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Annual Report
Editorial
Year in review
Company
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2027 Strategy
Financial Report
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Financial statements Swiss GAAP FER­
Income statement
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Report of the Independent Auditor
Statutory financial statements
Income statement
Balance sheet
Cash flow statement
Notes
Proposed appropriation of retained earnings
Report of the Statutory Auditor
Corporate Governance
Sustainability Report
Sustainability at Swissgrid
Planet
People
Purpose
Partnership
Notes
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Annual Report
Editorial
Year in review
Company
Mission
2027 Strategy
Financial Report
Management Report
Financial statements Swiss GAAP FER­
Income statement
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Report of the Independent Auditor
Statutory financial statements
Income statement
Balance sheet
Cash flow statement
Notes
Proposed appropriation of retained earnings
Report of the Statutory Auditor
Corporate Governance
Sustainability Report
Sustainability at Swissgrid
Planet
People
Purpose
Partnership
Notes
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1. Accounting principles

General

The 2024 financial statements of Swissgrid Ltd (hereinafter: Swissgrid) have been prepared in accordance with Swiss GAAP FER. The financial statements provide a true and fair view of the company’s assets, financial position and results of operations.

Change in accounting principles

As at 1 January 2024, Swissgrid applied the new Swiss GAAP FER 28 standard «Government grants» for the first time.

Conversion of foreign currency items

The accounting records are maintained in the local currency (Swiss francs, CHF). All monetary assets and liabilities recognised in foreign currencies are converted at the exchange rate as of the balance sheet date. Transactions in foreign currencies are converted at the exchange rate on the day the transaction took place. Foreign exchange gains and losses resulting from transactions in foreign currencies are recognised in the income statement and are presented in the same item as the underlying transaction.

Cash flow statement

«Cash and cash equivalents» form the basis for the presentation of the cash flow statement. The cash flow from operating activities is calculated using the indirect method.

Revenue recognition

The revenue and procurement items result from the activities defined in the Electricity Supply Act (ESA) and include services for the non-discriminatory, reliable and efficient operation of the transmission grid, in particular ancillary services and balance and congestion management.

Revenue is recognised in the income statement upon performance of Swissgrid’s obligations. For ESA activities, the measurement of performance is mainly based on energy volumes measured directly on the transmission grid or reported by downstream grid levels. For certain revenue and procurement items, initial billing values are available six weeks after delivery at the earliest, thereby rendering accruals based on historical and statistical data, as well as on estimates necessary for the revenue recognition of these items.

The activities defined in the Ordinance on the Establishment of a Hydropower Reserve (WResO) are intermediary transactions in accordance with the accounting regulations, which is why only the value of the services provided by the company itself is reported in the power reserve segment.

Activities according to ESA/WResO

Volume- and tariff-related timing differences (surpluses and deficits)

According to Art. 14 of the Electricity Supply Act and the Winter Reserve Ordinance, grid usage costs must be allocated to users on a user-pays basis. The tariffs for a financial year are determined based on planned costs. Due to price and volume deviations, actual expenses and income vary from the tariff calculation on both the revenue and procurement side. This results in surpluses or deficits, i.e. the tariff revenues from a financial year are higher or lower than the actual expenses incurred during the same period. These volume- and tariff-related timing differences are transferred to the balance sheet and taken into account in cost and revenue calculations for future tariff periods. The expected reduction in volume- and tariff-related timing differences within twelve months of the balance sheet date is recognised as short-term surpluses or deficits in the balance sheet.

EBIT regulated under ESA

Earnings before interest and taxes (EBIT) from ESA activities are defined in Article 15 of the Electricity Supply Act (ESA) for chargeable costs, and are now defined in Article 18a of the Electricity Supply Ordinance (ESO) for interest on volume- and tariff-related timing differences arising from the 2024 financial year onwards. EBIT corresponds to the interest on invested operating assets (IOA) at the weighted average cost of capital rate for the current reporting year (= WACCt+0), the interest on the volume- and tariff-related timing differences arising from the 2024 financial year onwards at the borrowing cost ratet+2 included in WACCt+2 and taxes. In accordance with ElCom directive 03/2024, volume- and tariff-related timing differences up to and including the end of the 2023 financial year remain subject to interest at WACCt+2 until they have been fully eliminated, which also has an impact on EBIT.

Invested operating assets consist of net current assets calculated on a monthly basis, as well as the property, plant and equipment and intangible assets as at the end of the financial year. The weighted average cost of capital rate is based on the current international practice of the capital cost concept with reference to the Capital Asset Pricing Model (CAPM). Besides considering the findings of financial market theory, the regulatory framework conditions in Switzerland and the current situation in the money and capital market are also taken into account. The weighted average cost of capital rate for 2024 (WACCt+0) determined by the authorities on the basis of this calculation method is 4.13%, and the borrowing cost ratet+0 included in WACCt+0 is 2.25%. The weighted average cost of capital rate for 2026 (WACCt+2) applicable for the 2024 financial year is 3.43%, and the borrowing cost ratet+2 included in WACCt+2 is 2.0%.

EBIT according to WResO

From the 2024 financial year, the chargeable costs for the power reserve are calculated in the same way as ESA activities in accordance with Article 15 ESA. However, interest on the assets required for the power reserve is calculated according to the borrowing cost ratet+0 included in WACCt+0. In accordance with Article 18a ESO, interest on the volume- and tariff-related timing differences arising since 1 January 2024 is calculated at the borrowing cost ratet+2. As previously, no interest is calculated on the volume- and tariff-related timing differences up to and including the end of the 2023 financial year until they have been fully eliminated. EBIT in accordance with WResO is calculated from the interest on the assets required for the power reserve and the volume- and tariff-related timing differences arising since 1 January 2024.

Chargeability of operating and capital costs

ElCom has the right to verify ex post the chargeability of Swissgrid’s operating and capital costs for tariff-setting purposes. In case of an ex post cost adjustment, an appeal can be lodged with the Federal Administrative Court with an ultimate possibility of appeal to the Federal Supreme Court. A cost adjustment impacting Swissgrid’s operating result is applied whenever no appeal is lodged, or whenever an appeal’s prospects for success are judged to be less than 50% on the basis of a reappraisal, or whenever a legally binding ruling is issued.

Property, plant and equipment

Property, plant and equipment are recognised at the cost of acquisition or production less accumulated amortisation and any impairment losses. Significant spare parts which are likely to be used for a longer period and whose use only takes place in connection with a non-current asset item are recognised in non-current assets and depreciated over the remaining useful life of the relevant asset.

Depreciation/amortisation is calculated using the straight-line method on the basis of the estimated useful technical and economic service life. The service life is within the following ranges:

  • Lines: 15 to 60 years
  • Substations: 10 to 35 years
  • Buildings and expansions: 5 to 50 years
  • Other property, plant and equipment: 3 to 8 years
  • Construction in progress and properties: only applicable in the case of an impairment loss

Intangible assets

Intangible assets are recognised at the cost of acquisition or production less accumulated amortisation and any impairment losses. Depreciation/amortisation is calculated using the straight-line method on the basis of the estimated useful technical and economic service life.

The service life is within the following ranges:

  • Rights of use: contract term
  • Software: 3 to 5 years
  • Intangible assets under development: only applicable in the case of an impairment loss

The rights of use include easements and rights of use to mixed-use assets that were compensated once before 1 June 2019.

Impairment losses

The value of property, plant and equipment and intangible assets is reviewed annually. If there is an indication of an impairment loss, the book value is reduced to the realisable value and an impairment loss is charged to the results of the period.

Construction in progress/intangible assets under development

Construction in progress and intangible assets under development are non-current assets that are not yet completed or not yet operational. All items of property, plant and equipment and intangible assets, including self-constructed assets, are classified as non-current assets. As of each balance sheet date, a review is performed to determine whether any construction in progress or intangible assets under development have to be impaired. These are recognised as impairment losses in the year of completion. Ordinary depreciation or amortisation of these assets begins once they are completed or are ready for operation.

Financial assets

Financial assets are measured at acquisition costs less any impairment losses. These include shareholdings with a capital share of over 20%, but which do not have a significant impact on the financial statements, as well as shareholdings with a capital share of less than 20%. Employer contribution reserves without conditional renounced use are also recognised in financial assets.

Inventory

Inventory includes waste material for maintaining the grid systems. Inventory is measured at the lower of acquisition cost or market price.

Accounts receivable

Accounts receivable are reported at their nominal value less any impairment losses required for business reasons.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, cash at banks and deposits at banks maturing in 90 days or less. They are recognised at their nominal value.

Bonds

Bonds issued on the capital market are recognised at their nominal value. Deviations from the nominal value in the case of below- or above-par issues are recognised as accruals and deferrals and are reversed on a straight-line basis over the term of the bond.

Liabilities

Liabilities are recognised at their nominal value.

Provisions

Provisions are recognised if there is a probable obligation based on an event that took place prior to the balance sheet date, the amount and/or due date of which is uncertain but capable of being estimated.

Contingent liabilities

Contingent liabilities are measured as of the balance sheet date. A provision is reported if a cash outflow without a usable countervalue is probable and assessable. Otherwise, contingent liabilities are disclosed in the notes to the financial statements.

Interest on borrowed capital

Interest on borrowed capital is recognised as an expense in the period in which it arises.

Employee pension plan

Swissgrid is a member of an industry-wide retirement benefit plan (PKE Vorsorgestiftung Energie). This is a legally independent pension fund. All permanent employees of the company are included in this pension fund from 1 January of the year after they turn 17. Members of the Board of Directors are also to be insured in the pension fund under the conditions defined in the pension regulations of PKE Vorsorgestiftung Energie. All persons affiliated to the pension fund are insured for disability and death. From 1 January of the year after they turn 24, employees are also covered by retirement insurance.

Economic benefits arising from a pension fund surplus (e.g. in the form of a positive impact on future cash flows) are not capitalised, since the prerequisites for this are not met and the company does not intend to use such benefits to reduce employer contributions. Any benefits arising from freely available employer contribution reserves are recognised as an asset.

An economic obligation (e.g. in the form of negative effects on future cash flows due to a pension fund deficit) is recognised if the prerequisites for the creation of a provision are met. Accrued contributions for the period, the difference between the annually calculated economic benefit from pension fund surpluses and obligations, as well as the change in the employer contribution reserves are recognised in the income statement as personnel expenses.

Transactions with related parties

Related parties are organisations and persons that can have a significant influence, either directly or indirectly, on Swissgrid’s financial or operational decisions. Shareholders holding at least 20% of the voting rights in Swissgrid, either alone or together with others, are considered to be related parties. As regards shareholders, other criteria in addition to the proportion of voting rights held are also taken into account (including representation in committees and the possibility of exerting influence due to the shareholder structure). Subsidiaries of related shareholders and partner plant companies whose shares are 100% owned by related shareholders or which are controlled by a related shareholder, are also considered to be related parties. Related parties also include companies over which Swissgrid exercises a significant influence. Members of the Board of Directors and of the Executive Board are also considered to be related parties. Provided they exist and are significant, relations with related parties are disclosed in the notes to the financial statements. All transactions are conducted at arm’s length.

Segment information

Segmentation is based on tariff groups as defined in the Electricity Supply Act (ESA), the power reserve segment (WResO) and other activities, and is aligned with Swissgrid’s internal reporting structure.

Income taxes

Current income taxes are calculated based on the taxable results on an accrual basis. The annual accrual of deferred taxes is based on a balance sheet perspective (balance sheet method) and considers all future income tax effects (comprehensive method).

Derivative financial instruments

Swissgrid may use derivative financial instruments to hedge against currency and market price risks. If the conditions are met, Swissgrid will apply hedge accounting to hedge expected future cash flows. The instruments used for this purpose will be disclosed in the notes to the financial statements until the underlying transaction is realised.

Government grants

As part of the modernisation and maintenance of the grid, Swissgrid may receive government grants that are related to assets or related to income. Government grants related to assets are offset against the asset at the time of receipt. Government grants related to income are recognised in the income statement. The type and amount of government grants recognised are disclosed in the notes to the financial statements.

