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Fel! Okänt namn på dokumentegenskap.
Annual Report 2014
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Contents
4
DIRECTOR-GENERAL’S STATEMENT
7
THIS IS SVENSKA KRAFTNÄT
9
VISION, GOALS AND VALUES
10
THE YEAR THAT WAS
12
FINANCIAL OVERVIEW
15
EXPANDING THE GRID
17
REPORT OF THE BOARD OF DIRECTORS 2014
17
01. GOVERNANCE
24
02. FINANCIAL POSITION
28
03. INVESTMENTS
34
04. BUSINESS SEGMENTS
54
05. EMPLOYEES
60
06. HEALTH, SAFETY, ENVIRONMENT AND QUALITY
66
07. RESEARCH AND DEVELOPMENT
68
08. INTERNATIONAL COLLABORATION
74
SEVEN-YEAR REVIEW OF THE GROUP
76
09. FINANCIAL STATEMENTS
76
Consolidated income statement
77
Consolidated income statement by business segment
82
Consolidated balance sheet
86
Consolidated cash flow statement
88
Consolidated statement of changes in equity
89
Parent company income statement
91
Parent company balance sheet
93
Parent company cash flow statement
94
Parent company statement of changes in equity
95
10. ADDITIONAL DISCLOSURES AND NOTES
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103
Notes
117
11. APPROPRIATION OF RETAINED EARNINGS
118
12. AUDITOR’S REPORT
119
BOARD OF DIRECTORS
120
DEFINITIONS
122
ADDRESSES
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DIRECTOR-GENERAL’S STATEMENT
The electricity sector has become a successful Swedish export industry. With annual
domestic electricity consumption in the region of 140 TWh, we have still managed to
export a net 20, 10 and 5 TWh of electricity annually over the past three years.
Exports benefit the national economy and are made possible through Svenska
kraftnät’s high degree of integration with Sweden’s neighbours. The large number of
links to our neighbouring countries enable exports of surplus electricity but also
strengthen Sweden’s security of supply through the possibility of imports.
Yet there is also a risk in placing too much emphasis on the strength of our energy
balance. We need to ensure not only that we have enough electrical energy over the
course of the year, but also enough power on the coldest, most windless winter day.
Over the past year, starting at our annual customer and stakeholder meeting in March,
Svenska kraftnät has therefore sought to highlight the importance of the power issue.
By the end of the next ten-year period several of Sweden’s nuclear reactors will have
been decommissioned. Svenska kraftnät’s assessment is that the new situation can be
addressed by expanding the network of electricity interconnectors and increasing
flexibility on the demand side, but that additional stable (plannable) generating
capacity will also be needed in southern Sweden.
This is something the today’s electricity market is not capable of providing, as it is not
profitable to build any new generating capacity outside the certificate system. The
issue of power will thus be the big challenge for the new Energy Commission that the
Swedish government is about to appoint.
Many important development projects
The coming changes will not only result in the removal of important generating
capacity in southern Sweden but also in a sharp increase in the share of volatile
(weather-dependent) capacity. This, in turn, will create significant challenges for
Svenska kraftnät’s frequency and balancing control systems.
That’s why we have launched an internal initiative called “Project Operational
Reliability” to determine how these challenges should be met. The initiative covers
issues such as voltage regulation, frequency quality, inertia, power grid safeguards and
the quality of real-time data.
We have also taken the initiative to review the legal framework, especially those
regulations which are relevant for Svenska kraftnät’s role as system operator. This is
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because there is still considerable uncertainty about the deeper significance of this role
and about the attendant rights and obligations for Svenska kraftnät. It is my hope that
towards the end of the year we will be able to submit concrete proposals for necessary
clarifications to the Swedish Ministry of the Environment and Energy.
Building new infrastructure
In 2015 the majority of Svenska kraftnät’s two largest investment projects, NordBalt
and SydVästlänken, will be completed. Through NordBalt we will help to integrate the
emerging Baltic electricity market with the Nordic and broader European markets.
This is a project which also has significant geopolitical importance in the Baltic Sea
region. NordBalt will strengthen Lithuania’s and the other Baltic states’ security of
supply. We will thereby strengthen their national sovereignty in a situation where
Russia is ever more clearly showing its great power ambitions and willingness to use
energy as a political bargaining tool.
In the SydVästlänken, or “SouthWest Link”, project we have suffered setbacks. Alstom
was not able to deliver the new network monitoring system but forced us to cancel the
agreement and SydVästlänken underestimated the challenges involved in delivering
the advanced HVDC1 technology demanded by Svenska kraftnät. To achieve full
delivery, we have therefore been obliged to modify the delivery terms, which has
resulted in a significant delay in the project.
In the longer term the biggest problem facing SydVästlänken is not the delayed
delivery, but the erroneous expectations created by the HVDC component of the link.
Alternating or direct current – overhead line or underground cable?
In the early days of electricity direct current was commonly used but today electricity
is generated, transmitted and used almost exclusively as alternating current. Direct
current is useful in cases where a large amount of energy needs to be transferred from
one point to another. Svenska kraftnät uses this technology when it is possible and
expedient, for example when linking up different synchronous areas and in longdistance submarine cables, such as in our links to Finland, Lithuania, Poland,
Germany and Jutland.
