Page 44 - KELAG Annual Report 2017
P. 44

KELAG is obliged to supply energy to the issuers of easements. The provisions cover the expected
           outflow of resources of EUR 19.5m (prior year: EUR 15.5m) from compensation negotiations on
           existing customer contracts that are disadvantageous for KELAG.

           Outstanding invoices for grid loss costs, upstream grid costs and damages claims in connection
           with pending legal disputes over repayment of grid usage fees received were recognised in the
           statement of financial position in the amount of the expected outflow of resources of EUR 2.9m
           (prior year: EUR 3.3m).

           In the reporting period 2015, several parties made claims for damages against VERBUND Hydro
           Power  GmbH  –  included  in  these  consolidated  financial  statements  as  an  associate  –  in
           connection with the Drau flood in 2012. The portion of the obligation attributable to KELAG from
           electricity purchase rights was recognised as a liability in the financial year 2015. This obligation
           was reclassified in 2016 following a reassessment of the matter as of 31 December 2016 that takes
           into account contractual agreements. It is still recognised as a non-current provision of EUR 13.8m
           (prior year: EUR 12.3m).

           Other  provisions  mainly  relate  to  deferred  income  as  well  as  potential  losses  from  onerous
           contracts, where their amount or their date of occurrence are still uncertain.

           The  outflow  of  resources  from  current  other  provisions  (Note  27)  is  expected  in  the  coming
           financial year. For non-current provisions, the outflow of resources is expected on average in a
           period of 5 to 10 years.

           For the purpose of the impairment test, the goodwill resulting in the KELAG Group was allocated
           to CGUs as follows and reported the following values after the impairment test:

            TOTAL GOODWILL IN THE KELAG GROUP                   3.4            3.6
              BWI Biowärme Imst GmbH & Co KG                     0.2           0.2
              District heat Friesach                             0.7           0.7
              District heat Obertauern                           2.5           2.5
              energieeffizienz GmbH                              0.0           0.2
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