Energy security for the customer
Sub-topic 1: Uninterrupted delivery
Description of the topic
Uninterrupted availability of energy through grids and installations that are keenly attuned to the needs of our customers and society as a whole.
Impact on people and the planet
The prosperity value of energy transmission for society is high and it makes a strong contribution to the well-being of customers. Interruptions in the availability of energy lead to a major impairment of customer well-being. The scope and duration of an interruption potentially have an impact on social functions such as health care, public transport, production processes, companies and households, and therefore also on the economy and the well-being of all those involved.
Risks
Sufficient labour capacity is not continuously available. The occurrence of delays when resolving outages.
Opportunities
Prompt, focused and proactive communication with affected persons, good contactability.
Impact on Alliander’s value
Uninterrupted supply by ensuring the reliability of our networks is a core topic for the organisation. In the event of interruptions, we act immediately and can activate resources and scale up quickly. The use of IT tools in the network, for example, allows us to deal with some of the faults at an early stage. Prolonged interruptions have a financial impact due to the compensation we pay and additional repair and recovery costs for the organisation.
Relationship with Alliander’s impact model
Indicators for manufactured capital.
Stakeholder expectation
Continuous supply of energy is of great social importance. Interruptions have a direct impact on the interests of our stakeholders. Customers demand immediate information about interruptions, as well as an indication of the estimated outage time. We send them specific information by text message indicating the expected duration of the problem.
Strategic pillars
Excellent network management.
Our long-term objective
Our objective is a high reliability of supply. The target outage duration for electricity is 21.0 minutes.
Alliander’s assessment and contribution
We work daily to secure a continuous energy supply, both now and in preparation for the future. We invested over €1.4 billion in total, with the greatest proportion being spent on increasing the reliability of the networks. Our outage duration was 23.2 minutes in 2023.
Stakeholder information
Sub-topic 2: On-time supply of capacity
Description of the topic
We are currently not fully able to meet the huge demand for expansion and replacement of networks in good time. This is partly due to the severe shortage of labour with technical skills and the lengthy spatial planning procedures for building and construction. The feasibility of the energy transition is an even greater challenge.
Impact on people and the planet
Any delay in executing the work package leads to delays in the planned investments of our customers and contracting authorities. The social impact of access to energy is considerable, and any restriction on access reduces its contribution to social value creation.
Risks
Late and/or insufficient availability of components, materials and labour capacity lead to delays.
Opportunities
Active management of schedules. Prompt, focused and proactive communication when delays arise.
Impact on Alliander’s value
The increase in the size of the work package has an impact on our organisation and is reflected in increasing investment costs, a growing need for financing and pressure on financial ratios. We are taking steps to organise the workload more smartly to reduce the impact on the organisation.
Relationship with Alliander’s impact model
Indicators for financial capital and manufactured capital.
Stakeholder expectation
Stakeholders expect requests for connections to be honoured within the applicable periods, to have lighting and warm homes, and to be able to keep businesses and other organisations up and running.
Strategic pillars
Excellent network management, Making better use of the network, Reducing demand for capacity.
Our long-term objective
We stand for an energy supply system where everyone has access to reliable, affordable and renewable energy on equal terms.
Alliander’s assessment and contribution
In November, the Dutch network operators published the proposal for a National Implementation Agenda for Regional Infrastructure, in which the regional network operators put forward a proposed approach for accelerating capacity expansion in line with the requirements. The network operators want to discuss this Implementation Agenda with stakeholders, to jointly look at how the acceleration can be realised.
Stakeholder information
Sub-topic 3: Access to energy
Description of the topic
Energy is a basic need for our everyday lives. Being able to offer connection to the energy network and acting with social empathy to prevent disconnection are therefore high priorities. Amidst the ongoing transformation of the energy system, it is vital to ensure that everyone retains access to affordable energy on equal terms.
Impact on people and the planet
Gas, district heating and electricity transmission make a significant contribution to the well-being of consumers by letting them heat their homes, use lighting and household appliances, and travel by electric vehicle. Not having access to energy, or only having limited access to energy, has a major impact on people’s well-being and personal development. We are aware that there are significant differences in the level of well-being experienced by different groups in society.
Risks
Increase in connected customers without an energy contract resulting in an increase in administrative network losses. Insufficient identification of problems and payment arrears. Inadequate knowledge of the network operator.
Opportunities
Collaboration with municipalities to identify payment problems at an early stage.
Impact on Alliander’s value
The topic has an impact on the most fundamental aspect of our mission and social role: providing access to sustainable, affordable and reliable energy. Rapid changes in the energy system and the high demand for connections are putting great pressure on our capacity. Supervisory authorities are monitoring the realisation of social values in the energy chain.
Relationship with Alliander’s impact model
Indicators for manufactured capital.
