23 Other current liabilities

Other current liabilities of €88 million (€218 million at 31 December 2012) comprise:

Prepaid income from regulated activities of €58 million relates to: (i) the transportation business segment (€41 million) and concerns the short-term portion of revenue invoiced in excess of the restriction established by the Electricity and Gas Authority, and penalties charged to users who exceeded the committed capacity; this amount is to be returned through tariff adjustments pursuant to Resolution 166/05; and (ii) the natural gas storage business segment (€17 million) and concerns payments for balancing and stock replenishment, which are to be returned to service users based on the provisions of Resolution 50/06 of the Electricity and Gas Authority.

Other liabilities (€29 million) relate mainly to the current portion (€26 million) of the higher quantities of fuel gas allocated by users in 2012 pursuant to Resolution ARG/gas 184/09 compared with the quantities actually used in that year, which will be equalised in the next year by reducing the quantities allocated by users.

Information on the fair value of derivatives at 31 December 2013 is summarised below.

During the course of 2013, a CCS was put in place to hedge the exchange rate risk relating to the issuance of a ¥10 billion bond. The six-year bond has a maturity of 25 October 2019 and a half-yearly coupon with an annual fixed rate of 1.115%. The derivative was used to convert the fixed-rate long-term foreign-currency liability into an equivalent liability in euros.

The fair value of hedging derivatives²², and their classification as an asset/liability over 12 months (non-current) or an asset/liability within 12 months (current), have been determined using generally accepted financial measurement models and market parameters at the reporting date. The table below shows the characteristics of the CCS, which is designated as a cash flow hedge pursuant to IAS 39, as well as its market value:

In relation to such contracts, the Company agrees with its counterparties on the exchange of two capital flows (at the time of entering into the contract and upon the maturity of the underlying financial instrument) and periodic interest flows (on the same dates provided for the hedged item) denominated in different currencies at a predetermined exchange rate.

The table below shows the swaps in place by type, the weighted average exchange rate and the maturity of the transactions. The variable average rates are based on rates at year-end; they are subject to changes which may significantly affect future financial flows.