involved in any way with any part of the intended Earthworks. 2.4. Worksite Management 2.4.1. You shall provide a full-time site supervisor to monitor the site operations for the entire duration of any Earthworks. You shall ensure that the site supervisor is familiar with these requirements. 2.4.2. You shall ensure that daily site briefings with site workers are conducted (in languages that are understood by all workers) to remind them about the location of the Gas Pipes and the measures to be taken to prevent damage to the Gas Pipes. You Page 2 of 9 shall keep records of such daily briefings (which shall include but are not limited to date and time, venue and person conducting the briefings, contents of briefings and the list of site workers who have attended such briefings). You shall also disallow any site worker who has not attended such briefings from being involved with any part of the intended Earthworks. New staff must be briefed before they start work. 2.4.3. You shall inform Earthworks Surveillance & Patrolling section, SPPG (“ESP”) officers of the identity of the site management / Registered Excavator Operator (“REO”), the proposed methods of carrying out of the Earthworks and/or location of the proposed Earthworks. You shall also inform the ESP officers if there are any changes to the above. 2.4.4. You shall ensure that information on the presence of Gas Pipes in the vicinity of the Worksite and all mitigating measures that can be taken to prevent damage to such Gas Pipes, have been communicated and adhered to by all personnel of all working levels in the Project team, including sub-contractors and any third party who are in any way involved with any part of the intended Earthworks. 2.4.5. SPPG may, from time to time and at its sole discretion, deploy its officers to the Worksite to inspect and monitor the status of your works. Notwithstanding the deployment of SPPG’s officers at the worksite, you shall continue to be responsible for discharging your obligations under this Letter of Requirements (“LRe”) and for the performance of your works. SPPG shall not assume any liability for any noncompliance by you of any such obligation or non-performance of your works. 2.5. Seek Consultation with SPPG: Gas Operations (DPOM and TPOM sections) 2.5.1. You shall contact and consult TPOM and/or DPOM section(s) when the proposed Earthworks are within 5 metres of any GTP and/or 3 metres of any MP Gas Pipes respectively. You shall only carry out any Earthworks within the vicinity of Gas Pipes after seeking advice and obtaining approval from SPPG. 2.5.2. You shall contact DPOM or our 24-hour Customer Service Centre if you find any live or abandoned Gas Pipes in the course of carrying out any Earthworks at the Worksite which have not been shown in the SPPG Gas Plan. 2.5.3. You shall also contact and consult with SPPG in the following circumstances: 2.5.3.1. If it is reasonable to expect that the Earthworks could cause ground vibrations or ground movements; and/or Page 3 of 9 2.5.3.2. If there is a need for Earthworks to be carried out below Gas Pipe slabs. 2.6. Protection of Gas Pipe and Gas Pipe Diversion 2.6.1. You shall take all steps to ascertain the presence of any Gas Pipe within the boundary and/or the vicinity of the Worksite prior to the carrying out of any Earthworks. You shall take all necessary measures and due care to prevent damage to the Gas Pipes. 2.6.2. You shall relocate your intended Earthworks away from any gas pipeline or submit an official request to SPPG to divert out of the Worksite any Gas Pipe that will be affected by the intended Earthworks and bear any and all costs incurred from such diversion. 2.6.3. If the proposed Earthworks involve overcrossing, undercrossing, exposing of, or diversion of Gas Pipes, you shall, prior to the carrying out of any Earthworks: 2.6.3.1. Contact and consult SPPG; 2.6.3.2. Provide SPPG with a detailed work method statement and proposed measures to protect the Gas Pipes; 2.6.3.3. Assess the risk of damage to the Gas Pipes and submit the report of such assessment to SPPG; and 2.6.3.4. Comply with any further and additional requirements that may be imposed by SPPG. 2.6.4. You shall not construct any structure (temporary, permanent, or otherwise) over any Gas Pipe. 2.6.5. You shall not place any heavy equipment or stock pile above any Gas Pipe. 2.6.6. You shall not allow any heavy machinery or vehicular movement above any Gas Pipe. 2.6.7. You shall backfill with quarry dust during reinstatement and do not dump any debris / concrete trash / sharp objects or place any heavy object on top of the Gas Pipe corridor. 2.6.8. You shall ensure proper and adequate shoring and shuttering to prevent soil movement and/or soil subsidence which may affect any Gas Pipe. 2.6.9. You shall carefully select positions for the sinking and driving of earth rod, sheet piling, bore piling, diaphragm walling, installing of reinforced concrete/steel piles by Page 4 of 9 percussion or jack-in method, bore piling casing, installing of ground anchors, pressure grouting, installing of tubes, installing of poles, hand augering, pipe jacking, shoring, soil investigating, bore drilling and horizontal directional drilling, in order to avoid damage to any Gas Pipes. You shall do this by, amongst other things: 2.6.9.1. Referring to the SPPG Gas Plan and digging appropriate trial holes by manual means, to confirm the presence or absence of any Gas Pipe prior to the carrying out of any Earthworks. For trial hole to be dug in the vicinity of GTP, you shall obtain written consent from TPOM. 2.6.9.2. For pipe jacking and horizontal directional drilling, you shall consider additional factors such as loading from the construction plants, ground conditions, bore diameter, possible deviation of the drilling. You shall ensure that there is a minimum clearance of 2m between the path of drilling/boring device and any Gas Pipe that is in the vicinity of the Earthworks. 2.6.10. You shall provide adequate protection to unexposed or reinstated Gas Pipes that are within the work area when carrying out of any Earthworks. 2.6.11. You shall ensure that all surface boxes are accessible at all times and are not covered by tarmac, earth, landscape, equipment, stock pile or any other material. 2.6.12. You shall ensure that no static loads (i.e. loads that do not change in magnitude or position with time) are placed above the surface boxes. 2.6.13. You shall exercise due care and diligence when removing any rock, boulder, wood, metal rod, sharp object or other obstacles which are in the vicinity of Gas Pipes. 2.6.14. You shall ensure that gas free tests are carried out by a competent person along the Gas Pipe route at regular intervals throughout the duration of the Project. You shall not carry out any processes that may be a source of ignition in the vicinity of any Gas Pipes. You shall also take all other necessary mitigating measures to prevent ignition of escaped gas, if any. 2.6.15. You shall ensure that a clearance of at least 5 metres is maintained between the external wall of LP Gas Pipe and any piles and/or diaphragm wall and a clearance of at least 0.3 metres is maintained between the external wall of LP Gas Pipe and other services when working in the vicinity of LP Gas Pipe. You shall also ensure that no services are laid directly on top and parallel to any existing Gas Pipes. 2.6.16. You shall not expose, suspend and/or otherwise interfere with any Gas Pipes, without the written consent of SPPG. Page 5 of 9 2.6.17. You shall stop all Earthworks and call SPPG for advice whenever in doubt. 