Stakeholder expectation
Energy is a basic need for our everyday lives. That is why being connected to an energy supply is a major priority. This applies primarily to all households, businesses and organisations that are or wish to be connected to the networks in our service area. Independent regulatory bodies such as the ACM assess our service provision.
Strategic pillars
Excellent network management.
Our long-term objective
Ensuring that the transition to renewable energy is realised in a controlled manner so that the energy system of the future remains affordable, reliable and accessible to everyone on equal terms. Continuously achieving connection within the statutory time periods.
Alliander’s assessment and contribution
We adhere to national arrangements not to disconnect households during wintry conditions. We work together with municipalities and partners on regional energy arrangements. We make agreements on the social prioritisation of connections. Where natural gas-free solutions are chosen for heating, alternatives are provided.
Stakeholder information
Sub-topic 4: Customer-oriented service
Description of the topic
Customers count on excellence in our service, communications, and handling of interruptions and complaints. We respond adequately to customer needs and actively promote customer satisfaction.
Impact on people and the planet
Customer satisfaction is an indicator for the sense of well-being and comfort derived from the availability of energy. A decline in customer satisfaction ultimately has a negative effect on the added value experienced by customers.
Risks
Alliander does not respond adequately to changes in customer needs and forms of communication.
Opportunities
Deployment of new communication options, schedule communication by appointment.
Impact on Alliander’s value
The impact on Alliander is reflected in benchmark comparisons and ratings by external assessors, among other things. In extreme cases, supervisory authorities may even decide to impose a correction (possibly in the form of a financial penalty).
Relationship with Alliander’s impact model
Indicators for manufactured capital.
Stakeholder expectation
Customers count on excellent service, communication and handling of interruptions, questions and complaints. Municipalities and business customers expect a clear point of contact and that we deliver on our commitments. Actively focusing on customer satisfaction is a priority. Via Liander.nl and our telephone customer service, stakeholders can report complaints or malpractices relating to our company and activities carried out in our name.
Strategic pillars
Excellent network management.
Our long-term objective
Customer convenience will rise further in the coming years and will remain higher than the national benchmark of Dutch network operators. Customer satisfaction as measured by the Net Effort Score (NES): consumers at least 48%, business at least 42%.
Alliander’s assessment and contribution
We work daily on our customer satisfaction, both now and in preparation for the future. The quality of our services and communications vis-à-vis business customers and municipalities was improved. Our digital services were improved for all our customers thanks to our continuous online accessibility and short response times. The website experience for consumers and business customers was also further enhanced. Our performance was above the benchmark for business customers, and just below the benchmark for consumers. Our goal for customer convenience for 2023, measured by the NES score, was to exceed 48% among consumers and 42% in the business market. The actual result for consumers was 43% (49% in 2022) and 36% for business customers (34% in 2022).
Stakeholder information
Sub-topic 5: Congestion management
Description of the topic
The rapid pace of electrification and the additional transmission capacity demanded by companies exceeds the rate at which network operators can expand the electricity network. The current increased demand for capacity for new construction or for making existing buildings sustainable, for example, cannot easily be accommodated on the electricity network and households are also facing delays. We address regional and local network congestion through a range of measures. By developing new products and services, we can achieve better utilisation of the network and customers can still realise all or part of their plans.
Impact on people and the planet
Network congestion has a major impact on the development and reshaping of business activities and the completion rate in residential housing. Programmes get delayed and sometimes planned investments are withdrawn. This has a negative impact on our role in facilitating the value-adding activities of businesses and, due to restricted access to energy, on the well-being of our existing and future customers. The slower rate of growth due to network congestion has the potential side effect of reducing the use of materials, thereby somewhat reducing environmental costs.
Risks
The existing approach to network congestion is inadequate for the scale of demand.
Opportunities
Collaboration, new technologies, better utilisation.
Impact on Alliander’s value
Effectively addressing network congestion through a range of measures has a positive effect in terms of customer satisfaction and our reputation (social impact). Conversely, the current problems lead to complaints and lawsuits and disappointment among groups impacted by the effects of congestion.
Stakeholder expectation
Energy is a primary need and a factor influencing the choice of location. Stakeholders expect immediate access to energy at their sites. That is why being connected to an energy supply is a major priority. The consequence of network congestion may be that we are, temporarily, unable to fulfil our mission, or unable to do so in a timely manner.
Strategic pillars
Completing more work, Making better use of the network, Excellent network management.
Our long-term objective
Our goal is to have a timely solution available for every customer in 2030. Together with the other Dutch network operators, we are investing close to €60 billion in our networks.
Alliander’s assessment and contribution
In 2023, Alliander invested a record amount of €1,411 million in the energy networks. This represents 15% growth compared to 2022 and 69% compared to 2019 when the national Climate Agreement was signed.