Customers’ contributions Contributions received from customers in the form of cash and/or PPE in respect of capital contributions for the construction of assets, used to connect the customers to a network or to provide them with the service, is included in the revenue. The customers’ contributions are viewed as indirectly related to the promise of providing supply of electricity to the customers. Supply of electricity and customers’ contributions are not distinct because the customers cannot benefit from these two services on their own. The connection infrastructures are to fulfil the obligation to supply electricity to the customers. Both the supply of electricity and customers’ contributions are substantially the same, and have the same pattern of transfer to the customers. Therefore, connection and the supply of electricity are one performanceobligation. It is considered as part of the transaction price for the overall service provided to the customers and is recognised over time. The customers’ contributions are deferred and recognised over the period the constructed assets are used to provide electricity to the customers. The contributions are recognised as contract liabilities and amortised over 20 years, being the estimated average useful life of the assets. (e) Insurance contract revenue Insurance revenue is recognised based on the expected premium receipts and the passage of time over the coverage period of a group of contracts unless the release of risk differs significantly from the passage of time, in which case insurance revenue is recognised based on the release of risk. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 282 31 REVENUE (CONTINUED) Disaggregation of revenue for the Group and the Company are categorised as follows: Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Sales: - Electricity* 51,713.2 49,702.3 48,223.3 46,650.4 - Goods and services 731.1 621.8 0 0 Construction contracts 151.1 155.1 0 0