The other provisions at the end of 2024 fully relate to the provision for abandonment costs (end of 2023: the same).

The provision for abandonment costs was formed following our decisions to decommission and remove specific assets. Legislation, regulations and/or rights and permits, including those governing the environment and spatial planning, require assets to be removed in certain cases. This provision recognised in the balance sheet relates to the removal of assets that have already been decommissioned. The basis for this provision is our redevelopment programme. We will complete the remaining part of this redevelopment programme between 2025 and 2028. At year-end 2024, we considered it unlikely that all our tangible fixed assets would eventually have to be removed. For a further explanation of our conditional decommissioning obligations see note ‎29 ‘Off-balance sheet assets and obligations’.

In determining the provision for abandonment costs, we take into account that our judgements and estimates may be affected by developments in the area of the energy transition and tightened environmental and climate targets. With respect to hydrogen, heat and CCS, the long-term vision is becoming increasingly concrete and is expected to be worked out further over the coming years. Gasunie is actively involved in this. On the balance sheet date, we had brought the provision for abandonment costs into line with the most recent developments. The social developments referred to above may also in future years lead to an adjustment to the size of the provision for abandonment costs, such as if certain assets turn out not to be fit for an alternative use that was previously thought feasible (or if other assets not considered at this time turn out to be suitable for alternative use later) and these developments result in actual removal of the asset concerned.

Aside from that, the provision can be adjusted if experience figures prompt a change to the removal method or if the costs of historic removal activities are reason to assume higher or lower costs for future removal activities. We update the redevelopment programme annually, including with regard to expected future prices, the estimate of assets to be removed, and the nature and extent of the work to be carried out in connection with the removal of the assets.

The release of the provision in 2024 mainly follows from a change in estimate of the technical feasibility of removing of the assets based on the most recent experiences in this area. Based on this review the end date of the redevelopment programme was brought forward, from 2034 to 2028.

The current part of the provision for abandonment costs was expected to total € 8.2 million at year-end 2024 (year-end 2023: € 14.6 million). This amount is not shown separately under the current liabilities. The part of the provision with a term of over five years was € 0 at year-end 2024 (year-end 2023: € 35.7 million). In 2024, we applied a discount rate for taxes of between 2.6% and 2.7% (2023: between 3.5% and 3.6%).