19 Provisions for risks and charges

Provisions for risks and charges of €1,014 million (€837 million at 31 December 2013) are analysed in the table below:

Changes in estimates (€157 million) mainly concern the revision of the estimated costs of site dismantling and restoration due to higher than expected discount rates, in relation to the storage segment (€103 million) and the transportation segment (€54 million).

Other provisions (€76 million) mainly relate to: (i) possible costs arising from commercial balancing (€45 million); and (ii) estimated costs for adjustments to plants in the distribution segment⁴⁰ (€20 million).

The provision of €650 million for site dismantling and restoration (€485 million at 31 December 2013) was recognised primarily due to expenses which are expected to be incurred for the removal of facilities and the restoration of sites in the natural gas storage (€510 million) and transportation (€134 million) business segments.

The provision for environmental risks and charges (€136 million, compared with €145 million at 31 December 2013) mainly included costs for environmental soil reclamation, pursuant to Law No. 471/1999, as subsequently amended, primarily for the disposal of solid waste, in relation to the distribution business.

The provision for litigation (€52 million, compared with €63 million at 31 December 2013) included costs which the Company has estimated it will incur for existing lawsuits.

Other provisions for risks and charges (€176 million, compared with €144 million at 31 December 2013) related mainly to: (i) expenses that may arise from the commercial balancing activity (€85 million); (ii) expenses recognised to offset the item “Change in inventories”, arising from the difference between the estimated quantities of Unaccounted-For Gas (UFG), which the Company expects to calculate definitively in the four-year period 2015-2018, and the forecast quantities that will be granted in kind by users as required by Resolution 514/2013/R/gas (€40 million); and (iii) the estimated costs for adjustments to plants in the distribution segment (€20 million).