Long-term financial liabilities
The long-term financial liabilities amounted to €791 million at year-end 2024 (2023: €477 million).
|
2024 |
2023 |
|||||
|
€ Million |
< 1 year |
1-5 year |
> 5 year |
< 1 year |
1-5 year |
> 5 year |
|
Service agreements |
18 |
18 |
0 |
16 |
0 |
0 |
|
IT |
49 |
71 |
0 |
35 |
47 |
7 |
|
Grid loss1 |
120 |
212 |
44 |
140 |
176 |
21 |
|
Investment and financing obligation2 |
10 |
3 |
0 |
30 |
5 |
0 |
|
Materials and services3 |
138 |
73 |
35 |
0 |
0 |
0 |
|
Total |
335 |
377 |
79 |
221 |
228 |
28 |
In the table above, we only include the minimum legally contractual financial obligations. However, our procurement expectations regarding materials and services are significantly higher. Enexis has entered into framework agreements with several suppliers for the procurement of these materials and services.
Obligation regarding the removal of gas connections at the request of customers
Enexis has an obligation under the Gas Act to remove gas connections if the customer submits a request for this. If the customer specifies a desired date for the removal of the connection, Enexis may charge the costs to the customer. For requests without a desired date, the removal costs are compensated in (future) tariffs.
As at the end of 2024, Enexis has formed a provision for the expected removal costs of requests without a desired date that were received on or before the balance sheet date 2024 and that will be executed after the balance sheet date. No provision has been formed for future requests for removal, as this constitutes a conditional obligation.
This conditional obligation may lead to a significant outflow of resources in future periods depending on, among other things, (the speed of) the energy transition, design choices for the new energy system, and developments in legislation and regulations. However, the principle of tariff regulation is that regional network operators are reimbursed for their (efficient) costs and investments, including a reasonable return. Under the current regulatory method, Enexis is reimbursed for these removal costs via tariffs two years later. Although the total removal costs may be material up to 2050, the impact on Enexis's financial position is expected to be limited because Enexis will be reimbursed for the removal costs via tariffs.
Legal proceedings and disputes
Enexis Holding N.V. and its group companies were involved in various legal proceedings and disputes at year-end 2024. Based on the financial risk, provisions have been made or liabilities have been included in the financial statements concerning the claims received.
Guarantees issued
Enexis Holding N.V. has issued guarantees to third parties for a total of €6 million (2023: €6 million).
At the time of the sale of Fudura B.V. in the third quarter of 2022, guarantees were issued to the buyer Lion Bidco B.V. This concerns title guarantees, tax guarantees and warranties that arose before the sale. The liability in connection with these guarantees is limited to a maximum period of seven years after the transaction date. A potential breach of the guarantees is insured; therefore, Enexis' maximum liability in the event of a violation of the guarantees is nil.