Financial results in 2022
Introduction to Alliander’s finances
Almost 90% of Alliander’s income comes from the regulated activities of network operator Liander and 10% is from other sources, the latter being income from rental of large-user meters and transformers, income related to new activities and income from the activities of other companies outside the regulated energy sector. As a network operator, Liander will publish its own annual report on its performance in 2022. This annual report will appear in the second quarter of 2023.
The main expenditure relates to work maintaining and extending the electricity and gas networks and the operating expenses connected with all other activities. We invested more than €1.2 billion in 2022, mainly in the replacement and expansion of our networks. This investment equates to roughly 40% of our total expenditure. Expenditure on operating expenses, such as procurement network losses, TenneT’s transmission capacity and employee benefit expenses, accounts for over 50% of our expenditure. Additionally, there is the dividend payable to our shareholders and the interest payments to the holders of the subordinated perpetual bond loan and other financiers. The dividend and interest payments for 2022 together amounted to approximately 5% of our overall expenditure. Finally, we pay corporate income tax to the tax authorities. This accounts for another 2% of our outgoings approximately.
Cost-effective and efficient operations
We launched a company-wide cost-saving programme in 2018. The foundation of the programme is to continuously work on increasing cost awareness throughout the organisation and to critically consider which activities are really necessary for performing the job we do – without compromising on safety or quality. The objective of this programme is not only to cut costs, but also to increase productivity. In addition, the programme focuses on simplifying and improving processes, by standardising and digitalising the activities for example. Moreover, we focus on tightening up procurement agreements and reducing indirect costs, for example by adjusting internal and external policies and reducing the deployment of contract staff.
The savings achieved (including improvements in efficiency) have amounted to some €195 million since the start of the programme.