Estimation uncertainties

Fixed assets

On each balance sheet date, property, plant and equipment are tested for indications of impairment. If indications of impairment are identified, the recoverable amount is calculated in accordance with the provisions of IAS 36 and, if necessary, an impairment is recognised. Estimates of the useful life and residual value of the asset are reviewed annually based on technical and economic developments, and revised as necessary. Changes to laws or ordinances, particularly relating to the environment and energy, could lead to significant changes in useful lives and thus depreciation periods or value adjustments to parts of assets.

In 2008 the Swiss Electricity Supply Act (StromVG) and the Swiss Electricity Supply Ordinance (StromVV) came into force. Under the StromVG the high-voltage grid (220/380kV) must be transferred to the national grid company (swissgrid) within 5 years. Repower AG's high-voltage networks have been entirely incorporated into Repower Transportnetz AG. As no reliable estimate can currently be made of the value swissgrid will accord the high-voltage network on transfer, the future transfer value is subject to a high degree of uncertainty.

Receivables and liabilities

Trade accounts receivable are measured by applying individual and lump-sum value adjustments to the non-adjusted positions based on their maturity structure and on historical experience. Effective losses on receivables may deviate from this estimate.

In individual countries, invoicing and payment is carried out by the national grid operator and any rulings of the regulator may involve a delay of more than a year. The best possible estimates have been made where indicated. Definitive invoicing, payments and rulings may vary from these estimates and affect the overall results.


Provisions are recognised taking into account the best possible estimate of the amount and date of the probable cash outflow.

In Italy, Repower is involved in an investigation by the “Autorità Garante della Concorrenza e del Mercato” (the Italian anti-trust authority) into matters relating to the use of gas-fired combined-cycle power plants. Repower is aiding the authority to the best of its ability in order to clarify the situation as quickly as possible. Based on the current assessment, Repower has no reason to take into account provisions or other obligations in this context.