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  • Location: GELDERLAND 
  • Founded: 2001-07-23
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    2014 Annual Report


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    CertiQ B.V. 2014 Annual Report 1 Preface 3 2 Corporate Governance 5 3 Results for 2014 7 3.1 Key figures 7 3.2 Guarantees of Origin imported and exported 9 3.3 Operational affairs 12 3.4 Customer satisfaction survey 12 3.5 Financial results 13 4 Financial statements for 2014 15 Appendix: CertiQ works together with… 28 Contact details and publication details 31 (clickable table of content) In the event of discrepancies or ambiguity between the original Dutch version of the 2014 Annual Report of CertiQ BV and this English translation, the Dutch text shall prevail. 2 CertiQ 2014 Annual Report


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    1 Invisible changes With effect from 1 January 2015 the Minister of Economic Affairs gave TenneT TSO B.V. For the first time in many years, we saw in 2014 a decline in the number of the mandate as the Issuing Body for the certification of green electricity and sustainable cancellations, from 40 Terawatt hours (TWh) to 38 TWh, with 11.6 TWh relating to heat. As a result of the amendment of the 1998 Electricity Act, which came into force Guarantees of Origin coming from green electricity generated in the Netherlands. on 1 January 2015, as well as green energy and high-efficient co-generation (HEC), That means that this share increased by 6 percent from 25 percent in 2013 to the issuance of Guarantees of Origin for sustainably generated energy is now also 31 percent in 2014. For the first time in many years, the import of Guarantees of regulated. 2014 was, therefore, centred around the preparations for this mandate. Origin did not increase; it reduced from 40 TWh to 32 TWh, which is approximately The mandate means that the Minister of Economic Affairs is responsible for the the same level as in 2012. As was the case in 2013, there was a decline in issuance of Guarantees of Origin for renewable electricity and heat and for HEC. the Guarantees of Origin issued for electricity. This trend is largely the result CertiQ B.V. (hereafter CertiQ) performs the related tasks on behalf of TenneT TSO B.V. of a lower use of biomass in the production of electricity. In 2014 most of the work was performed “under the bonnet” of CertiQ with the aim of ensuring a smooth transition, so that as much as possible remains unchanged Exports increased, partly as a result of the increase in Guarantees of Origin for fossil for the participants. fuel. There is demand for this mainly in countries, such as Austria, that require full disclosure for all forms of electricity. The issuance of Guarantees of Origin for non- In 2014 we prepared not only our systems and processes, but also looked at sustainable energy (coal and gas) quadrupled to 1,040 GWh in 2014. our efficiency and effectiveness. In that context, we viewed the result of the “SEO Economisch Onderzoek”1 report at the end of December with due pride. Finally, in 2014 the issuance of certificates for sustainable heat passed the TWh This report assessed the effectiveness and the efficiency of the implementation of for the first time, from 489 GWh in 2013 to 1,181 GWh in 2014. the Guarantee of Origin regulation as “good”. That – and the results of the customer satisfaction survey that we carried out in 2014 – makes us even more passionate Ir. J. van der Lee Ir. B.G.M. Voorhorst to further develop and improve our services. Manager CertiQ B.V. On behalf of TenneT TSO B.V. Important developments in 2014 were the public debates on transparency and the value to society of the Guarantees of Origin that are increasingly being applied internationally as part of the (sustainable) energy market. In order to satisfy this need, CertiQ has extended its monthly statistics to include country-specific information. 1 SEO-rapport 2014-38 “Beleidsdoorlichting Energiebeleid 2007 t/m 2012” 3 CertiQ 2014 Annual Report


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    4 CertiQ jaarverslag 2014


