Note 20 Contingent assets and liabilities

Rights and obligations arising from leases

Please refer to note 19 for details of rights and obligations arising from leases.

Investments and other purchasing commitments

The outstanding investment commitments and other purchasing commitments at the end of the year were as follows:

Contracts with purchase or revenue guarantees have also been recognised in both 2025 and 2024. The purchasing commitments include hiring obligations for personnel, procurement for grid losses and IT facilities including SAP contracts.

Contingent liabilities

Legal proceedings and litigation

On and immediately after the balance sheet date, a number of claims were made against Alliander. Alliander was also involved in a number of lawsuits at the balance sheet date, connected with normal business operations. These claims/lawsuits could have a material impact on Alliander’s results, should the outcome not go in Alliander’s favour. Provisions have been recognised where necessary.

Guarantees issued

As at year-end 2025, Alliander had issued parent company guarantees amounting to €17 million (2024: €17 million), including parent company guarantees of €3 million (2024: €3 million) for non-controlling interests. Bank guarantees amounting to €3.9 million had been issued on Alliander’s behalf at the end of the year (2024: €54.8 million).

Convertible subordinated loans were contracted with the shareholders of Alliander in the past and relate to guarantees given on the sale of non-strategic interests. On expiry of these guarantees, the loans were released to income and shares in Alliander were issued in 2006. A number of guarantees are, however, for an indefinite period; in the event that there are any subsequent claims on guarantees in the future, the shareholders concerned have a duty to surrender all or part of their shares.

In 2006, following the declaration of the nullity of a claim, a guarantee provision for the sale of associates was released to income and additional shares in Alliander were issued in 2007. The guarantees which have been given are for an indefinite period. It is therefore still possible for claims to be made on these guarantees in the future. Alliander can again also require the shareholders to surrender some or all of their shares.

Obligation to remove gas connections

Alliander must remove a connection if a customer requests it or if the connection has been unused for more than twelve months and there is no prospect of further use. Where a removal has been requested without specifying a date, a provision is formed (see note 16) and Alliander receives a fee through the tariffs two years after removal. For requests that specify a date, the removal costs are borne by the customer.

Alliander has not made a provision for future removals that have not yet been requested. It is not possible to make a reliable estimation of such future removal costs.

The lack of a reliable estimate is directly linked to the current uncertainty regarding expected/desired energy supply in 2050. Using the input from other energy suppliers and network operators, 'Netbeheer Nederland (NBNL)' published a report in 2025 setting out four possible scenarios, with details of each scenario. These scenarios vary from a situation with widespread electrification in 2050 to a situation in which the current gas network remains largely intact, having been adapted for hydrogen and other sustainable gases. However, the scenarios do not indicate when or where actions will have to be taken or what the potential impact will be on the main network. Given current developments, such as feasibility (capacity), the choices to be made by local authorities under the Heating Act, the nitrogen emissions issue and the political climate, it is currently unclear which scenario is likely. Moreover, there are significant differences between the four scenarios regarding the expected gas removal costs, running from hundreds of millions to several billion euros. This degree of uncertainty is too large for a reliable estimate to be made.

Under the current settlement method, future gas removal costs are compensated after a two-year delay through tariffs. Starting in 2027, a new ‘cost plus’ settlement method will be implemented in place of the current benchmark rule, so that all such costs will be compensated through tariffs within the same year.

Other

Alliander has volume commitments in place with suppliers regarding, for example, the outsourcing of work packages to subcontractors. Alliander is obliged to compensate its suppliers if these commitments are not met. Provisions have been recognised where necessary.

Alliander has taken out liability insurance in the form of a Directors and Officers policy covering the members of the Supervisory Board, the members of the Management Board, the operating company managers and other directors within the Alliander group. In addition to the cover provided by this liability insurance, the members of the Supervisory Board are also legally indemnified. As far as possible, the members of the Supervisory Board are also indemnified by Alliander subject to specific conditions and with strict limitations in respect of costs connected with legal proceedings brought under civil, penal or administrative law in which they may become involved by virtue of their membership of the Supervisory Board.

Alliander, together with its Dutch subsidiaries, forms a tax group for both corporate income tax and value added tax (VAT). Consequently, every legal entity forming part of the tax group bears joint and several liability for the tax liabilities of the legal entities included in the tax group. Alliander has also given a declaration of indemnity to network operator Liander under which its liability in this respect is restricted to the amount for which it itself would be liable if a tax group did not exist.