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    2013 Annual Report

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    CertiQ B.V. 2013 Annual Report 1 Preface 3 2 Corporate Governance Code 5 3 Results for 2013 6 3.1 Key figures 6 3.2 Guarantees of Origin imported and exported 8 3.3 Financial results 10 4 Financial statements for 2013 11 Appendix: CertiQ works together with… 23 Appendix: Graph 1a and 1b 25 Contact details and publication details 26 (clickable table of content) In the event of discrepancies or ambiguity between the original Dutch version of the 2013 Annual Report of CertiQ BV and this English translation, the Dutch text shall prevail. 2 CertiQ 2013 Annual Report

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    Preface In 2013, CertiQ focused on a number of important developments in the area of Guarantees of Origin for sustainable electricity in the Netherlands and Europe. CertiQ has also reached a milestone in a new area: on 1 May 2013 CertiQ issued the first Guarantees of Origin for renewable heat in the Netherlands. In total nearly 500,000 Guarantees of Origin for heat were issued for approximately fifty plants in 2013. In 2014 we expect a further growth in issuing certificates for the production of renewable heat, for example in the area of geothermal energy, when a number of new plants will be commissioned. Because of further harmonisation in a European context, the international market for Guarantees of Origin has been successfully strengthened. In 2013 a number of countries, including France and Germany, were connected to the European hub of the Association of Issuing Bodies for the exchange of Guarantees of Origin, resulting in a larger market. Transparency has also been further increased because all countries connected to the hub now exchange more information on the origin and energy source for each Guarantee of Origin. CertiQ is actively involved in strengthening the European market for sustainable energy through this collaboration. We shall continue these efforts in 2014. In the coming months, actions will be taken at a European level to further streamline the process of disclosure between the different countries. Guarantees of Origin are a crucial element for disclosure of sustainable energy. The year of 2013 was also the first full year that our new registration system, myCertiQ, was used. The experiences gained during 2013 have led to a number of valuable improvements, including in the performance and accessibility of information. The year of 2013 also showed that the new possibilities offered by myCertiQ are definitely valued by the market. More than one hundred (business account) end users have already opened an end user account, providing them with a direct insight into the Guarantees of Origin which have been cancelled for them. 3 CertiQ 2013 Annual Report

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    In 2013, one sixth – i.e. 6.5 terawatt hours (TWh) of Guarantees of Origin – of The focus in the coming year will be on the implementation of the mandate resulting the total on these accounts was cancelled. Making end user accounts available has from the change in the Dutch Electricity Act of 1998 (‘Electriciteitswet 1998’). been a valuable step, because they contribute to the transparency that CertiQ aims With effect from July 2014, the government will replace the current appointment to offer to end users of energy in the Netherlands. We shall continue to invest in of TenneT as issuing body with a mandate. In practice, this will not change anything this aim in 2014. in the execution and services that you can expect from us; the measure is aimed at streamlining the regulations on the issuance of certificates for sustainable electricity, In the past year, CertiQ again registered an increased consumption of sustainable renewable heat and green gas. In the next few months, the Ministry of Economic energy in the Netherlands. 40 TWh of Guarantees of Origin were cancelled. That is Affairs shall draw up further regulations for this purpose. CertiQ and the ministry an increase of 5 TWh in Guarantees of Origin compared to 2012. Over 10 TWh of shall concurrently make mutual agreements to ensure an effective implementation these Guarantees of Origin originates from Dutch production plants. Import also of the new regulations. saw growth compared to 2012, and increased by 7 TWh to some 40 TWh in 2013. Exports increased to a little more than 6 TWh in Guarantees of Origin. Finally, CertiQ wants to invest in the monthly statistical overviews it publishes. In the coming year, we intend to make a step forward in expanding this information For the first time in years, we saw a decline in the number of Guarantees of Origin and making it more transparent for both market parties, such as end users, traders issued for sustainable electricity produced in the Netherlands. The cause for this and producers, and public bodies. is that less electricity was produced with biomass. The increase in the quantity of electricity generated with wind energy could not prevent the total quantity of Ir. J. van der Lee Ir. B.G.M. Voorhorst Guarantees of Origin issued for electricity from declining by 0.8 TWh to 12 TWh Manager CertiQ B.V. Chief Operational Officer TenneT TSO B.V. in 2013. 4 CertiQ 2013 Annual Report

