Definitions and abbreviations


ACM is the Dutch initialism for the Netherlands Authority for Consumers & Markets, the regulator charged with the supervision of competition, industry-specific market surveillance, and consumer protection. As part of its remit, ACM oversees compliance with the Electricity Act and the Gas Act.


Attribution of the impact relative to other entities contributing to the impact (part of the value and impact model).

Cable pooling

The use of shared cables for wind and solar energy feed in.

CAIDI (customer average interruption duration index)

The average duration of individual power outages.

CBL (cross border lease)

A cross-border lease is a structured finance transaction by virtue of which a business sells the user rights of certain non-current assets to a foreign company, only to lease these assets back.


Carbon dioxide. This is mainly released during the burning of fossil fuels such as natural gas and coal and contributes to the greenhouse effect.

CO2 equivalent

The effect of greenhouse gases other than CO2 converted into CO2 values.

Committee of Shareholders

The Committee of Shareholders as referred to in Section 158(10) Book 2 of the Dutch Civil Code, if this has been appointed by the General Meeting of Shareholders.

Congestion management

Congestion management is the system used at times when the electricity grid has insufficient capacity for customers who consume or feed in electricity. This system ensures that the available transmission capacity is spread as fairly and efficiently as possible. In an area where a shortage of capacity is imminent, parties participating in the system are asked to consume less power or to return more power to the grid for a fee. These measures can prevent the impending shortfall from occurring.

Corporate Governance

The Dutch Corporate Governance Code contains principles and best-practice provisions governing the relationship between the Management Board, the Supervisory Board and the General Meeting of Shareholders/shareholders themselves. The principles and provisions are aimed at detailing responsibilities for long-term value creation, risk management, effective management and supervision, remuneration and relationships with the shareholders/General Meeting and with other stakeholders. 


Chief Transition Officer (CTO) is a management position at Alliander that is focused primarily on exploring and adopting the energy transition and digitalisation, with a view to future-proofing the network company.


During peak periods in electricity feed-in, the network operator reduces or restricts energy delivery from generators of green electricity to the grid, creating more space on the grid so that more generators of green electricity can be connected. This way the grid is used more efficiently.


Eco-costing is a method of expressing the environmental burden of a product. It is based on the costs that will be incurred in preventing that burden.

Energy transition

The transition away from generating energy from fossil fuels to sourcing power from renewables, like the sun, wind or water, for example.


In a flexible electricity market, supply and demand are better matched. Flexibility is created by energy users switching demand to off-peak periods. Intelligent systems also make it possible for power from renewables, for example, to be stored and for generation demand to be shifted in time without users having to alter the pattern of consumption.

FTE (full-time equivalent)

Equivalent of the number of employees with a full working week.

Guarantee of Origin

A Guarantee of Origin certificate shows that electricity has been generated by a wind, hydro, solar, or biomass installation.

DC (direct current) network

A network allowing DC power from renewables to be used directly without the need for an inverter to produce alternating current.

Geothermal energy

Energy derived from the heat found in the earth’s crust.

Regulated domain

The activities of the network operator which arise from the tasks that are the exclusive preserve of the network operator and for which maximum tariffs are set by the ACM. This includes:

  • construction, maintenance, renewal and management of connections to the electricity grid with a load value up to 10 MVA;

  • construction, maintenance, renewal and operation of electricity and gas networks;

  • transmission of gas and electricity;

  • metering services for small consumers;

  • effective assurance of the safety and reliability of the networks;

  • promotion of the safe use of equipment and installations that consume electricity and gas;

  • facilitation of the free market to enable customers to switch to another energy supplier, among other things.


A degree-day is a unit for quantifying energy demand. The measure is obtained by multiplying the number of degrees temperature difference between indoor temperature and average outdoor temperature over a given 24-hour period. If the outdoor temperature is 1°C below the temperature below which heating is required – taken as 18°C – that counts as 1 degree-day, and so on. If the average outdoor temperature is 18°C or above, the number of degree-days (for heating purposes) is zero.

Green bond

A debt instrument used exclusively to finance new and existing environmentally sound projects.

GRI (Global Reporting Initiative)

Global organisation that issues guidelines for CSR reporting.


In the context of the value and impact model, the effects of the actual outcome compared with the effects of the predetermined ‘counterfactual’ or reference scenario.

Smart grids

A ‘smart grid’ refers to electricity distribution networks in which IT and sensor technology systems are used in substations and medium-voltage transformer stations. The capacity has also been increased by raising the voltage from 10kV to 20kV.

Investment plan

As of 2020, network operators will publish an investment plan every two years. This plan describes all necessary expansion and replacement investments over a 10-year period and provides the reasons for these investments. The basis for the investment plan is Article 21 of the Electricity Act and Article 7a of the Gas Act.

LTIF (Lost Time Injury Frequency)

Number of accidents resulting in time off work times a million divided by the number of worked hours.


The ability of various autonomous, heterogeneous systems to communicate and interact with each other.


The supply of electricity fed into the electricity grid from power generating sources.

Supply chain responsibility

A situation in which a company assumes responsibility for the entire supply chain involved in its activities and for the impact which these activities have in social, ecological and economic terms and renders account accordingly, including engaging in a dialogue with stakeholders. The whole process is result-driven.

Customer perception

It is measured using the Net Effort Score (NES). This score is given by deducting the percentage of customers experiencing difficulty with the service from the percentage of customers finding it easy. 