Onshore, the Swedish national grid currently consists of 15,000 km of alternating
current transmission lines. We have practically no direct current lines. As we now
introduce this technology for the first time in SydVästlänken the goal is precisely to
transfer large amounts of energy from one point to another – from central to southern
1
HVDC = high-voltage direct current.
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Sweden. But this doesn’t mean that direct current is a potential alternative to
alternating current in a general sense.
The public has high hopes, however, as direct current would enable the use of
underground cables while alternating current in practice requires conventional
overhead lines. In this respect local authorities and major interest groups are not
acting responsibly in persisting in their demands for direct current underground
cables in cases where this is both technically impossible and unreasonable on financial
grounds.
Final words
Our economic outcome for 2014 was better than budgeted. The parent company
reports a surplus of SEK 731 million, which represents a return of 7.2 per cent, above
the government’s required return of 6.0 per cent. In all other respects, too, Svenska
kraftnät has met fulfilled the requirements and achieved the targets defined by the
Swedish government.
Stockholm, February 2015
MIKAEL ODENBERG
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THIS IS SVENSKA KRAFTNÄT
“ENSURING THAT SWEDEN NEVER
STOPS”
The state enterprise Svenska kraftnät manages and develops the national electricity
grid. Sweden’s national grid comprises 15,000 km of 400 kV and 220 kV power lines,
about 160 transformer and switching stations and 16 cross-border transmission lines.
Svenska kraftnät is the system operator for electricity, which means that it has overall
responsibility for ensuring a reliable electricity supply and that a balance between
supply and consumption of electricity is maintained at all times. Svenska kraftnät is
also the government agency responsible for power contingency planning and the
supervisory agency for dam safety in Sweden.
Sundbyberg is home to the national control room, which monitors and controls the
grid around the clock. Svenska kraftnät also has offices in Sundsvall and Halmstad as
well as a network operations centre in Sollefteå. At the end of 2014 the company had
530 permanent employees, most of whom worked at the head office in Sundbyberg. In
addition, several hundred people are employed across the country on a consulting
basis and under construction contracts.
The framework for Svenska kraftnät’s investment activities is defined by the Swedish
parliament. The goals, reporting requirements and financial criteria which apply to
Svenska kraftnät are defined by the government in a set of instructions and in the
appropriation letter. The company’s operations and costs are funded largely through
fees paid to Svenska kraftnät by regional transmission networks, large electricity
producers and balance providers.
A KEY ROLE IN CLIMATE POLICY
Svenska kraftnät is tasked with promoting an open Swedish, Nordic and European
electricity market. The company develops the national grid and electricity market to
meet the country’s need for a safe, environmentally friendly and cost-effective
electricity supply. Svenska kraftnät thus also plays an important role in climate policy.
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SVENSKA KRAFTNÄT’S ROLE IN THE
ELECTRICITY MARKET
Svenska kraftnät’s network customers are large electricity generation facilities,
regional networks and certain consumption facilities that are connected to the national
grid. Maintaining a balance between supply and use of electricity requires that
production be planned on the basis of forecasts for consumption. These forecasts are
based on information provided by the companies acting as balance providers.
Balance providers are those companies which under an agreement with Svenska
kraftnät have assumed responsibility for ensuring that the supply of electricity is equal
to the electricity that is consumed. Electricity producers and suppliers are examples of
balance providers. An electricity supplier may perform the role of balance provider
itself or transfer this responsibility to another company. The local network companies
submit consumption figures to Svenska kraftnät, which uses the data to calculate how
well the balance providers are balancing the supply and consumption of electricity.
THE LINE OF TRANSMISSION
The electricity market consists of two parts – physical transmission of electricity and
financial trading in electricity. The physical part refers to the transmission of
electricity from power plant to user. Electricity transmission networks, which consist
of local and regional networks and the national grid, constitute natural monopolies
that are regulated by the Swedish Energy Markets Inspectorate.
The financial part refers to power trading, which means that electricity producers sell
electricity, usually through a power exchange, to electricity suppliers, which in turn sell
it to the users. This activity is subject to open competition among electricity market
operators. Electricity users thus pay for two separate services: for the electricity they
consume and for the transmission of electricity over the networks.
The marketplace for power trading is the Nordic power exchange Nord Pool Spot,
which offers a spot market (physical trading) for hourly trading in electricity for nextday delivery. Nord Pool Spot is owned by the Nordic and Baltic transmission system
operators and is headquartered in Oslo. The Nasdaq OMX Stockholm Exchange has a
futures market (financial trading) for long-term trading where market players can
hedge their electricity prices several years in advance. Most of the hourly trading
activity takes place on the spot market while a smaller volume takes the form of
bilateral trades between producers and suppliers of electricity. Longer-term trading
may also take place bilaterally, normally through brokers.
Electricity market participants also include transmission system operators in other
countries. Svenska kraftnät works closely with the Norwegian, Finnish and Danish grid
operators to ensure that the electricity system is operated efficiently. International
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cooperation is evolving continuously and is acquiring an increasingly European focus.
All European transmission system operators collaborate through ENTSO-E2.
