Impairment of intangible assets and property, plant and equipment
The current market conditions with falling electricity prices and negative implications of the System Utilization Tariff Directive resulted in deteriorated framework conditions for the CCGT (combined-cycle gas turbine) power plant in Timelkam.
In the Energy Segment, this resulted in a write-down of the CCGT power plant in Timelkam in an amount of EUR 0.7 million (31 March 2019: reversal of impairment: EUR 6.6 million).
The recoverable amount (value in use) is EUR 48.8 million (31 March 2019: EUR 52.2 million). The maximum output of the power plants amounts to 422 MW, maximum district heating supply is 100 MW. Efficiency was estimated at 55.7%. Annual electricity generation was recognised at up to 1,411 GWh per year. The assumptions for the future electricity and gas prices are based, where available, on market data; if no market data were available, estimates were made based on market studies. Expenses for maintenance and repair were recognised according to maintenance plans and contracts. Other material expense items such as personnel costs, insurance and infrastructure costs are annually increased by an estimated increase rate. The discount rate is 4.6% (31 March 2019: 4.9%).
Additionally, an impairment of EUR 7.2 million was recognised for the cash generating unit “7-Fields gas reservoir”. The impairment was based on a new assessment of the future long-term gas prices on the trading market during the summer and winter months (“summer-winter spread”), as well as the possible utilisation of the gas reservoir over the long term. A discount rate of 5.0% was applied (30 September 2019: 5.3%). The recoverable amount (value in use) is EUR 1.5 million.