2. Estimation uncertainty

Financial-statement reporting requires estimates and assumptions to be made that may have a significant impact on Swissgrid’s financial statements. With respect to assets and liabilities recognised in the balance sheet, accruals and deferrals (prepaid expenses and accrued income/accrued expenses and deferred income) and volume- and tariff-related timing differences in particular are based on various assumptions and estimates that may necessitate significant adjustments. This is due to specific volumes not being available for certain revenue and procurement items when the financial statements are prepared, as well as regulatory uncertainties. The volume- and tariff-related timing differences are also influenced by estimates in the allocation of operating expenses to the segments.

More information is given in the sections on «Revenue recognition» and «Activities according to ESA/WResO» in Note 1, as well as in the following section.

4. Segment reporting

For segment reporting, the costs of capitalised self-constructed assets are deducted from operating expenses and are therefore not included in total operating income.

Eliminations: active power losses are a separate internal balance group. As a result, internal transactions occur between the general ancillary services/balancing energy and active power loss segments.

Congestion management is included in the other activities.

Segment report 2024

In millions of CHF Total Grid utilisation General ancillary services/balance energy Active power losses (individual ancillary services) Reactive energy (individual ancillary services) Eliminations Total activities according to ESA Power reserve Further activities
Net turnover 1,825.1 550.7 930.7 323.5 17.3 –14.6 1,807.6 17.5
Other operating income 18.7 1.9 0.3 2.2 0.1 16.4
Change in volume- and tariff-related timing differences –582.8 –2.0 –438.7 –132.0 –2.1 –574.8 –8.0
Total operating income 1,261.0 550.6 492.3 191.5 15.2 –14.6 1,235.0 9.6 16.4
Procurement costs –684.5 –44.0 –460.5 –180.9 –13.7 14.6 –684.5
Gross profit 576.5 506.6 31.8 10.6 1.5 550.5 9.6 16.4
Operating expenses –276.5 –227.6 –23.7 –3.1 –0.7 –255.1 –7.6 –13.8
Depreciation/amortisation and impairment losses –160.9 –152.7 –4.9 –0.5 –0.2 –158.3 –0.4 –2.2
Earnings before interest and income tax (EBIT) 139.1 126.3 3.2 7.0 0.6 137.1 1.6 0.4

Volume- and tariff-related timing differences: negative figures represent surpluses, and positive figures deficits.

Movement in volume- and tariff-related timing differences per segment

In millions of CHF Total Grid utilisation General ancillary services/balance energy Active power losses (individual ancillary services) Reactive energy (individual ancillary services) Eliminations Total activities according to ESA Power reserve Further activities
Net turnover 1,825.1 550.7 930.7 323.5 17.3 –14.6 1,807.6 17.5
Other operating income 18.7 1.9 0.3 2.2 0.1 16.4
Procurement costs –684.5 –44.0 –460.5 –180.9 –13.7 14.6 –684.5
Operating expenses –276.5 –227.6 –23.7 –3.1 –0.7 –255.1 –7.6 –13.8
Depreciation/amortisation and impairment losses –160.9 –152.7 –4.9 –0.5 –0.2 –158.3 –0.4 –2.2
Imputed interest and income taxes (EBIT) –139.1 –126.3 –3.2 –7.0 –0.6 –137.1 –1.6 –0.4
Change in volume- and tariff-related timing differences 582.8 2.0 438.7 132.0 2.1 574.8 8.0

Volume- and tariff-related timing differences: positive figures represent surpluses, and negative figures deficits.

Segment report 2023

In millions of CHF Total Grid utilisation General ancillary services/balance energy Active power losses (individual ancillary services) Reactive energy (individual ancillary services) Eliminations Total activities according to ESA Power reserve Further activities
Net turnover 1,219.2 525.7 512.9 167.3 21.0 –7.7 1,219.2
Other operating income 19.9 3.0 0.6 3.6 16.3
Change in volume- and tariff-related timing differences 216.4 –37.2 170.9 77.2 –2.7 208.2 8.2
Total operating income 1,455.5 491.5 684.4 244.5 18.3 –7.7 1,431.0 8.2 16.3
Procurement costs –899.9 –14.9 –646.6 –229.2 –16.9 7.7 –899.9
Gross profit 555.6 476.6 37.8 15.3 1.4 531.1 8.2 16.3
Operating expenses –271.3 –223.5 –21.8 –2.9 –0.5 –248.7 –8.2 –14.4
Depreciation/amortisation and impairment losses –146.1 –141.3 –2.6 –0.4 –0.1 –144.4 –1.7
Earnings before interest and income tax (EBIT) 138.2 111.8 13.4 12.0 0.8 138.0 0.2

Volume- and tariff-related timing differences: negative figures represent surpluses, and positive figures deficits.

Movement in volume- and tariff-related timing differences per segment

In millions of CHF Total Grid utilisation General ancillary services/balance energy Active power losses (individual ancillary services) Reactive energy (individual ancillary services) Eliminations Total activities according to ESA Power reserve Further activities
Net turnover 1,219.2 525.7 512.9 167.3 21.0 –7.7 1,219.2
Other operating income 19.9 3.0 0.6 3.6 16.3
Procurement costs –899.9 –14.9 –646.6 –229.2 –16.9 7.7 –899.9
Operating expenses –271.3 –223.5 –21.8 –2.9 –0.5 –248.7 –8.2 –14.4
Depreciation/amortisation and impairment losses –146.1 –141.3 –2.6 –0.4 –0.1 –144.4 –1.7
Imputed interest and income taxes (EBIT) –138.2 –111.8 –13.4 –12.0 –0.8 –138.0 –0.2
Change in volume- and tariff-related timing differences –216.4 37.2 –170.9 –77.2 2.7 –208.2 –8.2

Volume- and tariff-related timing differences: positive figures represent surpluses, and negative figures deficits.

The individual expense and income positions assigned to the four segments within ESA activities are listed in Note 5, as are services provided by the company itself in the power reserve segment.