2.6.18. You shall stop work immediately and report to the 24-hour Customer Service Centre upon any damage or suspected damage to any Gas Pipe (including surface damage without gas escaping) or the discovery of any gas leak. You and/or your workers shall not attempt to repair or modify damaged Gas Pipes. 2.6.19. Damaging a Gas Plant or a Gas Pipe(s) may cause a delay in the completion of the Project as SPPG will need time to investigate and carry out repair work as necessary. Any repair costs may have to be borne by you. 2.6.20. SPPG shall be entitled to ask you to stop work with immediate effect in the event of non-compliance to this LRe. SPPG shall not be liable to you in any way for any losses, claims or damages arising from or in connection with such stop work requests. 2.6.21. You shall comply with any requirements as reasonably prescribed by SPPG in SPPG’s review and endorsement of the relevant method statement and any other documents submitted by you in relation thereto for the Earthworks. 2.7. NCE Submission by Sub-Contractor(s), NCE Extension and Site Meeting 2.7.1. You and/or your representatives shall attend meetings with SPPG officers as and when required. 2.7.2. When working in the vicinity of a GTP or MP Gas Pipe, you shall carry out a site visit jointly with SPPG officers before carrying out any Earthworks specified under the submitted NCE. 2.7.3. In the event that you engage a sub-contractor to carry out any Earthworks within the vicinity of any Gas Pipes, you shall ensure that such sub-contractor submits the appropriate NCE prior to the carrying out of any Earthworks in the vicinity of any Gas Pipes. 2.7.4. If, at any stage of your Project, there is a likelihood that the Earthworks may continue beyond the anticipated completion date and/or beyond the work boundary as declared in the NCE which you have submitted to SPPG, you shall notify SPPG in writing of the new date of completion and/or the new work boundary (as applicable) by submitting a new NCE. 2.7.5. You shall obtain a new SPPG Gas Plan from SPPG prior to submitting the new NCE. Prior to carrying out any Earthworks, you shall consult SPPG to ascertain if there are Page 6 of 9 changes to the gas plans that you possess. In the event there are changes to the gas plans, you shall purchase fresh gas plans from SPPG. 2.8. Powered Mechanical Excavation 2.8.1. You shall engage only a REO to operate a powered mechanical excavator. 2.8.2. You shall ensure that powered mechanical excavation is only used, under the close standing supervision of a full time site supervisor, for the surface layer of hardcore/premix when working near or above any Gas Pipe. 2.8.3. You shall not use a powered mechanical excavator, whether for mechanical excavation or otherwise (irrespective of soil condition), below the surface layer of hard-core/premix when working near or above any Gas Pipe. You shall only use manual excavation with hand tools below the surface layer of hard-core/premix. 2.8.4. You shall not excavate deeper than the PVC warning tape or the top of any Gas Pipe if there is no PVC warning tape. You shall immediately cease all further Earthworks and consult the DPOM for advice on working with the Gas Pipes when exposed Gas Pipes are encountered in the course of carrying out any Earthworks. 2.9. Pressure Grouting Works 2.9.1. You shall ascertain the alignment of Gas Pipes within the grouting influence zone prior to the carrying out of any Earthworks. 2.9.2. You shall use the necessary ground instrumentations to monitor the effect of the grouting works and ensure that adequate protective measures are provided to protect any Gas Pipes within the grouting influence zone. 2.10. Permit-to-Work (“PTW”) and Records 2.10.1. You shall implement a PTW system to monitor and ensure that all Earthworks are properly tracked and controlled if such Earthworks are to be carried out in the vicinity of GTP and MP Gas Pipes. Under the PTW system, such Earthworks shall be approved by the manager of the Project or his authorised deputy. You shall periodically audit the PTW system for its effectiveness. 2.10.2. You shall display prominently and make available the most up to date NCE, SPPG Gas Plans and these requirements at the Worksite where the proposed Earthworks are to be carried out. Page 7 of 9 2.10.3. You shall keep progressive records (Photographs / Movement Chart) of the Earthworks that have been carried out including, but not limited to, work schedules and location of trial holes. 3. Notes: 3.1. These requirements are applicable to all persons who carry out any Earthworks and strict compliance is required, unless otherwise permitted in writing by SPPG. Please consult the relevant SPPG section, if necessary. 3.2. The approximate locations of the Gas Pipes are shown in the SPPG Gas Plan. The respective operating pressure regime of the Gas Pipes is indicated against the Gas Pipelines as shown in the SPPG Gas Plan. The default pressure regime (when there is no indication of pressure regime) is low pressure. Other LP Gas Pipes are indicated as “LPA” and “LPB” in the SPPG Gas Plan. 3.3. In the low pressure distribution network, there are valves, syphons and standpipes which are indicated as “V”, “SY” and “SP” respectively. 3.4. You shall take note of the presence of standpipes and/or valve stems that are encased in a PVC pipe and accessible from surface boxes installed at ground level and not damage such fittings or cover. 3.5. The requirements stated above are not exhaustive. Additional requirements may be issued from time to time by SPPG. These additional requirements, together with the requirements in this letter, shall form the full list of requirements that must be complied with at all times. You are advised to carry out all necessary assessments and take all necessary precautions to prevent damage to any existing Gas Plant and/or Gas Pipe. 3.6. Pursuant to Section 32(3)(a) of the Act, it shall be the duty of the person who commences or carries out, or causes or permits the commencement or carrying out of, any Earthworks to comply with the reasonable requirements of SPPG for the prevention of damage to a Gas Plant or Gas Pipe. Pursuant to Section 32(7) of the Act, any person who contravenes Section 32(3)(a) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding 5 years or both. Further, Section 32A(1) of the Act provides that any person who, removes, destroys or damages any Gas Plant or Gas Pipe which is part of a Gas Pipeline Network owned by, or under the management or control of, SPPG, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1 million or to imprisonment for a term not exceeding 5 years or to both. 3.7. Damaging a Gas Plant or a Gas Pipe may also cause fatalities or severe injuries to personnel as well as damage to property. Page 8 of 9 3.8. Should you require any further clarification, please contact Follow up officer at [●] and/or the respective sections of SPPG as listed in the table below: SPPG Section Telephone Email TPOM 6916 6136/ 6916 6124 gasenquiry@spgroup.com.sg DPOM 6916 5947/ 6916 5908 gasenquiry@spgroup.com.sg ESP 6916 5119 espsection@spgroup.com.sg MEA 6916 5021/ 6916 5022 mea@spgroup.com.sg 24-hour Customer Service Centre 1800 752 1800 - Yours faithfully, [●] for HEAD OF SECTION EARTHWORKS SURVEILLANCE & PATROLLING SECTION As agent for and on behalf of POWERGAS LTD. Page 9 of 9