Climate Agreement

The Climate Agreement (i.e. the Dutch Climate Agreement) aims to cut greenhouse gas emissions in the Netherlands by 49% compared with 1990 levels by 2030. These targets stem from the climate agreements made by the international community in 2015 in the Paris Agreement and are set out officially in the Climate Act in the Netherlands. The climate agreement is therefore not a law itself, but gives substance to the objectives of the Dutch Climate Act.

Security of supply

The ability of customers to rely on the uninterrupted supply of electricity, gas and heat, as well as uninterrupted feed-in to the grid.

m3 of natural gas

A cubic metre (1,000 litres) of natural gas. The average natural gas consumption per household is about 1,800m3 per year.


A gaseous hydrocarbon, chief component of natural gas.


The local network of energy sources that is able to function independently of the grid.

Net debt

The sum of long and short-term interest-bearing liabilities less cash and cash equivalents and investments.

Net investments

Investments less contributions received from third parties.

Grid losses

There are two components to grid losses or network losses: technical losses and administrative losses. Technical grid losses refers to the electrical energy that is dissipated in overcoming the inherent resistance of cables, transformers and other components in the network. Administrative grid losses refers to losses due to fraud and theft of electricity and loss of potential income due to empty properties.


Nitrogen oxides, gases produced during the burning of fuels. These gases cause acid rain and smog.


The NTA (Netherlands Technical Agreement) 8120 comprises standards for the assurance of the safety of employees and the public, the protection of industrial and built-up areas and nature, the security of transport and distribution, and the efficient and optimal management of grids.

Zero energy homes

Homes that produce as much energy as they consume.


The effects of an activity – within the context of the value and impact model – over which Alliander has some control.

PCB (polychlorinated biphenyl)

Chemical name for a chlorine compound with strong heat-resistant properties.

Sufferance tax

A levy charged by local authorities for the assets of utilities running either overhead or below ground across public land or water as well as surface assets.

Regional Energy Strategy (RES)

The RES focuses on the energy task facing a region, including the potential for electricity generation from renewables, potential savings and the actual plans for balancing supply and demand.  The first RES was delivered in 2021. This is not a finished product: every two years, the RES regions will update their plans based on new information.


With respect to public utilities, the process whereby the government sets the maximum rates that network operators are permitted to charge for their services.

Remuneration Report

The Remuneration Report of the Supervisory Board concerning the remuneration policy of Alliander, as drawn up by the Selection, Appointment and Remuneration Committee of the Supervisory Board.

SAIDI (system average interruption duration index)

Average annual power supply interruption duration per customer.

SAIFI (system average interruption frequency index)

Interruption frequency per customer.


A sensor-based control system for the faster localisation and resolution of interruptions in the grid.

Sustainable Development Goals (SDGs)

The latest United Nations goals for sustainable development of the world in the period 2015–2030.


An inert gas that is 5.1 times heavier than air and has a CO2 equivalent of 22,800. SF6 has good electrical insulating properties and is therefore frequently applied in electrical engineering, such as in medium-voltage and high-voltage units. In the case of combustion (e.g. due to an arc), toxic waste products such as S2F10 occur. Also, in the case of major gas escapes, there is the risk of SF6 displacing oxygen which can lead to suffocation.

Smart meter

The smart meter enables remote reading of electricity and gas meters to obtain information on consumption and status. In addition, a smart meter can execute remote instructions. The communication with the meter takes place via the cable network (Power Line Communication) or via GPRS.

Solvency ratio

The solvency ratio is obtained by dividing total equity including the profit for the period by total assets less the expected dividend distribution for the current year and deferred income.


Stakeholders are individuals and groups who have any form of interest in Alliander such as employees, shareholders, customers, financiers, suppliers and public authorities.

System analysis

A system analysis provides an integrated picture of future energy development and the impact on the required energy infrastructure for all energy modalities (for electricity or gas for example) and the cross connections.


The extent to which things can be clearly seen through something – specifically the provision of a clear view of a company’s activities.

Transmission restrictions

Due to the rapidly growing demand for electricity and the increase in feed-in, in more and more places the electricity grid has reached its full capacity. In these areas, when generators of green electricity and large companies that consume large volumes of electricity request more capacity on the power grid, they are subject to transmission restrictions. This means they are placed on a waiting list and can only access the extra capacity once there is again sufficient capacity on the grid. This additional capacity is created when the network operator expands the grid or can deploy a smart solution.

Phasing-out of gas

The gradual discontinuation of a mains gas supply and use of gas as a fuel.

VCA (Veiligheid Checklist Aannemers)

A certifiable checklist for contractors by which they can demonstrate that they are complying with health and safety standards.


A power system installation on the high voltage network either connecting two or more high-voltage networks or forming a connection to the high-voltage network.

VET (Voortgang Energietransitie)

Proposed Energy Transition Advancement legislation aimed at supporting and accelerating the energy transition by amending the regulations governing electricity and gas networks. The changes are partly necessary in view of the increase in intermittent power supplies (solar, wind) and feed-in from decentralised sources, which demand high standards of reliability and affordability of the systems.

Free domain

The activities that are carried out in competition and/or arise from the statutory tasks and are offered at the customer’s request. This includes the construction, maintenance, renewal, and management of connections to the electricity network with a load of 10 MVA and above for specific customer groups, including public transport and public lighting.

Free cash flow

Cash flow from operating activities less net investments in non-current assets.

Working capital

Inventories plus trade receivables and other receivables, less short-term non-interest-bearing debt and other liabilities.