2024 Financial performance

Enexis realised a net profit of €254 million in 2024, an increase of €182 million compared to 2023. This increase is mainly attributable to an increase in net sales of €582 million. This increase is partly offset by an increase in transmission and distribution losses of €143 million. In addition, the balance of operating expenses and other income increased by €162 million. The negative balance of financial income and expenses increased by €25 million, and finally, taxes on income increased by €70 million.

Gross investments increased by €344 million to €1,487 million, mainly due to the further increase in investments in the electricity grid. Enexis receives delayed compensation for these investments in tariffs with a time lag. These timing effects are expected to result in negative cash flows from operating activities and investments in (in)tangible fixed assets in the coming years. Cash flow from operating activities and investments in (in)tangible fixed assets was €567 million negative in 2024. This represents a deterioration of €51 million compared to 2023.

Balance available for operating activities

The balance available for operating activities increased by €477 million in 2024. This concerns the balance of an increase in net sales (€582 million), an increase in the cost of transmission services and distribution losses (€143 million) and an increase in other operating income (€38 million). Total revenue amounted to €2,596 million in 2024. The higher revenue is due to higher tariffs for our customers. The average tariff increase for low-volume consumers was 31% for electricity and 10% for gas (including meter rent).

The increase in revenue can be broken down as follows:

• Electricity: revenue increased by €556 million compared with the previous year. This increase is mainly attributable to higher tariffs, largely driven by TenneT's higher costs for transmission and system services. In addition, the 2024 tariffs include an advance due to the adjusted Electricity Method Decision, which contributes to the tariff increase. This adjustment follows the CBb’s decision of 21 December 2023.

• Gas: revenue rose by €11 million compared to 2023, mainly due to a tariff increase.

• Other regulated revenue increased by €17 million, mainly due to a tariff increase in gas metering services.

• Non-regulated revenue decreased by €2 million compared to 2023.

The cost of transmission services and distribution losses rose by €143 million to €952 million in 2024. This increase of €367 million is due to higher costs for TenneT transmission and system services, which total €813 million in 2024. TenneT increased tariffs in connection with the investments that TenneT is making to expand and upgrade the high-voltage grid. The regional grid operators are customers of TenneT and pass on these costs to the end users through tariffs.

The costs for distribution losses decreased by €224 million. The decrease is mainly attributable to lower energy prices in the years in which these distribution losses were purchased. Enexis purchases electricity to compensate for distribution losses in advance of the financial year. Therefore, the costs of distribution losses in 2024 depends on the electricity prices in the years in which the forward contracts were signed. In the 2023 financial year, the cost of electricity distribution losses was exceptionally high because most of the electricity was purchased in 2022, when energy prices were unusually high.

• Electricity purchasing costs decreased by €175 million. Of this decrease, €171 million is attributable to price effects and €4 million to lower volumes. 

• The grid losses from gas transmission decreased by €40 million, mainly due to lower energy prices and volumes.

• The other grid losses decreased by €9 million, mainly because the settlements with customers due to measurement errors resulted in a gain for Enexis. 

Other operating income in 2024 includes a result of €11 million related to the sale of assets and a settlement amount of €27 million. Enexis Netbeheer B.V., together with the other regional grid operators in the Netbeheer Nederland association, entered into a settlement agreement with the government of the Netherlands regarding the costs of removing gas connections requested by low-volume consumers in the period from 2 March 2021 to 31 January 2024. Enexis received a settlement amount of €27 million.

Operating expenses

Total operating expenses increased by €200 million to €1,297 million in 2024. The energy transition is resulting in a further growth of our work package. To carry out this work package, we are making a considerable effort to recruit and train new technical staff. This has also increased our expenses for materials and outsourced work.

The main developments in operating costs were as follows:

• €121 million higher employee expenses: this increase is the balance of €91 million higher expenses for our own personnel and €30 million higher expenses on hiring external personnel. At year-end 2024, Enexis employed 466 FTEs more internal personnel and 46 FTEs more external personnel compared to 2023.