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    2 Corporate Governance CertiQ has chosen, just like TenneT TSO B.V. (hereinafter: TenneT) - the only shareholder Financial reporting as well as director of CertiQ - to comply with the Corporate Governance Code where CertiQ’s management is of the opinion that the financial statements for 2014 do not possible, despite the fact that it is not obliged to do so. In CertiQ’s opinion, the Code’s contain any errors of material significance. Management believes, to the best of their principles and best practice provisions serve as a guideline for running its business. knowledge and conviction, that there are no further indications that CertiQ’s internal risk management and control systems have not operated adequately with regard to Management the financial reporting risks in the year under review and that they would not provide CertiQ’s management is responsible for the strategic and organisational policies and a reasonable degree of assurance that the financial reporting does not contain any for issuing and registering energy certificates, for which it renders accountability errors of material significance. to TenneT. TenneT sets the framework for the internal risk management and control systems. Within this framework, CertiQ’s management is responsible for External auditor the management of these systems. CertiQ prepares an annual plan, including its The external auditor of CertiQ, Ernst & Young Accountants LLP, has been charged with operational budget, its investment budget and its funding needs. This annual plan the audit of the financial statements and reports to CertiQ’s management and share- is approved by the shareholder and serves as a mandate for management. CertiQ holder. The external auditor issues the auditor’s opinion for the financial statements. reports to the shareholder on the execution of its annual plan at least every quarter. The financial results and operational developments are reported periodically. For more information on TenneT’s Corporate Governance Code, please refer to the Corporate Governance chapter in the Annual Report for 2014 of TenneT Holding B.V. 5 CertiQ 2014 Annual Report


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    6 CertiQ 2014 Annual Report


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    3 Results 2014 3.1 Key figures Table 2 sets out the apportionment of the various energy sources. At the end of 2014, a total of 12,096 production plants for sustainable electricity Table 2 Guarantees of Origin issued in 2013 and 2014 per TWh were registered with CertiQ, which is 2.5 percent less than in 2013. Their combined capacity amounted to more than 8.4 GW, compared to 8.8 GW in 2013. This decrease Guarantees of Origin (TWh) issued in 2014 2013 in capacity is primarily the result of the deregistration of a large biomass co-firing Electricity: installation. However, for wind and solar energy in particular, we have noticed that Biomass 5.7 6.4 smaller installations are being replaced by installations with a larger capacity. Wind 5.6 5.5 Hydro-electric 0.1 0.1 As at 31 December 2014, 148 production plants for sustainable heat were registered. Solar 0.1 0.1 Total 11.5 12.1 Table 1 provides an overview of the number of participants in our E-certification system. Heat: Table 1 Participants in the system for Guarantees of Origin Biomass 0.9 0.3 Geothermal 0.3 0.2 31 December 2014 31 December 2013 Total 1.2 0.5 Number of electricity production plants 12,096 12,401 Number of heat production plants 148 98 Number of traders 81 74 The issuance of Guarantees of Origin for sustainable electricity decreased by 5 percent in 2014 compared to 2013. This was partially compensated by the issuance of Guarantees of Origin for sustainable heat, which amounted to approximately 1.2 TWh. In 2014, CertiQ issued Guarantees of Origin for a total of 11.5 TWh of sustainable The volume of electricity contributed by the energy source biomass declined by electricity generated in the Netherlands. These certificates relate predominantly 11.3 percent compared to 2013. The volume of electricity contributed by the energy to generation in 2014, with a smaller contribution from generation in previous years. source wind increased by 2.1 percent. CertiQ issued Guarantees of Origin for a total of 1.2 TWh of heat. 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) declined from 40.0 TWh in 2013 to 37.9 TWh in 2014. This is a decline of 5.2 percent. 7 CertiQ 2014 Annual Report


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    Figure 1 shows the number of certificates issued per month Click here for a more detailed overview for each energy source. Figure 1 Issued certificates for Dutch renewable elektricity in TWh 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 Wind 0.2 Solar 0.1 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. 2013 2014 8 CertiQ 2014 Annual Report


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    3.2 Guarantees of Origin imported and exported Figure 2 shows that the certificates imported in 2014 again related mainly to hydro-electric power. In the year under review, the imports of sustainable electricity declined by 7.3 TWh to a total of 32.5 TWh. In 2014 exports increased to 7.0 TWh. Figure 2 Import of renewable elektricity in TWh 9.0 8,5 Table 3 Overview if imports and exports 8.0 7.5 Import / Export in TWh 2014 2013 7.0 6.5 Import 32.5 39.8 6.0 Export 7.0 6.2 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 Wind 1.5 Solar 1.0 Hydro-electric 0.5 Geothermal 0 Biomass 2013 2014 9 CertiQ 2014 Annual Report


