26. Legal proceedings

Swissgrid’s legal mandate and business activities expose the company to costs that can be passed on to lower grid levels and end consumers in the form of tariff revenues, if EICom deems these costs to be chargeable.

At present, ElCom has not initiated any proceedings to examine Swissgrid’s chargeable costs. Swissgrid’s Board of Directors and Executive Board believe that all costs were incurred within the framework of the company’s legal mandate and should therefore qualify as chargeable. Based on this assessment, Swissgrid has treated all operating and capital costs as chargeable and consequently recognised them in full as volume- and tariff-related timing differences.

Third-party proceedings

The financial impact of third-party proceedings in which Swissgrid is involved is included in Swissgrid’s financial statements if the criteria for recognition are met. However, such proceedings have no direct impact on Swissgrid’s results, as they are included in the volume- and tariff-related timing differences.