Income statement for 2024

Net revenue in the 2024 financial year rose by €318 million compared with the previous year, from €2,725 million to €3,043 million. The key cause for this rise is the increase in our regulated tariffs for electricity. This increase is mainly driven by the rising costs for procurement of transmission capacity from TenneT and network losses, which are (partly) covered by our tariffs.

• Revenue from electricity was up €397 million on 2023. This increase is primarily driven by the aforementioned increase in tariffs. We also had a larger number of connections and higher transmitted volumes, resulting in higher revenues.

• Gas revenue is in line with the previous year. At detail level, we see lower numbers of connections offset by increases in the regulated tariffs.

• Compared to 2023, measurement service revenue is €44 million lower due to lower tariffs and because Kenter is no longer included in the consolidation. The sale of Kenter also caused our other revenue to drop by €42 million to €172 million.

Net revenue (€ million)

Operating expenses rose from €2,347 million in 2023 to €2,772 million in 2024. This €425 million increase was primarily caused by the following factors:

• The cost of procuring transmission capacity rose by €383 million as a result of the higher tariffs set by TenneT.

• Employee benefit expenses (total of permanent and temporary staff) were €140 million higher in 2024 compared to 2023 as a result of workforce expansion. For further details, please refer to the following page.

• Other operating expenses amounted to €305 million and were therefore €55 million higher than the expenses for 2023. There is a cost increase due to a multi-year project to future-proof our information systems as well as cost increases due to growth of the organisation (maintenance costs, IT costs and facility costs). There is also a charge of €20 million for forming a provision for the removal of gas connections which cannot be charged directly to customers.

• In addition to the above-mentioned cost increases, the procurement costs for grid losses were €87 million lower than the previous year due to lower energy prices.

Operating expenses (€ million)

The total employee benefit expenses for both internal and external employees were €140 million higher than in 2023. Despite the sale of Kenter (roughly 400 FTEs), our workforce grew by 689 FTEs in 2024 compared to the previous year. The average costs per FTE also increased due to a pay increase in the collective labour agreement (7%) and a job-related allowance for technical staff. The number of agency FTEs increased by over 214. These agency workers were hired to ensure sufficient staffing for the work package and specific expertise for ongoing projects, such as digitalisation projects. The larger workforce and the higher average expenses per FTE also resulted in higher capitalised production: this was €380 million, which is €62 million more than in the previous year.

Employee benefit expenses, permanent and temporary (€ million)

The costs of network losses were €243 million, down by €87 million compared with 2023. These lower costs primarily reflect a pricing effect, as the energy prices at which we must purchase grid losses from the market have fallen again compared to the past two years. Besides the price effect, we did have to procure higher volumes. The drop is visible for electricity where the costs decreased by €97 million. The gas procurement costs were €10 million higher. Since 1 January 2020, the network operators have had a statutory obligation to purchase gas to compensate for network losses.

Costs of network losses – electricity and gas (€ million)

Transmission capacity costs in 2024 amounted to €836 million, an increase of €383 million compared to the previous year (2023: €453 million). These costs mainly consist of the costs for transmission capacity charged by TenneT. TenneT’s increased tariffs have led to increased costs for us. These tariffs have risen due in part to the investments TenneT has to make, inflation and rising energy prices. In the current regulatory method, the higher procurement costs are covered by our tariffs, so the cost increase does not affect our profit.

Transmission capacity costs (€ million)

The depreciation and amortisation charges and impairment losses on non-current assets amounted to €565 million, which, in line with the higher level of investment, represents an increase of €33 million compared with the preceding year (2023: €532 million).

In 2022, we started applying the declining balance method of depreciation to the gas network due to expected decreasing use of our gas assets as alternative energy sources become available. The declining balance method has been chosen as this method is better suited to the expected future decrease in the number of users of the gas network. Alliander also estimates that the decrease in the number of users of the gas network will not lead to large-scale decommissioning of the gas assets. Despite a decrease in the number of users of the gas network, the gas mains infrastructure will remain largely operational. In addition, it is expected that natural gas will continue to be of relevance, along with sustainable alternatives such as green gas and hydrogen. Therefore, this does not imply a reduction in the useful life of the gas assets.

Depreciation and impairment (€ million)

The large profit in 2024 stands out in the bar chart: this was a direct consequence of the sale of Kenter. The operating profit excluding the proceeds from the sale of Kenter is lower in 2024 than in 2023. This is due to the increased cost level, which is partially mitigated by the increasing revenues.

Operating profit/loss (€ million)

Total expenditure on grid-related investments and maintenance costs in 2024 was €2,152 million, an increase of €412 million compared to 2023 (€1,740 million). The increase was caused by higher investments (€362 million), and the costs of maintenance and outages rose by €50 million.

Network maintenance costs and investments (€ million)