Appendix 1 CPMS Quarterly Assessment Q2 FY25/26 CPMS Quarter Assessment Q2 FY25/26 (01 Jul 2025 – 30 Sep 2025) Results Q2 FY2526 CPMS Quarter Assessment 20 15 18 13 10 5 4 5 0 0 0 Grade A (≥90) Grade B (80 - 89) Grade C (70 - 79) Grade D (60 - 69) Grade E (50-59) Grade F (0-49) We have completed our second quarter for CPMS assessment based on the contracts that are CPMS applicable rendered to your respective company based on the following four (4) areas: (a) Safety; (b) Quality of Work; (c) Project & Risk Management; and (d) Value Added Services The contractors involved in CPMS with their respective grades are shown as below table. SP Group 2 Kallang Sector, Singapore 349277, www.spgroup.com.sg Appendix 1 CPMS Quarter Assessment Q2 FY25/26 (01 Jul 2025 – 30 Sep 2025) Results The list of the contractors below is arranged in alphabetical order and not in any particular ranking sequence. Contractor Grade CHINA INTERNATIONAL WATER & ELECTRIC CORPORATION (S) PTE LTD CITI CONSTRUCTION & ENGINEERING PTE. LTD. DOSK CONTRACT SERVICES PTE. LTD. HAO DA PTE LTD HUAT BENG ENGINEERING CONSTRUCTION PTE LTD KEN-PAL (S) PTE. LTD. LIH MING CONSTRUCTION PTE. LTD. LONG ZHOU ENGINEERING PTE. LTD. MACBUILD CONSTRUCTION PTE. LTD. PACIFIC CENTRAL TEKNIK PTE LTD POWERCOM ENGINEERING WORKS PTE. LTD. SAM LAIN EQUIPMENT SERVICES PTE LTD SANGEETH CONSTRUCTION PTE LTD SER CHUAN CONSTRUCTION PTE LTD SING TEC DEVELOPMENT PTE. LTD. TAIHAN CABLE & SOLUTION CO., LTD. U GUAN CONSTRUCTION PTE. LTD. WENG GUAN TECHNOLOGY PTE LTD B SP Group 2 Kallang Sector, Singapore 349277, www.spgroup.com.sg Appendix 1 Contractor Grade CHUAN LIM CONSTRUCTION PTE LTD FURUKAWA ELECTRIC ENGINEERING SINGAPORE PTE LTD HANAKO CONSTRUCTION PTE. LTD. HSC PIPELINE ENGINEERING PTE LTD HYNERGY CORPORATION PTE. LTD. ILJIN ELECTRIC CO., LTD SINGAPORE BRANCH JIN CHOON CIVIL ENGINEERING PTE. LTD. LEY CHOON CONSTRUCTIONS AND ENGINEERING PTE LTD MR. BERG PTE. LTD. NECTRIC ENGINEERING PTE. LTD. SIGMA CABLE COMPANY (PRIVATE) LIMITED TECIVIL ENGINEERING PTE. LTD. VISTEK PTE. LTD. C CHIN KUAN ENGINEERING & CONTRACTORS PTE LTD HI POWER PTE. LTD. HYUNDAI ENGINEERING & CONSTRUCTION CO. LTD K.H. LEE ENGINEERING & CONSTRUCTION PTE LTD TEACLY (S) PTE. LTD. D LIANG & HOW CONTRACTOR PTE. LTD. LS CABLE & SYSTEM LTD SINGAPORE BRANCH SL LINK ENGINEERING PTE. LTD. UNITED ASPHALT PTE. LTD. E SP Group 2 Kallang Sector, Singapore 349277, www.spgroup.com.sg Appendix 1 CPMS Quarterly Assessment Q1 FY25/26 CPMS Quarter Assessment Q1 FY25/26 (01 Apr 2025 – 30 Jun 2025) Results Q1 FY2526 CPMS Quarter Assessment 23 25 20 15 10 5 1 8 7 4 1 0 Grade A (≥90) Grade B (80 - 89) Grade C (70 - 79) Grade D (60 - 69) Grade E (50-59) Grade F (0-49) We have completed our first quarter for CPMS assessment based on the contracts that are CPMS applicable rendered to your respective company based on the following four (4) areas: (a) Safety; (b) Quality of Work; (c) Project & Risk Management; and (d) Value Added Services The contractors involved in CPMS with their respective grades are shown as below table. SP Group 2 Kallang Sector, Singapore 349277, www.spgroup.com.sg Appendix 1 CPMS Quarter Assessment Q1 FY25/26 (01 Apr 2025 – 30 Jun 2025) Results The list of the contractors below is arranged in alphabetical order and not in any particular ranking sequence. Contractor Grade HUAT BENG ENGINEERING CONSTRUCTION PTE LTD A AVENUE ENGINEERING PTE LTD CHINA INTERNATIONAL WATER & ELECTRIC CORPORATION (S) PTE LTD CHUAN LIM CONSTRUCTION PTE LTD CITI CONSTRUCTION & ENGINEERING PTE. LTD. FURUKAWA ELECTRIC ENGINEERING SINGAPORE PTE LTD HAO DA PTE LTD HSC PIPELINE ENGINEERING PTE LTD J&CO ENGINEERING PTE. LTD. K.H. LEE ENGINEERING & CONSTRUCTION PTE LTD KEN-PAL (S) PTE. LTD. LEY CHOON CONSTRUCTIONS AND ENGINEERING PTE LTD LIANG & HOW CONTRACTOR PTE. LTD. LIH MING CONSTRUCTION PTE. LTD. LONG ZHOU ENGINEERING PTE. LTD. MACBUILD CONSTRUCTION PTE. LTD. NECTRIC ENGINEERING PTE. LTD. SAM LAIN EQUIPMENT SERVICES PTE LTD SANGEETH CONSTRUCTION PTE LTD SER CHUAN CONSTRUCTION PTE LTD SING TEC DEVELOPMENT PTE. LTD. TECIVIL ENGINEERING PTE. LTD. U GUAN CONSTRUCTION PTE. LTD. YUAN JI ENTERPRISES PTE LTD B SP Group 2 Kallang Sector, Singapore 349277, www.spgroup.com.sg Appendix 1 Contractor Grade DOSK CONTRACT SERVICES PTE. LTD. HANAKO CONSTRUCTION PTE. LTD. LS CABLE & SYSTEM LTD SINGAPORE BRANCH MR. BERG PTE. LTD. SING & SAN CONSTRUCTION PTE LTD SL LINK ENGINEERING PTE. LTD. UNIGLORY CONSTRUCTION PTE LTD VISTEK PTE. LTD. C HI POWER PTE. LTD. HYUNDAI ENGINEERING & CONSTRUCTION CO. LTD ILJIN ELECTRIC CO., LTD SINGAPORE BRANCH POWERCOM ENGINEERING WORKS PTE. LTD. SIGMA CABLE COMPANY (PRIVATE) LIMITED TAIHAN CABLE & SOLUTION CO., LTD. TEACLY (S) PTE. LTD. D CHIN KUAN ENGINEERING & CONTRACTORS PTE LTD JIN CHOON CIVIL ENGINEERING PTE. LTD. UK ENGINEERING & CONSTRUCTION PTE. LTD. UNITED ASPHALT PTE. LTD. E HYNERGY CORPORATION PTE. LTD. F SP Group 2 Kallang Sector, Singapore 349277, www.spgroup.com.sg

Media Release Temasek Cares Extends Its 'Stay Prepared' Initiative To Help Build Community Resilience In Singapore Singapore, Monday 5 May 2014 Temasek Cares is partnering Singapore Power and Singapore Post to extend its "Stay Prepared" initiative by encouraging individuals and families to be prepared for emergencies. Conceived by Temasek Cares with Singapore Power to prompt individuals and families to be prepared well ahead of any emergencies, a total of 1.2 million "Stay Prepared" Starter Kits will be distributed by Singapore Power and Singapore Post to all households in Singapore from 6 to 12 May 2014. Each "Stay Prepared" Starter Kit contains three 3M™ N95 face masks, instructions on how to wear the masks and emergency contact numbers. About 17,000 Starter Kits will also be delivered to charity homes, and another 300,000 Kits have been prepared on standby for needy families in case of severe haze or flu pandemic emergencies. Mr Richard Magnus, Chairman of Temasek Cares, said, “Singapore is a safe city. However, unforeseen events may adversely impact us and our community from time to time. All of us – individuals, families, companies – have to be prepared. For this reason, Temasek Cares wants to help build the resilience of our community, through its "Stay Prepared" initiative. “Temasek Cares is very pleased to partner Singapore Power and Singapore Post for this initiative to provide "Stay Prepared" Starter Kits to every household in Singapore. The Starter Kit includes three N95 masks so that each household can have an initial stock in case of a flu pandemic or severe haze from the forest fires in the region. We hope the Starter Kits will prompt individuals and families to develop their own emergency plans. The Starter Kit with the emergency contact numbers and the N95 masks can be useful additions to their family or personal emergency grab bags.” Mr Magnus added, “The Starter Kits programme is a significant step to fulfill Temasek Cares‟ vision of a resilient Singapore community – one that is ready for the unexpected, responds effectively to crises and recovers quickly from adversity. We will continue to come alongside people and partners in Singapore to create greater awareness of additional ways to be prepared. We believe such community initiatives are a useful way to complement national and individual efforts to keep Singapore safe.” Tan Sri Mohd Hassan Marican, Chairman of Singapore Power, said, “At Singapore Power, it is mission critical to respond to emergencies swiftly, safely and effectively. This readiness enables us to power every household and business in Singapore with world-class reliability, round the clock. We would like to encourage emergency preparedness among the community, so that it becomes second nature to everyone.” Tan Sri Hassan added, “We have mobilised our meter readers and technicians to distribute the "Stay Prepared" Starter Kits. We are running a call centre to address public queries on this effort. In addition, our staff volunteers will be distributing 17,000 starter kits to more than 140 charity homes for the elderly, disabled and other