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    Corporate Governance Code CertiQ B.V. (hereinafter: CertiQ) has chosen, just like TenneT TSO B.V. (hereinafter: Financial reporting TenneT) - the only shareholder as well as director of CertiQ - to comply with CertiQ’s management is of the opinion that the financial statements for 2013 do the Corporate Governance Code where possible, despite the fact that it is not obliged not contain any errors of material significance. Management believes, to the best to do so. In CertiQ’s opinion, the Code’s principles and best practice provisions serve of their knowledge and conviction, that there are no further indications that CertiQ’s as a guideline for running its business. internal risk management and control systems have not operated adequately with regard to the financial reporting risks in the year under review and that they would Management not provide a reasonable degree of assurance that the financial reporting does not CertiQ’s management is responsible for the strategic and organisational policies and contain any errors of material significance. for issuing and registering energy certificates, for which it renders accountability to TenneT. TenneT sets the framework for the internal risk management and External auditor control systems. Within this framework, CertiQ’s management is responsible The external auditor of CertiQ, Ernst & Young Accountants LLP, has been charged with for the management of these systems. CertiQ prepares an annual plan, including the audit of the financial statements and reports to CertiQ’s management and share- its operational budget, its investment budget and its funding needs. This annual holder. The external auditor issues the auditor’s opinion for the financial statements. plan is approved by the shareholder and serves as a mandate for management. CertiQ reports to the shareholder on the execution of its annual plan at least every For more information on TenneT’s Corporate Governance Code, please refer to quarter. The financial results and operational developments are reported periodically. www.tennet.eu. 5 CertiQ 2013 Annual Report

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    Results for 2013 3.1 Key figures Table 2 sets out the apportionment of the various energy sources. At the end of 2013, a total of 12,401 production plants for sustainable electricity were Table 2 Guarantees of Origin issued in 2012 and 2013 registered with CertiQ, which is 4.4% more than in 2012. In 2013, CertiQ started per megawatt hour (MWh) issuing Guarantees of Origin for sustainably generated heat. As at 31 December 2013, 98 production plants for sustainable heat were registered. Guarantees of Origin (MWh) issued in 2013 2012 Electricity: Table 1 provides an overview of the number of participants in our E-certification system. Biomass 6,376,747 7,570,861 Wind 5,519,531 5,121,865 Table 1 Participants in the system for Guarantee of Origin Hydro-electric 112,535 104,726 Solar 60,774 42,411 31 December 2013 31 December 2012 Total 12,069,587 12,839,863 Number of electricity production plants 12,401 11,876 Number of heat production plants 98 - Heat: Number of traders 74 61 Biomass 326,338 - Geothermal 161,864 - Total 488,202 - In 2013, CertiQ issued Guarantees of Origin for a total of 12.1 TWh of sustainable electricity generated in the Netherlands. These certificates relate predominantly to generation in 2013, with a smaller contribution from generation in previous years. The issuance of Guarantees of Origin for sustainable electricity decreased by 6% in CertiQ issued Guarantees of Origin for a total of 0.5 TWh of heat. 2013 compared to 2012. This was partially compensated by the issuance of Guarantees of Origin for sustainable heat, which amounted to approximately 0.5 TWh. The volume of electricity contributed by the energy source biomass declined by 15.8% compared to 2012. The volume of electricity contributed by the energy source wind increased by 7.8%. 6 CertiQ 2013 Annual Report

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    Figure 1 shows the number of certificates issued per month for each energy source. Click here for a more detailed overview Figure 1 Certificates issued for Dutch sustainable electricity x 1,000 MWh 1,000 900 800 700 600 500 400 300 Wind 200 Solar 100 Hydro-electric 0 Biomass Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. 2012 2013 In the year under review, the number of cancelled certificates at CertiQ (i.e. the total consumption of sustainable energy in the Netherlands by private and industrial users) increased from 35.0 terawatt-hours in 2012 to 40.0 terawatt-hours in 2013. This is an increase of 14.3%. 7 CertiQ 2013 Annual Report

