upon completion of remedial work in August 2020, management would operate the plant at its full capacity (600  MWH per hour) In evaluating the management approach, the auditors indicated that decision to determine Morupule B Power Station  as a Cash Generating Unit (CGU) was not appropriate because  it could not generate cash flows on its own without the involvement of transmission and distribution network. Further, the  auditors noted that there was no active market for the output of  the plant. In the impairment assessment performed by management, as noted by auditors, the gross inflows were  considered as the income earned from sales of electricity to end  customers. In order to earn that income, the Corporation should  have a transmission and distribution infrastructure and to spend  on transmission and distribution costs. In conclusion, the auditors were of the view that the CGU for  impairment assessment was Generation, Transmission and Distribution assets group of the Corporation and that the revised  carrying value of the same CGU was P15.21 billion. Revised  calculations resulted in a value-in-use of P18.4 billion which was  still above the carrying value of Generation, Transmission and  Distribution assets group.  Cost estimations – Cost estimation for 2018/19 year was  consistent with approved budget. For subsequent periods, the  increase was estimated at a flat rate of 5% - 7%. The view of  the auditors was that management had not considered the  impact of fixed and capital charges associated with coal  purchases.  Tariff rate of thebe 104 and 10% increment thereafter – The  auditors considered that 10% annual increment was too  aggressive.  System loss at 10% - The auditors consider that the expected  system losses % was too low as compared to actual performance over the past few years where the % loss was in  the range of 14%-15%.  Internal usage at 5% - This was lower than that used in the last  year. Further, average internal usage of past 4 years was 12% 153 