residential facilities . We would like to touch all facets of society in this outreach.” Mr Lim Ho Kee, Chairman of Singapore Post said: “We are happy to be part of this nationwide community effort to help Singapore households stay prepared. Over the next few days, some 1,200 postmen and postwomen will distribute the "Stay Prepared" Starter Kits to every HDB and high-rise household. As a responsible and trusted national postal service provider, SingPost remains committed to deploy our last mile delivery capability and resources to help with such meaningful initiatives.” Singapore Power has set up a hotline where members of the public can get information about the delivery of the "Stay Prepared" Starter Kits. The delivery hotline (Tel: 1800-738-2000) will be in operation from Monday 5 May 2014, to Saturday 24 May 2014, from 8.00 am to 8.00pm daily. If the "Stay Prepared" Starter Kit cannot be delivered to a postal address, residents will receive a delivery advice with information on where they can collect their Starter Kits. The "Stay Prepared" Starter Kits programme and the umbrella "Stay Prepared" initiative are backed by the Temasek Emergency Preparedness Fund, which was established by Temasek Holdings with an endowment of S$40m in March 2014, as part of its 40th anniversary community initiative. More information on the 'Stay Prepared' initiative is available at www.stayprepared.sg. Useful tips on how individuals and families can prepare their own emergency grab bags can be found at www.e101.gov.sg. Health advisory on haze or other health hazards may be found at: www.moh.gov.sg www.moh.gov.sg/haze Weather, air and other climatic or pollution developments may be tracked on www.nea.gov.sg.   Additional Information About the ‘Stay Prepared’ initiative and the Temasek Emergency Preparedness Fund (TEPrep Fund) "Stay Prepared" is a Temasek Cares initiative to help people in Singapore be prepared for emergencies and crises, and build a more resilient community. Programmes under this initiative are supported by the Temasek Emergency Preparedness Fund launched in March 2014, as a Temasek community endowment to mark its 40th anniversary. "Stay Prepared" supports programmes that: Help people in Singapore be ready for a range of emergencies Build longer term capability and capacity of the community in emergency preparedness Provide assistance in emergencies Complement national efforts and foster collaboration with private sector partners, voluntary welfare organisations (VWOs) and community groups to achieve emergency preparedness. The first program under the "Stay Prepared" initiative was with KK Women‟s & Children‟s Hospital to help train staff and volunteers from interested VWOs to support children who have suffered trauma. For more information, please visit www.stayprepared.sg.   About Temasek Cares Temasek Cares CLG Ltd is a Temasek funded non-profit philanthropic organisation (NPPO) that aims to help improve the lives of underprivileged individuals, families and communities in Singapore; and to build the capability and capacity of all people in Singapore to be prepared for emergencies. Set up in 2009 as an Institution of a Public Character, it works in partnership with various voluntary welfare organisations, non-profit organisations, government agencies, Ministries and other institutions to support programmes that contribute to the well-being, dignity, livelihood, and emergency preparedness of its beneficiaries. For more information, please visit www.temasekcares.org.sg. About Singapore Power Singapore Power Limited is a leading energy and utility company in the Asia Pacific. It owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia. The Singapore Power Group is wholly owned by Temasek Holdings (Private) Limited. In Singapore, more than 1.4 million industrial, commercial and residential customers benefit from Singapore Power‟s world class transmission, distribution and market support services. The networks in Singapore are amongst the most reliable and cost effective worldwide. In powering economies and improving quality of life, Singapore Power is committed to initiatives that help communities in need live independently and with dignity. These efforts include the Singapore Power Heartware Fund that reaches out to the needy elderly through a range of social service programmes. For more information, please visit www.singaporepower.com.sg. About Singapore Post Limited Singapore Post Limited (SingPost) is the national postal service provider in Singapore offering trusted communications through domestic and international postal services as well as end-toend integrated mail solutions covering secure data printing, letter-shopping, delivery and mailroom management, among others. As the trusted communications service provider for more than 150 years, SingPost today goes beyond physical postal communications to offer secure digital communications solutions as part of integrated solutions to its customers. With its competencies in mail, logistics and e-commerce, SingPost is able to offer integrated ecommerce logistics solutions tailored to customers‟ needs. Having one of the largest multichannel distribution networks in Singapore, regional operations in 12 countries and access to a global postal network of more than 220 countries/territories, SingPost is also well-positioned to provide end-to-end e-commerce logistics solutions such as warehousing, pick and pack, delivery and returns management for B2B, B2C and B2B4C customers in Singapore and the region. SingPost won the UPU-approved World Mail Award for People Management in June 2013 and was ranked the top postal agency in an Accenture report in March 2013. SingPost also gained international acclaim when it was bestowed the Service Provider of the Year 2012 award by Postal Technology International. SingPost is the only company to win to the Universal Postal Union‟s EMS Cooperative award for its Speedpost courier service every year since 2001. SingPost was listed on the Main Board of the Singapore Exchange in 2003. To learn more about SingPost, please visit www.singpost.com. About 3M 3M captures the spark of new ideas and transforms them into thousands of ingenious products. Our culture of creative collaboration inspires a never-ending stream of powerful technologies that make life better. 3M is the innovation company that never stops inventing. With $31 billion in sales, 3M employs 89,000 people worldwide and has operations in more than 70 countries. 3M Singapore is a wholly owned subsidiary of 3M Company. The company serves a wide range of consumer and industrial markets, which include electronics, health care, transport engineering, chemicals, building and construction, and consumer retail. 3M‟s presence in Singapore includes two manufacturing plants at Woodlands and Tuas, an R&D Center at Woodlands, and a Customer Technical Centre, laboratory and other supply chain and business operations based at Yishun. For more information on 3M, please visit www.3M.com.sg. About Temasek Holdings Temasek celebrates its 40th anniversary this year, with a community initiative endowment of S$40 million for the Temasek Emergency Preparedness Fund (“TEPrep Fund”). This endowment is to be managed by Temasek Cares, a non-profit philanthropic organisation, to support community initiatives for emergency preparedness. Temasek is a Singapore based investor with a portfolio of S$215 billion as at 31 March 2013. Iconic Singapore companies such as Singapore Power, Singapore Airlines, Singapore Telecommunications, PSA and DBS are among the Temasek Portfolio Companies (TPCs). Please visit www.temasek.com.sg to learn more about Temasek.