Illustration: The line of transmission
VISION, GOALS AND VALUES
“A LEADING ROLE IN ENSURING A SECURE AND
SUSTAINABLE ELECTRICITY SUPPLY”
That is Svenska kraftnät’s vision. It expresses the company’s ambition to play a leading
role in electricity, whatever the task at hand: ensuring a high level of operational
reliability, building a more efficient power market or connecting wind farms and other
renewable energy facilities. Svenska kraftnät aims to operate a national transmission
grid that is reliable and safe for humans. The company works to build sustainable,
environmentally adapted solutions for Sweden’s electricity supply.
SVENSKA KRAFTNÄT’S LONG-TERM GOALS
For Svenska kraftnät strategic management by objectives is an important factor. The
company therefore operates on the basis of four long-term goals:
>
Ensuring that the electricity system is robust and operates securely and
effectively in a changing world.
>
Developing the national grid efficiently and for the benefit of the electricity
market.
>
Ensuring that Svenska kraftnät operates efficiently and proactively as a single
entity.
>
Being one of Sweden’s most attractive employers.
SVENSKA KRAFTNÄT’S CORE VALUES
Svenska kraftnät’s core values reflect the company that we want to be. Our four core
values area:
2
>
development
>
responsibility
>
efficiency
European Network of Transmission System Operators for Electricity (ENTSO-E).
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>
clarity
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THE YEAR THAT WAS
“INVESTING TO MEET FUTURE
CHALLENGES”
JANAUARY/FEBRUARY
Our investment and financing plan for 2015–2017 is submitted to the Swedish
government. Svenska kraftnät is expected to invest up to SEK 12 billion over the
period, depending mainly on energy and climate policy as well as increased market
integration.
Common price coupling3 is introduced in northwest Europe. Price coupling is a key
element of the EU’s ambition to build a single retail market in Europe.
MARCH
Svenska kraftnät’s annual customer and stakeholder meeting stimulates a lot of
interest in the issue of power. Industry and market representatives gather for
presentations and panel discussions on how to manage Sweden’s long-term electricity
supply.
Svenska kraftnät’s Director-General, Mikael Odenberg, and the chief executive of
German system operator 50Hertz, Boris Schucht, sign a memorandum of
understanding on a feasibility study for a new link between southern Sweden and
northern Germany, called Hansa PowerBridge.
On 28 March the public administrative court rejects Värnamo Elnäts’s appeal against
Svenska kraftnät’s division of Sweden into four bidding areas. The ruling has come
into effect.
APRIL/MAY
The land and environmental court upholds Svenska kraftnät’s right to use creosotetreated wood in pylon foundations, finally putting an end to a legal dispute that has
been going on for many years.
This means that the power exchanges simultaneously and using the same methods of calculation calculate market prices and
trading volumes between areas for the coming 24-hour delivery period.
3
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Svenska kraftnät cancels its contract with Alstom Grid for delivery of a new network
monitoring system due partly to very extensive delays. General Electric is contracted as
a new supplier of an upgraded system for 2016.
JUNE/JULY/AUGUST
Six briefings for landowners and the public kick off a three-month long period of
consultation on the new Ekhyddan – Nybro – Hemsjö overhead line.
Alstom Grid files a claim against Svenska kraftnät with the Stockholm District Court,
demanding €10 million for the cancellation of the contract for a new network
monitoring system. On 4 September Svenska kraftnät responds to the charge, filing a
counterclaim against Alstom for SEK 63 million.
The peak power reserve for winter 2014/2015 is procured. Subsequently the volume is
topped up to the 1,500 MW ceiling in response to increased uncertainty, partly as a
result of a winter-long shutdown of the Oskarshamn 2 reactor.
Svenska kraftnät reports on its mission from the government in the appropriation
letter on the classification of hydroelectric dams. In its report Svenska kraftnät sets out
a timetable for the classification of dams as well as an allocation key for the funds to be
transferred to county administrations for their classification work.
SEPTEMBER
The Board of Directors confirms the grid tariff for 2015. Under the adopted resolution,
the tariff for the grid as a whole is reduced slightly but notice is also given of the need
for higher tariffs in the longer term.
On 11 September the Swedish government decides to the transfer responsibility for the
management of electricity certificate accounts and guarantees of origin from Svenska
kraftnät to the Swedish Energy Agency.
OCTOBER
The commissioning of the southern direct current portion of the SydVästlänken link is
postponed, with initial commissioning now scheduled for September 2015 followed by
full commissioning in January 2016. The postponement is due to delayed deliveries
from the supplier, Alstom Grid.
Svenska kraftnät criticises the final report of the Commission on Water-related
Activities for its failure to take account of the energy aspect and for the absence of
impact assessments for the Swedish energy system.
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NOVEMBER
The first stage of CityLink in the Stockholms Ström project – a new overhead line and
underground cable to the north of Stockholm – is completed.
Svenska kraftnät arranges Emergency Course 2014, bringing together operations staff
from the Nordic system operators for a joint communication exercise in a simulated
control room environment.
The Board decides to raise the fees for balance providers as of 1 February 2015 in
response to increased costs for reserves in Svenska kraftnät’s role as system operator.
DECEMBER
The 600 MW production component of the peak power reserve is procured for winter
2015/2016 and winter 2016/2017. The procurement was brought forward in order to
enable market participants to plan ahead and to meet the challenges created by the
delays to the SydVästlänken project.
