Inventories are recognised at costs or lower net realisable value (the estimated selling price in the normal course of business less selling costs). Cost is calculated based on the weighted average cost method.
Cost comprises all expenses and costs directly attributable to the purchase of the inventories and to bringing them to their present location and condition.
|
€ Million |
2023 |
2022 |
|
Materials |
152 |
76 |
|
Provision for obsolescence |
-2 |
-2 |
|
Total |
150 |
74 |
Materials refer to items held as inventory for investment, maintenance, and emergency repair activities, as well as for work performed for third parties. The inventory of materials rose by € 76 million compared to year-end 2022. This increase is mainly attributable to the strategic build up of the inventory of materials necessary for expanding and upgrading the electricity grid.