Provisions are recognised for obligations enforceable by law or factual obligations of an uncertain amount or timing as a result of past events. If the effect of an obligation is material, the provision is calculated by discounting expected future cash flows at a current discount rate, taking into account any specific risks inherent in the obligation. The present value of employee- related provisions is calculated using the project unit credit method. Actuarial results are recognised directly in the result.
Any expenditure expected within one year after the balance sheet date is recognised as a separate item under current liabilities.
Provisions at year-end 2024 can be specified as follows:
|
€ Million |
Service-related benefits |
Other employee benefits |
Other |
Total 2024 |
|
Obligations at beginning of year |
13 |
3 |
1 |
17 |
|
Additions |
2 |
1 |
10 |
13 |
|
Utilisation |
-2 |
0 |
- |
-2 |
|
Released |
0 |
0 |
-1 |
-1 |
|
Total |
13 |
4 |
10 |
27 |
|
Less: current portion |
2 |
0 |
10 |
12 |
|
Total non-current portion |
11 |
4 |
0 |
15 |
The current provisions amounted to €12 million (2023: €3 million) and have been recognised separately under the current liabilities.
The comparative overview for 2023 is as follows:
|
€ Million |
Service-related benefits |
Other employee benefits |
Other |
Total 2023 |
|
Obligations at beginning of year |
12 |
4 |
9 |
25 |
|
Additions |
2 |
0 |
1 |
3 |
|
Utilisation |
-1 |
0 |
-1 |
-2 |
|
Released |
- |
-1 |
-8 |
-9 |
|
Total |
13 |
3 |
1 |
17 |
|
Less: current portion |
2 |
0 |
1 |
3 |
|
Total non-current portion |
11 |
3 |
- |
14 |
Long-service benefits
Enexis grants long-service benefits to its employees based on the provisions of the collective bargaining agreement. A provision for these long-service benefits is formed from the date of employment based on the number of years of service, expected price and salary increases, and the probability of mortality, disability and dismissal.
The most important assumptions used in the calculation of the long-service benefits are as follows:
|
2024 |
2023 |
|
|
Discount rates |
0%-3,41% |
0%-3,81% |
|
Estimated future annual CLA wage increases |
1.5% |
1.5% |
|
Company-specific annual periodic indexation |
2.5% |
1.0% |
|
Estimate future resignation probability |
4.0% |
4.0% |
|
Markup social security expenses |
8.7% |
8.3% |
Provision for other employee-related expenses
This provision covers various employee-related expenses, including expenses related to the voluntary termination of employment and severance payments, healthcare costs for former employees and retention costs.
Other provisions
At year-end 2024, other provisions consisted mainly of provisions for claims and disputes, as well as a provision of €8 million for expected costs related to the removal of gas connections for which the request was done by the customer (without desired date) on or before year-end. No provision is made for future requests for removal. To avoid damaging Enexis’ legal position, no further details are provided regarding the provisions for claims and disputes.