Svenska kraftnät publishes a Nordic development plan together with the other Nordic
system operators. The plan covers the period until 2030 and is based on work on the
European ten-year TYNDP plan.
FINANCIAL OVERVIEW 2014
2014 IN BRIEF
Operations in 2014
TWh
TWh
2014
2013
116.6
119.3
113.6
116.5
Disturbances on the grid
Disturbances resulting outages
Energy not supplied (ENS)
No.
No.
MWh
205
22
10.6
177
1
0.2
Power not supplied (PNS)
MW
84.3
10.0
SEKm
SEKm
%
%
9,319
731
7.2
83.3
10,111
850
8.6
54.8
Energy supplied to the grid
Energy withdrawn from the grid
Operational reliability
Financial facts, Group
Consolidated operating revenue
Consolidated profit
Return on adjusted equity
Debt/equity ratio
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Investments
Total assets
SEKm 4,353
SEKm 22,338
3,642
18,635
No.
478
Employee information
Permanent employees
530
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FINANCIAL PERFORMANCE
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EXPANDING THE GRID
FACTORS INFLUENCING THE EXPANSION OF
THE GRID
The Swedish national grid is going through an intensive period in which the company
is expanding and strengthening the national electricity grid. The expansion is driven
by several interacting factors.
CLIMATE GOALS
>
The EU’s climate and energy package to promote renewable energy.
>
A continued expansion of wind energy and increased wind energy integration.
A SINGLE EUROPEAN ENERGY MARKET
>
The Third Internal Energy Market Package for electricity and gas, which is
aimed at increasing competition in the electricity and natural gas markets.
>
Safe and secure energy supply for European consumers.
>
Increased market integration in northern Europe.
IMPROVED OPERATIONAL RELIABILITY
>
Our increasing dependence on electricity requires a reliable national grid.
>
Large need for reinvestment.
>
An increased volume of renewable energy affects the balance of the electricity
system.
MAJOR EXPANSION PROJECTS
Svenska kraftnät expects to invest over SEK 50 billion by 2025. This volume includes
new investment as well as reinvestment. Some of the company’s current new
investment projects are:
1. SydVästlänken – the SydVästlänken link, which is aimed at improving the
operational reliability and capacity of the Swedish national grid. The link is also
important for the planned major expansion of wind energy capacity.
2. Stockholms Ström – Together with the network companies Vattenfall and
Fortum, Svenska kraftnät is strengthening the transmission network in the Stockholm
region to meet tomorrow’s growth and need for a secure electricity supply. The
initiative consists of over 50 sub-projects, including the laying or construction of new
underground cables, sea cables, overhead lines, tunnels and transformer stations.
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3. Gotlandsförbindelsen – Svenska kraftnät is planning to build a transmission
line between Gotland and the Swedish mainland to enable a large-scale expansion of
wind energy capacity on the island.
4. NordBalt – Together with Lithuanian grid operator LitGrid, Svenska kraftnät is
building a direct current transmission line between Sweden and Lithuania. Upon
completion of the cable to Sweden, the Baltic countries will be fully integrated with the
Nordic and European electricity market.
WHAT WILL THE INVESTMENT VOLUME MEAN
FOR SVENSKA KRAFTNÄT?
The large investment volume will put more pressure on the organisation, with regard
to funding as well as Svenska kraftnät’s ability to implement its many investment
projects.
CLEAR INFORMATION
A new power line involves many important dialogues with affected landowners,
government agencies, local authorities and organisations. Due to the large investments
that are now being made, a growing number of people are coming into contact with
Svenska kraftnät. Coordinated communication and clear information are therefore of
central importance.
EFFECTIVE METHODS AND SMART PARTNERSHIPS
Many ongoing investment projects also require effective work methods in the project
organisation. Exploiting synergies between different projects is crucially important.
Svenska kraftnät is now working on establishing strategic purchasing practices to
improve its ability to handle the large volume of procurements that will be needed for
the planned investments.
SKILLED AND SATISFIED STAFF
To meet the coming challenges, Svenska kraftnät has recruited many new employees
over the past few years. The company is now aiming to becoming one of Sweden’s best
workplaces. By adopting this goal, Svenska kraftnät is striving to be a modern and
stimulating workplace with the ability to recruit, retain and develop employees with
the right skill profiles. Svenska kraftnät’s ambition is to ensure that its employees
enjoy their work and do a good job.
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<<Report of the Board of Directors
2014>>
01. GOVERNANCE
ORGANISATION
The Board and Director-General of Svenska kraftnät are appointed the Swedish
government. Svenska kraftnät is organised into nine departments. In addition, there
are five councils for cooperation with external stakeholders. The Group consists of the
parent company, one subsidiary and seven associated companies in Sweden, Norway
and Finland. The largest associated company is the Nordic power exchange, Nord Pool
Spot AS, which is headquartered in Oslo.
Svenska kraftnät’s Board has appointed an Audit Committee from among its members.
The Committee is led by the Deputy Chairman of the Board and prepares the annual
internal audit plan and matters relating to risk assessment, internal control and
financial reporting.
