1Net sales

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.

Declining energy prices have a generally curbing effect on net sales and energy procurement costs (see Note 6). Unlike the Market Italy segment, the Market Switzerland segment’s net sales from goods and services were up slightly (see Note 37). Repower’s hedging strategy of selling the majority of the electricity generated at its own power plants at hedged prices thus protected margins at its generation assets from the slump in prices.

Long-term contracts are recognised in accordance with the percentage of completion method. Revenues from services and other usual business activities contain no revenues from long-term contracts (prior year: CHF 2,690 thousand in the Market Switzerland segment).