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    3.2 Guarantees of Origin imported and exported Figure 2 shows that the certificates imported in 2013 again related mainly to hydro-electric power, which is by far the most important source of sustainably The import of sustainable electricity increased by more than 7 TWh to a total generated electricity in Europe. In 2013 Guarantees of Origin were imported of 40.0 TWh in the year under review. In 2013 exports grew to 6.2 TWh. for geothermal electricity for the first time. Table 3: Overview of imports and exports Figure 2 Imports of sustainable electricity x 1,000 MWh Table 3 Overview of imports and exports 9,000 8,500 8,000 Import / Export in MWh 2013 2012 7,500 Import 39,835,326 32,774,471 7,000 6,500 Export 6,183,822 3,817,412 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 Wind 1,000 Hydro-electric 500 Geothermal 0 Biomass 2012 2013 8 CertiQ 2013 Annual Report

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    Guarantees of Origin issued for sustainable electricity can be traded within Europe. Figure 4 shows to which countries Guarantees of Origin were exported in 2013. Figure 3 shows in which countries the Guarantees of Origin imported by the Netherlands in 2013 were originally issued. Figure 4 Exports of Guarantees of Origin by destination Figure 3 Imports of Guarantees of Origin by country of origin 8% Denmark 9% Finland 9% Iceland 72 % Belgium 8% France 23 % Finland 45 % Norway 3% Norway 4% Austria 2% Other 4% Slovenia 11 % Sweden 2% Other Table 4 Changes in stock of Guarantees of Origin for electricity in MWh 2013 2012 Certificates issued 12,069,587 12,839,863 Import 39,835,326 32,774,471 Increase in the stock of certificates 51,904,913 45,614,334 Domestic transfers 10,244,021 11,059,594 Cancellations 39,956,079 34,952,615 Certificates issued for electricity used on-site 862,734 745,370 Exports 6,183,822 3,817,412 Expired 1,410,862 666,077 Decrease in the stock of certificates 48,413,497 40,181,474 Change in the stock of certificates 3,491,416 5,432,860 9 CertiQ 2013 Annual Report

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    3.3 Financial results The operating costs increased by 10% compared to 2012, predominantly as a result of higher depreciation costs, which were caused by the capitalisation The financial income and expenditure for 2013 (x EUR 1,000) can be summarised of the myCertiQ I project in October 2012 and the capitalisation of the myCertiQ II as follows: project in February 2013. Table 5 Financial results 2013 2012 CertiQ sets its tariffs at a cost-recovery basis. Any difference between CertiQ’s invoiced Invoiced revenue 2,050 1,864 revenues and operating costs is cleared by adjusting tariffs in later years. For 2013 this To be adjusted in tariffs 345 435 difference amounts to EUR 345,000. Release of myCertiQ I investment 150 37 contribution At the end of 2013, the balance ‘to be adjusted in tariffs’ amounted to EUR 981,000. Other income 98 61 In consultation with the Participants’ Council, an amount of EUR 750,000 was deducted 2,643 2,397 from this balance and allocated to Investment contributions in 2012. Investment contributions are used for updating the E-certification system (myCertiQ I). For more Operating costs 2,637 2,397 detailed notes to the financial results, please refer to the financial statements included Operating results 6 0 in chapter 4. Financial income and expenses -6 0 Result - - Invoiced revenue in 2013 was 9.1% higher than in 2012. The increases in both the number of participants and the number of certificates issued and traded were expected. The tariffs remained unchanged compared to the tariffs of 2012. We have taken measures to slow down the growth in revenues since 2012. These measures were already agreed with the Management Board of TenneT and the Participants’ Council in 2011. These are: 1 the temporary discount on tariffs has been made permanent; 2 the membership costs for solar installations have been abolished; 3 the membership costs have been reduced and made the same for all traders. 10 CertiQ 2013 Annual Report

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    2013 Financial statements Balance sheet as at 31 December 2013, after appropriation of profits 12 Profit and loss account for 2013 13 General notes 13 Notes to the balance sheet as at 31 December 2013, after appropriation of profits 16 Notes to the profit and loss account for 2013 18 Additional notes for 2013 20 Other information 20 Independent auditor’s opinion 21 11 CertiQ 2013 Annual Report

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    Balance sheet as at 31 December 2013 after appropriation of profits (x EUR 1,000) Assets Note 31 December 2013 31 December 2012 Liabilities Note 31 December 2013 31 December 2012 Fixed assets 1 Equity 3 Intangible fixed assets 2,326 2,946 Paid up capital 18 18 2,326 2,946 18 18 Current assets Long term liabilities 4 Receivables 2 Investment contributions 413 562 Accounts receivable and other receivables 507 762 Government investment subsidies 43 57 507 762 456 619 2,833 3,708 Current liabilities 5 Accounts payable 8 - Associated companies 1,140 1,414 Prepayments received 1,145 1,489 Accrued liabilities 66 168 2,359 3,071 2,833 3,708 12 CertiQ 2013 Annual Report

