13. Intangible fixed assets

Intangible assets consist of goodwill, acquired or internally generated application software, and capitalised leases. Intangible assets, other than goodwill, are stated at cost less accumulated amortisation and impairment losses. Cost is capitalised only when it is probable that future economic benefits will result from the use of a specific asset.

Changes in intangible fixed assets for 2025 were as follows:

Assets classified as software consist mainly of the grid registration system, various operating systems, connection registrations, customer information systems, job order management systems, and other support systems. The capitalised software consists mainly of purchased  software for which no statutory reserve was formed.

The comparative overview for 2024 is as follows:

Impairment of intangible fixed assets

The recoverable value of intangible fixed assets is calculated if events or changes in circumstances give cause to do so ‘triggering event’ analysis). The results of this calculation are used to determine if any impairment exists. An assessment is performed annually and, in the event of interim publications, to ascertain whether such events or changes have occurred. As a result, there were no impairments in 2025.

In these triggering event analyses, Enexis Groep also considered developments related to the energy transition. These developments do not constitute a trigger to calculate the recoverable value of the gas network’s assets. For more information about this topic, see the ‘Future outlook for the gas network’ section.

Goodwill impairment test

Goodwill relates to the acquisitions of Intergas Energie B.V. in 2011, Endinet Groep B.V. in 2016, and N.V. Stedin Netten Weert in 2017 and arises from the difference between the cost of the acquisition and the fair value of the net assets at the time of the acquisition. Enexis Groep performed a goodwill impairment test at year-end 2025 for the segments that include goodwill.

Goodwill arising from the acquisitions has been allocated to the segments as follows:

Outcomes

The calculated indirect realisable value of the regulated assets is significantly higher than the carrying value of the corresponding assets plus the goodwill allocated to them. Therefore, no impairment of goodwill is required.

Assumptions

The indirect realisable value of the regulated assets is determined based on the most recent Long-Term Financial Calculation. This calculation covers a forecast period of 15 years. The forecast period is 15 years to match the investments required for the energy transition and the income generated by these investments. The main assumptions included in the Long-Term Financial Calculation are an estimate of the discount rate based on the Weighted Average Cost of Capital (WACC) rates used by ACM, regulated tariffs, and changes in the number of connections and services, as well as operating and other costs. The chosen assumptions concern estimates, mainly based on the most recent information regarding tariff regulation (amended 2022-2026 Method Decision and 2027 draft Method Decision), the investment programme (strategic asset management plan), and the operating costs, including Enexis Groep’s efficiency objectives (Business Plan 2026).

The ACM has set tariffs for 2026 based on the amended 2022-2026 Method Decision. This means that revenues from 2026 onwards have been set based on the revised initial revenues and revised discounts to promote efficient operations (the x-factors). In addition, the 2026 tariffs have been corrected for the underestimated revenues in 2022, 2023 and 2024 for electricity. Due to its magnitude, part of this correction had already been incorporated in the 2025 tariffs. The correction for gas was fully incorporated in the 2025 tariffs. The ACM has also decided to provide compensation from 2026 onwards for lost income as a result of declining gas volumes. The corrections relating to 2022, 2023, and 2024 have been incorporated into the 2026 tariffs. The corrections relating to 2025 and 2026 will be incorporated in the 2027 and 2028 tariffs, respectively. Finally, in 2025, the ACM decided to revise the expected useful life of smart meters. From 2026 onwards, the adjusted expected useful life will be taken into account when determining customer tariffs.

Together with inflation, adjustments to TenneT’s procurement costs and post-calculations relating to the year 2024 in connection with increased feed-in volumes and interest costs in the WACC, the incorporation of the amended Method Decision will lead to a tariff increase of approximately 2% for the connection and transmission service electricity in 2026, and an increase for gas of around 7%.

Enexis Groep devotes a great deal of attention to efficient business operations, initiating programmes aimed at achieving efficiency. Despite these efforts, operating costs are expected to rise, primarily due to additional work resulting from the energy transition.

The end value is assumed to be equal to the efficient book value (Standardised Asset Value) at that time. This assumes that the regional grid operator will continue to be compensated for its efficient costs and investments, including a reasonable return, in accordance with the current method of tariff regulation. A growth rate of 0% is therefore assumed for the regulated activities. For a further explanation of Enexis Groep’s future vision of the gas network and the consequences of this for the valuation of gas assets, please refer to the ‘Future outlook of the gas network’ section at the end of this note.

The impairment test is based on the following variables:

Sensitivity analysis

The calculated indirect realisable value of the regulated assets in the operational segment Enexis regulated is considerably higher than the carrying values of the corresponding assets, plus the goodwill allocated to them. Even though the indirect realisable value is significantly higher than the carrying value of the regulated assets and the goodwill allocated to these assets, Enexis Groep performed a sensitivity analysis on the most important criteria that were used to determine the indirect realisable value of the regulated assets to provide insight into the estimated uncertainty. Based on this, Enexis Groep concluded that a reasonable change in the criteria, as shown in the sensitivity analysis below, will not lead to an impairment of goodwill. The sensitivity analysis has the following outcomes:

• An increase in the discounting rate after tax of 0.1% leads to a decrease in the value in use of € 236 million.

• A structural increase in expected operating costs of € 10 million per year leads to an increase in the realisable value by € 3 million, due to the difference between the time that costs are incurred and compensation in the future tariffs.

• A structural increase in expected investments of € 50 million per year leads to an increase in the realisable value of € 60 million, due to the difference between the time that expenditure is incurred and compensation in the future tariffs.

The above sensitivity analysis shows that an increase in the discount rate after tax of 0.1% leads to a decrease in the indirect yield value of € 236 million. However, the discount rate is based on the regulatory WACC. The reasonable return that Enexis Groep receives on its efficient investments also depends on the regulatory WACC. The sensitivity analysis above only takes into account an adjustment to the discount rate and not a comparable increase in the reasonable return that Enexis Groep receives on its efficient investments. A reasonable change in the discount rate as a result of changes in the regulatory WACC will therefore not lead to a write-down of goodwill.

Future outlook of the gas network

The Netherlands aims to become a low-carbon country by 2050. The Climate Change Act sets a target of at least 55% CO₂ reduction by 2030, with an ambition to reach 60%. To achieve this, the Regional Energy Strategies and the municipal Heat Transition Visions are phasing out reliance on natural gas for existing buildings and eliminating the obligation to connect new buildings. This will affect Enexis Netbeheer B.V.’s gas network, as the number of gas connections will decrease.

Enexis Netbeheer B.V. believes that the gradual phasing out of natural gas will not result in the large-scale decommissioning of gas networks. This is because the highly interconnected main grids serve both a neighbourhood function and a transit function, supplying downstream grid sections. In some cases, removing main pipelines in residential areas that are ‘moving away from natural gas’ may even require upgrading and/or extensions elsewhere in the gas network. The high-pressure gas network acts as a ‘stable’ backbone for the low-pressure gas network and the supply of the industrial sector.

Even in the low-carbon energy system of 2050, Enexis expects the gas network to continue to play a role in the distribution of biomethane and hydrogen. This is already evident in the growing volume of biomethane imports, which will enable the gas network to contribute significantly to CO₂ reduction in the short term. The climate agreement recognises that it is virtually impossible to meet heat demand without a gaseous energy source. Relying on electricity alone is not always a technically or economically viable option, and district heating grids cannot be implemented everywhere. In such cases, the most practical way to achieve sustainability is to use sustainable gaseous energy sources – such as hydrogen produced from renewable electricity or biomethane – combined with hybrid heat pumps. Along with grid operators within Netbeheer Nederland and the Ministry of Climate and Green Growth, roadmaps have been developed for both green hydrogen and biomethane. Therefore, a safe and reliable gas network is expected to remain essential in a more sustainable energy system.

At the European level, the European Parliament set a new interim target for 2040 in November 2025, aiming for a 90% reduction in CO₂ emissions. This interim target is in line with Enexis’ expectations regarding the development of the energy system towards 2050, as outlined in the detailed scenarios.

As these developments are ongoing and could significantly impact Enexis, proposed policies, policy ambitions, sector plans, new studies, and roadmaps are closely monitored. Every two years, scenarios projecting developments up to 2050 are reassessed to determine whether investment policies need to be adjusted. Enexis is also actively involved in the Regional Energy Strategies, the Heat Transition Vision, and the living labs for natural gas-free neighbourhoods.

Enexis expects the gas network to play a role in the distribution of biomethane and hydrogen in the low-carbon energy supply in 2050. Given the through transmission function of the main grid, a decrease in the number of gas connections will not lead directly to a corresponding removal of main networks. Enexis Netbeheer B.V. does not believe that the gradual phasing out of natural gas will also lead to the large-scale decommissioning of gas networks.

Although the number of users of the gas network is decreasing, this is not expected to lead to large-scale decommissioning of gas assets. Therefore, Enexis switched to the diminishing balance depreciation method as of the financial year 2022. The consumption pattern of the future economic benefits of the assets is reflected in the pattern in which the number of users of the gas network decreases. For more information, reference is made to note 5 ‘Depreciation and decommissioning’.

Enexis does not see any need at present to shorten the depreciation periods of the existing gas networks or to begin impairing them. However, to further mitigate this risk, Enexis Netbeheer B.V. is highly reluctant to construct new gas networks or replace existing ones when alternative heating systems, such as heating grids or all-electric solutions, are available. To ensure the reliability and safety of the gas network, the large-scale multi-year replacement plans that are being carried out due to the obsolescence of network components will continue. Due to the completion of the first group of programmes, gas replacements will start to decrease slightly from 2025 onwards, but the total volume will remain stable until 2030. After 2030, the major multi-year replacement programmes will be completed, and the level of replacement in the gas networks will continue to decrease.

In the Gas Method Decision for the 2022-2026 regulatory period, ACM has accounted for the expected decline in gas network user numbers. ACM also did this by switching to the nominal method instead of the actual method for calculating the WACC so that inflation compensation is no longer shifted to the future. Another important change concerns the switch to a diminishing balance depreciation method for gas assets as of 2022. ACM has opted for the diminishing balance depreciation method, as this method is more suitable given the expected future decrease in the number of users of the gas network. This way, ACM aims to avoid fewer and fewer users having to bear the annual depreciation charges, which would otherwise be the case if a straight-line depreciation method were used. ACM sees no reason to revise the economic and technical useful lives of the gas assets. These changes in the Gas Method Decision have led to setting the efficient costs, including a reasonable return that the regional grid operators receive, at a higher level. From 2026 onwards, ACM will also take into account lost revenue due to declining gas volumes when setting tariffs.

In addition to the above developments in the current benchmark regulation, the draft Method Decisions for 2027-2031 have been published. Important developments in this regard are the transition from benchmark regulation to Cost+ regulation, which is based more on our own costs, and the application of the nominal WACC system for electricity, which already applies to gas. Enexis will continue to be compensated for its efficient costs and investments.

Enexis Groep has formulated the above assumptions and criteria with great care. However, there remains considerable uncertainty about the assumptions and criteria governing the gas network’s future. The assumptions and criteria are reviewed periodically, in principle, unless unexpected significant events require immediate adjustment.