Financial results in 2023

Introduction to Alliander’s finances

Almost 90% of Alliander’s income comes from the regulated activities of network operator Liander and 10% is from other sources, the latter being income from rental of high-volume meters and transformers, and income from the activities of other companies outside the regulated energy sector. As a network operator, Liander will publish its own annual report on its performance in 2023. This annual report will appear in the second quarter of 2024.

The main expenditure relates to work maintaining and extending the electricity and gas networks and the operating expenses connected with all other activities. We invested €1.4 billion in 2023, mainly in the replacement and expansion of our networks. This investment equates to 40% of our total expenditure. Expenditure on operating expenses, such as procurement for network losses, TenneT’s transmission capacity and employee benefit expenses, accounts for 56% of our expenditure. Additionally, there is the dividend payable to our shareholders and the interest payments to the holders of the subordinated perpetual bond loan and other financiers. The dividend and interest payments for 2023 together amounted to 4% of our overall expenditure. The tax payments regarding corporate income tax were almost zero in 2023.

Cost-effective and efficient operations

The multi-year organisation-wide cost-saving programme that was launched in 2018 ended in mid-2023. The total savings achieved (including improvements in efficiency) amounted to some €240 million. The foundation of the programme was to continuously work on increasing cost awareness throughout the organisation and to critically consider which activities are really necessary for performing the job we do – without compromising on safety or quality. The objective of this programme was not only to cut costs, but also to increase productivity. After finishing this programme, the responsibility for this topic will be placed in the hands of the organisation itself. The need for this remains equally high due to the challenges in the field of feasibility and affordability.