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Illustration: Organisation 31 Dec 2014
MISSION AND GOVERNANCE
Svenska kraftnät’s mission is defined by the Swedish government in Regulation
(2007:1119) setting forth instructions for Affärsverket svenska kraftnät and in the
annual appropriation letters. The company’s principal mission is to
>
provide safe, efficient and environmentally friendly electric power transmission
on the national grid
>
act as system operator for electricity in a cost-effective manner
>
promote an open Swedish, Nordic and European market for electricity
>
ensure a robust power supply
Svenska kraftnät’s vision and goals are based on its government-defined mission.
The annual activity planning process begins with a business intelligence process, a
review of goals and risks, and a discussion on Svenska kraftnät’s focus and ambitions
for the coming year. Objectives and targets are defined at the general level and used as
a basis for the planning of operational activities. The results are compiled in an activity
plan and associated risk analysis. The risk analysis describes those material risks
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which could obstruct the achievement of Svenska kraftnät’s defined goals as well as
measures for managing risks.
Each year, Svenska kraftnät also draws up a three-year investment and financing plan.
The plan is submitted for approval by the Swedish parliament through the budget
proposition.
To meet its need for longer-term planning, the Board of Svenska kraftnät adopted a
long-term plan called Perspective Plan 2025 in 2013. The plan sets forth Svenska
kraftnät’s priorities and intentions for the development of the national grid until the
mid-2020s.
INTERNAL GOVERNANCE AND CONTROL
Through the Government Agencies and Institutes Ordinance (2007:515) the Swedish
government has defined requirements for good internal governance and control in all
government agencies. Svenska kraftnät is also subject to the Internal Governance and
Control Ordinance (2007:603), which specifies requirements for systematic and
documented management of risks.
A description of Svenska kraftnät’s activities aimed at ensuring compliance with the
requirements is given in the following.
A well functioning system of internal governance and control requires an appropriate
and well functioning internal environment. At Svenska kraftnät this includes work on
values and desired behaviour, leadership development, and policies and guidelines.
Well functioning communication is another key requirement for effective governance.
Svenska kraftnät works continuously on developing its tools and methods to meet the
need for effective communication and information.
Good risk management improves the chances of achieving defined goals. Each year,
Svenska kraftnät identifies general risks affecting the company in connection with
preparing its business plan. An action plan is drawn up to manage the identified risks.
Risk analysis and risk management are also integrated in the company’s project and
line operations. These areas are also subject to requirements for management of
identified risks.
The activity plan and associated risk analysis are reviewed on a quarterly basis and an
annual summary is produced in February after the end of the financial year. In other
areas progress is reviewed annually, based on each project and contract plan or by
agreement as regards individual tasks. The internal auditor reports his findings to the
Director-General as well as the Board and its Audit Committee on an ongoing basis.
The National Audit Office also conducts specific audits of different areas of operation.
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ACTIVITIES FOR DEVELOPING INTERNAL
GOVERNANCE AND CONTROL
To establish a better environment for effective governance, a project aimed at
developing Svenska kraftnät’s goal structure and goals was initiated in 2013. This goalcentred activity continued in 2014. Another long-term goal has been formulated and
all of the company’s four long-term goals have been specified through objectives and
key performance indicators. Svenska kraftnät’s work on key performance indicators
will be further developed to create an improved framework for establishing the right
priorities. Work is also underway on developing the governance structure for the
company’s project activities.
In 2014 it was decided to introduce an established administration model to ensure that
operational needs for IT support are met in an effective manner. The project was
initiated in 2014 and is scheduled to be completed in 2015.
An action plan for dealing with irregularities was drawn up in 2013. Work on
implementing the plan began in 2014 and will continue in 2015. Work has also begun
on producing a code of conduct.
Leadership criteria have been introduced and work is also underway on formulating
employee criteria.
Activities have been conducted with the aim of improving the company’s activities in
those areas in which the National Audit Office and internal auditor made observations
in the course of their audits. These observations related to the annual accounts,
balancing settlement, non-current assets, authorisation management and processes for
operational and administrative control.
Svenska kraftnät’s guidelines and policy for risk management were revised during the
year. Work has also begun on developing risk management in the company’s project
activities.
RISK MANAGEMENT
The following is a description of various types of risk that the company needs to
manage along with examples of implemented risk management measures.
Operational risks
Significant operational risks that were managed in 2014 included delays in
construction projects, the connection of renewable electricity facilities and frequency
control in the national grid.
There are various risks associated with Svenska kraftnät’s ability to meet the timetable
for its construction projects. These include the ability to obtain the necessary permits
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in time, handling outages, setting the right priorities for expansion projects and
ensuring that suppliers meet their obligations. One risk-limiting measure involved
implementing an improved model for prioritising expansion projects. The model will
facilitate resource planning. Another measure is the development of a concept that will
enable Svenska kraftnät to notify any parties affected by a delay in a construction
project at as early a stage as possible. Significant resources and specialised expertise
are also required, both internally in the company and externally among contractors,
designers and consultants engaged in the construction of stations and transmission
lines. Svenska kraftnät works continuously to ensure that the company has access to
the right expertise, internally and among contractors. As part of this effort, the
company continually updates the parties concerned on planned and adopted
investment plans.