Grid usage

The grid usage segment is predominantly financed by various charges for use of the grid. This segment is also assigned the income from auctioning bottleneck capacities at the national borders to cover the chargeable costs of the transmission system, provided that this purpose is approved by ElCom. This segment also includes part of the compensation for international transit flows (ITC); the other part is recognised in the active power loss segment.

Net turnover in this segment amounted to CHF 550.7 million in the 2024 financial year, CHF 25.0 million above the previous year. The rise is attributable to the increase of CHF 60.3 million in auction income to cover the chargeable costs of the transmission system allocated to this segment. By contrast, tariff revenues for grid usage decreased by CHF 33.6 million, and income from ITC fell by CHF 1.7 million. Following higher costs for national redispatch, procurement costs in the reporting year amounted to CHF 44.0 million, CHF 29.1 million above the previous year’s figure of CHF 14.9 million.

Revenue exceeded costs in the reporting year, resulting in a surplus of CHF 2.0 million. This meant that the existing deficits could be reduced.

General ancillary services/balancing energy

Net turnover in this segment rose by CHF 417.8 million compared to the previous year. The increase is due to the higher tariff revenues and income from the unintentional deviation of CHF 155.1 million, higher revenue from balance group balancing energy of CHF 199.6 million, and a CHF 63.1 million rise in auction income to cover the chargeable costs of the transmission system allocated to this segment.

The largest expense item for this segment is control power provision, i.e. the reservation of power plant capacity in the interests of balancing energy consumption and energy feed-in, as well as the costs for ancillary services (AS) energy and the proportional voltage maintenance costs payable by this segment. The procurement costs in this segment totalled CHF 460.5 million, down CHF 186.1 million on the previous year (CHF 646.6 million). This change is primarily due to the CHF 379.1 million reduction in costs for control power provision and the CHF 181.4 million increase in procurement costs for AS energy.

Net turnover exceeded costs in the 2024 financial year, resulting in a surplus of CHF 438.7 million. This meant that the existing deficits could be reduced.

Active power losses (individual ancillary services)

This segment reports expenses and income for active power losses in the transmission grid. In addition to tariff revenues, part of the auction income to cover the chargeable costs of the transmission system and income from ITC is recognised in this segment.

The procurement of energy to compensate for active power losses takes place via anticipatory tenders and on the spot market. At CHF 323.5 million, net turnover in this segment was CHF 156.2 million above the previous year’s figure (CHF 167.3 million). The increase is due to the higher tariff revenues of CHF 92.2 million and the higher auction income to cover the chargeable costs of the transmission system allocated to this segment of CHF 68.4 million. By contrast, income from ITC decreased by CHF 4.4 million. Procurement costs for active power losses totalled CHF 180.9 million in the reporting year (previous year: CHF 229.2 million).

Net turnover exceeded costs in 2024, resulting in a surplus of CHF 132.0 million. This meant that the existing deficits could be reduced.

Reactive energy (individual ancillary services)

The supply of reactive energy to maintain the required operating voltage is ensured by means of contractual agreements with several power plants and distribution system operators.

Net turnover in this segment decreased by CHF 3.7 million year on year to CHF 17.3 million due to lower tariff revenues. Procurement costs totalled CHF 13.7 million, CHF 3.2 million below the previous year’s figure of CHF 16.9 million. This decrease is due to the lower pro rata voltage maintenance costs payable by this segment.

Revenue exceeded costs in 2024, resulting in a surplus of CHF 2.1 million. This meant that the existing deficits could be reduced.

Power reserve 

This segment handles the orders regulated by the WResO for the use of the hydropower reserve and reserve power plants, pooled emergency power groups and combined heat and power plants (CHP plants). In accordance with the accounting regulations, these activities are intermediary transactions, which is why only the value of the services provided by the company itself (operating and capital costs) and the associated net turnover are reported in the power reserve segment.

The expenses resulting from the intermediary business amounted to CHF 186.5 million in the reporting year (previous year: CHF 403.2 million). In addition, tariff income of CHF 645.2 million was received for the first time in 2024. The tariffs also take into account the regulatory reduction in the deficits from previous years. For this reason, a decrease in deficits of CHF 449.2 million was recorded in this segment (including services provided by the company itself).

5. Net turnover and procurement costs according to ESA/WResO

In millions of CHF Segment 2024 2023
Tariff income for grid utilisation A 473.0 506.6
Net income from ITC A/C 35.7 41.8
Income from auctions for the reduction of chargeable grid costs A/B/C 324.8 133.0
Tariff income for general ancillary services (AS) and income from unintentional deviation B 412.0 256.9
Income from balance group/balance energy B 372.5 172.9
Tariff income for active power losses C 186.9 94.7
Tariff income for reactive energy D 17.3 21.0
Tariff income power reserve (excl. intermediary business) E 17.5
Eliminations –14.6 –7.7
Net turnover 1,825.1 1,219.2
Expenses for national redispatch A 44.0 14.9
Expenses for AS control power provision and unintentional deviation B 115.3 494.4
Expenses for automatic start-up/island operation capability B 1.4 1.4
Expenses for grid enhancement B 17.3 8.1
Expenses for AS energy B 266.0 84.6
Expenses for compensation of active power losses C 180.9 229.2
Expenses for reactive energy/voltage maintenance B/D 74.2 75.0
Eliminations –14.6 –7.7
Procurement costs 684.5 899.9

Letters used for segment allocation:
A = Grid usage
B = General ancillary services/balancing energy
C = Active power losses (individual ancillary services)
D = Reactive energy (individual ancillary services)
E = Power reserve

Segment reporting is provided in Note 4.

Income from ITC consists of the following:
– Compensation for grid usage (A) CHF 3.0 million (previous year: CHF 4.7 million)
– Compensation for active power losses (C) CHF 32.7 million (previous year: CHF 37.1 million)

The ITC compensation for grid usage and active power losses corresponds to net income. Supervision charges paid to ElCom and to the Swiss Federal Office of Energy (SFOE) amounting to CHF 6.1 million (previous year: CHF 4.9 million) were deducted from the gross income of CHF 3.5 million for grid usage (previous year: CHF 5.3 million) and CHF 38.3 million for active power losses (previous year: CHF 41.4 million) on a pro rata basis.

