Continuing operations2015
£m
Restated*
2014
£m
Interest payable
Interest payable on borrowings held at amortised cost206.1241.2
Release of taxation interest accrual(13.3)
206.1227.9
Fair value losses/(gains) on debt and derivative instruments(1)
Fair value hedge relationships:
Borrowings112.8(193.4)
Designated swaps(122.7)177.3
(9.9)(16.1)
Financial instruments at fair value through profit or loss:
Borrowings designated at fair value through profit or loss(2)65.0(32.6)
Associated swaps(3)(73.5)53.6
(8.5)21.0
2010–15 regulatory swaps(3)(52.6)(61.5)
2015+ regulatory swaps(3)186.1(67.6)
Electricity swaps(3)(6.0)4.2
Net receipts on swaps and debt under fair value option(2.5)(8.7)
Other swaps(3)(4)1.16.4
Other(3.0)(6.9)
123.1(134.1)
Net fair value losses/(gains) on debt and derivative instruments(5)104.7(129.2)
Net pension interest expense (see note 18)7.0
317.898.7

* The comparatives have been restated to reflect the requirements of IFRS 11 'Joint Arrangements'. See accounting policies for details.

Notes:

  1. 'Fair value losses/(gains) on debt and derivative instruments' includes foreign exchange gains of £10.5 million (2014: £60.3 million), excluding those on instruments measured at fair value through profit or loss. These gains are largely offset by fair value losses on derivatives.
  2. Includes a £4.6 million loss (2014: £11.1 million) on the valuation of debt reported at fair value through profit or loss due to changes in credit spread assumptions.
  3. These swap contracts are not designated within an IAS 39 hedge relationship and are, as a result, classed as 'held for trading' under the accounting standard. These derivatives form economic hedges and, as such, management intend to hold these through to maturity.
  4. Includes fair value movements in relation to other economic hedge derivatives relating to debt held at amortised cost.
  5. Includes £4.0 million income (2014: £8.1 million) due to interest on swaps and debt under fair value option.

Interest payable for the year ended 31 March 2015 is stated net of £20.9 million (2014: £19.4 million) borrowing costs capitalised in the cost of qualifying assets within property, plant and equipment and intangible assets during the year. This has been calculated by applying a capitalisation rate of 3.1 per cent (2014: 3.8 per cent) to expenditure on such assets as prescribed by IAS 23 'Borrowing Costs'.