In Sweden renewable electricity capacity, and particularly wind power, is currently
undergoing a major expansion. This affects the balance in the system, as wind power
production cannot be controlled and is hard to forecast. Moreover, uncertainty about
production volumes and the siting of new wind farms makes Svenska kraftnät’s longterm planning more difficult. To limit the risks, the company has continued its efforts
to forge close contacts with market players and provided guidance on issues
concerning the connection of wind farms to the grid. Svenska kraftnät has also
participated in a Nordic analysis group focusing on frequency and balancing issues.
Renewable electricity production also has different technical properties than today’s
conventional hydroelectric and thermal power systems. The power system would not,
for example, be able to sustain a switch from conventional electricity production to
wind power unless the same amount of inertia is introduced in the system. Svenska
kraftnät has started an initiative aimed at enhancing its ability to forecast, monitor and
control the inertia in the power system, as this is critical for the continued operational
reliability of the electricity system.
Despite these challenges, the risk of an outage on the grid is relatively small. The grid
is robustly constructed, with a strong capacity to maintain electricity supply even in
disturbed operating conditions. The risk of a major power outage cannot be completely
eliminated. Svenska kraftnät is taking a range of measures, including a major
investment programme, to further increase the reliability of the grid.
Financial risks
Svenska kraftnät’s central role in the electricity market and the high rate of investment
result in significant economic flows. The company is thus exposed to various financial
risks, including credit risks, currency risks, interest rate risks and liquidity risks. The
management of these risks is regulated in the company’s financial policy. The risks are
managed with a long-term perspective in order to create stable financial prospects for
the company.
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Due to the transmission losses that occur on the grid Svenska kraftnät is one of
Sweden’s biggest consumers of electricity. The risks that Svenska kraftnät is exposed to
through its procurement of grid losses are managed in accordance with the company’s
guidelines for procurement of grid losses.
Other risks
Svenska kraftnät’s ability to monitor and control the national grid is dependent on
well-functioning IT and telecommunication systems. IT and telecommunication
systems are built with a high level of redundancy to ensure continuous operation.
Another important aspect of operational reliability is to analyse and address
weaknesses in IT security, with regard to technology, rules and procedures.
To structure and quality-assure its environmental work throughout the organisation,
Svenska kraftnät uses an environmental management system that is certified under
the ISO 14001 standard. This also reduces the risk that environmental impact
assessments will delay the investment projects. The company performs its own
environmental audits and specifies environmental requirements in procurements for
construction and maintenance projects. The company uses training and internal
communication to continually raise awareness of the environmental requirements that
Svenska kraftnät is required to meet.
Examples of risk management in the line operations for financial reporting include
clear decision-making processes for significant decisions and performance analyses.
Inspections, both manual and automated, are also performed. These include
procedures for ascertaining the existence of assets and liabilities, and for ensuring that
assets, liabilities and financial transactions have been correctly registered. Training
and skills development activities are other examples of risk management.
SECURITY
Svenska kraftnät’s security work is driven by the ambition to maintain a high
awareness of security issues in all areas of the company’s operations. This enables
operational control of the company’s security work and management of applicable
risks.
During the year work continued on reviewing the company’s internal security
regulations, and instructions for certain priority areas are now being prepared. Inhouse managers, new employees, operations and maintenance staff as well as
contractors working at the company’s facilities have taken part in security training
activities on ongoing basis.
Svenska kraftnät’s signals security instructions have been revised and the annual
internal inspection has been conducted at two signals security units.
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As in 2013, Svenska kraftnät handled around 12,000 security protection issues in
2014. These issues involve vetting of individuals and background checks on persons
working in positions requiring security clearance or who are involved in critical
activities relating to electricity supply.
During the year work was carried out on preparing a new security analysis in
accordance with the provisions of the Swedish Security Protection Act. The security
analysis was adopted at the end of January 2015.
SUBSIDIARIES AND ASSOCIATES
The Svenska kraftnät Group has one subsidiary and seven associated companies in
Sweden, Norway and Finland.
SUBSIDIARIES
Svenska Kraftnät Gasturbiner AB
The company is wholly owned by Svenska kraftnät and is responsible for operating and
maintaining the gas turbine plants which it owns. The plants are needed for managing
disturbances in the power system.
The company owns eleven gas turbines located in Varberg, Norrköping, Trollhättan,
Norrtälje and Gothenburg, with a combined capacity of 690 MW.
The company’s turnover in 2014 was SEK 82 (83) million.
ASSOCIATES
Nord Pool Spot AS
The company operates the Nordic power exchange, i.e. the marketplace for physical
power trading in the Nordic and Baltic countries – the electricity spot market. The
company is owned jointly by the system operators for the national grids in the
respective countries. Svenska kraftnät and Statnett each own 28.2 per cent of the
company. Energinet.dk and Fingrid own 18.8 per cent each while Augstsprieguma
tīkls, Elering and Litgrid own 2 per cent each.
The company generated gross sales of NOK 121,000 (131,000) million and net sales of
NOK 311 (232) million. Physical power trading on Nord Pool Spot totalled 501 (493)
TWh.
Triangelbolaget D4 AB
The company administers the Stockholm – Oslo – Gothenburg – Malmö – Stockholm
fibre-optic cables on behalf of its shareholders. Lease income is passed on directly to
the shareholders. The company is owned in equal shares by Svenska kraftnät,
Vattenfall AB, Fortum Distribution AB and Tele2 AB.
