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Abbreviations and definitions

ABP – Algemeen Burgerlijk Pensioenfonds

ABP, is the civil service pension fund for government, education and energy employees in the Netherlands.

AC – Alternating current

In alternating current (AC), the flow of electricity periodically reverses direction. By contrast direct current (DC), electricity only flows in one direction. AC is used to transport electricity over relatively shorter distances and DC for relatively longer distances.

ACER – Agency for the Cooperation of Energy Regulators

The European network organisation for energy regulators. It has a key role in the integration of European electricity and gas markets, providing a framework for cooperation at EU level and regulatory certainty. The European network organisation for energy regulators. It has a key role in the integration of European electricity and gas markets, providing a framework for cooperation at EU level and regulatory certainty.

ACM – Autoriteit Consument & Markt

The Netherlands Authority for Consumers and Markets protects the interests of consumers and businesses and specifically oversees the energy, telecommunication, transport and postal industries. This authority regulates the network operators in the electricity market and sets maximum transmission tariffs for the national grid operator’s system services and for the connections to the grid. The ACM creates conditions for a well-functioning national and international wholesale market.

BDEW – Bundesverband der Energie- und Wasserwirtschaft

BDEW is a German NGO to combine the competencies of five different associations. BDEW is the main point of contact on all issues relating to natural gas, electricity, district heat as well as water and wastewater.

BNetzA – Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen

The German regulatory authority promotes effective competition in the regulated areas and ensures non-discriminatory access to networks. It protects important consumer rights and is also the root certification authority under the Electronic Signatures Act. In addition, Bundesnetzagentur is responsible for implementing the Grid Expansion Acceleration Act.

BritNed

The 260 km-long high-voltage direct current BritNed cable has a capacity of 1,000 MW and connects the Dutch and British electricity grids.

Capex – Capital expenditure

Capital expenditure (capex) is the amount spent on acquiring or improving long-term assets. Its benefits are enjoyed over a long time period, not only in the current year. Capex is of a non-recurring nature and results in the acquisition of permanent assets.

Carbon footprint

The total amount of greenhouse gases produced to directly and indirectly support human activities, usually expressed in equivalent tons of carbon dioxide (CO2 ).

CBb – College van Beroep voor het bedrijfsleven

CBb is the highest court for social economic administrative law.

CGU – Cash generating unit

A cash-generating unit is the smallest group of assets that independently generates cash flow and whose cash flow is largely independent of the cash flows generated by other assets.

CO2 – Carbon dioxide

Carbon dioxide is a greenhouse gas formed by the burning of carbon-based fuels. Its concentration in the atmosphere is rapidly increasing, leading to global warming.

COBRAcable

A 275 km-long high-voltage direct current cable that is under construction to connect the Dutch and Danish electricity grids. It will have a capacity of 700 MW.

COSO – Committee of Sponsoring Organisations of the Treadway Commission

COSO has established the common internal control model against which companies and organisations assess their control systems.

CP programme – Commercial paper programme

A commercial paper is a flexible short-term debt instrument that is issued directly to the market with different maturities and is offered continuously.

CSR – Corporate social responsibility

The Corporate social responsibility relates to the socially responsible business practices of a company balancing people, planet and profit.

DC – Direct current

In direct current (DC), the flow of electricity is only in one direction. In alternating current (AC), the electricity flows periodically reverses direction. DC is used to transport electricity over relatively longer distances and AC for relatively shorter distances.

EU DG COMP– Directorate-General for Competition (DG COMP)

The Directorate-General for Competition (DG COMP) is a Directorate-General of the European Commission. The DG Competition is responsible for establishing and implementing a coherent competition policy for the European Union.

EU DG ENER – Directorate-General for Energy

The Directorate-General for Energy is one of 33 policy-specific departments in the European Commission. It focuses on developing and implementing the EU's energy policy – secure, sustainable, and competitive energy for Europe.

DSO – Distribution system operators

A regional electricity distribution company, that is connected with end users, and is responsible for providing (1) power transmission services, by constructing and maintaining a robust high-voltage grid, (2) system services, by maintaining the balance between supply and demand of electricity 24 hours a day, and seven days a week and (3) facilitating a smoothly functioning, liquid and stable electricity market.

E-wet – Elektriciteitswet

The Dutch electricity law.

EBIT – Earnings before interest and tax

Earning for the period before income tax expense and interest payments are deducted.

EEG – Erneuerbare-Energien-Gesetz

German Renewable Energy Act, designed to govern the preferred supply of electricity from renewable sources into the grid with guaranteed, fixed minimum producer prices. It is intended to serve and protect the climate and is one of several statutory provisions aimed at reducing Germany’s dependence on fossil fuels such as oil, natural gas or coal, and nuclear power.