Auction income to cover the chargeable costs of the transmission system is broken down as follows:
– Grid usage (A): CHF 74.7 million (previous year: CHF 14.4 million)
– General AS (B): CHF 146.2 million (previous year: CHF 83.1 million)
– Active power losses (C) CHF 103.9 million (previous year: CHF 35.5 million)

The tariff income from the power reserve includes the share of tariff income received in the reporting year for services provided by the company itself.

Expenses for reactive energy / voltage maintenance are broken down as follows:
– General AS (B): CHF 60.5 million (previous year: CHF 58.1 million)
– Reactive energy (D): CHF 13.7 million (previous year: CHF 16.9 million)

Eliminations: active power losses are a separate internal balance group. As a result, internal transactions occur between the general ancillary services/balancing energy and active power loss segments.

6. Other operating income

In millions of CHF 2024 2023
Congestion management clearing 16.2 16.3
Other 2.5 3.6
18.7 19.9

7. Materials and third-party supplies

In millions of CHF 2024 2023
Grid maintenance 23.9 25.1
Grid system control 0.5 0.4
Other services in the grid area 19.4 23.5
Expenses for projects, advisory and non-cash benefits 58.0 56.9
Hardware/software maintenance 18.3 17.9
120.1 123.8

Other grid-related services consist of remuneration for easements, including easement management services performed by third parties and operating expenses for mixed-use plants.

8. Personnel expenses

Personnel expenses

In millions of CHF 2024 2023
Salaries, bonuses, allowances 116.9 105.5
Employee insurance 23.3 20.8
Other personnel expenses 5.2 4.8
145.4 131.1
Headcount at 31.12.
Permanent employment
Number of employees 838.0 774.0
expressed as full-time equivalents 791.0 734.8
Fixed-term employment
Number of employees 21.0 19.0
expressed as full-time equivalents 15.4 13.5

Other personnel expenses include, in particular, the costs of training and further education, recruitment, lump-sum expenses, as well as contributions to external catering for employees.

Executive Board remuneration

In millions of CHF 2024 2023
Fixed remuneration (incl. lump-sum expenses) 1.82 1.83
Variable remuneration 0.72 0.81
Pension benefits 1 0.50 0.50
Total remuneration to the Executive Board 3.04 3.14
Of which to the highest-earning member of the Executive Board
Fixed remuneration (incl. lump-sum expenses) 0.52 0.52
Variable remuneration 0.23 0.25
Pension benefits 1 0.15 0.15
Total remuneration to the highest-earning member of the Executive Board 0.90 0.92

1 Pension benefits include employer contributions to social security and the employee pension plan.

Further information on the members of the Executive Board can be found in the Corporate Governance Report.

9. Other operating expenses

In millions of CHF 2024 2023
Rental and occupancy costs 11.9 10.1
Ground rents 4.7 4.2
Rental costs for communication equipment/telecommunication expense 2.3 3.4
Board of Directors' fees and expenses incl. social costs 0.9 0.8
Actual expenses for travel and subsistence for employees and third parties 2.5 2.4
Fees, dues and licences 4.9 4.8
Insurance 2.5 2.4
Other administrative costs 10.5 10.8
40.2 38.9

Other administrative costs included borrowing costs of CHF 6.2 million (previous year: CHF 6.1 million), which were incurred in connection with the additional tasks transferred to Swissgrid by the federal government in the power reserve segment and represent chargeable costs in accordance with Art. 22 WResO.

Board of Directors’ fees and expenses represent fixed gross remuneration including the deduction of any employee contributions to the employee pension plan. The remuneration paid to the Chairman of the Board of Directors amounted to CHF 250,000, including lump-sum expenses (previous year: CHF 250,000). The remaining members of the Board of Directors received remuneration of between CHF 57,500 and CHF 77,500 pro rata temporis for 2024, including lump-sum expenses (previous year: between CHF 57,500 and CHF 77,500).

Further information on the members of the Board of Directors can be found in the Corporate Governance Report.

10. Financial income

In millions of CHF 2024 2023
Interest income on time deposits 2.0 0.6
Other financial income 1.6 1.4
3.6 2.0

Other financial income included a dividend of CHF 0.7 million (previous year: CHF 0.5 million) received from Holding des Gestionnaires de Réseau de Transport d’Électricité SAS (HGRT).

11. Financial expenses

In millions of CHF 2024 2023
Bond interest 15.9 14.0
Loans and convertible loans interest 0.6 5.5
Commitment fees 0.7 0.6
Other financial expenses 2.0 0.7
19.2 20.8

At the beginning of the 2024 financial year, a further partial repayment of convertible loans amounting to CHF 30.0 million was made. In addition, loans totalling CHF 480.0 million were reimbursed in the reporting year. The interest expense for convertible loans and loans decreased accordingly.

Other financial expenses included a value adjustment on financial assets of CHF 1.2 million in the reporting year.

12. Income taxes

In millions of CHF 2024 2023
Current income taxes 21.7 21.6
Change in deferred taxes –2.0 –2.2
19.7 19.4

An average rate of 15.9% (previous year: 16.3%) was used to calculate the current income taxes and, in 2024, deferred taxes were calculated based on an expected rate of 15.7% (previous year: 15.6%).

The effective average tax rate based on earnings before tax amounted to 16.0% (previous year: 16.3%).

