Alpiq - Annual Report 2021

4.3 Investments in partner power plants and other associates

CHF million	Partner power plants	Other associates	Total
Carrying amount at 1 January 2021	2,264	16	2,280
Dividends	– 24		– 24
Share of profit / loss	– 37	2	– 35
IAS 19 and IFRS 9 effects recognised in other comprehensive income	67	12	79
Investments		5	5
Reclassifications	– 4		– 4
Carrying amount at 31 December 2021	2,266	35	2,301

CHF million	Partner power plants	Other associates	Total
Carrying amount at 1 January 2020	2,314	10	2,324
Dividends	– 22		– 22
Share of profit / loss	– 35		– 35
IAS 19 and IFRS 9 effects recognised in other comprehensive income	13	2	15
Investments		1	1
Reclassifications	– 6	3	– 3
Carrying amount at 31 December 2020	2,264	16	2,280

Summarised financial information

Under the partner agreements in force, the shareholders of partner power plants are required to take on the energy and pay the annual costs allotted to their ownership interest throughout the concession period. Furthermore, nuclear power plant owners are required to pay limited additional contributions to the decommissioning and waste disposal fund, in case one primary contributor is unable to fulfil payments. The partner agreements run through the useful life of the power plant, or through the concession period, and cannot be terminated. For individual partner power plants, Alpiq assigned a portion of the energy to be granted to it on account of its ownership interest as well as the associated obligation to pay its annual costs to another company. In such cases, the reported interest relevant from an economic perspective may differ from the interest held pursuant to corporate law. The Alpiq Group’s share of the regular annual costs of all partner power plants in 2021 amounted to CHF 399 million (previous year: CHF 452 million). This amount is included in energy and inventory costs.

The merger of Atel and EOS, which formed Alpiq in 2009, led to fair value adjustments being made on the acquired assets in the course of the business combination. These are included in the summarised financial information and are calculated on the basis of a weighting.

Material partner power plants 2021


	Grande Dixence SA		Nant de Drance SA		Kernkraftwerk Gösgen-Däniken AG		Kernkraftwerk Leibstadt AG		Kernkraftwerk- Beteiligungs- gesellschaft AG (KBG)
CHF million	Gross values	Alpiq share	Gross values	Alpiq share	Gross values	Alpiq share	Gross values	Alpiq share	Gross values	Alpiq share
Non-current assets	2,106	1,265	2,109	822	3,917	1,557	5,493	1,437	739	247
Of which, non-current financial assets	48	29	9	4	2,584	1,027	2,550	667
Current assets	9	5	10	4	118	47	259	68	5	2
Of which, cash and current financial assets	2	1	6	2	27	11	14	4
Non-current liabilities	666	400	1,659	647	3,410	1,355	4,164	1,089	77	26
Of which, non-current financial liabilities	665	399	1,647	642	245	97	535	140	77	26
Current liabilities	221	133	64	25	191	76	291	76	80	27
Of which, current financial liabilities	165	99	30	12			10	3	73	24
Total equity	1,228	737	396	154	434	173	1,297	340	587	196
Income	157	94	3	1	423	168	559	146	140	47
Expenses	– 180	– 108	– 12	– 5	– 410	– 163	– 574	– 151	– 178	– 59
Net income	– 23	– 14	– 9	– 4	13	5	– 15	– 5	– 38	– 12
Other comprehensive income	12	7	1		84	34	76	21
Total comprehensive income	– 11	– 7	– 8	– 4	97	39	61	16	– 38	– 12
Dividends received		9				7		6

The associates classified as material by Alpiq comprise only strategically significant partner power plants. No market prices are available for any of these companies.

