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Gross footprint own emissions
Energy is taken for granted in the Netherlands. Our employees are available 24 hours a day for a reliable and safe energy supply. Certainly now that energy is becoming increasingly sustainable and the customers’ wishes are changing. CEO Peter Vermaat (left) and CFO Maarten Blacquière (right) look back on the initiatives in 2016.
The safety of our own employees is just as important to us as that of the employees of contractors who work for us. We set high safety requirements and are committed to helping improve safety. Every year we present awards, both internal and external, to this end. In 2016, the Enexis Contractor Safety Award went to BAM Zuid, the contractor with the best performance in the field of safety, health, welfare and the environment.
In 2016, 65 new neighbourhoods started to save energy together. We work with local energy cooperatives and put together teams of motivated local residents who then talk to other residents about double glazing, insulation and solar panels. A total of 165 ‘Buurkracht’ have now jointly saved more than 1.3 million kWh of power and more than 450 ton m3 of gas. This is comparable with the energy consumption of around 300 households annually.
We follow the supply and demand of energy in real time by adding ICT, in the form of Distribution Automation (DA), to our stations. Distribution Automation enables us to operate energy grids remotely and solve power outages more quickly. Last year, we equipped approximately 400 stations with Distribution Automation and we will be continuing to do so until 2020. In 2016, we also carried out pilot projects with Distribution Automation Light.
We started providing smart meters on a large scale in early 2015. This was quite a logistics operation and, at the peak of these activities in 2016, Enexis was installing eight smart meters every minute. A smart meter gives customers insight into their energy consumption, which can form the first step towards energy conservation. By the end of 2016, smart meters had been installed in more than a million households.
We are dedicated to giving a good example by reducing our own energy consumption, by increasing sustainability and by actively promoting this approach. In 2016, among other things, we took measures to reduce our CO2 emissions. These measures included cutting down on the use of our company vehicles and traffic to and from work. The increased sustainability of our office buildings also had a positive effect on our CO2 emissions because less gas was used to heat our offices in 2016.
Our stakeholders have different needs. We seek to find out what they need and what they expect. In this manner, we can create value. Together, we have determined material themes as input for our strategy.
“We would like to welcome at least five million visitors a year in theme park the Efteling in 2020. To this end, we regularly open new attractions and we have expanded our bungalow park Bosrijk. Every day, we rely on the delivery reliability of Enexis. Because: an electricity outage interrupts the fairy tale that we wish to offer our guests. When we encountered the limits of the electricity capacity, we entered into discussions with Enexis. Our request for expansion was not standard, we took Enexis out of its comfort zone. But the company demonstrated that it doesn’t only think in products, it thinks above all in the customer’s needs. And that is ultimately what it is all about: Enexis has the knowledge. How the company makes use of this knowledge for us, is not really relevant. As long as we can count on sufficient electricity for the future. We are also considering solutions for sustainable energy, but with regard to volume and generation, this does not yet correspond with our needs. The guest’s experience is first and foremost and we will not make any concessions in this regard. You will certainly not see a solar panel on the roof of little red riding hood’s tiny house.”
“Enexis is investing a lot in digitalisation, innovation and more efficient working procedures in order to be able to deliver a strong contribution to the energy transition. But as a result, the work of many colleagues is changing. We consider it important that Enexis involves all its employees in the journey that we are going to make at an early stage. The organisation calls on its employee’s capacity for change. However, changing is easier for some people than for others. As Works Council, we emphasise that we understand that there are colleagues who find change difficult. By explaining the benefits and the need of strategic plans at an early stage and by making the consequences for their jobs clear so that they can anticipate on this. If we expect employees to take action, then they must be given insight into the company’s plans for the future and they must be able to see good opportunities and a positive future for themselves. We discussed this regularly in 2016 with the management. Also in connection with the reassignment of our ‘new’ Endinet colleagues. They deserve a clear perspective. The Works Council has promoted the interest of Endinet colleges to be supported from job to job. And this has worked out well generally. We are happy with this. Certainly in times of change, it is a privilege that we can make our voices heard. New Works Council elections will be held in 2017 and we expect that more employees – hopefully also young talent and managers – will want to take a fresh look at the future of the organisation and of our colleagues.”
