3.2. Operating expenses
Accounting policies
Cost of gas sold
This item comprises the cost of gas purchased on gas exchanges and from trading partners. The cost of gas purchased includes an appropriate portion of costs of system and transaction charges, costs of domestically produced gas, costs of nitrogen removal and regasification. For details of the valuation of those items, see Note 6.2.1.
Raw materials and consumables used
This item comprises the costs of raw materials and consumables used in core activities, in particular fuels for electricity and heat generation. Another material item in this cost group is the cost of electricity for trading.
Employee benefits expense
Employee benefits expense includes in particular salaries, wages and social security contributions. For details of employee benefits expense, see Note 6.3.1.
Transmission services
In providing transmission services, the Group pays the costs of gas fuel and heat transmission.
Other services
This item comprises the cost of third-party services required for the core activities of the Group companies, other than transmission services. Other services include in particular:
- Repair and construction services and services related to repairs of production machinery and equipment, in particular equipment associated with heat generation;
- Mineral resources production services related to hydrocarbon production;
- Rental services (mainly rental of real estate).
Taxes and charges
This item includes in particular costs incurred by the Group in relation to property tax and charges for perpetual usufruct of land.
Recognition and reversal of impairment losses on property, plant and equipment and intangible assets
For details of impairment of non-financial assets, see Note 6.1.3
Depreciation and amortisation
This item comprises costs of depreciation/amortisation charges on property, plant and equipment and intangible assets, calculated based on the adopted depreciation/amortisation rates (for details, see Note 6.1.1. and Note 6.1.2.).
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| 2016 | 2015 | |
|---|---|---|
| Cost of gas sold | (18,320) | (22,005) |
| Gas fuel | (17,624) | (21,731) |
| Cost of transactions hedging gas prices | (696) | (274) |
| Other raw materials and consumables used | (2,427) | (2,211) |
| Fuels for electricity and heat generation | (715) | (695) |
| Electricity for trading | (1,190) | (917) |
| Other raw materials and consumables used | (522) | (599) |
| Employee benefits expense | (2,573) | (2,714) |
| Salaries and wages | (1,910) | (1,839) |
| Social security contributions | (403) | (423) |
| Cost of long-term employee benefits | (40) | (72) |
| Other employee benefits expense | (220) | (380) |
| Transmission services | (1,106) | (1,156) |
| Other services | (1,412) | (1,235) |
| Repair and construction services | (203) | (232) |
| Mineral resources production services | (165) | (168) |
| Rental services | (98) | (80) |
| Other services | (946) | (755) |
| Taxes and charges | (765) | (628) |
| Recognition and reversal of impairment losses on property, plant and equipment and intangible assets | (1,155) | (873) |
| Cost of exploration and evaluation assets written-off | (319) | (283) |
| Impairment losses on property, plant and equipment | (825) | (567) |
| Impairment losses on intangible assets | (11) | (23) |
| Depreciation and amortisation | (2,614) | (2,790) |
| Total | (30,372) | (33,612) |