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    Profit and loss account for 2013 (x EUR 1,000) The aim of CertiQ is to facilitate trading in sustainably generated energy by issuing and managing production certificates. Production certificates, such as Guarantees Note 2013 2012 of Origin, are issued for the production of energy generated with the sustainable sources solar, hydro-electric, wind and biomass. Guarantees of Origin which are Revenue 6 provided electronically are the only valid proof in the Netherlands that energy Revenue 2,395 2,299 has been generated in a sustainable manner. The certificates for sustainable energy Other operating income 248 98 are eligible for subsidies under the statutory schemes of the Sustainable Energy 2,643 2,397 Production Incentives (SDE+) scheme and the Environmental Quality of Electricity Operating costs 7 Generation Act (MEP). They are also nationally and internationally tradable. Wages, salaries and social security costs 1,045 933 Amortisation of intangible fixed assets 633 167 All shares in CertiQ are held by TenneT. Other operating costs 959 1,297 2,637 2,397 Estimates Operating result 6 0 In applying the principles and regulations for drawing up the financial statements, CertiQ’s management makes various assessments and estimates that may be essential Financial income and expenses 8 for the amounts shown in the financial statements. Where the nature of these Interest received/paid -6 0 assessments and estimates must be disclosed to offer the reader the level of Result after tax - - understanding required under Article 2:362, sub 1 of the Netherlands Civil Code (‘Burgerlijk Wetboek’), the notes to the relevant entry in the financial statements explain the nature of the assessments and estimates, including the corresponding General notes assumptions. Nature of the business activities TenneT, the Transmission System Operator and administrator of the national high-voltage grid, has been designated by the Minister of Economic Affairs through a ministerial order, to establish an E-certification system. TenneT established CertiQ BV to set up this system and implement the activities associated with it. 13 CertiQ 2013 Annual Report

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    Principles for the valuation of assets and liabilities The net realisable value is determined with the aid of the active market. An impairment loss is directly recognised as a cost in the profit and loss account. General The financial statements are drawn up in accordance with the provisions of Part 9, If it is determined that an impairment accounted for in the past no longer exists or Book 2, of the Netherlands Civil Code (‘Burgerlijk Wetboek’), and the Accounting has decreased, the increased book value of the asset concerned will not be recognised Standards for small legal entities, as published by the Dutch Accounting Standards for a value higher than the book value which would have been determined if Board (‘Raad voor de Jaarverslaggeving’). The valuation principles are based on the impairment of the asset had not been accounted for. historical cost and cost price. Current assets The amounts included in the financial statements are denominated in EUR x 1,000. Upon initial entry, receivables are valued at the real value of the consideration. After the initial entry, trading receivables are valued at amortised cost price. Assets and liabilities (with the exception of equity) are, in general, valued at If payment on the accounts receivable is postponed under an agreement extending the acquisition cost or manufacturing cost, or the actual value. the payment deadline, its real value is determined on the basis of the cash value of the expected receivables, and adjustments are made to the ‘interest received’ Comparison to previous year entry in the profit and loss account. Provisions for bad debts are subtracted from The accounting principles are the same as those used in the previous year. the book value of the receivable. Intangible fixed assets Liquid assets The intangible fixed assets are valued at the original acquisition cost or production Liquid assets consist of bank balances with a term of less than twelve months cost, after deducting linear depreciation based on the asset’s economic life. and are valued at their nominal value. Expected long-term loss of value at the balance sheet date is taken into account. Long-term liabilities At the balance sheet date, CertiQ assesses whether there are any indications that Long-term liabilities consist of investment contributions and government a fixed asset may be subject to impairment. If such indications exist, the realisable investment subsidies. value of the individual asset is determined. If it is not possible to determine the realisable value for the individual asset, the realisable value of the cash flow generating unit of which the asset is part will be determined. Impairment exists when the book value of an asset is higher than the realisable value; the realisable value is the higher of the net realisable value and value in use. 14 CertiQ 2013 Annual Report