“Shareholders look at Enexis with a broad view. On the one hand, we have a financial interest in a sound future for the company. On the other hand, we look at the interests of our citizens where reliability of supply, price and support with the realisation of the energy transition are concerned. We have to make well-balanced choices in this regard as shareholders’ committee. We are satisfied with the result in 2016 in all aspects. The financial result is in accordance with what we had agreed and we consider this predictability to be important. We are also pleased with the cooperation in various projects. Enexis is able to accommodate the various emphases that provinces and municipalities place, such as a smart charging infrastructure in Limburg or solar energy in Groningen. We discussed the realignment of Enexis’s strategy extensively in 2016, a process that has been accelerated by the dynamics in the energy sector. Enexis literally mobilised us to form opinions and to enter into a dialogue about future scenarios. As Shareholders’ Committee, we consider it crucial to initiate new projects that help to accelerate the energy transition. We would therefore also like to see that the State, as agreed in the Energy Agreement, gives sufficient room to the company and the shareholders to continue to be able to make the right decisions.”
“We are rather spoiled in the Netherlands with a high reliability of energy. And many customers are probably not even aware what actually has to be done to achieve this. Certainly now that energy is being produced in more and more locations, it is a challenge for grid operators to ensure that the energy supply continues to remain reliable. Greenchoice stimulates customers to generate their own electricity or to join local energy collectives. We focus on the local energy transition and we like working together in this area with grid operators. For example, to increase sustainability on a neighbourhood or city level and to keep costs under control. Both parties have their own role in this and have to also take on their roles. Although the discussion about our division of roles is sometimes polemic, I advocate arriving at the best solution for society by working together. As we ultimately have one common objective: increasing the sustainability of the energy supply with the same high degree of reliability.”
The purchase of Endinet and the transfer of the Friesland and Noordoostpolder network areas had a positive influence on the financial situation of Enexis in 2016. Despite a number of incidental cost items, the profit forecasts have been met. In 2016 Enexis achieved a net profit of 207 million euros. The total operating costs rose by 89 million to 836 million euros in 2016. This increase in costs is mainly the consequence of higher depreciation costs and value reductions, higher staff costs and higher costs for subcontracted work, materials and other external costs. The long-term credit ratings of Enexis Holding N.V. and Enexis B.V. were reconfirmed by both rating agencies in 2016. The credit rating issued by Moody's remained unchanged at Aa3, with a stable outlook. The rating issued by Standard & Poor’s (S&P) was maintained at A+, with a stable outlook. More information about the economic performance
“Grid operators have to ensure that the quality of the grid is maintained to ensure the safety of the grid now and in the future. As a supervisor, we perform risk analyses based on theme inspections in order to ensure this objective is met. In the coming years, we will focus increasingly on customisation, so that the matters that require special attention at Enexis are also examined more closely during an inspection. We hold regular consultations with grid operators, also about the prevention of excavation damage. It is important that grid operators do what they can to prevent excavation damage, such as having an excavation damage prevention department. All high-risk excavation activities must be monitored here, also activities carried out by the grid operator itself. We see that, in the event of incidents, the fire department is called in at an early stage. A positive development that is good for safety. In connection with the energy transition, the termination of gas for households was placed on the political agenda in 2016, both nationally and locally. It is important for us that the gas grid remains safe until the last day that it is used. This means that Enexis must continue to invest in safety. I am completely confident that Enexis will assume its role in this pro-actively.”
“Our association will not rest until 100% of the households in the Netherlands have access to sustainable energy. A considerable ambition that we can only realise with a stable and reliable energy supply as the point of departure. As people only dare to opt for solar panels, heating pumps or an electric car if they are sure that the infrastructure is reliable. Enexis has to provide this absolute confidence to consumers, companies and local energy cooperatives. And there is something else too: Enexis can also be the driver of alternative energy solutions. The company has the knowledge, data and insights to bring municipalities and market parties together to determine a sustainable roadmap together. In which districts does the energy grid need to be replaced soon and which solutions of our members could be potentially interesting for this? At present, legislation can sometimes form an obstacle for grid operators to offer the smartest solution, but hopefully this will change soon. As the energy transition is more than technology. We have to join forces to inspire people in the Netherlands and make them enthusiastic for sustainable energy.”