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    Figure 3 Imports of Guarantees of Origin by country of origin Figure 4 Exports of Guarantees of Origin by destination 2014 2014 9% Denmark 73 % Belgium 3% Germany 10 % Finland 6% Finland 1% Luxembourg 6% Netherlands 11 % Norway 10 % Iceland 3% Germany 15 % France 1% Sweden 34 % Norway 1% Other 4% Austria 11 % Sweden 2% Other 2013 2013 8% Denmark 72 % Belgium 9% Finland 23 % Finland 9% Iceland 3% Norway 8% France 2% Other 45 % Norway 4% Austria 4% Slovenia 11 % Sweden 2% Other 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 and Figure 3 shows in which countries the Guarantees of Origin imported by the Netherlands 2014. This figure also shows that international trade is becoming more widespread. in 2013 and 2014 were originally issued. This figure shows that in 2014 the Guarantees of Origin were imported from a greater number of different countries than in the previous year. In particular the Guarantees of Origin from Norway had to make way for Guarantees of Origin from France. This development seems to be the consequence of an increase in the number of members of the Association of Issuing Bodies2. 2 The latest member list of the Association of Issuing Bodies can be found here. In the Appendix ‘CertiQ works together with...’ more information can be found on the Association of Issuing Bodies. 10 CertiQ 2014 Annual Report


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    Table 4 Changes in stock of Guarantees of Origin for electricity in TWh Table 5 Changes in stock of Guarantees of Origin for conventional electricity in GWh 2014 2013 Certificates issued 11.4 12.1 2014 2013 Imports 32.5 39.8 Certificates issued 1,040.4 224.6 Increase in the stock of certificates 43.9 51.9 Imports – – Increase in the stock of certificates 1,040.4 224.6 Domestic transfers 8.5 10.2 Domestic transfers 440.0 54.6 Cancellations 37.9 40.0 Certificates issued for electricity used on-site 0.8 0.8 Cancellations 54.6 – Exports 7.0 6.2 Certificates issued for electricity used on-site 42.4 – Expired 1.0 1.4 Exports 945.0 170.0 Decrease in the stock of certificates 46.7 48.4 Expired – – Change in the stock of certificates -/-2.8 +3.5 Decrease in the stock of certificates 1,042.0 170.0 Change in the stock of certificates -/-1.6 +54.6 For the last few years, CertiQ has also issued certificates on request for electricity generated from conventional sources (gas and coal). Table 5 depicts an overview of the activities relating to this kind of certificate. 11 CertiQ 2014 Annual Report