Media Release Electricity Tariff Revision For The Period From 1 Oct to 31 Dec 2023 Singapore, 29 September 2023 – For the period from 1 October to 31 December 2023, the electricity tariff (before GST) will increase by an average of 3.7% or 0.98 cent per kWh compared with the previous quarter. This is due to higher energy costs compared with the previous quarter. For households, the electricity tariff (before GST) will increase from 27.74 to 28.70 cents per kWh for the period from 1 October to 31 December 2023. The average monthly electricity bill for families living in HDB four-room flats will increase by $3.57 (before GST). *before GST SP Group reviews the electricity tariffs every quarter based on guidelines set by the electricity industry regulator, Energy Market Authority (EMA). Please refer to Appendix 1 for the components of the electricity tariff, Appendix 2 for the tariffs approved by EMA, and Appendix 3 for the average monthly electricity bills for households. Appendix 1 BREAKDOWN OF ELECTRICITY TARIFF 1.  The electricity tariff consists of the following four components: Energy costs (paid to the generation companies): This component is adjusted quarterly to reflect changes in the cost of fuel and power generation. The fuel cost is the cost of imported natural gas, which is tied to oil prices by commercial contracts. The cost of power generation covers mainly the costs of operating the power stations, such as the manpower and maintenance costs, as well as the capital cost of the stations. Network costs (paid to SP Group): This is to recover the cost of transporting electricity through the power grid. Market Support Services Fee (paid to SP Group): This is to recover the costs of billing and meter reading, data management, retail market systems as well as market development initiatives. Market Administration and Power System Operation Fee (paid to Energy Market Company and Power System Operator): This fee is reviewed annually to recover the costs of operating the electricity wholesale market and power system. Q4 2023 TARIFF FOR HOUSEHOLDS (before 8% GST) Appendix 2 ELECTRICITY TARIFFS FROM 1 OCTOBER 2023 Appendix 3 AVERAGE MONTHLY ELECTRICITY BILLS FOR HOUSEHOLDS TARIFF WEF 1 OCTOBER 2023 (before GST)

SPWebsite (without GST) Electricity Tariff (2014 - 2023) Rates are not inclusive of GST. Jul 23 Apr 23 Jan 23 Oct-22 Jul-22 Apr-22 Jan-22 Oct-21 Jul-21 Apr-21 Jan-21 Oct-20 Jul-20 Apr-20 Jan-20 Oct-19 Jul-19 Apr-19 Jan-19 Oct-18 Jul-18 Apr-18 Jan-18 Oct-17 Jul-17 Apr-17 Jan-17 Oct-16 Jul-16 Apr-16 Jan-16 Oct-15 Jul-15 Apr-15 Jan-15 Oct-14 Jul-14 Apr-14 Jan-14 LOW TENSION SUPPLIES, DOMESTIC All units, ¢/kWh                    27.74 27.43 28.95 29.74 30.17 27.94 25.44 24.11 23.38 22.55 20.76 21.43 19.60 23.02 24.24 23.43 24.22 22.79 23.85 24.13 23.65 22.15 21.56 20.30 20.72 21.39 20.20 19.13 19.27 17.68 19.50 20.35 22.41 20.87 23.29 25.28 25.68 25.73 25.65 LOW TENSION SUPPLIES, NON-DOMESTIC All units, ¢/kWh                    27.74 27.43 28.95 29.74 30.17 27.94 25.44 24.11 23.38 22.55 20.76 21.43 19.60 23.02 24.24 23.43 24.22 22.79 23.85 24.13 23.65 22.15 21.56 20.30 20.72 21.39 20.20 19.13 19.27 17.68 19.50 20.35 22.41 20.87 23.29 25.28 25.68 25.73 25.65 HIGH TENSION SMALL (HTS) SUPPLIES $/kW/month               13.44 12.67 11.95 11.95 11.95 10.90 10.90 10.90 10.90 10.90 8.90 8.90 8.90 8.90 8.90 8.90 8.90 8.90 8.58 8.58 8.58 8.58 8.36 8.36 8.36 8.36 8.36 8.36 8.36 8.36 8.15 8.15 8.15 8.15 7.49 7.49 7.49 7.49 7.49 Uncontracted Capacity Charge $/chargeable kW/month               20.16 19.01 17.93 17.93 17.93 16.35 16.35 16.35 16.35 16.35 13.35 13.35 13.35 13.35 13.35 13.35 13.35 13.35 12.87 12.87 12.87 12.87 12.54 12.54 12.54 12.54 12.54 12.54 12.54 12.54 12.23 12.23 12.23 12.23 11.24 11.24 11.24 11.24 11.24 kWh charge, ¢/kWh Peak period (7.00am to 11.00pm) 25.13 24.77 26.37 27.17 27.81 25.71 22.77 21.24 20.44 19.54 17.88 18.63 16.52 20.51 21.76 20.85 21.74 20.15 21.40 21.71 21.27 19.56 18.88 17.47 17.94 18.68 17.27 16.07 16.22 14.50 16.59 17.40 19.72 18.20 21.05 23.22 23.67 23.75 23.67 Off-peak period (11.00pm to 7.00am)               15.15 14.96 15.92 16.69 16.49 14.54 13.77 13.01 12.51 11.85 11.20 11.67 10.55 12.50 13.28 12.71 13.26 12.28 13.09 13.27 12.65 11.77 11.37 10.55 10.84 11.3 10.51 9.84 9.93 8.78 10.08 11.04 12.29 10.72 12.71 14.19 14.40 14.35 14.45 Reactive power Charge ¢/chargeable kVARh               0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 HIGH TENSION LARGE (HTL) SUPPLIES Contracted Capacity Charge $/kW/month                    13.44 12.67 11.95 11.95 11.95 10.90 10.90 10.90 10.90 10.90 8.90 8.90 8.90 8.90 8.90 8.90 8.90 8.90 8.58 8.58 8.58 8.58 8.36 8.36 8.36 8.36 8.36 8.36 8.36 8.36 8.15 8.15 8.15 8.15 