The investment contributions relate to capital expenditure and associated operating expenses, which are financed using auction revenues (with the approval of the Office of Energy Regulation). The contributions are amortised on a linear basis over the useful life of the relevant tangible fixed asset(s), or in accordance with the pattern of the operating expenses.
Interest (at a rate of 5.41%) is added to the present value of the payments for operating expenses, in accordance with the guidelines of the Office of Energy Regulation.
The movement in the value of the investment contributions was as follows:
|
( x EUR 1,000 ) |
2008 |
2007 |
|
Balance at 1 January |
72,680 |
74,684 |
|
Additions in line with auction-funded capital expenditure |
302,732 |
- |
|
Additions in line with other capital expenditure |
- |
432 |
|
Interest |
596 |
568 |
|
Amortisation (profit-and-loss account): |
||
|
- Depreciation |
-/- 9,066 |
-/- 2,955 |
|
- Maintenance expenditure |
-/- 34 |
-/- 49 |
|
Balance at 31 December |
366,908 |
72,680 |
|
|
|
|
|
Long-term |
356,471 |
69,543 |
|
Short-term |
10,437 |
3,137 |
|
Total |
366,908 |
72,680 |
|
|
|
The amortisation recognised in the profit-and-loss account has been included under ‘Other income’.
The increase in the value of the investment contributions is the result of the initial settlement effected for the NorNed cable.
The terms of the investment contributions are as follows:
|
( x EUR 1,000 ) |
< 1 year |
1-5 years |
> 5 years |
Total |
|
At 31 December 2008 |
10,437 |
41,752 |
314,719 |
366,908 |
|
At 31 December 2007 |
3,137 |
8,688 |
60,855 |
72,680 |