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    3.3 Operational affairs 3.4 Customer satisfaction survey Efficiency increased by 45 percent Customers value CertiQ with a 6.6 Based on the initial experiences with the issuance of Guarantees of Origin for heat in In September 2014, Customeyes carried out a customer satisfaction survey on behalf 2013, we were able to further standardise our processes in 2014. This was necessary of CertiQ. General satisfaction with CertiQ scored 6.6. In 2010 this score was 6.7. because of the significant increase in the number of registered heat production plants. The satisfaction level was measured on the basis of factors determining CertiQ’s Biomass activities have also increased in recent years. Our aim was to deal with success of its core services as well as the conditions which have to be satisfied in this growth with our current staff, in which we succeeded. At the end of 2013, order to be able to create added value for its customers. The core values for our the “CertiQ in Orde!” project was initiated with the objective of improving the quality services are: ‘expertise’, ‘reliability’ and ‘clarity’. These values are also integrated in and efficiency of the primary process with the aid of an operational management our mission and vision. With respect to the core values of ‘expertise’ and ‘reliability’ system. This has led to the following successes. The output of the primary processes we meet the expectations of our customers. A point for attention is ‘clarity’. Customers increased by 45 percent in 2014. The primary processes were carried out by 3.7 fte are reasonably satisfied, but improvements can be made. The added value we provide at the end of 2014, while at the start of 2014 this was done by 4.5 fte. Part of this is ‘thinking with and proactively informing the customer’; however, in the opinion of headcount was deployed for short-term projects such as the Customer satisfaction our customers improvements can also be made here. Based on this valuable information, survey (see paragraph 3.4). In addition, an annual saving of more than 800 hours was we decided to improve our core service provision first. The answers to the open achieved as a result of process improvements. Although the “CertiQ in Orde!” project questions provided insight on the areas in which we could improve our clarity. has been completed, process improvement has become an integral continuous process The following points for improvement have been formulated: in our work, which enables us to continue to improve and ensure the quality of our - Improving the identification of relevant information on our website for our services in the future. different types of customers; - Informing our customers in a more proactive manner about the status of Figure 5 shows the increase in efficiency. The efficiency percentage indicates the questions they have asked us; the relationship between work volume and occupation level. - Providing more clarity in our communication on the regulatory reporting obligations for producers generating energy from biomass. Figure 5 Efficiency % 120 100 80 60 40 20 Efficiency 0 Linear (efficiency) 4 8 12 16 20 24 28 32 36 40 44 48 52 Weeks 12 CertiQ 2014 Annual Report


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    3.5 Financial results The operating costs increased by 1.5 percent compared to 2013. The most important developments relating to the operating costs can be summarised as follows: The financial income and expenditure for 2014 (x EUR 1,000) can be summarised - lower wage costs because of one outstanding vacancy; as follows: - higher depreciation costs caused by the capitalisation of the Business Objects (BO) reporting project (data warehouse) in January 2014 on the one hand and Table 6 Financial results 2014 2013 the website being fully amortised in September 2014 on the other; Invoiced revenue 1,957 2,050 - higher costs for general management; To be settled in tariffs 487 345 - lower costs for process automation. Release of myCertiQ I investment 150 150 contribution CertiQ sets its tariffs on a cost-recovery basis. Any difference between CertiQ’s Other income 88 98 invoiced revenues and operating costs is cleared by settling it in tariffs in later years. 2,682 2,643 As at 31 December 2014 this difference amounted to EUR 487 thousand. Operating costs 2,677 2,637 At the end of 2014, the balance ‘to be settled in tariffs’ amounted to EUR 494 thousand. In 2012, following consultation with the Participants’ Council in 2011, an amount Operating results 5 6 of EUR 750 thousand was deducted from this balance and allocated to investment Financial income and expenses -5 -6 contributions. Investment contributions are used for updating the E-certification Result - - system (myCertiQ I). For more detailed notes to the financial results, please refer to the financial statements included in chapter 4. Invoiced revenue in 2014 was 4.7 percent lower than in 2013. The tariffs remained unchanged compared to 2013. 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 measures are: 1. the temporary discount on tariffs has been made permanent; 2. the membership fees for solar installations have been abolished; 3. the membership fees have been reduced and made the same for all traders. 13 CertiQ 2014 Annual Report


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    14 CertiQ 2014 Annual Report


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    4 Financial statements for 2014 Balance sheet as at 31 December 2014, after appropriation of profits 16 Profit and loss account for 2014 17 General notes 17 Principles for the valuation of the assets and liabilities 18 Principles for the determination of the result 19 Financial instruments and risk management 19 Notes to the balance sheet as at 31 December 2014, after appropriation of profits 20 Notes to the profit and loss account for 2014 22 Additional notes for 2014 24 Other information 24 Independent auditor’s opinion 25 15 CertiQ 2014 Annual Report


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    Balance sheet as at 31 December 2014 after appropriation of profits (x EUR 1,000) Assets Ref. 31 December 2014 31 December 2013 Liabilities Ref. 31 December 2014 31 December 2013 Fixed assets 1 Equity 3 Intangible fixed assets 1,734 2,326 Paid up capital 18 18 1,734 2,326 18 18 Current assets Long term liabilities 4 Receivables 2 Investment contributions 263 413 Accounts receivable and other receivables 365 507 Government investment subsidies 29 43 365 507 292 456 2,099 2,833 Current liabilities 5 Accounts payable 7 8 Associated companies 1,072 1,140 Prepayments received 658 1,145 Accrued liabilities 52 66 1,789 2,359 2,099 2,833 16 CertiQ 2014 Annual Report


