Other provisions
x € 1 million | Other provisions |
|---|---|
As at 1 January 2019 | 24 |
Additions | 14 |
Withdrawals | -3 |
Release | -3 |
As at 31 December 2019 | 32 |
Additions | 3 |
Withdrawals | -4 |
Release | -2 |
As at 31 December 2020 | 29 |
Classification (x € 1 million) | As at 31 December 2020 | As at 31 December 2019 |
|---|---|---|
Current | 5 | 2 |
Non-current | 24 | 30 |
Total | 29 | 32 |
The other provisions amount to € 29 million (2019: € 32 million), comprise several provisions of different kinds and are mainly of a long-term nature. They include, for instance, a provision for legal proceedings and claims of € 3 million (2019: € 6 million), a provision for decommissioning of € 4 million (2019: € 4 million) and obligations amounting to € 8 million entered into on behalf of Stichting Zeeuwse Publieke Belangen (2019: € 9 million).
Stichting Zeeuwse Publieke Belangen (Zeeland Public Interest Foundation)
Stichting Zeeuwse Publieke Belangen is a unique alliance between the province of Zeeland, the municipalities of Zeeland and Stedin Group. The foundation was established to safeguard the arrangements concerning the sale of DNWG/Enduris to Stedin Group in terms of employment, energy supply and the energy transition, among other things. The foundation makes a budget available to promote the energy transition in Zeeland.
In addition, the provision for the accelerated removal of 'gas connections out of operation' of € 12 million was recognised in 2019. See below for more detailed information. The expected period in which an outflow of resources from these provisions will occur exceeds one year.
Removal of gas connections
In the first half of 2019, grid managers agreed at the industry level in Netbeheer Nederland that removing gas connections is no longer to be performed at the discretion of grid managers but will be accelerated with a view to safety and be subject to supervision by SodM. This agreement relates to shut-off gas connections with the status 'out of operation' that are still 'pressurised'. The related costs are not charged to existing and former customers. In 2019, a provision was recognised and charged to operating expenses for an amount of € 12 million.
Stedin Group expects that it will have removed the gas connections concerned by the end of 2024. The accelerated removal affects the estimated remaining useful life of the connections concerned. Depreciation due to the change in useful life does not affect the 2019 and 2020 results.
The provisions were discounted in 2020 using rates ranging up to 1,0% (2019: 1,0%).
