BKW FMB Energy Ltd Annual Report 2003

23 Financial instruments
BKW enex AG, as a securities trader, is subject to the banking law. Energy derivatives
are traded on behalf of customers and on the company’s own behalf. On the balance
sheet date the list of open contracts was as follows:
CHF (million) Replacement costs Contract
positive negative value
Futures 0.0 0.0 139.6
The use of derivatives outside BKW enex AG is insignifi cant. These have therefore not
been presented.
24 Contingencies
On 31 December 2003 there was CHF 53.6 million (2002: CHF 74.9 million)
outstanding in Group guarantees in favour of third parties.
At 31 December 2003 the proportionate market value of the state funds (government
funds for decommissioning and disposal) was approximately CHF 21 million
(2002: CHF 36 million) below the reimbursements expected from the funds. In
view of the long-term maturity profi le for BKW reimbursements, this contingent
liability is regarded as temporary rather than permanent. The anticipated amount of
reimbursements is also dependent on infl ation.
The BKW Group is involved in various legal disputes arising from normal business
activities. Appropriate provisions, in our opinion, have been set aside for such
eventualities.
Apart from Notes 12 and 18 there are no other contingencies requiring disclosure.
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