“We stimulate the local generation of sustainable energy. This is why we help local committees and energy cooperatives with their plans. For example, in the earthquake region in Groningen where various successful initiatives have been launched. Our connection with Enexis provides for a strong acceleration in this case. The lines are short and Enexis is open to all sorts of ideas. By sharing knowledge and increasing the awareness of local residents, we see that energy initiatives advance to the next phase of development. And the positive impact: initiatives are now also being taken outside of the earthquake area in Groningen. The high connection costs on the grid can still pose an obstacle for cooperatives. This sometimes makes the business case hardly feasible. What helps us is when Enexis helps us look for locations with a cheaper connection. If we involve Enexis in an energy project at an even earlier stage, solar fields and solar roofs can be installed in smart locations and a more well-balanced use will be made of the grid. And we can help Enexis in turn to promote their ‘Buurkracht programme’. After all, energy generating and energy savings projects go hand in hand.”
Enexis does everything it can to ensure a sustainable, reliable and affordable energy distribution.
Our strategy has four strategic pillars: reliable, affordable, customer-oriented and sustainable. These pillars reflect the importance of our various stakeholders and define our task within society.
We consider it important that there is a clear link between material aspects and our strategy. At the same, we also wish to limit the risks in connection with this by means of an active risk management.
|KPI||Objective 2016||Realisation 2016||Objective 20176|
|Engagement of employees (and Teamwork)1,2||8.0||7.9||2 out of 2 in Q4 ≥ sub-target|
|DART-rate Enexis||≤ 0.32||0.17||≤ 0.22|
|DART-rate external1||≤ 0.67||0.86||≤ 0.67|
|Annual outage time electricity (JUD)||≤ 22.4 minutes||15.2 minutes||≤ 20.5 minutes|
|The number of stations that will be equipped with distribution automation (DA) in 20177||-||-||≥ 350 stations|
|Controllable costs and revenues3||≤ EUR 368 million||EUR 358 million||≤ EUR 403 million|
|Customer effort scores (CES)1,4||≥ 5 of the 6 customer effort scores Q4 2016 ≤ sub-target||1 out of 6||≥ 4 of the 5 customer effort scores Q4 2017 ≤ sub-target|
|Smart Meters Offered||≥ 392,500 addresses||404,468 addresses||≥ 459,000 addresses|
|Smart Meters Installed||≥ 90%||90.5%||≥ 90%|
|Number of new ‘Buurkracht’ neighbourhoods1||≥ 65 neighbourhoods||65||≥ 60 neighbourhoods|
|CO2-reduction leased vehicles and claimed kilometres1,5||≥ 4% reduction compared to score 2014||1.8%||≥ 6% reduction compared to score 2014|
|The CO2 savings registered within ‘Buurkracht’ as a result of measures taken will amount to ≥ 3,000,000 kg CO2 at the end of 2017 (based on number of measures x average savings)7||-||-||≥ 3.0 million kg CO2 reduction by end 2017|
|Stakeholder engagement (3 milestones with as the final objective concrete energy plans with stakeholders)7||-||-||3 milestones achieved|
The value creation model shows which building blocks we use as input and in which manner we add value to this ourselves in order to ensure that the result provides as much value as possible for our stakeholders. Each section in this model can be clicked on for more information.
Creating added value is a continuous proces. Surely, we can not do this all by ourselves. On many occassions, we discuss with our stakeholders how to optimise our added value for them. To illustrate this, you find some stakeholder quotes and view points below.
From our core task to ensure a reliable and affordable energy supply, we wish to enlarge our contribution to the transition to a sustainable energy supply. This is necessary in order to realise the objectives of the Energy Agreement together with partners. This is why we have started a process, together with our stakeholders, to realign our existing strategy. The outcomes of this stakeholder dialogue served as input for determining the strategic direction and strategic objectives: