4.1 Property, plant and equipment
|
CHF million |
Land and buildings |
Power plants |
Others 1 |
Assets under construction and prepayments |
Right-of-use assets 2 |
Total |
|
Net carrying amount at 1 January 2023 |
111 |
1,525 |
22 |
88 |
36 |
1,782 |
|
Investments |
|
|
13 |
66 |
4 |
83 |
|
Own work capitalised |
|
|
|
2 |
|
2 |
|
Reclassifications |
2 |
70 |
1 |
– 72 |
|
1 |
|
Reclassified to “Assets held for sale” |
|
|
|
– 3 |
– 1 |
– 4 |
|
Depreciation |
– 2 |
– 88 |
– 4 |
|
– 6 |
– 100 |
|
Currency translation differences |
– 1 |
– 12 |
|
– 2 |
– 1 |
– 16 |
|
Net carrying amount at 31 December 2023 |
110 |
1,495 |
32 |
79 |
32 |
1,748 |
|
Of which, cost value |
176 |
4,755 |
75 |
96 |
65 |
5,167 |
|
Of which, accumulated depreciation |
– 66 |
– 3,260 |
– 43 |
– 17 |
– 33 |
– 3,419 |
1 Includes transmission assets, machinery, equipment and vehicles as well as decommissioning, restoration and maintenance costs
2 For details, see note 3.6
Investments in the category “Others” in the amount of CHF 13 million relate to an increase in decomissioning provision of CHF 5 million and a revalution of an already existing decomissioning provision of CHF 8 million. These transactions were non-cash effective.
|
CHF million |
Land and buildings |
Power plants |
Others 1 |
Assets under construction and prepayments |
Right-of-use assets 2 |
Total |
|
Net carrying amount at 1 January 2022 |
113 |
1,623 |
26 |
58 |
39 |
1,859 |
|
Acquisition / disposal of subsidiaries |
|
|
|
– 2 |
– 1 |
– 3 |
|
Investments |
|
2 |
|
65 |
8 |
75 |
|
Own work capitalised |
|
|
|
1 |
|
1 |
|
Reclassifications |
|
30 |
2 |
– 32 |
|
|
|
Reclassified to “Assets held for sale” |
|
– 47 |
– 1 |
|
|
– 48 |
|
Disposals |
|
|
|
|
– 2 |
– 2 |
|
Depreciation |
– 2 |
– 89 |
– 4 |
|
– 6 |
– 101 |
|
Reversals of impairment |
|
18 |
|
|
|
18 |
|
Currency translation differences |
|
– 12 |
– 1 |
– 2 |
– 2 |
– 17 |
|
Net carrying amount at 31 December 2022 |
111 |
1,525 |
22 |
88 |
36 |
1,782 |
|
Of which, cost value |
175 |
4,771 |
62 |
92 |
65 |
5,165 |
|
Of which, accumulated depreciation |
– 64 |
– 3,246 |
– 40 |
– 4 |
– 29 |
– 3,383 |
1 Includes transmission assets, machinery, equipment and vehicles as well as decommissioning, restoration and maintenance costs
2 For details, see note 3.6
Impairment and reversals of impairment 2022
The integration of Nant de Drance (NdD) into the Production Switzerland CGU as of 1 July 2022 constituted a triggering event. The impairment test of the Production Switzerland CGU was performed at half-year closing and did not lead to any impairment losses. For further information see note 4.7.
In the second half of 2022, the management initiated the sale of the three Bulgarian companies. As a result, the corresponding assets and liabilities were classified as “held for sale” (see note 5.2). Before this reclassification, Alpiq tested the assets of the cash-generating unit Vetrocom for impairment and determined the recoverable amount based on the fair value less cost to sell which was calculated on the basis of the non-binding offers (Level 2) received. The assessment led to the reversal of impairment losses recognised in previous years in the amount of CHF 23 million in the Asset segment, of which CHF 18 million was attributable to windpark assets and CHF 5 million to intangible assets.
Contractual obligations
At the reporting date, the Group had contractual commitments of CHF 78 million (previous year: CHF 66 million) for the construction and acquisition of property, plant and equipment.
Accounting policies
Property, plant and equipment is stated at cost, net of accumulated depreciation and any impairment losses. Obligations to restore land and sites after licence expiry or decommissioning are accounted for individually in accordance with the contract terms.
Depreciation is applied to property, plant and equipment on a straight-line basis over the estimated useful life, or to the expiry date of power plant licences. Assets under construction and prepayments are not subject to depreciation until they are completed or in working condition and have been reclassified to the corresponding asset category. The estimated useful life of the various classes of assets range as follows:
- Power plants: 20 – 80 years
- Transmission assets: 15 – 40 years
- Buildings: 20 – 60 years
- Machinery, equipment and vehicles: 3 – 20 years
- Land: only in case of impairment
- Assets under construction and prepayments: if impairment is already evident
The residual value and useful life of an asset are reviewed regularly, but at least at each financial year end, and adjusted where required. At every reporting date, a test is performed to determine whether there is any indication that items of property, plant and equipment are impaired.
The calculation of the useful life, residual value and recoverable amount involves estimates. The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs of disposal and its value in use. If an asset does not generate cash inflows that are independent of those from other assets, the recoverable amount of the individual asset is estimated for the cash-generating unit to which the asset belongs. Value in use is calculated by discounting the estimated future cash flows based on budget figures approved by management, business assumptions as well as other relevant factors. These assumptions are based on historical empirical data and current market expectations and therefore contain significant estimation uncertainties. These assumptions relate largely to wholesale prices on European forward markets and forecasts of medium-term and long-term energy prices, foreign currencies (in particular EUR/CHF and EUR/USD exchange rates), inflation rates, discount rates, regulatory conditions and investment activities relating to the company. The estimates made are reviewed periodically using external market data and analyses. To calculate the terminal values, the cash flows were extrapolated by a growth rate of 2.0% (previous year: 2.0%). This growth rate corresponds to the long-term average growth that Alpiq expects and represents a forecast. The discount rates that have been applied reflect the current market estimate for the specific risks to be allocated to the assets and represent a best estimate. Actual results may differ from these estimates, assumptions and forecasts, resulting in significant adjustments in subsequent periods.