Property, plant and equipment is stated at cost, less proportionate depreciation to account for the decline in the value of the assets. In the case of internally generated property, plant and equipment, the costs of manufacture are based on allocable direct costs and a commensurate share of overhead expenses. Borrowing costs are not capitalised.

The costs of assets are reduced by public subsidies (investment grants) received and by customer payments for construction and house connection costs in the case of new connections or extensions to existing connections. Public subsidies are recognised where it is reasonably certain that the subsidies will be granted and the relevant conditions have been met. Investment grants relate exclusively to asset-based subsidies. These grants are reported separately from investments in the overview of property, plant and equipment.

Items of property, plant and equipment have been subject to straight-line depreciation consistent with their pattern of consumption. Depreciation is undertaken pro rata temporis in the year of addition. Scheduled depreciation is based on the following useful lives: