27 Provisions

 

Litigation and court proceedings

Dismantling provisions

Provisions for onerous contracts

Severance pay

Other provisions

Total

CHF thousand

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying value at 1 January 2018

796

2,926

9,978

3,692

2,404

19,796

Additions

231

-

-

588

391

1,210

Additions from changes in consolidation

11

1,665

-

-

-

1,676

Utilisations

-

-

-

–275

–92

–367

Reversals

-

-

–5,954

–217

–951

–7,122

Interest

-

39

1,178

-

-

1,217

Effect of currency translation

–35

–98

-

–139

–73

–345

Carrying value at 31 December 2018

1,003

4,532

5,202

3,649

1,679

16,065

 

 

 

 

 

 

 

Carrying value at 1 January 2019

1,003

4,532

5,202

3,649

1,679

16,065

Additions

-

159

-

553

1,233

1,945

Utilisations

–11

-

-

–188

–11

–210

Reversals

-

-

–5,900

-

–390

–6,290

Interest

-

77

698

-

-

775

Effect of currency translation

–37

–150

-

–143

–82

–412

Carrying value at 31 December 2019

955

4,618

-

3,871

2,429

11,873

 

 

 

 

 

 

 

Non-current Provisions

 

 

 

 

 

 

Carrying value at 31 December 2018

1,003

4,532

5,202

3,649

1,647

16,033

Carrying value at 31 December 2019

955

4,618

-

3,871

1,588

11,032

 

 

 

 

 

 

 

Current provisions

 

 

 

 

 

 

Carrying value at 31 December 2018

-

-

-

-

32

32

Carrying value at 31 December 2019

-

-

-

-

841

841

PROVISIONS FOR ONEROUS CONTRACTS

The decision on whether there is a threat of loss on a long-term sales or procurement contract and the resulting recognition of a provision essentially depends on the situation of the relevant contractual prices and expected procurement or sales prices. In 2019 the entire provision that existed at the end of the prior year was released under energy procurement in the Market Switzerland segment because there was no longer a provisioning requirement on the 31 December 2019 cut-off date.

SEVERANCE PAY

When an employment relationship is terminated in Italy, the employee is entitled to severance pay corresponding to almost one month’s pay for each year of employment (see Note 34).

DISMANTLING PROVISIONS

The dismantling provisions category comprises various provisions for the dismantling of operating installations. Taken individually they are immaterial. Additions in 2019 were recognised under tangible assets.

OTHER PROVISIONS

A supplier of wind power equipment was unable to meet its commitment (see Note 15), delaying the construction of a Repower AG wind power plant for which a minimum feed-in tariff had already been agreed. Given the threat of a penalty resulting from the delay in the commencement of production, a provision of CHF 818 thousand was made.