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The company had a turnover of SEK 29 (32) million in 2014.
Kraftdragarna AB
The company carries out heavy transports for companies operating mainly on the
electricity supply side. The company also maintains preparedness for urgent
transports for its shareholders.
The shareholders are Svenska kraftnät, with a 50 per cent stake, Vattenfall and
Vattenfall Eldistribution, which hold 25 per cent each.
The company’s turnover in 2014 was SEK 31 (49) million.
STRI AB
The company conducts research and development in the field of electric power
transmission and high voltage testing on behalf of the shareholders and other
stakeholders. The shareholders are Svenska kraftnät, with a stake of 25 per cent, ABB
with 50 per cent, and Statnett and Det Norske Veritas with 12.5 per cent each.
The company had a turnover of SEK 86 (87) million in 2014.
Elforsk AB
Elforsk conducts joint research and development activities on behalf of the electrical
power industry in Sweden. Svenska kraftnät is involved mainly in those areas of
operation which relate to the electric power system, transmission of electricity and
development of the electricity market. Svenska kraftnät has a 25 per cent stake in the
company, with the remaining 75 per cent being owned by the trade association Svensk
Energi. In January the company’s operations will be transferred to Energiforsk AB.
The company had a turnover of SEK 161 (165) million in 2014.
Energiforsk AB
Energiforsk was formed in December 2014 through a merger of Elforsk, Fjärrsyn,
Värmeforsk and SGCBedriver. The company will be conducting contract research and
other energy-related scientific activities. In January 2015 the operations that were
previously conducted in Elforsk AB will be transferred to Energiforsk. The
shareholders are Svenska kraftnät, with 20 per cent, Svensk Energi, with 30 per cent,
Svensk Fjärrvärme, with 20 per cent, and Energigas Sverige and Swedegas, with 15 per
cent each.
The company had no operations during the year.
eSett Oy
The company’s object is to manage a joint Nordic balancing settlement system starting
in 2015. Svenska kraftnät, Fingrid and Statnett each own a third of the company.
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The business is under construction. The company posted a loss of SEK -2 (-) million in
2014.
Results
The associated company in the Group that has the biggest impact on consolidated
earnings is Nord Pool Spot AS. Svenska kraftnät’s share of the profit or loss of each
company is included in the consolidated profit. The Group’s share of the profit was
SEK 13 (19) million, of which SEK 5 million 2013 refers to the result of the issue of new
shares in Nord Pool Spot AS.
Share of profit or loss of associates
2014
2013
14
16
STRI AB
2
2
Kraftdragarna AB
-1
1
eSett OY
-2
-
Other
0
0
Total
13
19
(SEKm)
Nord Pool Spot AS
02. FINANCIAL POSITION
Under the government appropriation letter, Affärsverket svenska kraftnät is required
to achieve a return on adjusted equity, after a flat-rate deduction for tax, of 6 per cent
over the course of a business cycle. The return is calculated excluding shares in the
profit or loss from sales in associates and any surplus or deficit from operations related
to electricity certificates and guarantees of origin. Capacity charges (congestion
revenues) received when price differences arise between bidding areas need to be
handled in accordance with the regime resulting from European Parliament and
Council Regulation (EC) No 714/2009, which means that provisions are made for
unused capacity charges.
The return on adjusted equity for 2014 was 7.2 (8.6) per cent, which means that the
target was achieved. In the parent company the return was 7.2 (8.9) per cent.
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The debt/equity ratio was 83.3 (54.8) per cent, which is below the 120 per cent ceiling
specified in the government appropriation letter. The debt/equity ratio in the parent
company was 86.4 (56.7) per cent.
Under the dividend policy adopted by the government, 65 per cent of the consolidated
profit for the year should be distributed to the State, which is what happened in 2014
in respect of the profit for the preceding year.
SALES AND RESULTS
Consolidated operating revenue decreased by 8 per cent to SEK 9,319 (10,111) million.
The decrease was mainly due to lower revenues from balancing and frequency control,
which totalled SEK 4,264 (4,977) million. The decline in revenue was due to a lower
electricity price and volume compared with the previous year. On a gross basis, both
revenue and expenses are determined by the market price of electricity and volume of
balancing energy in each bidding area. Gross revenue and expenses can therefore vary
significantly from one year to another. Revenues for transmission of electricity over
the national grid declined to SEK 4,305 (4,387) million. This was chiefly due to a
decrease in energy revenues compared with the previous year, to SEK 1,561 (1,870)
million, as a result of a reduced usage fee for 2014. Transit revenues increased to
SEK 417 (167) million.
Operating expenses were SEK 8,651 (9,280) million. The decrease was primarily due
to reduced costs for balancing energy, which totalled SEK 3,590 (4,306) million, and
lower costs for energy compensation, at SEK 331 (502) million. As on the revenue side,
the lower costs for balancing energy was due to a lower electricity price and volume
while the lower cost for energy compensation was due to a reduced usage fee. Transit
costs increased to SEK 183 (104) million.
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Svenska kraftnät remains in a recruitment phase and created 51 (31) new full-time jobs
in 2014. This resulted in an increase in staff costs by SEK 26 million.
