Property, plant and equipment (tangible fixed assets) are valued at acquisition price or (internal) production cost, less depreciation calculated on this value and any impairments. Investment subsidies are deducted from the acquisition costs of the asset concerned and credited to the result based on the useful life of the asset. Costs are only capitalised if it is likely that future economic benefits will result from the use of a specific asset and the costs can be determined reliably. Assets ordered but not yet received are not recognised in the balance sheet. For carrying out its activities as regional grid operator, Enexis makes use of assets that have been fully depreciated.
Changes in property, plant and equipment in 2023 were as follows:
|
€ Million |
Land and Buildings |
Cables, pipelines and equipment |
Other non-current assets |
Work in progress |
Total 2023 |
|
Cost at 1 January 2023 |
828 |
14,473 |
134 |
672 |
16,107 |
|
Accumulated depreciation at 1 January 2023 |
409 |
6,752 |
57 |
0 |
7,218 |
|
Carrying amount at 1 January 2023 |
419 |
7,721 |
77 |
672 |
8,889 |
|
Reclassified work in progress |
39 |
374 |
2 |
-415 |
0 |
|
Additions |
23 |
489 |
14 |
572 |
1,098 |
|
Depreciation |
-15 |
-354 |
-13 |
- |
-382 |
|
Decommissioning |
0 |
-16 |
-1 |
- |
-17 |
|
Carrying amount at 31 December 2023 |
466 |
8,214 |
79 |
829 |
9,588 |
|
Accumulated depreciation at 31 December 2023 |
424 |
7,085 |
64 |
- |
7,573 |
|
Cost at 31 December 2023 |
890 |
15,299 |
143 |
829 |
17,161 |
The comparative overview for 2022 is as follows:
|
€ Million |
Land and Buildings |
Cables, pipelines and equipment |
Other non-current assets |
Work in progress |
Total 2022 |
|
Cost at 1 January 2022 |
793 |
13,820 |
130 |
545 |
15,288 |
|
Accumulated depreciation at 1 January 2022 |
381 |
6,435 |
52 |
0 |
6,868 |
|
Carrying amount at 1 January 2022 |
412 |
7,385 |
78 |
545 |
8,420 |
|
Reclassified work in progress |
21 |
255 |
9 |
-285 |
0 |
|
Other reclassifications1 |
0 |
4 |
-8 |
0 |
-4 |
|
Additions |
14 |
433 |
8 |
412 |
867 |
|
Depreciation |
-28 |
-342 |
-10 |
0 |
-380 |
|
Decommissioning |
0 |
-14 |
0 |
0 |
-14 |
|
Carrying amount at 31 December 2022 |
419 |
7,721 |
77 |
672 |
8,889 |
|
Accumulated depreciation at 31 December 2022 |
409 |
6,752 |
57 |
0 |
7,218 |
|
Cost at 31 December 2022 |
828 |
14,473 |
134 |
672 |
16,107 |
- 1The other reclassifications relate to an amount of € 4 million for smart meters that were reported as inventory under 'Other non-current assets' at year-end 2021 and were installed in 2022 (Cables, pipelines and equipment), as well as a reclassification of € 4 million software from property, plant and equipment to intangible fixed assets.
Impairments of property, plant and equipment
The recoverable value of property, plant and equipment 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 in order to ascertain whether such events or changes have occurred. As a result, there were no impairments in 2023.
In these triggering event analyses, Enexis Groep also took into account the developments in connection with the energy transition. The developments in connection with the energy transition do not form a trigger to make a calculation of the recoverable value for the assets of the gas grid, for more information about this topic reference is made to the paragraph ‘Future outlook for the gas grid’ in note 13. Intangible fixed assets.