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    After approval by the Participants’ Council, the investment contributions were deducted The Board of TenneT sets the tariffs every year after consulting the Participants’ from the entry ‘to be adjusted’ in tariffs and used for investments in (intangible) fixed Council. The difference between actual cost and invoiced revenue is adjusted in assets. An annual amount equal to the depreciation cost is released and recognised the tariffs of subsequent years. under current liabilities. The current part of the investment contributions is recognised under current liabilities. Other income comprises the annual release of investment contributions and government subsidies. Government investment subsidies received are accounted for on the balance sheet. Concurrent with the economic life of the asset to which the subsidy relates, an amount Operating costs is released annually and added to Other income. Operating costs are determined on a historical basis and allocated to the reporting year to which they relate. Current liabilities Upon initial entry, Current liabilities are valued at nominal value. After the initial Depreciation of intangible fixed assets entry they are valued at amortised cost price. The depreciation of intangible fixed assets is determined in line with the asset’s expected economic life, using the linear method. Current liabilities comprise the entries ‘to be adjusted in tariffs’ and the current part of the ‘Investment contributions’ and ‘Government investment subsidies’. ‘To be Financial income and expenses adjusted in tariffs’ relates to the difference between Invoiced revenue and Operating Interest received and Interest charges are allocated in proportion to time, taking into cost related thereto, which needs to be settled through tariffs of subsequent years account the effective interest rate of the assets and liabilities concerned. with the market parties. Taxes Principles for determining profit and loss Because CertiQ adjusts the difference between Invoiced revenue and Operating costs in the tariffs of subsequent years, there can be no fiscal result. The tax to be paid is Revenue therefore nil at all times, as agreed with the Dutch Tax authorities. In accordance with article 6, paragraph 6 of the Ministerial regulation on Guarantees of Origin for renewable electricity, the national grid operator may charge the cost Financial instruments and risk management of managing production certificates to producers, customers, suppliers and traders. An exception applies to a number of categories, for which the Minister of Economic Price risks Affairs bears the costs (see article 6, paragraph 7 of the Ministerial regulation on CertiQ is not subject to any price risks due to the fact that any surplus or deficit is Guarantees of Origin for renewable electricity). adjusted in the tariffs of subsequent years. 15 CertiQ 2013 Annual Report

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    Credit risks The book value of Intangible fixed assets can be specified as follows (x EUR 1,000): CertiQ does not have any significant concentrations of credit risk. The credit risk is limited because the payment of invoices is a precondition for trading in certificates. Intangible Intangible Total fixed assets fixed assets The write-offs of Receivables are negligible. in formation Liquidity risks Purchase price The liquidity risk for CertiQ is minimal. CertiQ has a current account with TenneT. As at 1 Januari 2012 91 1,491 1,582 Capitalisations - 1,536 1,536 Taken into service 2,740 -2,740 - Notes to the balance sheet as at 31 December 2013 after appropriation of profits As at 31 December 2012 2,831 287 3,118 (x EUR 1,000) Capitalisations 23 - 23 Taken into service 277 -277 - 1 Fixed assets Divestments - -10 -10 As at 31 December 2013 3,131 - 3,131 Intangible fixed assets The website, the E-certification system (myCertiQ I) and the sustainable heat system Depreciation (MyCertiQ II) are recognised under Intangible fixed assets. An amortisation period of As at 1 January 2012 5 - 5 three years applies to the website. An amortisation period of five years is applicable Depreciation for the year 167 - 167 to myCertiQ I and myCertiQ II. As at 31 December 2012 172 - 172 The E-certification system (myCertiQ II) for the certification of renewable heat systems Depreciation for the year 633 - 633 has been operational since January 2013. As at 31 December 2013 805 - 805 Book values As at 1 January 2012 86 1,491 1,577 As at 31 December 2012 2,659 287 2,946 As at 31 December 2013 2,326 - 2,326 16 CertiQ 2013 Annual Report