7.49 7.49 7.49 7.49 7.49 Uncontracted Capacity Charge $/chargeable kW/month                20.16 19.01 17.93 17.93 17.93 16.35 16.35 16.35 16.35 16.35 13.35 13.35 13.35 13.35 13.35 13.35 13.35 13.35 12.87 12.87 12.87 12.87 12.54 12.54 12.54 12.54 12.54 12.54 12.54 12.54 12.23 12.23 12.23 12.23 11.24 11.24 11.24 11.24 11.24 kWh charge, ¢/kWh Peak period (7.00am to 11.00pm) 24.91 24.55 26.15 26.95 27.59 25.49 22.55 21.02 20.22 19.32 17.66 18.41 16.30 20.29 21.54 20.63 21.52 19.93 21.18 21.49 21.05 19.34 18.66 17.25 17.72 18.46 17.05 15.85 16.00 14.28 16.37 17.18 19.50 17.98 20.83 23.00 23.45 23.53 23.45 Off-peak period (11.00pm to 7.00am)        15.14 14.95 15.91 16.68 16.48 14.53 13.76 13.00 12.50 11.84 11.19 11.66 10.54 12.49 13.27 12.70 13.25 12.27 13.08 13.26 12.64 11.76 11.36 10.54 10.83 11.29 10.50 9.83 9.92 8.77 10.07 11.03 12.28 10.71 12.70 14.18 14.39 14.34 14.44 Reactive power Charge ¢/chargeable kVARh                0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 EXTRA HIGH TENSION (EHT) SUPPLIES Contracted Capacity Charge 7.54 7.54 7.54 7.54 7.38 7.38 7.38 7.38 6.90 6.90 6.90 6.90 6.90 $/kW/month                    11.06 10.56 10.09 10.09 10.09 9.33 9.33 9.33 9.33 9.33 7.87 7.87 7.87 7.87 7.87 7.87 7.87 7.87 7.68 7.68 7.68 7.68 7.54 7.54 7.54 7.54 Uncontracted Capacity Charge $/chargeable kW/month               16.59 15.84 15.14 15.14 15.14 14.00 14.00 14.00 14.00 14.00 11.81 11.81 11.81 11.81 11.81 11.81 11.81 11.81 11.52 11.52 11.52 11.52 11.31 11.31 11.31 11.31 11.31 11.31 11.31 11.31 11.07 11.07 11.07 11.07 10.35 10.35 10.35 10.35 10.35 kWh charge, ¢/kWh                                Peak period (7.00am to 11.00pm) 23.96 23.61 25.16 25.96 26.57 24.48 21.61 20.11 19.31 18.42 16.81 17.54 15.47 19.39 20.62 19.72 20.6 19.03 20.26 20.57 20.12 18.44 17.77 16.38 16.84 17.57 16.18 15.01 15.16 13.45 15.52 16.33 18.62 17.1 19.91 22.06 22.50 22.58 22.50 Off-peak period (11.00pm to 7.00am)           15.04 14.85 15.79 16.56 16.35 14.40 13.65 12.90 12.40 11.74 11.11 11.57 10.46 12.39 13.16 12.6 13.15 12.17 12.97 13.15 12.54 11.66 11.26 10.45 10.74 11.19 10.41 9.74 9.83 8.69 9.99 10.94 12.18 10.62 12.60 14.08 14.28 14.23 14.34 Reactive power Charge ¢/chargeable kVARh               0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 SPWebsite (with GST) Electricity Tariff (2014 - 2023) Rates are inclusive of GST. Jul-23 Apr-23 Jan-23 Oct-22 Jul-22 Apr-22 Jan-22 Oct-21 Jul-21 Apr-21 Jan-21 Oct-20 Jul-20 Apr-20 Jan-20 Oct-19 Jul-19 Apr-19 Jan-19 Oct-18 Jul-18 Apr-18 Jan-18 Oct-17 Jul-17 Apr-17 Jan-17 Oct-16 Jul-16 Apr-16 Jan-16 Oct-15 Jul-15 Apr-15 Jan-15 Oct-14 Jul-14 Apr-14 Jan-14 LOW TENSION SUPPLIES, DOMESTIC All units, ¢/kWh                    29.96 29.62 31.27 31.82 32.28 29.90 27.22 25.80 25.02 24.13 22.21 22.93 20.97 24.63 25.94 25.07 25.92 24.39 25.52 25.82 25.31 23.70 23.07 21.72 22.17 22.89 21.61 20.47 20.62 18.92 20.87 21.77 23.98 22.33 24.92 27.05 27.48 27.53 27.45 LOW TENSION SUPPLIES, NON-DOMESTIC All units, ¢/kWh                    29.96 29.62 31.27 31.82 32.28 29.90 27.22 25.80 25.02 24.13 22.21 22.93 20.97 24.63 25.94 25.07 25.92 24.39 25.52 25.82 25.31 23.70 23.07 21.72 22.17 22.89 21.61 20.47 20.62 18.92 20.87 21.77 23.98 22.33 24.92 27.05 27.48 27.53 27.45 HIGH TENSION SMALL (HTS) SUPPLIES $/kW/month               14.52 13.68 12.91 12.79 12.79 11.66 11.66 11.66 11.66 11.66 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.18 9.18 9.18 9.18 8.95 8.95 8.95 8.95 8.95 8.95 8.95 8.95 8.72 8.72 8.72 8.72 8.01 8.01 8.01 8.01 8.01 Uncontracted Capacity Charge $/chargeable kW/month               21.77 20.53 19.36 19.19 19.19 17.49 17.49 17.49 17.49 17.49 14.28 14.28 14.28 14.28 14.28 14.28 14.28 14.28 13.77 13.77 13.77 13.77 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.09 13.09 13.09 13.09 12.03 12.03 12.03 12.03 12.03 kWh charge, ¢/kWh Peak period (7.00am to 11.00pm) 27.14 26.75 28.48 29.07 29.76 27.51 24.36 22.73 21.87 20.91 19.13 19.93 17.68 21.95 23.28 22.31 23.26 21.56 22.90 23.23 22.76 20.93 20.20 18.69 19.20 19.99 18.48 17.19 17.36 15.52 17.75 18.62 21.10 19.47 22.52 24.85 25.33 25.41 25.33 Off-peak period (11.00pm to 7.00am)               16.36 16.16 17.19 17.86 17.64 15.56 14.73 13.92 13.39 12.68 11.98 12.49 11.29 13.38 14.21 13.60 14.28 13.14 14.01 14.20 13.54 12.59 12.17 11.29 11.60 12.09 11.25 10.53 10.63 9.39 10.79 11.81 13.15 11.47 13.60 15.18 15.41 15.35 15.46 Reactive power Charge ¢/chargeable kVARh               0.64 0.64 0.64 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 HIGH TENSION LARGE (HTL) SUPPLIES Contracted Capacity Charge $/kW/month                    14.52 13.68 12.91 12.79 12.79 11.66 11.66 11.66 11.66 11.66 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.18 9.18 9.18 