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    Profit and loss account for 2014 (x EUR 1,000) CertiQ does this by facilitating the trade in sustainably generated energy through issuing and managing production certificates. Production certificates, such as Ref. 2014 2013 Guarantees of Origin, are issued for the production of energy generated with the sustainable sources solar, hydro-electric, wind, biomass and geothermal. Revenue 6 Guarantees of Origin, which are provided electronically, are the only valid proof Revenue 2,444 2,395 in the Netherlands that energy has been generated in a sustainable manner. Other operating income 238 248 The certificates for sustainable energy are eligible for subsidies under the statutory 2,682 2,643 schemes of the Sustainable Energy Production Incentives (SDE+) scheme and Operating costs 7 the Environmental Quality of Electricity Generation Act (MEP). They are also Wages, salaries and social security costs 1,000 1,045 nationally and internationally tradable. Amortisation of intangible fixed assets 643 633 Other operating costs 1,034 959 All shares in CertiQ are held by TenneT. 2,677 2,637 Operating result 5 6 Estimates In applying the principles and regulations for drawing up the financial statements, Financial income and expenses 8 CertiQ’s management makes various assessments and estimates that may be essential Interest received/paid -5 -6 for the amounts shown in the financial statements. Where the nature of these assess- Result after tax - - ments and estimates must be disclosed to offer the reader the level of understanding required under Article 2:362, sub 1 of the Dutch Civil Code (‘Burgerlijk Wetboek’), the notes to the relevant account in the financial statements explain the nature General notes of the assessments and estimates, including the corresponding assumptions. Nature of the business activities TenneT, the Dutch 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 B.V. to set up this system and implement the activities associated with it. 17 CertiQ 2014 Annual Report


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    Principles for the valuation of the 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 Title 9, If it is determined that an impairment accounted for in the past no longer exists Book 2, of the Dutch Civil Code (‘Burgerlijk Wetboek’), and the Accounting Standards or has decreased, the increased net book value of the asset concerned will not for small legal entities, as published by the Dutch Accounting Standards Board be recognised for a value higher than the net book value which would have been (‘Raad voor de Jaarverslaggeving’). The valuation principles are based on historical determined if the impairment of the asset had not been accounted for. 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 fair value of the consideration. After the initial entry, trading receivables are valued at amortised cost price. Assets and liabilities are, in general, valued at the acquisition cost or manufacturing If payment on the accounts receivable is postponed under an agreement extending cost, or the actual value. the payment deadline, its fair value is determined on the basis of the net present value of the expected receivables, and adjustments are made according to the Comparison to previous year effective interest method in the profit and loss account. Provisions for bad debts The accounting principles are the same as those used in the previous year. are subtracted from the net book value of the receivable. Intangible fixed assets Cash and cash equivalents The intangible fixed assets are valued at the historical acquisition cost or production Cash and cash equivalents Liquid assets consist of bank balances with a term of less cost, after deducting linear amortisation based on the asset’s economic life. than twelve months 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 investment a fixed asset may be subject to impairment. If such indications exist, the realisable 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 After approval by the Participants’ Council, the investment contributions were deducted generating unit of which the asset is part will be determined. Impairment exists from the account ‘to be settled in tariffs’ and used for investments in (intangible) when the net book value of an asset is higher than the realisable value; the realisable fixed assets. An annual amount equal to the depreciation cost is released and recognised value is the higher of the net realisable value and value in use. under Other operating income. The current part of the investment contributions is recognised under Current liabilities. 18 CertiQ 2014 Annual Report


