Terms, abbreviations and definitions
ACM
ACM is the Dutch initialism for the Netherlands Authority for Consumers & Markets, the regulator charged with the supervision of competition, industry-specific market surveillance, and consumer protection. As part of its remit, ACM oversees compliance with the Electricity Act and the Gas Act.
Attribution
Attribution of the impact relative to other entities contributing to the impact (part of the value and impact model).
Gross carbon emissions, own business operations
The gross carbon emissions from company operations are measured in accordance with the sector and consist of the direct and indirect emissions from activities under our control. This includes all processes and operations within the direct control of the company, whether performed internally or externally.
Cable pooling
The use of shared cables for wind and solar energy feed-in.
CBL (cross border lease)
A cross-border lease is a structured finance transaction by virtue of which a business sells the user rights of certain non-current assets to a foreign company, only to lease these assets back.
Circular procurement
Circular procurement consists of the percentage of recycled material incorporated into goods procured and the percentage of material that is recyclable at the end of the useful life. The percentage of recycled or recyclable materials is determined based on raw material passports provided by our suppliers, which state these percentages. We therefore rely on the support and expertise of our suppliers to identify these percentages, and we validate them with data provided by DNVL, an independent research and consultancy firm. The scope comprises the primary assets: Low-voltage & medium-voltage cables, gas pipes, distribution and power transformers, and legacy and smart electricity & gas meters.
CO2
Carbon dioxide. This is mainly released during the burning of fossil fuels such as natural gas and coal and contributes to the greenhouse effect.
CO2 equivalent
The effect of greenhouse gases other than CO2 converted into CO2 values.
Committee of Shareholders
The Committee of Shareholders as referred to in Section 158(10) Book 2 of the Dutch Civil Code, if this has been appointed by the General Meeting of Shareholders.
Congestion management
Congestion management is the system used at times when the electricity grid has insufficient capacity for customers who consume or feed in electricity. This system ensures that the available transmission capacity is spread as fairly and efficiently as possible. In an area where a shortage of capacity is imminent, parties participating in the system are asked to consume less power or to return more power to the grid for a fee. These measures can prevent the impending shortfall from occurring.
Corporate Governance
The Dutch Corporate Governance Code contains principles and best-practice provisions governing the relationship between the Management Board, the Supervisory Board and the General Meeting of Shareholders/shareholders themselves. The principles and provisions are aimed at detailing responsibilities for long-term value creation, risk management, effective management and supervision, remuneration and relationships with the shareholders/General Meeting and with other stakeholders.
CTO
Chief Transition Officer (CTO) is a management position at Alliander that is focused primarily on exploring and adopting the energy transition and digitalisation, with a view to future-proofing the network company.
Curtailment
During peak periods in electricity feed-in, the network operator reduces or restricts energy delivery from generators of green electricity to the grid, creating more space on the grid so that more generators of green electricity can be connected. This way the grid is used more efficiently.
Eco-costs
Eco-costing is a method of expressing the environmental burden of a product. It is based on the costs that will be incurred in preventing that burden.
ECP
Eurocommercial Paper: Short-term debt instruments issued on the international money market.
EMTN
Euro Medium Term Note: Long-term debt instruments issued on the international capital market.
Energy transition
The transition away from generating energy from fossil fuels to sourcing power from renewables, like the sun, wind or water, for example.
FFO/net debt ratio
The funds from operations (FFO)/net debt ratio is the 12-month profit after tax adjusted for deferred tax movements, the equity component in the payment relating to hybrid loans, incidental items and fair value movements plus depreciation of property, plant and equipment and amortisation of intangible assets and deferred income, expressed as a percentage of net debt.
Flex-market
In a flexible electricity market, supply and demand are better matched. Flexibility is created by energy users switching demand to off-peak periods. Intelligent systems also make it possible for power from renewables, for example, to be stored and for generation demand to be shifted in time without users having to alter the pattern of consumption.
FTE (full-time equivalent)
Equivalent of the number of employees with a full working week.
Guarantee of Origin
A Guarantee of Origin certificate shows that electricity has been generated by a wind, hydro, solar, or biomass installation.
Regulated domain
The activities of the network operator which arise from the tasks that are the exclusive preserve of the network operator and for which maximum tariffs are set by the ACM. This includes:
Construction, maintenance, renewal and management of connections to the electricity network with a load value up to 10 MVA; and to the gas network;
Construction, maintenance, renewal and operation of electricity and gas networks;
Transmission of gas and electricity;
Metering services for small consumers;
Effective assurance of the safety and reliability of the networks;
Promotion of the safe use of equipment and installations that consume electricity and gas;
Facilitation of the free market to enable customers to switch to another energy supplier, among other things.
Degree-day
A degree-day is a unit for quantifying energy demand. The measure is obtained by multiplying the number of degrees temperature difference between indoor temperature and average outdoor temperature over a given 24-hour period. If the outdoor temperature is 1°C below the temperature below which heating is required – taken as 18°C – that counts as 1 degree-day, and so on. If the average outdoor temperature is 18°C or above, the number of degree-days (for heating purposes) is zero.
