1Net sales from goods and services

Revenue from energy business and revenues from services and other usual business activities are recognised in the income statement when delivery of goods or services has been performed.

In particular, significantly higher average energy prices during 2022 led to an increase in revenue from energy business. A breakdown of net revenues by Repower business segment is presented in the note on segment reporting (see Note 37). The costs of energy procurement developed analogously (see Note 6).

Repower made a successful bid in the Swissgrid auction for the hydropower reserve and will retain a specific volume of water to keep energy production of 24 GWh on standby until May 2023. Repower will receive a retention fee for the period from December 2022 to May 2023. This retention fee is recognised proportionally to the time elapsed as revenue from energy business.

Long-term contracts are recognised in accordance with the percentage of completion method. Revenues from services and other usual business activities contain revenues of CHF 2,690 thousand (prior year: CHF 6,363 thousand) from long-term contracts in the Market Switzerland segment.