Note 41 Other receivables and receivables from subsidiaries
There is group-wide financing for receivables from group companies within the Alliander group, meaning that the activities of the subsidiaries are part-financed through a current account facility with the holding company. External financing is arranged by the holding company itself. Each year, there is a capital restructuring of these companies in line with Alliander’s policy, resulting in the distribution of dividends to the parent company or payments of share premium.
The current account facility is mainly for financing the working capital of Alliander’s associates. All income and expenditure is accounted for through the current accounts with the associates. Differentiated interest rates are applied to this finance, of 1.5% (2020: 1.75%) for associates operating in the regulated market, 2.5% (2020: 2.75%) for ‘Stable Business’ associates and 3.5% (2020: 3.75%) for ‘New Business & High Risk’ associates. The interest rates are based on the average cost of borrowing on Alliander N.V.’s lending portfolio as at year-end 2021, with a risk mark-up where relevant. Current-account lending is treated as a demand deposit and counts as cash-equivalent.