Green bond
A debt instrument used exclusively to finance new and existing environmentally sound projects.
GRI (Global Reporting Initiative)
Global organisation that issues guidelines for CSR reporting.
High-voltage network (HV)
Network intended for the transmission of electricity at a voltage greater than 35 kV and operated as such.
Impact
In the context of the value and impact model, the effects of the actual outcome compared with the effects of the predetermined ‘counterfactual’ or reference scenario.
Interoperability
The ability of various autonomous, heterogeneous systems to communicate and interact with each other.
Investment plan
As of 2020, network operators will publish an investment plan every two years. This plan describes all necessary expansion and replacement investments over a 10-year period and provides the reasons for these investments. The basis for the investment plan is Article 21 of the Electricity Act and Article 7a of the Gas Act.
Feed-in
The supply of electricity fed into the electricity grid from power generating sources.
Supply chain responsibility
A situation in which a company assumes responsibility for the entire supply chain involved in its activities and for the impact which these activities have in social, ecological and economic terms and renders account accordingly, including engaging in a dialogue with stakeholders. The whole process is result-driven.
Customer convenience
The degree to which customers experience convenience. Customer convenience among ordinary consumers and business market consumers is measured using the Net Effort Score (NES) based on the Consumer Effort Score (CES) question: %convenience - %effort. This score is given by deducting the percentage of customers experiencing difficulty with the service from the percentage of customers finding it easy. The KPI is a calculation of the NES score, as an annual average, in relation to the various supply chains for, respectively, the ordinary consumer market on the one hand, and the business market on the other.
Climate Agreement
The Climate Agreement (i.e. the Dutch Climate Agreement) aims to cut greenhouse gas emissions in the Netherlands by 49% compared with 1990 levels by 2030. These targets stem from the climate agreements made by the international community in 2015 in the Paris Agreement and are set out officially in the Climate Act in the Netherlands. The climate agreement is therefore not a law itself, but gives substance to the objectives of the Dutch Climate Act.
Credit rating
An assessment by independent rating agencies, such as Moody’s and S&P, of Alliander’s creditworthiness.
Low-voltage network (LV)
Network intended for the transmission of electricity at a voltage less than or equal to 1 kV in the case of an AC voltage network, and less than or equal to 1.5 kV in the case of a DC voltage network, and operated as such.
Security of supply
The ability of customers to rely on the uninterrupted supply of electricity, gas and heat, as well as uninterrupted feed-in to the grid.
LTIF (Lost Time Injury Frequency)
The number of work-related accidents during the financial year in which internal employees (Alliander and agency/contract worker) were involved and which led to sickness absence after the accident, expressed per million of man-hours worked. For an accident to be considered a lost-time accident, it must have led to at least 24 hours of sickness absence. This is an unweighted average of Alliander’s LTIF. The LTIF figure is calculated using the average number of FTEs (based on the 31/12 budget for the financial year and the actual figure as at 31/12/2022) and a standard annual number of hours worked per employee of 1,600.
M3 of natural gas
A cubic metre (1,000 litres) of natural gas. The average natural gas consumption per household is about 1,800m3 per year.
People with poor employment prospects
The number of employees who qualify for the target group register under the Dutch Labour Participation Quota Act for workers with a disability and work experience positions (for employees with poor employment prospects who do not qualify for the target group register).
Employee survey
An employee survey conducted according to the Effectory methodology in which employee engagement and enthusiasm are measured. Alliander wants to know how its employees feel in relation to work. We measure this by investigating employee engagement and enthusiasm. Enthusiastic and/or engaged employees are a key success factor within an organisation. Engaged employees feel connected to the organisation they work for. Enthusiastic employees are committed to getting the best out of themselves and their work.
Methane
A gaseous hydrocarbon, chief component of natural gas.
Medium-voltage network (MV)
Network intended for the transmission of electricity at a voltage level greater between than 1 kV, but less than or equal to 35 kV, and operated as such.
Net carbon emissions from business operations
The net carbon emissions from company operations consist of the gross carbon emissions from company operations minus the instruments used to green the carbon emissions from company operations.
Net investments
Gross investments less contributions to these investments received from third parties.
Net debt
The sum of long and short-term interest-bearing liabilities less cash and cash equivalents and investments.
Net debt/(net debt + equity)
Net debt position divided by equity including the result for the period and the net debt position.
Grid losses/network losses
There are two components to grid losses or network losses: technical losses and administrative losses. Technical grid losses refers to the electrical energy that is dissipated in overcoming the inherent resistance of cables, transformers and other components in the network. Administrative grid losses refers to losses due to fraud and theft of electricity and loss of potential income due to empty properties.
NTA8120
The NTA (Netherlands Technical Agreement) 8120 comprises standards for the assurance of the safety of employees and the public, the protection of industrial and built-up areas and nature, the security of transport and distribution, and the efficient and optimal management of grids.
Output
The effects of an activity – within the context of the value and impact model – over which Alliander has some control.
Sufferance tax
A levy charged by local authorities for the assets of utilities running either overhead or below ground across public land or water as well as surface assets.
