5. Depreciation and decommissioning

The depreciation charges can be specified as follows:

Property, plant, and equipment

Gas assets are depreciated using a diminishing balance depreciation method. All other tangible fixed assets are depreciated using the straight-line method.

The expected useful life of the asset is taken into account when determining the depreciation. The useful life and residual value are assessed annually. Any adjustments are recognised prospectively. Land is not depreciated. A tangible fixed asset is no longer recognised on the balance sheet when it is divested or when no future economic benefits are expected from the asset’s continued use, or in the event of disposal of the asset. Any profit or loss arising from the derecognition of the asset is recognised in the result.

The expected useful lives of the main categories of property, plant, and equipment are as follows:

Change in expected useful life of GPRS meters

In 2025, Enexis adjusted the expected useful life of the GPRS meters installed between 2011 and 2017. Due to the phasing out of the GPRS communication network by service providers, these meters are expected to remain economically viable until 2030 at the latest. The remaining carrying amount of these meters as of 1 January 2025 will therefore be depreciated on a straight-line basis over the period from 2025 to 2030, taking into account a proportional distribution of the replacement (decommissioning) of these meters in the period from 2025 to 2030. This led to a € 19 million increase in depreciation charges in 2025. For further details, please refer to note 12 ‘Property, plant, and equipment’.

Diminishing balance depreciation method gas assets

With effect from the 2022 financial year, Enexis depreciates its gas assets using the declining balance method. Enexis estimates that the number of users of the gas network will continue to decrease up to and including 2050. However, Enexis does not expect that the decrease in the number of gas network users will lead to large-scale decommissioning of gas assets. This is because, despite the decline in the number of users of the gas network, the main infrastructure of the gas network will remain primarily operational. In addition, the gas network is expected to remain relevant for natural gas and sustainable alternatives such as biomethane and hydrogen. Therefore, Enexis sees no reason to shorten the economic and technical useful life of the gas assets.

The depreciation method is based on the expected consumption pattern of the future economic benefits embodied in the asset. The consumption pattern is reflected most accurately by the expected use pattern. The expected use pattern of the gas network is determined based on Enexis’ most recent forecast of the number of users of the gas network in the period up to and including 2050. As the expected use pattern of the gas network shows a diminishing balance, Enexis started applying the diminishing balance depreciation method in the financial year 2022. The amortisation pattern of the contributions paid in advance for the gas assets was also revised from the financial year 2022 in line with this diminishing balance method. As a result, the net depreciation charges (gross depreciation less the amortised contributions) of the gas assets follow a diminishing balance pattern.

The estimate of the expected decline in the number of gas network users in the period up to 2050 was updated in 2025 compared to 2024. This update was based on the 2026 Investment Plan of Enexis Netbeheer B.V. and the actual decrease in the number of gas connections to date.

The gross depreciation charges of the gas assets were € 17 million higher in 2025, and the amortised amounts were € 3 million higher than if the straight-line depreciation method had been used. The net depreciation charges were therefore € 14 million higher. Based on current estimates, the increase in annual net depreciation charges compared to the straight-line method will decrease every year until the annual difference in the period 2030-2035, after which the diminishing balance depreciation method will result in a lower annual depreciation charge than the straight-line depreciation method.

As a result of the declining balance method of depreciation, the cumulative net depreciation charge for the years 2022 to 2025 will be € 78 million higher than under the straight-line method.

Intangible fixed assets

Depreciation is calculated using the straight-line method. The expected future useful life is taken into account in determining the depreciation. The useful life is assessed each year. Any adjustments are recognised prospectively.

The expected useful lives of the main categories of intangible fixed assets are as follows:

Depreciation of right-of-use assets

Leases are recognised on the balance sheet as right-of-use assets. Right-of-use assets are then depreciated on a straight-line basis over the lease term.

Decommissioning

Tangible and intangible fixed assets that no longer serve Enexis’ business activities and no longer generate future economic benefits are being decommissioned. The remaining carrying amount at the time of decommissioning is recognised immediately as an expense in the income statement.

Impairments

For an explanation of impairments, please refer to note 12 'Property, plant and equipment' and note 13 ‘Intangible fixed assets’. There were no impairments in 2025.