7. Amortisation, depreciation, impairment charges and provisions - 327,273 thousand euros

Compared to the previous year this item increased by 15,110 thousand euros.

The breakdown is as follows:

€ thousand31.12.201431.12.2013 RestatedIncrease / (Decrease)Increase / (Decrease) %
Amortisation and depreciation 203,543 194,775 8,768 4.5%
Provision for impairment of receivables 110,165 79,559 30,606 38.5%
Provision for liabilities and charges 13,564 37,827 (24,263) (64.1%)
TOTAL 327,273 312,162 15,110 4.8%

Amortisation and depreciation

€ thousand31.12.201431.12.2013 RestatedIncrease / (Decrease)
Depreciation of tangible assets 118,655 118,155 500
Amortization of intangible assets 81,199 75,063 6,136
Impairment charges 3,688 1,557 2,131
Total 203,543 194,775 8,768

The increase in depreciation and amortisation, amounting to 8,768 thousand euros, results from the increase in:

  • amortisation of intangible assets of 6,136 thousand euros owing to the implementation of new software for improvement and technological development. The higher amortisation mainly refers to Acea Energia (+3,025 thousand euros) and the Parent Company (+2,277 thousand euros);
  • impairment charges on some assets such as the Paliano plant affected by a fire in 2013 (1,309 thousand euros) e photovoltaic assets as a result of reduced income rates caused by the “incentives distribution” decree (640 thousand euros). This item also includes impairment charges for the start-ups at indefinite useful life for Laboratori and the proportional part of Kyklos (totalling 1,079 thousand euros).

Impairment charges and losses on receivables

This item totalled 110,165 thousand euros with an increase of 30,606 thousand euros of which 13,892 thousand euros for the Energy Segment companies and 12,405 thousand euros for the Water Segment companies. We can likewise point out an increase in impairment charges for ACEA Distribuzione (+2,981 thousand euros compared to 2013).

The breakdown is as follows by industrial segments:

€ thousand 31.12.201431.12.2013 RestatedIncrease / (Decrease)Increase / (Decrease) %
Environment 52 141 (89) (63.1%)
Energy 75,630 61,738 13,892 22.5%
Water 24,015 11,611 12,405 106.8%
Networks 6,744 3,526 3,218 91.3%
Parent Company 3,723 2,543 1,180 46.4%
Impairment charges and losses on receivables 110,165 79,559 30,606 38.5%

Provisions

At 31 December 2014, provisions, net of releases for redundancies, amounted to 13,564 thousand euros. Their breakdown by type is as follows:

€ thousand31.12.201431.12.2013 RestatedIncrease / (Decrease)
Legal 2,664 3,410 (746)
Tax 2,376 272 2,104
Regulatory risks (14,635) 8,520 (23,155)
Investees 117 1,541 (1,423)
Contributory risks 112 1,796 (1,683)
Early retirement and redundancies 19,047 15,409 3,637
Post mortem (1,936) 0 (1,936)
Contracts and supplies 865 1,841 (976)
Other liabilities and charges 422 900 (477)
Total 9,031 33,690 (24,659)
Restoration charges IFRIC12 4,533 4,138 396
Total provisions 13,564 37,827 (24,263)

There follows the breakdown of provisions by industrial segments:

€ thousand31.12.201431.12.2013 RestatedIncrease / (Decrease)Increase / (Decrease) %
Environment (302) 612 (914) (149.0%)
Energy 6,098 3,770 2,328 61.8%
Water (9,533) 9,989 (19,522) (195.4%)
Networks 8,666 15,809 (7,143) (45.2%)
Parent Company 8,638 7,648 990 12.9%
Provisions 13,564 37,827 (24,263) (64.1%)

Among the most significant allocations during the year we can mention the ones for early retirement and redundancies of staff, totalling 19,047 thousand euros, and allocations for charges to Acea Produzione for extra fees of the Bacino Imbrifero Montano of 1,853 thousand euros.

It is pointed out that the entire provision in ACEA Ato5 totalling 18,774 thousand has been offset since the provision no longer exists for potential liabilities deriving from the issue of the legitimacy of the tariffs applied by the company for the years 2006 – 2010. Among the other uses we can point out the adjustment of the SAO Post Mortem Fund (-1,936 thousand euros) and the release of 1,361 thousand euros in LaboratoRI for the recovery of plant efficiency as a result of the completions of the procedures for the sale of instruments and technical equipment owned by ACEA S.p.A.

For more details see note n. 27 and the section on “Update on major disputes and litigation”.