Our plans for 2023
Alliander's work package will continue to grow significantly in 2023. We anticipate that gross investments, mainly for replacing and expanding the networks, including the necessary investments in IT, will total in excess of €1,200 million in 2023 as well. As a consequence of the fast-growing demand for transmission, the power grid is becoming increasingly congested, resulting in limits on transmission. Besides the traditional way of solving this issue by laying additional cables, Alliander is also boosting its efforts to make better use of the grids as a temporary measure until the grid can be upgraded and expanded.
The high level of investment cannot be fully financed by the operating cash flows. We therefore anticipate a negative free cash flow in 2023. In combination with the dividend that will be paid in 2023 on the profit in 2022, this will result in Alliander having to borrow, as was the case in 2022. We will furthermore continue on the course we set for strengthening our equity, among other things by formalising the Framework Agreement with the Dutch government.
Implementation of the CSRD
As a Public-Interest Entity (PIE), Alliander will be required to report in line with the CSRD (Corporate Sustainability Reporting Directive) from 1 January 2024. This is a statutory obligation that will apply from the 2024 financial year; an account of this must be disclosed in the 2024 annual report. Furthermore, this account will be included in the scope of the external auditor’s audit/review assignment. Implementation will therefore start in 2023 to make sure Alliander complies with the requirements as of 1 January 2024.