Ann: Appendix 4C - quarterly, page-18

LPE have indicated operationally cash flow positive at 100GWh under management. The 100GWh under management is probably going to be exceeded in the April update due in a few days.
What exactly does operationally cash flow positive mean ?
I take it to be where profit on sales exceeds all the running costs of the company for that month. Not actual receipts and actual costs as these are in lead for costs and lag for receipts generally. Never the less by the time all bills incurred by LPE for the month are paid and the customers have paid for the power used in that month, there is a profit made.



Thinking on the recent wholesale price rises and its potential impact on margins. It appears LPEs business model is mostly unaffected by these  fluctuations as they pass on the terms of supply they receive in the REA for each site "substantially the same terms as the REA"
LPEs risk lies in correctly estimating consumption and hedging to cover it.