Impairment of other intangible assets and property, plant and equipment

Changes to the ways in which the Timelkam CCGT power plant can be used for grid reserve management and for the market led to an impairment loss of EUR 1.3 million (31 March 2020: impairment loss of EUR 0.7 million) being recognised in the Energy Segment. The recoverable amount (value in use) is EUR 43.0 million (31 March 2020: EUR 48.8 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 1,452 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 4.5% (31 March 2020: 4.6%).

In view of new legal requirements related to the use of gas turbines for congestion management, future revenues of the 7Fields gas storage facility are expected to be lower. From today's perspective, it is not possible to run the gas storage facility in a way that costs are covered. A provision in the amount of EUR 6.7 million (30 September 2020: EUR 0.0 million) was formed as of 31 March 2021 for contractual obligations up to the 2049/2050 fiscal year not covered by revenue; a discount rate of 0.1% was applied. An impairment loss in the amount of EUR 7.2 million was recognised in the previous year.

A contract for the additional use of waste heat generated from waste incineration was formed in the reporting period (Waste Management Segment). The increase in future cash flows led to an impairment reversal being made for incineration plants of EUR 3.5 million up to the amortised cost of EUR 75.3 million. The discount rate is 4.9%.