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    Government investment subsidies received are accounted for on the balance sheet. Other operating income comprises the annual release of ‘Investment contributions’ Based on the economic life of the asset to which the subsidy relates, an amount is and ‘Government investment subsidies’. released annually and added to Other operating income. Operating costs Current liabilities Operating costs are determined on a historical basis and allocated to the reporting Upon initial entry, Current liabilities are carried at nominal value. After initial recognition year to which they relate. those are carried at amortised cost price. Amortisation of intangible fixed assets Current liabilities comprise the accounts ‘to be settled in tariffs’ and the current The amortisation of intangible fixed assets is determined in line with the asset’s part of the ‘Investment contributions’ and ‘Government investment subsidies’. expected economic life, using the linear method. ‘To be settled in tariffs’ relates to the difference between Invoiced revenue and Operating cost related thereto, which needs to be settled through tariffs of Financial income and expenses subsequent years with the market parties. Interest received and Interest charged are allocated pro rata to time, taking into account the effective interest rate of the assets and liabilities concerned. Principles for the determination of the result Taxes Revenue Because CertiQ adjusts the difference between Invoiced revenue and Operating costs In accordance with article 6, paragraph 6 of the ministerial regulation on Guarantees in the tariffs of subsequent years, there can be no fiscal result. The tax to be paid is of Origin for renewable electricity, the national grid operator may charge the costs therefore nil at all times, as agreed with the Dutch Tax authorities. of managing production certificates to producers, customers, suppliers and traders. An exception applies to a number of categories, for which the Minister of Economic Financial instruments and risk management Affairs bears the costs (see article 6, paragraph 7 of the ministerial regulation on Guarantees of Origin for renewable electricity). Price risks CertiQ is not subject to any price risks due to the fact that any surplus or deficit is The Board of TenneT sets the tariffs every year after consulting the Participants’ Council. settled in the tariffs of subsequent years. The difference between actual cost and invoiced revenue is settled in the tariffs of subsequent years. 19 CertiQ 2014 Annual Report


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    Credit risks The net 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 fixed Total fixed assets assets under The write-offs of Receivables are negligible. construction Liquidity risks Purchase price: The liquidity risk for CertiQ is minimal. CertiQ has a current account with TenneT. As at 31 December 2012 2,831 287 3,118 TenneT does not have the intention to make a claim on the current account and Capitalisations 23 - 23 is sufficiently solvent. Taken into service 277 -277 - Divestments - -10 -10 As at 31 December 2013 3,131 - 3,131 Notes to the balance sheet as at 31 December 2014 after appropriation of profits Capitalisations - - - (x EUR 1,000) Taken into service 51 - 51 As at 31 December 2014 3,182 - 3,182 1 Fixed assets Amortisation: As at 31 December 2012 172 - 172 Intangible fixed assets Amortisation for the year 633 - 633 The website, the E-certification system (myCertiQ I), the sustainable heat system As at 31 December 2013 805 - 805 (myCertiQ II) and the BO reporting project are recognised under Intangible fixed Amortisation for the year 643 - 643 assets. An amortisation period of three years applies to the website. The website As at 31 December 2014 1,448 - 1,448 was fully amortised in 2014. An amortisation period of five years is applicable to myCertiQ I, myCertiQ II and the BO reporting project. Net book values: As at 31 December 2012 2,659 287 2,946 The BO reporting project was commissioned in January 2014. As at 31 December 2013 2,326 - 2,326 As at 31 December 2014 1,734 - 1,734 20 CertiQ 2014 Annual Report


