Note 33 Contingent liabilities

	2008	2007
Guarantees
of which:
for Vattenfall Treasury’s:
lending to Group companies, associated companies and other	45,084	27,665
external borrowing for Group companies	71,377	42,370
borrowing from Group companies and associated companies	46,912	25,115
for lending by:
Group companies, associated companies and other	5,291	5,305
Swedish Nuclear Waste Fund	17,113	6,132
Contract guarantees	8,215	130
Other contingent liabilities	11,028	11,671
Total	205,020	118,388

Vattenfall has obligations to compensate certain owners of water rights, in rivers where hydro power stations are built, through the delivery of power. During 2008 such compensation deliveries amounted to 0.93 TWh (1.04), corresponding to approximately SEK 465 million (295).

The Parent Company’s contingent liabilities pertaining to subsidiaries amounted to SEK 189,084 million (110,949), which are included in the reported contingent liabilities. Vattenfall Treasury AB is a wholly owned subsidiary of Vattenfall AB with responsibility for the Group’s borrowing, liquidity management and management of therewith associated financial risks. Vattenfall AB has provided, in total, SEK 163,448 million (97,391) in guarantees to cover all intra-Group and external obligations of Vattenfall Treasury AB and subsidiaries’ obligations to Vattenfall Treasury AB. This amount is included in the reported contingent liabilities. As security for energy trading conducted by the subsidiary Vattenfall Europe Trading GmbH, Vattenfall AB has provided guarantees with a total value of SEK 17,044 million (11,096). On the balance sheet date, utilised guarantees totalling SEK 8,141 million (1,785) were included in the reported contingent liabilities.

Under Swedish law (the Act (2006:647) on the financing of future expenses for spent nuclear fuel), Sweden’s nuclear power companies are required to pledge assets to the Swedish state (the Swedish Nuclear Waste Fund) to guarantee that sufficient funds exist to cover the future costs of nuclear waste management. As security for the subsidiaries Forsmarks Kraftgrupp AB and Ringhals AB, Vattenfall AB has made guarantee commitments for a combined value of SEK 17,113 million (6,132). The amounts are included in the company’s reported contingent liabilities. Two types of guarantee commitments have been made. The one guarantee commitment is intended to cover the requisite need for fees that has been decided on for the fees that have not yet been paid in during the so-called earnings period (25 years of operation - so-called Financing Security). The other guarantee commitment pertains to future cost increases stemming from unforeseen events (so-called Complementary Security). Both amounts have been determined based on a probability-based risk analysis in which the former amount has been determined as such that there is a 50% probability that it, together with currently funded amounts (the median value), will provide full cost coverage. The latter amount essentially consists of the supplement that would be required if the corresponding probability was 90%. The security amounts also apply for 2009.

See also Note 45 to the consolidated accounts.