13. Non-current assets

Summary of property, plant and equipment 2024

In millions of CHF Advances and construction in progress Substations Lines Properties and buildings Other property plant and equipment Total
Acquisition cost at 1.1.2024 281.5 2,273.8 2,929.3 255.8 58.3 5,798.7
Additions 237.4 9.5 22.4 1.9 9.9 281.1
Disposals –2.7 –0.6 –3.3
Reclassification –113.2 16.8 42.5 11.4 21.4 –21.1
Acquisition cost at 31.12.2024 405.7 2,297.4 2,993.6 269.1 89.6 6,055.4
Accumulated depreciation and amortisation at 1.1.2024 5.2 1,570.7 1,802.9 91.5 54.0 3,524.3
Depreciation and amortisation 65.8 49.3 5.6 15.6 136.3
Impairment losses
Disposals –2.3 –0.3 –2.6
Reclassification
Accumulated depreciation and amortisation at 31.12.2024 5.2 1,634.2 1,851.9 97.1 69.6 3,658.0
Net book value at 1.1.2024 276.3 703.1 1,126.4 164.3 4.3 2,274.4
Net book value at 31.12.2024 400.5 663.2 1,141.7 172.0 20.0 2,397.4

Summary of property, plant and equipment 2023

In millions of CHF Advances and construction in progress Substations Lines Properties and buildings Other property plant and equipment Total
Acquisition cost at 1.1.2023 246.9 2,283.9 2,943.6 255.0 55.7 5,785.0
Additions 29.2 1.8 4.4 0.1 2.0 37.5
Disposals –15.0 –8.7 –0.2 –0.1 –24.0
Reclassification 5.4 3.1 –10.0 0.9 0.7 0.1
Acquisition cost at 31.12.2023 281.5 2,273.8 2,929.3 255.8 58.3 5,798.7
Accumulated depreciation and amortisation at 1.1.2023 5.2 1,518.3 1,764.3 84.8 49.2 3,421.8
Depreciation and amortisation 67.4 47.3 6.9 4.9 126.5
Impairment losses
Disposals –15.0 –8.7 –0.2 –0.1 –24.0
Reclassification
Accumulated depreciation and amortisation at 31.12.2023 5.2 1,570.7 1,802.9 91.5 54.0 3,524.3
Net book value at 1.1.2023 241.7 765.6 1,179.3 170.2 6.5 2,363.2
Net book value at 31.12.2023 276.3 703.1 1,126.4 164.3 4.3 2,274.4

Gross investments in property, plant and equipment amounted to CHF 281.1 million (previous year: CHF 254.1 million). In the reporting year, no property, plant and equipment was financed by proceeds from the auctioning of grid congestion capacities for cross-border supplies (previous year: CHF 226.6 million). In the reporting year, assets totalling CHF 21.1 million were reclassified from intangible assets to property, plant and equipment (previous year: reclassification from intangible assets under development to construction in progress of CHF 0.1 million).

Property, plant and equipment of CHF 22.3 million (previous year: CHF 21.2 million) was purchased from related parties in 2024.

Summary of intangible assets 2024

Intangible assets under development Usage rights Software Total intangible assets
In millions of CHF Purchased Self-constructed Total Purchased Self-constructed Total Purchased Self-constructed Total Purchased Self-constructed Total
Acquisition cost at 1.1.2024 2.7 1.0 3.7 191.4 191.4 140.9 63.0 203.9 335.0 64.0 399.0
Additions 16.7 4.8 21.5 11.8 3.1 14.9 28.5 7.9 36.4
Disposals
Reclassification 0.3 1.7 2.0 15.9 3.2 19.1 16.2 4.9 21.1
Acquisition cost at 31.12.2024 19.7 7.5 27.2 191.4 191.4 168.6 69.3 237.9 379.7 76.8 456.5
Accumulated depreciation and amortisation at 1.1.2024 101.2 101.2 131.8 59.4 191.2 233.0 59.4 292.4
Depreciation and amortisation 5.7 5.7 13.8 4.4 18.2 19.5 4.4 23.9
Impairment losses
Disposals
Reclassification
Accumulated depreciation and amortisation at 31.12.2024 106.9 106.9 145.6 63.8 209.4 252.5 63.8 316.3
Net book value at 1.1.2024 2.7 1.0 3.7 90.2 90.2 9.1 3.6 12.7 102.0 4.6 106.6
Net book value at 31.12.2024 19.7 7.5 27.2 84.5 84.5 23.0 5.5 28.5 127.2 13.0 140.2

Summary of intangible assets 2023

Intangible assets under development Usage rights Software Total intangible assets
In millions of CHF Purchased Self-constructed Total Purchased Self-constructed Total Purchased Self-constructed Total Purchased Self-constructed Total
Acquisition cost at 1.1.2023 6.2 2.9 9.1 191.4 191.4 134.2 60.9 195.1 331.8 63.8 395.6
Additions 1.6 0.6 2.2 1.0 0.3 1.3 2.6 0.9 3.5
Disposals
Reclassification –5.1 –2.5 –7.6 5.7 1.8 7.5 0.6 –0.7 –0.1
Acquisition cost at 31.12.2023 2.7 1.0 3.7 191.4 191.4 140.9 63.0 203.9 335.0 64.0 399.0
Accumulated depreciation and amortisation at 1.1.2023 95.4 95.4 121.8 55.6 177.4 217.2 55.6 272.8
Depreciation and amortisation 5.8 5.8 10.0 3.8 13.8 15.8 3.8 19.6
Impairment losses
Disposals
Reclassification
Accumulated depreciation and amortisation at 31.12.2023 101.2 101.2 131.8 59.4 191.2 233.0 59.4 292.4
Net book value at 1.1.2023 6.2 2.9 9.1 96.0 96.0 12.4 5.3 17.7 114.6 8.2 122.8
Net book value at 31.12.2023 2.7 1.0 3.7 90.2 90.2 9.1 3.6 12.7 102.0 4.6 106.6

Gross investments in intangible assets amounted to CHF 36.4 million (previous year: CHF 25.4 million). In the reporting year, no intangible assets were financed by proceeds from the auctioning of grid congestion capacities for cross-border supplies (previous year: CHF 21.9 million). In addition, intangible assets amounting to CHF 0.2 million (previous year: CHF 0.3 million) were purchased from related parties in 2024.

14. Financial assets

In millions of CHF 31.12.2024 31.12.2023
Shareholdings 5.0 5.2
Other financial assets 0.9
5.0 6.1

The decrease in financial assets is due to a value adjustment of CHF 1.2 million. By contrast, the conversion of shareholdings in foreign currencies resulted in an increase of CHF 0.1 million.

Swissgrid has the following shareholdings, which are recognised in the balance sheet as financial assets:

Share capital in m. Share in %
Joint Allocation Office (JAO) A 0.125 4.0
TSCNET Services GmbH B 0.040 6.25
Holding des Gestionnaires de Réseau de Transport d’Electricité SAS (HGRT) C 52.119 5.0
Pronovo AG D 0.100 100.0
ecmt AG E 0.100 31.0
Equigy B.V. F 0.050 20.0

Letters used for locations and currencies:
A = Luxembourg (Lux) | Currency EUR
B = Munich (D) | Currency EUR
C = Paris (F) | Currency EUR
D = Frick (CH) | Currency CHF
E = Winterthur (CH) | Currency CHF
F = Arnheim (NL) | Currency EUR

Swissgrid is not legally obliged to prepare consolidated financial statements. Either the control principle necessary to prepare a consolidated financial statement (Art. 963 of the Swiss Code of Obligations (CO)) is not met, or the subsidiaries do not have a material influence on Swissgrid’s financial statements. In particular, Pronovo AG is regulated by the Swiss Federal Office of Energy (SFOE) and is explicitly excluded from any consolidation with Swissgrid based on Art. 64 (5) of the Energy Act (EnA).

The figures are unchanged from the previous year.

In millions of CHF Grid utilisation General ancillary services/balance energy Active power losses (individual ancillary services) Reactive energy (individual ancillary services) Power reserve Total volume- and tariff-related timing differences Thereof surpluses Thereof deficits
Balance at 31.12.2022 156.0 368.1 150.1 18.5 55.0 747.7 747.7
Change in 2023 –37.2 170.9 77.2 –2.7 8.2 216.4
Change from the intermediary business in 2023 403.2 403.2
Balance at 31.12.2023 118.8 539.0 227.3 15.8 466.4 1,367.3 1,367.3
Change in 2024 –2.0 –438.7 –132.0 –2.1 –8.0 –582.8
Change from the intermediary business in 2024 –441.2 –441.2
Balance at 31.12.2024 116.8 100.3 95.3 13.7 17.2 343.3 343.3
Current portion 25.6 100.3 78.6 4.8 209.3 209.3

Negative figures represent surpluses, and positive figures deficits.

Further information on volume- and tariff-related timing differences (function, estimation uncertainties and current legal proceedings) can be found in Notes 1, 2 and 3.

16. Balance sheet items held on a fiduciary basis

On the basis of a statutory mandate, Swissgrid coordinates the auctioning of bottleneck capacities for cross-border supplies and maintains accounting records and bank accounts on a fiduciary basis for this purpose.

Assets held on a fiduciary basis

In millions of CHF 31.12.2024 31.12.2023
Trade accounts receivable 29.9 15.3
Other receivables 0.7 1.5
Prepaid expenses and accrued income 18.0 5.3
Cash and cash equivalents 49.5 11.8
98.1 33.9

Liabilities held on a fiduciary basis

In millions of CHF 31.12.2024 31.12.2023
Trade accounts payable 59.1 27.7
Accrued expenses and deferred income 39.0 6.2
98.1 33.9

The revenues and the manner in which they are used are as follows:

Auctions

In millions of CHF 2024 2023
Share of revenue Switzerland 376.7 368.9
Congestion management clearing (incl. financial result) –16.0 –17.2
Net proceeds 360.7 351.7
Used for reduction of the chargeable grid costs –324.8 –123.1
Used for grid investments –228.6
Undistributed income from auctions 35.9

Pursuant to ElCom’s letter of approval dated 7 February 2023, income from auctions in 2024 amounting to CHF 324.8 million (previous year: CHF 351.7 million) was paid to Swissgrid.

17. Trade receivables

In millions of CHF 31.12.2024 31.12.2023
Trade receivables 414.1 222.3
Specific valuation allowances
414.1 222.3

18. Other receivables

In millions of CHF 31.12.2024 31.12.2023
Security deposits on blocked bank accounts 0.5 1.2
Other 18.7 17.8
19.2 19.0

Other receivables included the receivable for the 2024 enforcement costs for handling congestion management amounting to CHF 16.2 million (previous year: CHF 16.3 million).

19. Prepaid expenses and accrued income

In millions of CHF 31.12.2024 31.12.2023
Accrued revenue for supplies made 97.1 93.4
Other 15.6 18.5
112.7 111.9

In particular, other prepaid expenses and accrued income include the discount on bond issues and financing and issue costs, which are amortised over the term of the financing instrument.

20. Financial liabilities

In millions of CHF 31.12.2024 31.12.2023
Bonds 1,915.0 1,915.0
Convertible loans 11.0 41.1
Loans 100.1 580.0
Total financial liabilities 2,026.1 2,536.1
Current portion 405.2 510.0

Bonds

Nominal amount in CHF Interest rate Term Expiration at nominal value
350 million 1.625% 2013–2025 30.01.2025
150 million 0.000% 2021–2026 30.06.2026
200 million 1.900% 2023–2026 30.06.2026
175 million 1.100% 2022–2027 30.06.2027
150 million 0.000% 2020–2028 30.06.2028
150 million 0.625% 2015–2030 25.02.2030
150 million 0.200% 2020–2032 30.06.2032
110 million 0.050% 2021–2033 30.06.2033
125 million 0.150% 2020–2034 30.06.2034
130 million 0.125% 2020–2036 30.06.2036
100 million 0.200% 2021–2040 29.06.2040
125 million 0.050% 2019–2050 30.06.2050

The maturities of bonds are as follows:

In millions of CHF Interest rate (bandwidth) Year 1 Year 2–5 more than 5 years
Balance at 31 December 2024
Bonds 0.000–1.900% 350.0 675.0 890.0 1,915.0
Balance at 31 December 2023
Bonds 0.000–1.900% 1,025.0 890.0 1,915.0

Convertible loans and loans

Convertible loans have a term of nine years and one-fifth of the loans become payable annually from year five. Moreover, these loans are also assigned a conversion right by Swissgrid in the event of occurrence of contractually defined events and an associated conversion obligation by the creditors. Creditors are compensated by a premium on the interest rate for the conversion right assigned to Swissgrid. Convertible loans are recognised in full in liabilities.