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    2 Receivables The current part is accounted for under Current liabilities. The remaining term of the investment contributions is between one year and five years. Accounts receivable and other receivables Accounts receivable consist of all claims with a remaining term of less than one Government investment subsidies year. As the credit risk is estimated to be nil, no provisions for bad debts have been In 2012, CertiQ received a government subsidy of EUR 70 thousand from the Ministry deducted from this account. of Economic Affairs for the preparation of the certification of renewable heat (myCertiQ II). An amount equal to the amortisation cost is released each year and Accounts receivable can be specified as follows (x EUR 1,000): allocated to Revenue. At the end of 2014 this account amounted to EUR 29 thousand. The current part is accounted for under Current liabilities. The remaining term of 2014 2013 the government investment subsidies is between one year and five years. Accounts receivable 309 207 Receivables from Associated companies 37 - 5 Current liabilities Other receivables 19 43 Invoices to be sent - 257 Accounts payable Total 365 507 Accounts payable only comprise debts with a remaining term of less than one year. 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 percent. Paid up capital The authorised capital of the company amounts to EUR 90 thousand, divided into Prepayments received 900 shares 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 658 thousand), which will be settled 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 of TenneT. Moreover, ‘prepayments received’ also include the current part of thousand be deducted from ‘to be settled in tariffs’, as stated below. The balance of the investment contributions and government investment subsidies. this account 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 2014, this account amounted to EUR 263 thousand. 21 CertiQ 2014 Annual Report


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    The balance of ‘Prepayments received’, including the amount which is to be settled 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): 2014 2013 2014 2013 Certificate cancellations 1,107 1,171 To be settled in tariffs -494 -981 To be settled in tariffs 487 345 Investment contributions -150 -150 Certificate transfers/imports/exports 407 441 Government investment subsidies -14 -14 Issuance of certificates 377 371 Balance as at 31 December -658 -1,145 Membership fees 66 67 Total 2,444 2,395 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, pro rata to the depreciation of the asset for which the investment contribution is intended, and 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 2014 (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 6 Revenue the work undertaken in connection with the ‘Concerted Action on the Renewable Energy Sources Directive (CA-RES)’ of the ‘Netherlands Enterprise Agency’ In the year under review, participants were invoiced on the basis of authorised tariffs. (formerly NL Agency). The amount needed to cover costs amounted to EUR 2,682 thousand, of which EUR 487 thousand is covered by a release of the ‘to be settled in tariffs’ account on the liability side of the balance sheet. Revenue The negative difference between invoiced revenue and costs will be settled with differences brought forward from previous years. 22 CertiQ 2014 Annual Report


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    Other operating income can be specified as follows (x EUR 1,000): Amortisation of intangible fixed assets The increase in the amortisation of intangible fixed assets is caused by 2014 2013 the BO reporting project, commissioned in January 2014. Release of myCertiQ I investment 150 150 contribution Other operating costs Other income 88 98 Other operating costs consist of costs for process automation systems, office premises, Total 238 248 consultancy, the external auditor, travel and accommodation. Other operating costs increased mainly because of additional audit costs, the costs for advice on the CertiQ improvement process (‘’CertiQ in Orde!’’) and the hiring of temporary staff. 7 Operating costs 8 Financial income and expenses Wages, salaries and social security costs The company does not employ any employees. In 2014, the average number of Interest paid hired employees amounted: This account relates to the interest paid on the balance of the current account - Hired from TenneT: 12 fte (2013: 12 fte); with TenneT. - Hired from third parties: 0.9 fte (2013: 1.2 fte). Personnel costs can be specified as follows (x EUR 1,000): 2014 2013 Hired from TenneT 966 993 Hired from third parties 34 52 Total 1,000 1,045 23 CertiQ 2014 Annual Report