Regional Energy Strategy (RES)
The RES focuses on the energy task facing a region, including the potential for electricity generation from renewables, potential savings and the actual plans for balancing supply and demand. The first RES was delivered in 2021. This is not a finished product: every two years, the RES regions will update their plans based on new information.
Remuneration report
The Remuneration Report of the Supervisory Board concerning the remuneration policy of Alliander, as drawn up by the Selection, Appointment and Remuneration Committee of the Supervisory Board.
Interest cover
The interest cover ratio concerns the 12-month profit after tax, adjusted for movements in deferred tax assets and liabilities, the equity component in the payment for hybrid loans, exceptional items and fair value movements, plus the net depreciation and amortisation of property, plant and equipment and intangible assets and deferred income and the net amount of finance income and expense adjusted for the equity component in the payment for hybrid loans, exceptional items and fair value movements divided by the net finance income and expense adjusted for the equity component in the payment for hybrid loans, exceptional items and fair value movements.
Sustainable Development Goals (SDGs)
The latest United Nations goals for sustainable development of the world in the period 2015–2030.
SF6
An inert gas that is 5.1 times heavier than air and has a CO2 equivalent of 22,800. SF6 has good electrical insulating properties and is therefore frequently applied in electrical engineering, such as in medium-voltage and high-voltage units. In the case of combustion (e.g. due to an arc), toxic waste products such as S2F10 occur. Also, in the case of major gas escapes, there is the risk of SF6 displacing oxygen which can lead to suffocation.
Smart meter
The smart meter enables remote reading of electricity and gas meters to obtain information on consumption and status. In addition, a smart meter can execute remote instructions. The communication with the meter takes place via the cable network (Power Line Communication) or via GPRS.
Solvency ratio
The solvency ratio is obtained by dividing equity including the profit for the period less the expected dividend distribution for the current financial year by total assets less deferred income.
Stakeholders
Stakeholders are individuals and groups who have any form of interest in Alliander such as employees, shareholders, customers, financiers, suppliers and public authorities.
System analysis
A system analysis provides an integrated picture of future energy development and the impact on the required energy infrastructure for all energy modalities (for electricity or gas for example) and the cross connections.
Regulation of tariffs
With respect to public utilities, the process whereby the government sets the maximum rates that network operators are permitted to charge for their services.
Transparency
The extent to which things can be clearly seen through something – specifically the provision of a clear view of a company’s activities.
Transmission restrictions
Due to the rapidly growing demand for electricity and the increase in feed-in, in more and more places the electricity grid has reached its full capacity. In these areas, when generators of green electricity and large companies that consume large volumes of electricity request more capacity on the power grid, they are subject to transmission restrictions. This means they are placed on a waiting list and can only access the extra capacity once there is again sufficient capacity on the grid. This additional capacity is created when the network operator expands the grid or can deploy a smart solution.
Phasing-out of gas
The gradual discontinuation of a mains gas supply and use of gas as a fuel.
Electricity outage duration
The average number of usage minutes during which a connected party was without power due to an unplanned service interruption, measured as the number of minutes per connection per year.
The concept of usage minutes can be defined in greater detail as the product of the number of connected parties affected and the duration of an (unplanned) service interruption in minutes.
The total number of usage minutes can be defined as the sum of all usage minutes of all (unplanned) service interruptions in 2023.
The total number of connected parties can be defined as all connections with an accommodation function, excluding connections at properties that are vacant.
VCA (Veiligheid Checklist Aannemers)
VCA is short for ‘Safety, Health and Environment Checklist Contractors’ (Veiligheids Checklist Aannemers in Dutch) or SCC in English. A certifiable checklist for contractors by which they can demonstrate that they are complying with health and safety standards.
Substation
A power system installation on the high voltage network either connecting two or more high-voltage networks or forming a connection to the high-voltage network.
Decarbonisation of emissions, own business operations
Decarbonisation or offsetting of gross carbon emissions from company operations to reduce carbon emissions. This can be done through different products. All of Alliander’s electricity consumption (mainly consisting of network losses) is greened with Dutch Guarantees of Origin linked to offshore and onshore wind. Long-term contracts have been signed with several wind farms operated by various suppliers for this purpose. Alliander currently uses Gold Standard VERs (carbon credits) to offset all carbon emissions that cannot be offset with Guarantees of Origin. This mainly applies to the gas network losses. These VERs are usually linked to projects such as Turkish wind energy, which do not participate in the European guarantee of origin system.
Employee sickness absence
The moving average sickness absence over a 12-month period (short, medium and long duration) for Alliander staff, not including absence on account of pregnancy.
Free domain
The activities that are carried out in competition and/or arise from the statutory tasks and are offered at the customer’s request. This includes the construction, maintenance, renewal, and management of connections to the electricity network with a load of 10 MVA and above for specific customer groups, including public transport and public lighting.
Free cash flow
Cash flow from operating activities less net investments in non-current assets.
Women in managerial positions
Refers to the number of women holding a managerial position (all employees who manage other employees), expressed as a percentage of the total number of employees with an employment contract or agency/contract staff contract.
Working capital
Inventories plus trade receivables and other receivables, less short-term non-interest-bearing debt and other liabilities.