• • €70 million of the increase in own personnel costs can be attributed to higher wage costs due to the increase in FTEs and a collective agreement increase as of 1 January 2024.

  • Social security contributions increased by €10 million and pension premiums by €6 million compared to 2023.

  • The increase in employee-related provisions was €2 million higher due to lower interest rates in 2024.

  • Other personnel expenses increased by €3 million, partly due to higher mobility and training costs.

  • The cost of hiring external staff increased by €30 million. This concerned the combination of a tariff increase and an increase in the number of external hires in FTE.

• Capitalised production increased by €38 million due to an increase in personnel in 2024 for investments in the energy grid and ICT improvement projects.

• Depreciation and amortisation charges increased by €41 million compared with 2023. This increase can be attributed to an impairment of the cash-generating unit Mijnwater B.V. of €19 million. Excluding this item, we see an increase in depreciation and amortisation charges due to the higher investment resulting from the larger work package.

• The cost of subcontracted work, materials, other external costs and other operating expenses increased by €76 million in 2024 compared with 2023. This increase can be partially attributed to indexation passed on by suppliers. In addition, the other operating expenses increased because a provision of €8 million has been included in 2024 for expected costs related to the removal of gas connections for which the request was done by the customer (without desired date) on or before year-end. 

Financial income and expenses

The negative balance of financial income and expenses amounted to €46 million in 2024, compared with a negative balance of €21 million in 2023, and is €25 million higher than in 2023. The more negative balance is mainly driven by higher interest expenses due to the issuance of a €500 million Green Bond in May 2024. Financial income decreased due to lower interest income on money market funds and deposits. 

Taxes

Income taxes in 2024 amounted to €86 million, which is €70 million higher than in 2023. The increase was attributable to the higher result before tax in 2024.

Gross capital expenditure

In 2024, there was further growth in capital expenditure. This growth was mainly driven by investments in our electricity grids to facilitate the energy transition. In particular, the 60% increase in investments in grid expansions and improvements contributed to the realisation of more transmission capacity in the electricity grid.

Gross investments in property, plant and equipment and intangible fixed assets increased by €344 million to €1,487 million in 2024. Most of this increase is attributable to the €289 million increase in investments in our electricity grid. Of this increase, €277 million relates to grid expansions and improvements. Investments in our gas network in 2024 were in line with those in 2023. Investments in smart meters decreased by €6 million compared to 2023.

Other investments increased by €61 million, mainly due to increased investments in ICT improvement projects and Enexis’ real estate.

Customers pay a contribution for some of our customer-driven activities. These contributions decreased by €19 million to €107 million. There was more investment in network expansions and improvements than in customer-driven activities. After deducting customer contributions, net capital expenditure amounted to €1,380 million in 2024. This is an increase of €363 million compared to 2023.

The table below shows the gross capital expenditure (excluding customer contributions) in our electricity and gas grids, smart meters and other investments. 

Cash flows

The cash flow before financing activities was €556 million negative, a decrease of €695 million compared to 2023, mainly due to higher investments in property, plant and equipment and lower cash flow from investments in deposits. 

• Our cash flow from operating activities was €920 million, an increase of €293 million compared with 2023. This is mainly due to the rise in net profit.

• Our cash flow from investments was €1,476 million negative, an increase of €988 million. This increase is mainly due to the increase in investments (€344 million) and a net decrease in withdrawals of deposits (€650 million).

• Taking into account the cash flow from operating activities and investments in tangible and intangible assets, this cash flow amounted to €567 million negative (2023: €516 million negative).

• Finally, the financing cash flow amounted to €475 million (2023: €229 million negative). The increase of €704 million compared to 2023 is attributable to a new green bond issue in 2024 and a bond loan repayment in 2023. A higher dividend payment also took place in 2023. 

The balance of cash flows was €81 million negative, an increase of €9 million compared to 2023.