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    2 Accounts receivable and other receivables Government investment subsidies In 2012, CertiQ received a government subsidy of EUR 70,000 from the Ministry of Accounts receivable and other receivables Economic Affairs for the preparation of the certification of renewable heat (myCertiQ II). Accounts receivable consist of all claims with a remaining term of less than one year. An amount equal to the amortisation cost is released each year and allocated to As the credit risk is estimated to be nil, no provisions for bad debts have been Revenue. At the end of 2013 this entry amounted to EUR 43,000. The current part deducted from this entry. is accounted for under Current liabilities. The remaining term of the government investment subsidies is between one year and five years. Accounts receivable can be specified as follows (x EUR 1,000): 5 Current liabilities 2013 2012 Accounts receivable 207 - Accounts payable Invoices to be sent 257 762 Accounts payable comprise loans with a remaining term of less than one year. Other receivables 43 - Associated companies 3 Equity This entry refers to the current account with TenneT. On the balance of this current account with TenneT, interest is charged in accordance with Euribor +0.55%. Paid up capital The authorised capital of the company amounts to EUR 90,000, divided into 900 shares Prepayments received of EUR 100 each. Of these shares, 180 shares have been issued and paid up. This relates to the difference between Invoiced revenue and Operating costs of CertiQ (EUR 1,145,000), which will be adjusted in the tariffs of subsequent years 4 Long-term liabilities with the market parties. Investment contributions Tariffs are set annually in consultation with the Participants’ Council and the Board In 2010 it was agreed with the Participants’ Council that an amount of EUR 750,000 of TenneT. ‘Prepayments received’ also include the current part of the investment be deducted from the entry ‘to be adjusted in tariffs’, as stated below. The balance of contributions and government investment subsidies. this entry has been used for the new E-certification system myCertiQ. An amount equal to the amortisation cost is released each year and allocated to Revenue. At the end of 2013 this entry amounted to EUR 413,000. The current part is accounted for under Current liabilities. The remaining term of the investment contributions is between one year and five years. 17 CertiQ 2013 Annual Report

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    The balance of ‘Prepayments received’, including the amount which is to be adjusted Revenue can be specified as follows (x EUR 1,000): in the tariffs for subsequent years, can be specified as follows (x EUR 1,000): 2013 2012 2013 2012 Memberships 67 75 To be adjusted in tariffs -981 -1,326 Issuance of certificates 371 386 Investment contributions -150 -150 Certificate transfers 441 375 Government investment subsidies -14 -13 Certificate cancellations 1,171 1,028 Balance as at 31 December -1,145 -1,489 To be adjusted in tariffs 345 435 Total 2,395 2,299 Accrued liabilities Accrued liabilities relate to annual leave to be paid and costs to be paid, mainly Other operating income consisting of provisions for costs for the annual report and costs for hiring personnel Other operating income comprises the release of the investment contribution for and obtaining advice. myCertiQ I in proportion to the depreciation of the asset for which the investment contribution is intended and from other income. Other income consists of on the one hand a contribution by the Ministry of Economic Affairs for our operational activities Notes to the profit and loss account for 2013 (x EUR 1,000) with regard to the certification of renewable heat and on the other the release of the subsidy for myCertiQ II. In addition, CertiQ receives a compensation for the work 6 Revenue undertaken in connection with the ‘Concerted Action on the Renewable Energy Sources Directive (CA-RES)’ of the ‘Netherlands Enterprise Agency’ (formerly NL In the year under review, participants were invoiced on the basis of pre-set tariffs. Agency) and in respect of audit work for the Association of Issuing Bodies (AIB). The amount needed to cover costs amounted to EUR 2,643,000, of which EUR 345,000 is covered by a release of the “to be adjusted in tariffs” entry on the liability side of the balance sheet. Revenue The revenue growth upon the issuance, transfer and cancellation of certificates is mainly caused by a larger number of transactions. This growth was anticipated. The negative difference between Invoiced revenue and costs will be settled with differences brought forward from previous years. 18 CertiQ 2013 Annual Report

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    Other operational income can be specified as follows (x EUR 1,000): Amortisation of intangible fixed assets The increase in the amortisation of fixed assets is caused by the new E-certification 2013 2012 system myCertiQ I (commissioned in September 2012). In addition, myCertiQ II, Release of myCertiQ I 150 37 which includes the modifications for the certification of renewable heat, has become investment contribution operational with effect from January 2013. Other income 98 61 Total 248 98 Other operating costs Other operating costs consist of costs for process automation systems, office premises, consultancy, the external auditor, travel and accommodation. Other operating costs 7 Operating costs decreased mainly because of postponing maintenance work on the process automation systems. Wages, salaries and social security costs The company does not employ any employees. In 2013, the average number of hired 8 Financial income and expenses employees amounted to twelve fte (2012: twelve fte). These employees have all been hired from TenneT. Interest paid This entry relates to the interest paid on the balance of the current account Personnel costs can be specified as follows (x EUR 1,000): with TenneT. 2013 2012 Hired from TenneT 993 886 Hired from third parties 52 47 Total 1,045 933 19 CertiQ 2013 Annual Report

