Explanatory notes to the income statement
The graph below shows the development of our operating profit/loss excluding exceptional items.
Development of the operating profit/loss (€ million)
- 1Excluding exceptional items.
- 2Including capitalised production.
The most notable developments in our profit were as follows:
Operating income
Total operating income rose from €3,094 million in 2024 to €3,313 million in 2025. This increase of €219 million is mainly attributable to the increase in our regulated tariffs for electricity.
Electricity revenue was €168 million higher than in 2024, mainly due to higher tariffs as a result of rising costs and a retrospective calculation of the WACC. The average tariff increase in 2025 was 9% relative to 2024. We also had a larger number of connections and higher transmitted volumes, resulting in higher revenues. This was offset by the loss of revenue in our CBL area due to the sale of our high-voltage grid to TenneT.
Gas revenue was €23 million lower than the previous year, due to both an average decrease in tariffs of 4% and lower numbers of connections as customers migrate away from gas.
Compared to the previous year, the revenue from metering services was €67 million higher due to an increase in tariffs.
Other revenue and other operating income increased by €7 million net compared to the previous year, mainly driven by the growth of our activities for TenneT.
Cost of procurement
The lower procurement costs are largely due to the lower costs of network losses in 2025. Those losses came in at €198 million, down by €45 million compared to 2024. These lower costs primarily reflect a pricing effect, as the energy prices for electricity at which we purchase the network losses from the market dropped again compared to the past three years. The gas procurement costs remained the same.
The costs of transmission capacity in 2025 were practically the same as in 2024 and amounted to €837 million. These costs mainly consist of the costs for transmission capacity charged by TenneT. Although TenneT increased the tariffs, that effect was mitigated by lower peaks in the volumes transmitted.
Employee benefit expenses
Total internal and external employee benefit expenses (including capitalised production) were €111 million higher than in 2024, amounting to more than €700 million. The organisation's own workforce increased by an average of 1,000 FTEs in 2025, with the costs per FTE also rising compared to the previous year. This increase in average costs is partly due to the collective labour agreement increase (5%). As a result, the costs for Alliander’s employees will be €163 million higher than in 2024. On average, 40 more temporary FTEs were hired than in 2024. They are needed to implement the work package, among other things, but also for specific knowledge for ongoing projects. As a result, the costs for temporary staff were €15 million higher than in 2024. The larger workforce and the higher average expenses per FTE also resulted in higher capitalised production: this was €447 million, which is €67 million more than in the previous year.
Other operating expenses
Other operating expenses rose from €304 million in 2024 to €349 million in 2025. Among other things, this increase of €45 million includes the costs of a multi-year project to future-proof our information systems. In addition, higher costs were also incurred as a result of the growth of the organisation (maintenance costs, IT costs and facility costs).
Depreciation
The depreciation charges and impairment losses on non-current assets amounted to €596 million, which, in line with the higher level of investment, represents an increase of €31 million compared to the preceding year (2024: €565 million).
Finance income and expenses
In 2025, finance income and expenses resulted in a net charge of €99 million (2024: €65 million). This increase is mainly due to the new loans that were raised.
Profit/loss from non-consolidated associates
In 2025, non-consolidated associates generated a net gain of €2 million, compared to a gain of €4 million in 2024.
Tax
The effective tax rate in 2025 amounted to 23.1% (2024: 6.9%). The effective tax rate was lower than the nominal tax rate of 25.8% in both years. In 2025, this was due to the participation exemption with regard to the sale of the high-voltage grid to TenneT TSO B.V., while in 2024 it was the result of the participation exemption that meant Alliander did not have to pay tax on the proceeds from the sale of Kenter.