Note 3 Property, plant, equipment and right-of-use assets

Property, plant and equipment

Investments

Investments in property, plant and equipment during the financial year totalled €1,014 million (2020: €890 million).

Divestments

Divestments in 2020 and 2021 related to decommissioning of buildings, network assets and other plant and equipment.

New consolidations

Ebatech was added to the consolidated figures in 2021. TReNT had been added in 2020. 

Impairments

There were no impairments in 2021 or in 2020. 

Reclassification to assets held for sale

The reclassification of the Stam non-current assets to assets held for sale is recognised under reclassification and other movements. Furthermore, the site of our premises in Leeuwarden was reclassified in 2021 from assets held for sale to non-current assets. For further disclosures with respect to assets held for sale, reference is made to note [33].

CBL transactions

In the period from 1998 to 2000, subsidiaries of Alliander N.V. entered into cross-border lease (CBL) transactions for networks with US investors. The networks have been leased for a long period to US parties (head lease), which have in turn subleased the assets to the various Alliander subsidiaries (sublease). At the end of the sublease, there is the option of purchasing the rights of the US counterparty under the head lease, thus ending the transaction. The fees earned on the CBLs were recognised in the year in which the transaction in question was concluded. Two of the three still current CBLs were terminated prematurely in December 2021. Consequently, there are no longer any gas or district heating networks with an American lease. The electricity network in the Randmeren region is the only one still held in a CBL; it is due to expire at the beginning of 2025. The total net carrying amount at year-end 2021 was approximately €300 million (year-end 2020: €680 million)

There are conditional and unconditional contractual rights and obligations relating to the remaining CBL transaction. At the end of 2021, a total of $715 million was held on deposit with several financial institutions or invested in securities in connection with the transaction (2020: $3,112 million).

Since no powers of disposal exist over the investments and associated liabilities, they are not regarded as assets and liabilities of Alliander and the respective amounts are not recognised in Alliander’s consolidated financial statements.

At year-end 2021, the ‘net strip risk’ (the portion of the ‘termination value’ – the possible compensation payable to the American counterparty in the event of premature termination of the transaction – that cannot be settled from the deposits and investments held for this purpose) for the current transaction was $22 million (2020: $72 million). The strip risk is affected to a great extent by market developments.

As a consequence of the termination of the associated CBL transaction, the sub-subleases to Vattenfall Warmte for the district heating networks in Duiven-Westervoort and Almere-Stad belonging to Liander N.V. have also been terminated by operation of law. We have agreed with Vattenfall that an agreement will be reached on the future of these networks by 1 December 2022. Until then, the district heating networks will be rented out to Vattenfall Warmte on the basis of the agreements in the terminated sub-subleases as far as possible. In anticipation of this, the district heating networks currently belonging to Liander will be split off into two separate companies and their shares will be held by Alliander N.V. The total carrying amount of the subleased district heating networks and associated meters as at 31 December 2021 was €95 million (2020: €95 million). 

Right-of-use assets

The greatest part of these assets relates to business premises and lease vehicles. Ground rents and the rental of telecommunication masts and connections are also accounted for in this amount. The reclassification of assets held for sale relates to Stam.