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    Additional notes for 2014 Other information Off-balance sheet rights and obligations Appropriation of profits CertiQ is part of a fiscal entity with TenneT Holding B.V. and its subsidiaries, for company The appropriation of profits as stipulated in article 29 of the Articles of Association tax and value added tax purposes. On the basis of the standard conditions as issued by reads as follows: the Dutch Tax authorities at the time the fiscal entity was established, CertiQ is jointly 1. Profits will be distributed in accordance with the provisions of this article, and severally liable for the company tax and value added tax liabilities of the whole after adoption of the financial statements, showing that this is justified. fiscal entity. 2. The profits are at the free disposal of the general meeting of shareholders of CertiQ. 3. The company may only make distributions to the shareholders and other persons CertiQ has concluded two agreements to hire staff from other employers. These entitled to the profits intended for distribution to the extent that the shareholders’ involve an agreement for the structural provision of legal advice (term: January - equity exceeds the subscribed capital plus the reserves which must be maintained December 2015) for which the costs amount to approximately EUR 57 thousand by law. and an agreement for external technical advice (term: January - December 2015) 4. A deficit may only be offset against the reserves prescribed by law to the extent for which the costs amount to approximately EUR 86 thousand. These agreements permitted by law. stipulate the rate per hour and/or day 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 needs to be disclosed in these financial statements. Arnhem, 23 March 2015 Ir. J. van der Lee Ir. B.G.M. Voorhorst Manager CertiQ B.V. On behalf of TenneT TSO B.V. 24 CertiQ 2014 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 We have audited the accompanying financial statements for 2014 of CertiQ B.V., to the entity’s preparation and fair presentation of the financial statements in order Arnhem, which comprise the balance sheet as at December 31, 2014, 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, both in We believe that the audit evidence we have obtained is sufficient and appropriate accordance with Part 9 of Book 2 of the Dutch Civil Code. Furthermore management to provide a basis for our audit opinion. is responsible for such internal control as it determines is necessary to enable the preparation of the financial statements that are free from material misstatement, Opinion with respect to the financial statements 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, 2014 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. 25 CertiQ 2014 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, 23 March 2015 Ernst & Young Accountants LLP Original was signed by A.E. Wijnsma RA 26 CertiQ 2014 Annual Report


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    27 CertiQ 2014 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 B.V. 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 system for renewable energy. CertiQ manages this system, which is linked to TenneT’s grid operator. electronic infrastructure, on behalf of TenneT. TenneT is the only shareholder in its subsidiary CertiQ. Producers Producers generate electricity or heat and supply it to the grid, or consume it on site. Netherlands Enterprise Agency (RVO) CertiQ certifies the energy produced in order to make the origin of the energy The RVO (formerly NL Agency) implements government policies on innovation and transparent and traceable. sustainable development and is part of the Ministry of Economic Affairs. RVO manages, amongst others, the SDE(+) and MEP subsidy schemes, which subsidise the generation Traders of renewable energy that is certified by CertiQ. Traders enter into agreements with producers in connection with the purchase of Guarantees of Origin or other certificates. A producer informs CertiQ of the trader Ministry of Economic Affairs it does business with. CertiQ credits the corresponding Guarantees of Origin to The Ministry of Economic Affairs is responsible for, amongst others, policy making the account of this trader. A trader can trade the certificates or use them as proof in relation to sustainably generated electricity. CertiQ consults regularly with of delivery to end-users. the Ministry to align its policies regarding developments that affect CertiQ. Energy suppliers Authority for Consumers & Markets (ACM) Energy suppliers are companies that purchase energy (including grey and green power) ACM (formerly the Office of Energy Regulation of the Netherlands Competition and sell it to commercial and private users. It is therefore the energy supplier who Authority, NMa) is the regulator for the Dutch energy sector. Its duties include has the supply contract with the electricity customer. Every energy supplier in the supervising the correct implementation of and compliance with the 1998 Electricity Netherlands that wishes to supply green electricity must have a certificate account Act and statutory schemes implemented by CertiQ. with CertiQ. 28 CertiQ 2014 Annual Report


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    Participants’ Council CertiQ has 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 CBS on a monthly basis, in accordance with an agreement concluded between TenneT/CertiQ and CBS. CBS processes the data for its publications. 29 CertiQ 2014 Annual Report


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    Appendix: Figures 1a en 1b Click here to return to figure 1 Figure 1a Certificates issued for Dutch sustainable electricity in TWh (hydro-electric and solar) in TWh 0.025 0.0225 0.02 0.0175 0.015 0.0125 0.01 0.0075 0.005 0.0025 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. 2013 2014 Figure 1b Certificates issued for Dutch sustainable electricity in TWh (biomass and wind) in TWh 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 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. 2013 2014 30 CertiQ 2014 Annual Report


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    CertiQ B.V. is a subsidiary of TenneT TSO B.V., 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 CertiQ, TenneT Design Loep ontwerp, Arnhem, The Netherlands Published March 2015 31 CertiQ 2014 Annual Report


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