EIB – European Investment Bank

The European Investment Bank is one of the key financial institutions of the European Union. It is the only bank owned by and representing the interests of the European Union Member States, providing financing for sustainable investment projects that contribute to furthering EU policy objectives.

EMTN – Euro Medium Term Note

A flexible medium-term debt instrument that is issued directly to the market with different maturities and is offered continuously rather than all at once like a bond issue.

ENTSO-E – European Network of Transmission System Operators for Electricity

ENTSO-E is the organisation of transmission system operators at a European level, representing 41 TSOs from 34 countries. Its mission is to promote important aspects of energy policy, especially integrating renewable energy and the completion of an internal energy market.

EnWG – Energiewirtschaftsgesetz

German Energy Industry Act. In accordance with the EU Directive, the EnWG lays down objective and non-discriminating principles for the taking up of energy supply and the construction of power plants and power lines.

EPEX SPOT – European Power Exchange SE

The European Power Exchange SE is an exchange for power spot trading in Germany, France, Austria, Switzerland and Luxembourg. EPEX SPOT owns 100% of APX Group, which operates the power spot markets in Belgium, the Netherlands and the United Kingdom.

EU – European Union

The European Union (EU) is a political-economic union of 28 member states countries that are located in Europe.

FFO – Funds from operations

Profit for the year plus depreciation, amortisation and impairments minus gain/loss on the disposal of assets.

FFO/net debt

Funds from operations divided by net debt.

FTE – Full-time equivalent

Full-time equivalent is a unit that measures work by converting work load hours into the number of people required to complete that task.

GRI – Global Reporting Initiative

The Global Reporting Initiative is a non-profit organisation that promotes sustainability and produces global standards for sustainability reporting.

GW – Gigawatt

A unit of power equal to one billion watts.

GWh – Gigawatt hour

A unit of energy equivalent to delivering one billion watts of power for a period of one hour.

Helaba – Helaba Pension Trust e.V.

Helaba Pension Trust e.V. is a subsidiary of German bank Landesbank Hessen-Thüringen and holds a part of the assets of the German pension plan.

HGRT – Holding des Gestionnaires de Réseaux de Transport d'Électricité S.A.S.

Holding des Gestionnaires de Réseaux de Transport d'Électricité S.A.S. is a holding company of EPEX SPOT power exchange.

HR – Human Resources

Our HR Department aims to make a distinctive contribution to TenneT's position as a leading TSO by attracting, recruiting and retaining qualified staff, and by creating a healthy and stimulating working environment.

HVDC – High-voltage direct current

A high-voltage, direct current system can transmit bulk electricity over longer distances than an alternating current system and with lower grid losses. As such, HVDC is used for connecting offshore wind farms to the onshore grid.

ICF – Internal Control Framework

Framework for the set of internal controls, to provide reasonable assurance on the reliability of our internal and external reporting.

IFRS – International Financial Reporting Standards

The internationally prescribed and recognised reporting guidelines.

JAO – Joint Allocation Office

The merger of regional auction offices CASC.EU and CAO in June 2015 created the Joint Allocation Office for cross-border electricity transmission capacity, JAO is a collaboration of 20 TSOs from 17 European countries. It significantly increases the efficiency and transparency of the European electricity market, creating a single point of contact for market participants with harmonised auction rules that simplify trading and promises substantial savings to TSOs in the coming years.

KfW – Kreditanstalt für Wiederaufbau

KfW is the Reconstruction Credit Institute German government-owned development bank.

kV – kilovolt

A unit of electric voltage equal to 1,000 volts.

KWK-G – Kraft-Wärme-Kopplungs-Gesetz

The German Combined Heat and Power Act.

LOR – Letter of Representation

A Letter of Representation is signed by the management of the Group and/or performance unit to attest to the accuracy of the financial statements.

LTIF – Lost time injury frequency

The lost-time injury frequency is the number of lost-time injuries per million hours worked. A lost time injury is an injury that results in at least one day’s absence from work.

Moody's

Moody's Investors Service is a provider of credit ratings, research, and risk analysis.

MW – Megawatt

A unit of power equal to one million watts.

MWh – Megawatt hour

A unit of energy equivalent to delivering one million watts of power for a period of one hour.

Natuur & Milieu – Nature & Environment

Natuur & Milieu is the Dutch Society for Nature & Environment, an independent Dutch environmental organisation committed to creating a healthy natural environment.

Net debt, adjusted

Gross debt minus cash and cash equivalents at free disposal.

Netbeheer Nederland

Netbeheer Nederland is the association in the energy sector representing the interests of national and regional electricity and gas network operators in the Netherlands.

New Motion

New Motion is Europe's largest partner for charging electric cars.

NGO – Non-governmental organisation

A non-governmental organisation is a voluntary citizens’ group that is neither a government initiative nor a conventional for-profit business.