9.18 8.95 8.95 8.95 8.95 8.95 8.95 8.95 8.95 8.72 8.72 8.72 8.72 8.01 8.01 8.01 8.01 8.01 Uncontracted Capacity Charge $/chargeable kW/month                21.77 20.53 19.36 19.19 19.19 17.49 17.49 17.49 17.49 17.49 14.28 14.28 14.28 14.28 14.28 14.28 14.28 14.28 13.77 13.77 13.77 13.77 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.09 13.09 13.09 13.09 12.03 12.03 12.03 12.03 12.03 kWh charge, ¢/kWh Peak period (7.00am to 11.00pm) 26.90 26.51 28.24 28.84 29.52 27.27 24.13 22.49 21.64 20.67 18.90 19.70 17.44 21.71 23.05 22.07 23.03 21.33 22.66 22.99 22.52 20.69 19.97 18.46 18.96 19.75 18.24 16.96 17.12 15.28 17.52 18.38 20.87 19.24 22.29 24.61 25.09 25.18 25.09 Off-peak period (11.00pm to 7.00am)        16.35 16.15 17.18 17.85 17.63 15.55 14.72 13.91 13.38 12.67 11.97 12.48 11.28 13.36 14.20 13.59 14.18 13.13 14.00 14.19 13.52 12.58 12.16 11.28 11.59 12.08 11.24 10.52 10.61 9.38 10.77 11.80 13.14 11.46 13.59 15.17 15.40 15.34 15.45 Reactive power Charge ¢/chargeable kVARh                0.64 0.64 0.64 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 EXTRA HIGH TENSION (EHT) SUPPLIES Contracted Capacity Charge $/kW/month                    11.94 11.40 10.90 10.80 10.80 9.98 9.98 9.98 9.98 9.98 8.42 8.42 8.42 8.42 8.42 8.42 8.42 8.42 8.22 8.22 8.22 8.22 8.07 8.07 8.07 8.07 8.07 8.07 8.07 8.07 7.90 7.90 7.90 7.90 7.38 7.38 7.38 7.38 7.38 Uncontracted Capacity Charge $/chargeable kW/month               17.92 17.11 16.35 16.20 16.20 14.98 14.98 14.98 14.98 14.98 12.64 12.64 12.64 12.64 12.64 12.64 12.64 12.64 12.33 12.33 12.33 12.33 12.10 12.10 12.10 12.10 12.10 12.10 12.10 12.10 11.84 11.84 11.84 11.84 11.07 11.07 11.07 11.07 11.07 kWh charge, ¢/kWh                                Peak period (7.00am to 11.00pm) 25.88 25.50 27.17 27.78 28.43 26.19 23.12 21.52 20.66 19.71 17.99 18.77 16.55 20.75 22.06 21.10 22.04 20.36 21.68 22.01 21.53 19.73 19.01 17.53 18.02 18.80 17.31 16.06 16.22 14.39 16.61 17.47 19.92 18.30 21.30 23.60 24.08 24.16 24.08 Off-peak period (11.00pm to 7.00am)           16.24 16.04 17.05 17.72 17.49 15.41 14.61 13.80 13.27 12.56 11.89 12.38 11.19 13.26 14.08 13.48 14.07 13.02 13.88 14.07 13.42 12.48 12.05 11.18 11.49 11.97 11.14 10.42 10.52 9.30 10.69 11.71 13.03 11.36 13.48 15.07 15.28 15.23 15.34 Reactive power Charge ¢/chargeable kVARh               0.52 0.52 0.52 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51 0.51

Consumption_Elect Average consumption of Electricity (kWh) Premises Types Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 HDB 1-Room 132 150 152 149 140 151 148 139 142 128 127 121 HDB 2-Room 173 199 199 195 183 198 192 183 186 166 168 161 HDB 3-Room 250 292 285 277 264 283 277 266 266 243 238 231 HDB 4-Room 342 398 396 383 360 385 381 363 365 338 327 320 HDB 5-Room 399 463 466 448 416 447 446 427 429 397 379 374 HDB Executive 489 575 568 544 515 546 548 520 523 481 462 458 Apartment 486 578 573 543 500 513 539 523 519 486 446 419 Terrace 821 957 900 872 838 847 885 851 851 785 747 744 Semi-Detached 1,109 1,254 1,224 1,170 1,128 1,126 1,168 1,137 1,141 1,056 1,000 974 Bungalow 2,146 2,432 2,360 2,266 2,220 2,121 2,347 2,192 2,190 2,012 2,004 1,872 Note: The figures exclude electricity consumption for PAYU customers and customers who are not purchasing electricity at the regulated tariff.

Consumption_Elect Average consumption of Electricity (kWh) Premises Types Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 HDB 1-Room 151 148 139 142 128 127 121 119 128 136 150 143 150 136 136 144 127 124 119 118 135 139 144 139 HDB 2-Room 198 192 183 186 166 168 161 156 169 181 195 190 195 177 177 188 164 165 158 158 181 185 192 186 HDB 3-Room 283 277 266 266 243 238 231 231 250 265 284 273 280 257 259 271 242 239 231 234 264 267 281 268 HDB 4-Room 385 381 363 365 338 327 320 309 341 363 390 381 388 358 355 377 334 330 322 325 365 369 388 369 HDB 5-Room 447 446 427 429 397 379 374 359 399 425 457 450 459 423 417 444 392 386 378 383 430 435 459 434 HDB Executive 546 548 520 523 481 462 458 445 495 522 562 554 562 520 513 546 478 472 462 474 525 528 557 528 Apartment 513 539 523 519 486 446 419 417 476 516 548 536 541 513 501 538 500 451 429 450 509 544 559 521 Terrace 847 885 851 851 785 747 744 714 775 823 881 848 866 817 818 836 785 734 735 722 788 830 870 827 Semi-Detached 1,126 1,168 1,137 1,141 1,056 1,000 974 960 1,031 1,080 1,173 1,123 1,121 1,072 1,056 1,107 1,016 951 940 939 1,007 1,073 1,132 1,078 Bungalow 2,121 2,347 2,192 2,190 2,012 2,004 1,872 1,904 2,016 2,154 2,244 2,175 2,168 2,190 2,074 2,202 2,040 1,950 1,863 1,918 2,054 2,212 2,279 2,164 Note: The figures exclude electricity consumption for PAYU customers and customers who are not purchasing electricity at the regulated tariff.

