Provisions for risks and charges of €757 million (€527 million at 31 December 2011) are shown in the table below:
| Download XLS (17 kB) |
(€ million) |
|
|
|
|
|
|
|
|
|
Opening balance |
Changes in estimates |
Provisions |
Increases due to passing of time |
Uses |
Other changes |
31.12.2011 |
|
31.12.2011 |
against charges |
for |
||||||
Provision for site dismantlement and restoration |
430 |
(135) |
|
12 |
(1) |
|
|
306 |
Provision for litigation |
69 |
|
34 |
|
(9) |
(17) |
|
77 |
Provision for environmental risks and charges |
60 |
|
11 |
|
(8) |
|
|
63 |
Other provisions |
70 |
|
1 |
|
(13) |
(2) |
25 |
81 |
|
629 |
(135) |
46 |
12 |
(31) |
(19) |
25 |
527 |
| Download XLS (17 kB) |
(€ million) |
|
|
|
|
|
|
|
|
|
Opening balance |
Changes in estimates |
Provisions |
Increases due to passing of time |
Uses |
Other changes |
31.12.2012 |
|
31.12.2012 |
against charges |
for |
||||||
Provision for site dismantlement and restoration |
306 |
122 |
|
11 |
|
|
|
439 |
Provision for litigation |
63 |
|
5 |
|
(5) |
|
71 |
134 |
Provision for environmental risks and charges |
77 |
|
10 |
|
|
(11) |
|
76 |
Other provisions |
81 |
|
50 |
|
(7) |
|
(16) |
108 |
|
527 |
122 |
65 |
11 |
(12) |
(11) |
55 |
757 |
The provision for site dismantlement and restoration (€439 million) was recognised primarily due to expenses which are expected to be borne for the removal of natural gas storage facilities and for site restoration (€420 million).
Changes in estimates (€122 million) mainly relate to the revision of the estimated costs of withdrawing from and restoring natural gas storage sites due to lower expected discount rates (€116 million).
Other changes (€55 million) mainly relate to the recording of liabilities that existed at the Italgas acquisition date (€71 million). Snam paid compensation to eni for these (net of the relative tax effect), according to price adjustment mechanisms and based on commitments made when the acquisition operation was completed.
The provision for environmental risks and expenses (€134 million) mainly includes costs for environmental soil reclamation, which is required under Law 471/1999 (as amended), primarily for the disposal of solid waste, related to the distribution business.
The provision for litigation (€76 million) includes costs which the Company has estimated it will incur for existing lawsuits.
Other provisions (€108 million) relate essentially to: (i) probable expenses arising from commercial balancing due to counterparty risk relating to the entry of new operators onto the natural gas market (€40 million); and (ii) expenses, recognised as a counter-entry to the changes in inventories item, arising from the difference between the estimated quantities of Unaccounted-For Gas (UFG) to be registered in 2013 and 2014 and the projected quantity to be allocated in kind by users to cover the quantities of UFG for the same period (€37 million).