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    Additional notes for 2013 Other information Off-balance sheet rights and obligations Appropriation of profits CertiQ, with TenneT and its subsidiaries, is part of a fiscal entity for company tax 1 Profits will be distributed in accordance with the provisions of this article, and turnover tax purposes. On the basis of the standard conditions as issued by after adoption of the financial statements, showing that this is justified. the Dutch Tax authorities at the time the fiscal entity was established, CertiQ is 2 The profits are at the disposal of the general meeting of shareholders of CertiQ. jointly and severally liable for the company tax and turnover tax liabilities of 3 The company may only make distributions to the shareholders and other persons the whole fiscal entity. entitled to the profits intended for distribution to the extent that the shareholders’ equity exceeds the subscribed capital plus the reserves which must be maintained CertiQ has concluded three agreements to hire staff from other employers. This involves by law. an agreement for the structural provision of legal advice (term: January - December 4 A deficit may only be offset against the reserves prescribed by law to the extent 2014) for which the costs amount to approximately EUR 60,000; an agreement for permitted by law. external technical advice (term: January - December 2014) for which the costs amount to approximately EUR 52,000; and an agreement for hiring an internal account manager (term: January - June 2014) for which the costs amount to approximately EUR 34,000. In addition, an agreement has been concluded for advice on an integral improvement project for CertiQ (term: January - June 2014) for which the costs amount to approximately EUR 50,000. These agreements stipulate the rate per hour to be charged for the use of these services. Events after the balance sheet date No events have taken place after the balance sheet date that need noting in these financial statements. Arnhem, 10 April 2014 Ir. J. van der Lee Ir. B.G.M. Voorhorst Manager CertiQ B.V. Chief Operating Officer TenneT TSO B.V. 20 CertiQ 2013 Annual Report

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    Independent auditor’s report An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the To: The Management Board and the shareholder of CertiQ B.V. auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. Report on the financial statements In making those risk assessments, the auditor considers internal control relevant to We have audited the accompanying financial statements 2013 of CertiQ B.V., the entity’s preparation and fair presentation of the financial statements in order Arnhem, which comprise the balance sheet as at December 31, 2013, the profit to design audit procedures that are appropriate in the circumstances, but not for the and loss account for the year then ended and the notes, comprising a summary purpose of expressing an opinion on the effectiveness of the entity’s internal control. of the accounting policies and other explanatory information. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as Management’s responsibility evaluating the overall presentation of the financial statements. Management is responsible for the preparation and fair presentation of these financial statements and for the preparation of the management board report, We believe that the audit evidence we have obtained is sufficient and appropriate both in accordance with Part 9 of Book 2 of the Dutch Civil Code. Furthermore to provide a basis for our audit opinion. management is responsible for such internal control as it determines is necessary to enable the preparation of the financial statements that are free from material Opinion with respect to the financial statements misstatement, whether due to fraud or error. In our opinion, the financial statements give a true and fair view of the financial position of CertiQ B.V. as at December 31, 2013 and of its result for the year Auditor’s responsibility then ended in accordance with Part 9 of Book 2 of the Dutch Civil Code. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 21 CertiQ 2013 Annual Report

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    Report on other legal and regulatory requirements Pursuant to the legal requirement under Section 2:393 sub 5 at e and f of the Dutch Civil Code, we have no deficiencies to report as a result of our examination whether the management board report, to the extent we can assess, has been prepared in accordance with Part 9 of Book 2 of this Code, and whether the information as required under Section 2:392 sub 1 at b-h has been annexed. Further we report that the management board report, to the extent we can assess, is consistent with the financial statements as required by Section 2:391 sub 4 of the Dutch Civil Code. Zwolle, April 10th 2014 Ernst & Young Accountants LLP Original has been signed by A.E. Wijnsma 22 CertiQ 2013 Annual Report