Singapore Institute of Power and Gas Installation and Commissioning of Distribution Switchgear Course Code: ESG08 SFC-Eligible | Course Reference Number: TGS-2022012387 COURSE OBJECTIVES Upon completion of this course, participants will be able to: • Describe the construction of a Distribution Switchgear • Explain the necessary safety measures to be put in place during installation and commissioning of Distribution Switchgear • Describe the process of installing and commissioning of Distribution Switchgear • Perform the various tests and checks for Distribution Switchgear MAIN CONTENTS Theory • Safety aspects on installation and commissioning of Distribution Switchgear • Construction of a Switchgear • Functions of auxiliary equipment • Operation of relays and setting of relays • Switchgear Panel naming convention • Pre-installation procedure for Switchgear and auxiliary equipment on site • Installation of Switchgear and auxiliary equipment on site • Pre-commission Tests for Distribution Switchgear • Commissioning test and check for Distribution Switchgear • Project closing Practical • Perform pre-commission test for Distribution Switchgear • Perform Switchgear operation • Preparation of commissioning diagram METHODOLOGY Lecture and hands-on training TARGET AUDIENCE Engineering and technical staff involved in the installation, commissioning, operation and maintenance of distribution switchgear COURSE DETAILS Duration : 10.5 hours Mode of Delivery : Face-to-face Certification : SIPG Certificate of Completion PDU by PE Board : 9 Additional Requirement/s : Personal Protection Equipment (PPE) must be worn during practical session. PPE includes: • Safety Shoes • Safety Helmet • Fire Retardant Clothing (FRC) Singapore Institute of Power and Gas Pte Ltd UEN: 201427065Z 2 Kallang Sector, Singapore 349277 Ver 3.1_0922 Singapore Institute of Power and Gas COURSE FEES Full Course Fee : S$1,050 (before GST) For Singapore Citizens/PR/LTVP+* : S$315 (before GST) For Singapore Citizens (40 years old and above) ADDITIONAL REMARKS : S$105 (before GST) • Trainee must attain at least 75% attendance rate and pass the assessment to receive Certificate of Completion and funding grant (if applicable). • Subsidy of up to 70% is applicable for Singapore Citizens, Permanent Residents or Long-Term Visitor Pass Plus (LTVP+) Holders, subject to funding agency’s approval. • Enhanced subsidy of up to 90% is applicable for Singapore Citizens aged 40 years and above, subject to funding agency’s approval. Note that GST payable will be computed from fee after 70% funding. • Professional Development Unit (PDU) is applicable for Professional Engineers registered under the Professional Engineers (PE) Board only. • All published fees are subject to prevailing GST. CONTACT US For more information, please contact SIPG at +65 6916 7930 or email training-institute@spgroup.com.sg. OTHER SIPG COURSES For more courses, visit our website at: https://www.spgroup.com.sg/about-us/training or Scan the QR code below: Singapore Institute of Power and Gas Pte Ltd UEN: 201427065Z 2 Kallang Sector, Singapore 349277 Ver 3.1_0922

Consumption_Elect Average consumption of Electricity (kWh) Premises Types Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 HDB 1-Room 139 142 128 127 121 119 128 136 150 143 150 136 136 144 127 124 119 118 135 139 144 139 146 148 HDB 2-Room 183 186 166 168 161 156 169 181 195 190 195 177 177 188 164 165 158 158 181 185 192 186 195 200 HDB 3-Room 266 266 243 238 231 231 250 265 284 273 280 257 259 271 242 239 231 234 264 267 281 268 285 288 HDB 4-Room 363 365 338 327 320 309 341 363 390 381 388 358 355 377 334 330 322 325 365 369 388 369 391 401 HDB 5-Room 427 429 397 379 374 359 399 425 457 450 459 423 417 444 392 386 378 383 430 435 459 434 461 474 HDB Executive 520 523 481 462 458 445 495 522 562 554 562 520 513 546 478 472 462 474 525 528 557 528 563 579 Apartment 523 519 486 446 419 417 476 516 548 536 541 513 501 538 500 451 429 450 509 544 559 521 546 595 Terrace 851 851 785 747 744 714 775 823 881 848 866 817 818 836 785 734 735 722 788 830 870 827 844 884 Semi-Detached 1,137 1,141 1,056 1,000 974 960 1,031 1,080 1,173 1,123 1,121 1,072 1,056 1,107 1,016 951 940 939 1,007 1,073 1,132 1,078 1,070 1,145 Bungalow 2,192 2,190 2,012 2,004 1,872 1,904 2,016 2,154 2,244 2,175 2,168 2,190 2,074 2,202 2,040 1,950 1,863 1,918 2,054 2,212 2,279 2,164 2,162 2,383 Note: The figures exclude electricity consumption for PAYU customers and customers who are not purchasing electricity at the regulated tariff.

Consumption_Elect Average consumption of Electricity (kWh) Premises Types Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 HDB 1-Room 143 146 144 135 126 126 132 150 152 149 140 151 HDB 2-Room 189 190 188 176 164 167 173 199 199 195 183 198 HDB 3-Room 269 274 269 247 236 241 250 292 285 277 264 283 HDB 4-Room 367 374 370 342 321 330 342 398 396 383 360 385 HDB 5-Room 427 437 436 401 367 381 399 463 466 448 416 447 HDB Executive 528 541 530 478 456 474 489 575 568 544 515 546 Apartment 515 537 541 483 430 435 486 578 573 543 500 513 Terrace 859 890 881 804 740 794 821 957 900 872 838 847 Semi-Detached 1,150 1,187 1,174 1,065 1,019 1,038 1,109 1,254 1,224 1,170 1,128 1,126 Bungalow 2,298 2,308 2,358 2,075 2,106 1,951 2,146 2,432 2,360 2,266 2,220 2,121 Note: The figures exclude electricity consumption for PAYU customers and customers who are not purchasing electricity at the regulated tariff.

SP Energy HubAnnual ReportReliabilitySustainabilityInnovation Electricity’s First Responders RELIABILITY SP Group’s Principal Engineer Jerome Choong is one of the first at the scene should an electricity disruption happen. Five-year-old Jovan thinks his father Jerome Choong, an SP Group Principal Engineer, is a cross between an electrician and a magician. “He thinks that when people have no electricity, they call me, and I make it appear,” laughs the 35-year-old, who takes care of the electricity distribution network in the north zone, which spans the area stretching from Boon Lay to Punggol. “Jovan used to get annoyed when I left abruptly during family gatherings. Now, he is proud of what I do,” says Jerome who also has a two-year-old son. Principal Engineer Jerome Choong (right) and son Jovan Jerome has been with SP for seven years and leads a unit of 30. He is one of the first on site when an outage happens. His priority is to work with his unit to quickly and safely get supply back up. While prevention is key and every effort is made to keep trouble at bay, it is important to be prepared for the unexpected. It helps the team spring into action without delay should something happen. His car boot is testimony to his commitment – half holds a stroller for his two-year-old, and the other half, the tools he needs, from cable insulation testing equipment to multi-meters. His iPad stores documents, schematic drawings and operations manuals. His network of fellow engineers is a Whatsapp message away. Always on the alert, Jerome forms his recovery plan as he drives to the site where an incident has occurred, helped by information on the location, number of customers affected, and the substations and breakers he should zoom in on. This is provided by the Electricity Service Centre and Distribution Control Centre, which he works closely with. Principal Engineer Jerome Choong checking on switchgears in a substation. For every incident, he and his colleagues investigate what went down, isolate and test the equipment, and start on repairs or replacements. “We explore every what-if scenario,” Jerome says, “and have back-ups to the back-up plans.” While the control centre can remotely resolve some issues, manual intervention by Jerome’s team is sometimes required, and checks are always done before supply sources are switched to ensure safety. Replacement parts are also tested before being connected and energised. Only then is the power transferred back on to customers. Work does not end when an issue is resolved, and even a late-night activation often sees him back on duty the next morning. In the day, Jerome oversees the maintenance of the switchgears and transformers of the high-voltage network. He also regularly engages commercial and industrial customers with higher electricity consumption requirements. The job keeps him on his toes, he says, as does the need to evolve with his role. The rise of renewables, for one, has meant having to integrate non-traditional sources of electricity onto the grid. “I love solving problems, and we seldom encounter two situations that are exactly the same. We’re constantly learning, and re-learning. That’s what keeps the job interesting.” (From left) Principal Engineer Jerome Choong with Service Technicians Hasly Bin Hashim and Mohammad Iskandar bin Sapari attending to an incident at an affected substation. (From left) Principal Engineer Jerome Choong and Senior Engineer Ren Zhiping using an equipment to diagnose where an issue lies. (From right) Principal Engineer Jerome Choong supervising Technical Officer Arif Tham during the checking of a Low Voltage (LV) board, to maintain substation equipment. — 29 May 2019 TAGS PEOPLE OF SPRELIABILITY YOU MIGHT BE INTERESTED TO READ Ground feedback, digital tools: How she helps 8,000 workers end their day safely Faster repairs, fewer disruptions: Meet the innovative teams using smart tech to keep your piped gas supply flowing Engineer, 27, shares how she is undaunted by male-dominated energy industry & climbs the ranks