The interest conditions and maturities of convertible loans and loans are as follows:

In millions of CHF Interest rate (bandwidth) Year 1 Year 2–5 more than 5 years Total
Balance at 31 December 2024
Convertible loans 3.36–3.41% 5.2 5.8 11.0
Loans 0.00–2.40% 50.0 50.0 0.1 100.1
Balance at 31 December 2023
Convertible loans 3.36–3.41% 30.0 11.0 41.0
Loans 0.00–2.40% 480.0 100.0 0.1 580.1

Convertible loans and loans are assessed at their nominal value.

Lines of credit

The committed lines of credit totalled CHF 600 million, and remained unclaimed as at 31 December 2024.

21. Provisions

In millions of CHF Dismantling Procedural costs Deferred taxes Total provisions
Balance at 31 December 2022 1.5 0.4 33.9 35.8
Provisions raised 0.1 0.1
Provisions used
Reversals 0.1 2.2 2.3
Balance at 31 December 2023 1.5 0.4 31.7 33.6
Provisions raised
Provisions used
Reversals 2.0 2.0
Balance at 31 December 2024 1.5 0.4 29.7 31.6
Current portion 0.1 0.1

Procedural costs

The provision amount includes the estimated compensation payable to parties and the court costs imposed on Swissgrid due to the administrative procedures in conducting proceedings.

22. Other liabilities

In millions of CHF 31.12.2024 31.12.2023
Value-added tax 27.0 10.8
Security deposits on blocked bank accounts 0.1 0.7
Other 0.2 2.0
27.3 13.5

23. Accrued expenses and deferred income

In millions of CHF 31.12.2024 31.12.2023
Accrued expenses for supplies made 52.1 61.2
Personnel expenses and employee insurance scheme 18.9 15.4
Accrued interest and premium from issued bonds 13.7 19.0
Taxes 13.6 15.2
98.3 110.8

24. Other off-balance sheet commitments

Long-term rental contracts

Long-term rental contracts with fixed terms exist with several parties. These result in the following obligations:

In millions of CHF Year 1 Year 2–10 More than 10 years Total
31.12.2024 6.9 40.0 55.7 102.6
31.12.2023 6.3 40.8 59.4 106.5

The long-term rental obligations primarily include the rental commitments for Swissgrid’s head office in Aarau.

Off-balance-sheet lease commitments

Swissgrid has the following off-balance-sheet lease commitments for vehicles and office equipment:

In millions of CHF Year 1 Year 2–5 Total
31.12.2024 1.0 2.8 3.8
31.12.2023 1.2 0.9 2.1

25. Derivative financial instruments

Swissgrid made use of derivative financial instruments to partially hedge against market price risk from future procurement costs for active power losses. The nominal amount of these instruments was EUR 116.1 million or CHF 109.3 million (previous year: EUR 208.5 million or CHF 193.1 million). As at 31 December 2024, the positive replacement values stood at EUR 3.3 million or CHF 3.1 million (previous year: EUR 0.1 million or CHF 0.1 million) and the negative replacement values amounted to EUR 15.9 million or CHF 15.0 million (previous year: EUR 97.0 million or CHF 89.8 million), resulting in net negative replacement values of EUR 12.6 million or CHF 11.9 million (previous year: EUR 96.9 million or CHF 89.7 million).

26. Employee pension plan

Economic benefit / economic obligation and retirement benefit plan expenses

In millions of CHF Shortfall/surplus funding Economic share of the organisation Change compared with previous year/ affecting income in FY Accrued amounts Pension benefit expenses within personnel expenses
31.12.2024 31.12.2024 31.12.2023 2024 2023
Pension plans with overfunding 6.2 13.6 13.6 12.2
Total 6.2 13.6 13.6 12.2

Swissgrid is affiliated to a collective plan by the pension fund PKE Vorsorgestiftung Energie. Therefore, an economic benefit or economic obligation cannot be determined on the basis of the individual affiliation contract. The coverage ratio of the collective plan was 120.7% as at 31 December 2024 (previous year: 113.9%). The actuarial calculations are based on a technical interest rate of 2.0% (previous year: 2.0%) and on the technical basis of the Occupational Pensions Act (OPA) 2020 (previous year: OPA 2020).

27. Transactions with related parties

Transactions with related parties in millions of CHF 2024 2023
Total operating activities
Net turnover 679.3 495.8
thereof grid utilisation 317.8 326.1
thereof general ancillary services/balance energy 219.8 87.0
thereof active power losses 125.7 63.2
thereof reactive energy 16.0 19.5
Other operating income 0.1 0.1
Procurement costs and operating expenses
Procurement costs 383.6 460.7
thereof grid utilisation 34.6 14.8
thereof general ancillary services/balance energy 298.9 405.6
thereof active power losses 44.2 31.4
thereof reactive energy 5.9 8.9
Cost of materials and third-party supplies 13.6 13.2
Other operating expenses 5.9 4.4
Financial result
Financial expenses 0.7

In the power reserve segment, revenue from related parties totalled CHF 119.9 million (previous year: CHF 0 million) and costs to related parties stood at CHF 25.8 million (previous year: CHF 94.5 million).

Unsettled balances at balance sheet date with related parties in millions of CHF 31.12.2024 31.12.2023
Assets
Trade receivables 150.5 95.4
Prepaid expenses and accrued income 25.2 15.9
Financial assets 0.9
Liabilities
Convertible loans and loans 0.5 21.6
Trade accounts payable 68.6 60.4
Accrued expenses and deferred income 8.3 6.3

The conditions relating to related parties are described in Note 1.

As in the previous year, there were no transactions with members of the Board of Directors or the Executive Board in the reporting year, with the exception of ordinary remuneration.

29. Events after the balance sheet date

There are no events after the balance sheet date that would require disclosure or recognition in the 2024 financial statements.

On 14 April 2025, the Board of Directors of Swissgrid Ltd approved the 2024 financial statements for submission to the General Assembly and for publication.