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    Appendix: CertiQ works together with... CertiQ has active partnerships with a number of parties in the sustainable energy Regional grid operators sector. To name a few: Regional grid operators are responsible for the transmission of electricity over the public electric grid. In relation to CertiQ, the grid managers are responsible for TenneT TSO B.V. assessing applications to register generating plants and for periodically submitting TenneT TSO BV is Europe’s first cross-border electricity transmission system operator. electricity production metering data to CertiQ. With 20,000 kilometres of high voltage lines and 35 million end-users in the Netherlands and Germany, TenneT ranks among the top five grid operators in Europe. Their focus is Metering companies to develop a Northwest European energy market and to integrate renewable energy. Metering companies are responsible for installing and maintaining electricity meters, On behalf of the Ministry of Economic Affairs, TenneT established the E-certification collecting the data from the meters and submitting this information to the regional grid system for renewable energy. CertiQ manages this system, which is linked to TenneT’s operator. electronic infrastructure, on behalf of TenneT. TenneT is the only shareholder in its subsidiary CertiQ. Electricity producers The producers generate electricity and supply it to the electric grid, or consume it Netherlands Enterprise Agency (RVO) on site. CertiQ issues Guarantees of Origin for renewable electricity. In addition, RVO (formerly NL Agency) implements government policies on innovation CertiQ can issue Guarantees of Origin for electricity generated in high-efficiency and sustainable development and is part of the Ministry of Economic Affairs. Combined Heat and Power plants. For electricity from other sources, CertiQ can, RVO manages, amongst others, the SDE(+) and MEP subsidy schemes, which on request, issue energy labelling certificates. subsidise the generation of renewable energy that is certified by CertiQ. Traders Ministry of Economic Affairs Traders enter into agreements with producers in connection with the purchase The Ministry of Economic Affairs is responsible for, amongst others, policy making of Guarantees of Origin or other certificates. A producer of sustainable electricity in relation to sustainably generated electricity. CertiQ consults regularly with informs CertiQ of the trader it does business with. CertiQ credits the corresponding the Ministry to align its policies regarding developments that affect CertiQ. Guarantees of Origin to the account of this trader. A trader can trade the certificates or use them as proof of delivery to end-users. Authority for Consumers & Markets (ACM) ACM (formerly the Office of Energy Regulation of the Netherlands Competition Energy suppliers Authority, NMa) is the regulator for the Dutch energy sector. Its duties include Energy suppliers are companies that purchase energy (including grey and green power) supervising the correct implementation of and compliance with the Electricity Act and sell it to commercial and private users. It is therefore the energy supplier who has of 1998 and statutory schemes implemented by CertiQ. the supply contract with the electricity customer. Every energy supplier in the Netherlands that wishes to supply green electricity must have a certificate account with CertiQ. 23 CertiQ 2013 Annual Report

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    Participants’ Council CertiQ established the Participants’ Council for an optimal alignment with the needs of its participants. Its members represent the interests of all participants in the E-certification system. The Participants’ Council comprises producers, traders (including foreign traders operating in the Netherlands) and representatives of several large energy suppliers. In drawing up its annual plan, CertiQ explicitly takes into account the Council’s advice. Association of Issuing Bodies (AIB) The AIB is an international partnership of certification management bodies, of which CertiQ is a member. The members of the AIB issue Guarantees of Origin and/or RECS certificates. The AIB seeks to standardise certification systems to facilitate international trade. For this purpose it has developed a common standard: the EECS Standard. In its new Renewable Energy Directive of 2009, the European Commission made many elements of the EECS mandatory. Statistics Netherlands (CBS) CertiQ sends statistics on the electricity generation it has certified to the CBS on a monthly basis, in accordance with an agreement concluded between TenneT/CertiQ and the CBS. The CBS processes the data for its publications. 24 CertiQ 2013 Annual Report

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    Appendix: Figure 1a and 1b Click here to return to figure 1 Figure 1a Certificates issued for Dutch sustainable electricity x 1,000 MWh 16 14 12 10 8 6 4 2 Hydro-electric 0 Solar Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. 2012 2013 Figure 1b Certificates issued for Dutch sustainable electricity x 1,000 MWh 1,000 900 800 700 600 500 400 300 200 100 Biomass 0 Wind Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. 2012 2013 25 CertiQ 2013 Annual Report

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    CertiQ BV is a subsidiary of TenneT TSO BV, the Dutch Transmission System Operator and network manager of the national electric grid. CertiQ B.V. Utrechtseweg 310 6812 AR Arnhem PO Box 718 6800 AS Arnhem The Netherlands T +31 (0)26 373 16 58 servicedesk@certiq.nl www.certiq.nl © This annual report is a digital publication by CertiQ B.V., Arnhem Text Jan van der Lee (CertiQ), Ben Voorhorst (TenneT), Design Loep ontwerp, Arnhem, the Netherlands Published April 2014 26 CertiQ 2013 Annual Report

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