Other provisions
x € 1 million | Restructuring | Other | Total |
|---|---|---|---|
As at 1 January 2020 | - | 32 | 32 |
Additions | 1 | 2 | 3 |
Withdrawals | - | -4 | -4 |
Release | - | -2 | -2 |
As at 31 December 2020 | 1 | 28 | 29 |
Additions | 2 | 1 | 3 |
Withdrawals | -1 | -2 | -3 |
Release | - | -11 | -11 |
As at 31 December 2021 | 2 | 16 | 18 |
Classification (x € 1 million) | As at 31 December 2021 | As at 31 December 2020 |
|---|---|---|
Current | 3 | 5 |
Non-current | 15 | 24 |
Total | 18 | 29 |
The other provisions amount to €18 million (2020: €29 million), comprise several provisions of different kinds and are mainly of a long-term nature. They include, for instance, a provision for decommissioning of €4 million (2020: €4 million), accelerated removal of 'gas connections out of operation' of €3 million (2020: €12 million) and obligations amounting to €7 million entered into on behalf of Stichting Zeeuwse Publieke Belangen (2020: €8 million).
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 State Supervision of Mines. 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.
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 2020 and 2021 results.
Part of the provision was released in 2021 owing to the update of the method decisions for the new regulation period.
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.
Restructuring provision
The restructuring provision includes the payments and/or additions to payments that are made to employees whose employment is likely to be terminated. The payments are based on the Social Plan for the grid operator sector (Sociaal Plan Sector Netwerkbedrijven) and are calculated on the basis of the gross salary, a weighted average number of years of service and an estimate concerning redundancy. To calculate the provision, future turnover of the redundant employees was also estimated.
The provisions were discounted in 2021 using a rate of 1.0% (2020: 1.0%).