NOKA – DC Nordseekabel GmbH & Co. KG

NOKA is jointly owned by TenneT and German development bank KfW and is responsible for financing and building the German part of the NordLink cable.

NordLink

TenneT is jointly developing the NordLink interconnector with its project partners, the Norwegian TSO Statnett and German development bank KfW. This subsea cable with an overall transmission capacity of 1,400 MW will run between Tonstad the south of Norway and Wilster in northern German.

NWE – north-west Europe(an)

A region in Europe that includes Netherlands, Germany, Belgium, Denmark, United Kingdom, France, Norway, Sweden, Finland and Luxembourg.

NWb – WENB Sector Energie NWb

NWb is a Dutch NGO for employers in the energy sector.

Oekom

Oekom research AG is a sustainability ratings agency and external assessor for benchmarking CSR reports.

Opex – Operational expenditure

Operating expenditure (opex) is the expenses that a company incurs as a result of its normal business operations.

OTC – Open Tower Company B.V.

The Open Tower Company is a holding company for the assets and activities of the joint venture between Rabo Bouwfonds Communication Infrastructure Fund C.V. (CIF) and TenneT subsidiary NOVEC B.V. The activities of OTC are held in three asset companies, being Colonne B.V., MRNV B.V. and DutchFort B.V.

OWF – Offshore wind farm operators

Offshore wind farms are constructed in bodies of water to generate electricity from wind.

PCI – Project of Common Interest

To help integrate the European energy market, the European Commission has drawn up a list of 248 projects of common interest (PCIs). These projects may benefit from accelerated licensing procedures, improved regulatory conditions, and access to financial support totalling EUR 5.35 billion from the Connecting Europe Facility (CEF) between 2014 and 2020.

RCF – Revolving credit facility

A line of credit where TenneT pays a commitment fee and can then use the funds as and when they are needed.

RGI –  Renewables Grid Initiative

The Renewables Grid Initiative is a unique collaboration of NGOs and TSOs from across Europe. It promotes transparent, environmentally sensitive grid development to enable the further steady growth of renewable energy and the energy transition.

ROIC – Return on invested capital

Earnings before interest and tax expressed as a percentage of the average invested capital during the year based on 'underlying' information.

S&P – Standard & Poors

Standard & Poors is a provider of credit ratings, research, and risk analysis.

SF6 – Sulphur hexafluoride

An inorganic, colourless, odourless and non-flammable greenhouse gas that is used in the electricity industry to insulate high-voltage circuit breakers, switchgear and other electrical equipment.

SDG – Sustainable development goals

The Sustainable Development Goals (SDGs), officially known as Transforming our world: the 2030 Agenda for Sustainable Development is a set of seventeen aspirational "Global Goals" with 169 targets between them.

SHE – Safety, Health & Environment

SHE is the set of activities relating to Safety, Health & Environment.

Statnett

Statnett is the Norwegian TSO transmission system operator that TenneT and German development bank KfW are partnering with to build the NordLink cable between Germany and Norway.

SuedLink

A direct current connection to transport electricity from the north of Germany where it is generated to the south.

SuedOstLink

A direct current connection to transport electricity from the north of Germany where it is generated to the south-east.

Tensec

Tensec is our security system that monitors 24 hours our network.

Tenter

Tenter is our package of anti terror measures.

TSCNET

TSCNET Services is the service company of the TSC TSOs. The Munich-based company coordinates TSC’s activities and renders integrated services for TSOs and their control centres

Transparantie Benchmark

Dutch CSR benchmark by the Dutch Ministry of Economic Affairs that annually assesses Dutch companies on the content and quality of their corporate social responsibility reports.

TSO – Transmission system operator

A transmission system operator transports electricity on a national or regional level from producers to distributers. A TSO is responsible for providing (1) power transmission services, by constructing and maintaining a robust high-voltage grid, (2) system services, by maintaining the balance between supply and demand of electricity 24 hours a day, and seven days a week and (3) facilitating a smoothly functioning, liquid and stable electricity market.

UN – United Nations

An international organisation formed to promote international peace, security, and cooperation under the terms of the charter signed by 51 founding countries in San Francisco in 1945.

UNGC – United Nations Global Compact

A call from the UN to companies to align strategies and operations with universal principles on human rights, labour, environment and anti-corruption, and take actions that advance societal goals.

VKE – Versorgungskasse Energie VVaG

Versorgugnskasse Energie VVaG is pension fund for energy mutuals and a subsidiary of E.ON SE. It holds a part of the assets of the German pension plan.

WACC – Weighted average cost of capital

The WACC is the rate that a company is expected to pay on average to all its security holders to finance its assets.

Wintrack

An innovative type high-voltage pylon developed by TenneT to replace the existing lattice towers in the Netherlands. Wintrack pylons significantly reduces the so-called 'electromagnetic field zone'.