27 Provisions

CHF thousand

Litigation and court proceedings

Dismantling provisions

Provisions for onerous contracts

Severance pay

Other provisions

Total

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Carrying value at 1 January 2020

955

4,618

-

3,871

2,429

11,873

Additions

-

1,037

24,124

561

1,105

26,827

Additions from changes in consolidation

-

714

-

-

-

714

Utilisations

-

-

–223

–281

–52

–556

Reversals

-

–100

-

-

–96

–196

Interest

-

76

150

-

-

226

Reclassifications

-

10

-

-

–10

-

Effect of currency translation

–5

–12

29

–16

–10

–14

Carrying value at 31 December 2020

950

6,343

24,080

4,135

3,366

38,874

 

 

 

 

 

 

 

Non-current Provisions

 

 

 

 

 

 

Carrying value at 31 December 2019

955

4,618

-

3,871

1,588

11,032

Carrying value at 31 December 2020

950

6,030

17,378

4,135

2,572

31,065

 

 

 

 

 

 

 

Current provisions

 

 

 

 

 

 

Carrying value at 31 December 2019

-

-

-

-

841

841

Carrying value at 31 December 2020

-

313

6,702

-

794

7,809

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 regarding the relevant contractual prices and expected procurement or sales prices.

In the 2020 financial year additions in provisions totalling CHF 24,124 thousand were recognised under energy procurement for identifiable losses on procurement contracts. Of this, CHF 16,469 thousand and CHF 4,533 thousand fall to procurement contracts for electricity and guarantees of origin respectively in the “Market Switzerland” segment, and CHF 3,122 thousand to procurement contracts for gas transport capacity in the “Market Italy” segment.

The provisions were calculated on the basis of risk-adjusted interest rates of between 6.8 and 14.2 per cent.

The provision that existed on 1 January 2019 was reversed in full the prior year via energy procurement in the “Market Switzerland” segment.

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 2020 were recognised under tangible assets.

Other provisions

In 2020 provisions of CHF 763 thousand were recognised for expected repayments of investment contributions. Other provisions still include severance pay paid to sales agents in Italy amounting to CHF 1,348 thousand.

In 2019 a supplier of wind power equipment was unable to meet its commitment (see Note 15), delaying the construction of a Repower AG wind power installation 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.

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