27Provisions
|
CHF thousand |
Litigation and court proceedings |
Dismantling provisions |
Provisions for onerous contracts |
Severance pay |
Other provisions |
Total |
|
|
|
|
|
|
|
|
|
Carrying value at 1 January 2022 |
909 |
6,926 |
20,792 |
4,377 |
6,794 |
39,798 |
|
Additions |
- |
162 |
- |
842 |
327 |
1,331 |
|
Utilisations |
- |
–150 |
–628 |
–357 |
–884 |
–2,019 |
|
Reversals |
–884 |
–352 |
–17,883 |
- |
–1,936 |
–21,055 |
|
Interest |
- |
45 |
2,011 |
- |
- |
2,056 |
|
Effect of currency translation |
–25 |
–309 |
–166 |
–215 |
–220 |
–935 |
|
Carrying value at 31 December 2022 |
- |
6,322 |
4,126 |
4,647 |
4,081 |
19,176 |
|
|
|
|
|
|
|
|
|
Carrying value at 1 January 2023 |
- |
6,322 |
4,126 |
4,647 |
4,081 |
19,176 |
|
Additions |
- |
5,287 |
- |
577 |
464 |
6,328 |
|
Utilisations |
- |
–85 |
–188 |
–169 |
–1,054 |
–1,496 |
|
Reversals |
- |
–1,127 |
–1,018 |
- |
–1 |
–2,146 |
|
Interest |
- |
188 |
673 |
- |
- |
861 |
|
Effect of currency translation |
- |
–433 |
–190 |
–296 |
–154 |
–1,073 |
|
Carrying value at 31 December 2023 |
- |
10,152 |
3,403 |
4,759 |
3,336 |
21,650 |
|
|
|
|
|
|
|
|
|
Non-current provisions |
|
|
|
|
|
|
|
Carrying value at 31 December 2022 |
- |
6,202 |
3,750 |
4,647 |
4,081 |
18,680 |
|
Carrying value at 31 December 2023 |
- |
9,117 |
2,935 |
4,759 |
3,336 |
20,147 |
|
|
|
|
|
|
|
|
|
Current provisions |
|
|
|
|
|
|
|
Carrying value at 31 December 2022 |
- |
120 |
376 |
- |
- |
496 |
|
Carrying value at 31 December 2023 |
- |
1,035 |
468 |
- |
- |
1,503 |
Provisions for onerous contracts
Provisions of CHF 3,403 thousand (prior year: CHF 4,126 thousand) for onerous contracts comprise CHF 468 thousand for guarantees of origin (prior year: CHF 690 thousand) and CHF 2,935 thousand for transport capacity (prior year: CHF 3,436 thousand).
Provisions are reviewed and adjusted on the balance sheet date. The decision on whether there is an indication 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 future procurement or sales prices.
The adjustment of provisions for onerous contracts has the effect of reducing the total costs of energy procurement by CHF 1,206 thousand (prior year: CHF 18,511 thousand). In the prior year, the entire CHF 16,841 thousand provision for onerous energy contracts was written back because of increases in market prices for energy (see Note 6).
The provisions were calculated on the basis of risk-adjusted interest rates of between 11.3 and 21.3 per cent (prior year: 7.0 and 18.5 per cent).
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 contains various provisions for the dismantling of operating installations. The recognition of a provision of CHF 2,287 (prior year CHF 162 thousand) and the utilisation of the provision of CHF 1,099 thousand (prior year CHF 0 thousand) were recognised in tangible assets. The remaining provision of CHF 3,000 thousand relates to the expected costs of dismantling a power plant that has already been taken out of service, and is recognised under third party services in the Market Switzerland segment.
Other provisions
In the year under review, provisions of CHF 985 thousand for excise taxes were recognised in the Market Italy segment.
In 2022, provisions of CHF 1,546 thousand for contractual penalties that are no longer expected were written back in the Market Italy segment.