Material partner power plants 2020


	Grande Dixence SA		Nant de Drance SA		Kernkraftwerk Gösgen-Däniken AG		Kernkraftwerk Leibstadt AG		Kernkraftwerk- Beteiligungs- gesellschaft AG (KBG)
CHF million	Gross values	Alpiq share	Gross values	Alpiq share	Gross values	Alpiq share	Gross values	Alpiq share	Gross values	Alpiq share
Non-current assets	2,135	1,282	2,054	800	3,743	1,487	5,469	1,431	735	246
Of which, non-current financial assets	49	30	9	4	2,329	925	2,290	599
Current assets	19	11	281	110	108	43	297	77	14	5
Of which, cash and current financial assets	1		278	108	17	7	99	26	6	2
Non-current liabilities	666	400	1,646	642	3,364	1,337	4,309	1,127	87	29
Of which, non-current financial liabilities	665	399	1,646	642	105	42	485	127	87	29
Current liabilities	235	141	283	110	132	52	198	52	38	13
Of which, current financial liabilities	166	100	250	98	46	18	40	10	23	7
Total equity	1,253	752	406	158	355	141	1,259	329	624	209
Income	168	101	3	1	421	168	520	137	131	44
Expenses	– 195	– 117	– 14	– 5	– 407	– 162	– 530	– 139	– 169	– 56
Net income	– 27	– 16	– 11	– 4	14	6	– 10	– 2	– 38	– 12
Other comprehensive income	3	2	– 5	– 2	18	7	19	5
Total comprehensive income	– 24	– 14	– 16	– 6	32	13	9	3	– 38	– 12
Dividends received		5				7		6		2

Individually immaterial partner power plants and other associates 2021


	Individually immaterial partner power plants		Other associates
CHF million	Gross values	Alpiq share	Gross values	Alpiq share
Non-current assets	3,829	1,011	142	35
Of which, non-current financial assets	51	8	1
Current assets	111	18	80	18
Of which, cash and current financial assets	45	9	55	14
Non-current liabilities	1,222	273	20	7
Of which, non-current financial liabilities	1,196	268	16	5
Current liabilities	490	90	50	11
Of which, current financial liabilities	357	66	2	1
Total equity	2,228	666	152	35
Income	414	83	194	33
Expenses	– 428	– 90	– 191	– 31
Net income	– 14	– 7	3	2
Other comprehensive income	35	5	71	12
Total comprehensive income	21	– 2	74	14
Dividends received		2

Individually immaterial partner power plants and other associates 2020


	Individually immaterial partner power plants		Other associates
CHF million	Gross values	Alpiq share	Gross values	Alpiq share
Non-current assets	3,881	1,027	47	18
Of which, non-current financial assets	51	7	1
Current assets	112	21	28	9
Of which, cash and current financial assets	51		15	5
Non-current liabilities	1,419	306	18	5
Of which, non-current financial liabilities	1,392	300
Current liabilities	341	67	20	6
Of which, current financial liabilities	203	40	6	2
Total equity	2,233	675	37	16
Income	429	88	60	19
Expenses	– 443	– 95	– 57	– 19
Net income	– 14	– 7	3
Other comprehensive income	6	1	8	2
Total comprehensive income	– 8	– 6	11	2
Dividends received		2

Accounting policies

An associate is a company over which the Alpiq Group is in a position to exercise significant influence through participation in the financial and operating policy decisions of the investee, and that is neither a subsidiary nor a joint arrangement. Significant influence is generally assumed with a share of voting rights ranging from 20 % to 50 %. Where appropriate, companies may likewise be accounted for as associates in the consolidated financial statements by applying the equity method, even if the ownership interest is less than 20 %. This applies especially where the Alpiq Group is represented in the authoritative decision-making bodies, such as the Board of Directors, or participates in operating and financial policymaking. The equity method is also applied to assess companies over which Alpiq, despite having a related ownership interest of 50 % or greater, has no control, as a result of restrictions in articles of association, contracts and organisational rules.

With regard to associates, Alpiq makes the distinction between partner power plants and other associates. The partner power plants are companies that construct, maintain or operate nuclear power plants or hydropower plants or manage the energy purchase rights. Goodwill may also arise when purchasing investments in associates, and corresponds to the difference between the cost of investment and the Group’s share of the fair value of the identifiable net assets. Such goodwill forms part of the carrying amount at which the associate is recognised.

The reporting date of a few partner power plants (hydrological year) and other associates differs from that of the Group. The most recent available financial statements of these companies are utilised to prepare the consolidated financial statements of the Alpiq Group. Significant transactions and events that occur between the end of the most recent reporting period and 31 December are taken into account in the consolidated financial statements. To be included in the consolidated financial statements, the financial statements of the associates are prepared applying uniform accounting policies. Reconciliation statements are prepared for companies that have no IFRS financial statements.

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