Depreciation, amortisation and impairment of non-current assets increased by
SEK 212 million, from SEK 715 million to SEK 927 million. Depreciation and
amortisation charges were SEK 8 million lower, at SEK 660 (668) million, after several
facilities had been fully depreciated.
Impairment losses increased from SEK 47 million to SEK 267 million owing to the
termination of two investment projects. When Svenska kraftnät was forced to cancel
its contract with Alstom Grid for delivery of a new network monitoring system the
accrued expenditure was charged to expense, reducing earnings by SEK 173 million.
Project planning expenditure of SEK 93 million for the Ekhyddan – Barkeryd
transmission line project was also expensed. The project resulted from the need to
handle an increase in power at the Oskarshamn nuclear power plant. However, new
network studies conducted in autumn 2014 showed that it will be possible to handle
both the increase in power at Oskarshamn and ensure the operational reliability of the
future network that will come into being upon completion of the Gotland and NordBalt
projects through the new Ekhyddan – Nybro – Hemsjö transmission line. The
Ekhyddan – Barkeryd project has therefore been terminated. In the previous year
consolidated earnings were hit by a SEK 47 million impairment charge related to the
decision not to build the western branch to Norway in the SydVästlänken project.
Earnings from interests in associates were SEK 13 (19) million, which is SEK 6 million
less than in the prior year. Earnings for the prior year included a profit of SEK 5
million attributable to a share offering in Nord Pool Spot occasioned by the addition of
new shareholders.
The consolidated operating profit was SEK 681 (850) million, which is SEK 169 million
lower than in 2013. The consolidated operating margin was 7.3 per cent, which is 1.1
percentage points lower than in the previous year.
Net financial income was SEK 52 (4) million, which is an increase of SEK 48 million
from the previous year. The improvement in net financial income was mainly due to an
elimination of SEK 50 million related to indexation of the parent company’s pension
liability under the bases for safeguarding of pensions adopted by the National
Government Employee Pensions Board (SPV). The indexation for the previous year
was SEK -1 million.
The consolidated profit for the year was SEK 731 (850) million.
The consolidated return on adjusted equity was 7.2 (8.6) per cent, which is 1.2
percentage points above the target return of 6 per cent.
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FUNDING
The company’s operations are funded through equity and loans from the National Debt
Office. At year-end 2014 the outstanding debt to the National Debt Office was
SEK 6,202 (3,775) million. Consolidated cash and cash equivalents were SEK 225
(160) million. In 2014 Svenska kraftnät had the right to raise loans from and outside
the National Debt Office in a total amount of SEK 9,300 million.
Svenska kraftnät has two further sources of funding: capacity charges and investment
grants.
CAPACITY CHARGES
Capacity charges are allocated from NordPool Spot based on price differences that
arise between bidding areas. Under the regime resulting from European Parliament
and Council Regulation (EC) No 714/2009, capacity charges may be used for countertrade and funding of investments which are intended to enhance or maintain the
transmission capacity of the grid. Capacity charges received increased compared with
the previous year, to SEK 1,172 (700) million. The price of electricity and the price
differences which arise between bidding areas depend on a wide variety of factors,
including temperature, water availability in the reservoirs, the availability of nuclear
power and transmission capacity between bidding areas and on cross-border
transmission lines.
Of capacity charges received in 2014, SEK 12 (22) million was used to cover costs for
counter-trade while SEK 347 (322) was used as investment grants for realised
investments. The remaining SEK 813 (356) million has been reclassified as long-term
liabilities in the balance sheet to be used as investment grants in future years, as there
were not enough investments that met the criteria for allocation from external capacity
charges. Out of capacity charges brought forward from previous years, SEK - (199)
million was used as investment grants for investments realised in 2014. When capacity
charges are used as grants for realised investments, an asset is capitalised with the
same depreciable life as the facility to which the grants are linked. Capacity charges
thus help to reduce the annual expense for the facility.
In 2014 SEK 347 (521) million was used as co-funding for realised investments. The
figure of SEK 521 million for 2013 includes capacity charges brought forward from
previous years. In 2014 no funds brought forward from previous years were available
for use as investment grants.
INVESTMENT GRANTS
The second source of funding is investment grants. One type of investment grant is the
fee which Svenska kraftnät charges to connect network customers to the grid. The
connection fee is intended to fund the measures that are taken, for capacity or
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operational reliability reasons, to connect a particular facility. Investment grants may
also be provided by landowners who receive released land as a result of the expansion
of the network. The Stockholm Power project is one such example. Another type of
investment grant comes from the EU, which is co-funding NordBalt, a direct current
link being built between Sweden and Lithuania. Investment grants totalled SEK 193
(74) million in 2014.
The subsidiary company Svenska Kraftnät Gasturbiner AB is funded through a loan
from the parent company. Borrowing at year-end was SEK 88 (77) million.
COST EFFECTIVENESS
Svenska kraftnät aims to maintain a level of cost effectiveness that is at least on a par
with comparable companies. To assess the company’s effectiveness and identify
potential improvements, comparisons are made in the form of benchmarking studies.
The most recent benchmarking study was conducted in 2012–2013 by the Council of
European Energy Regulators (CEER). The study showed that Svenska kraftnät is one
of the most efficient transmission system operators in Europe. It was noted, however,
that Svenska kraftnät faces a period of extensive reinvestment in the grid and that it
will therefore be challenging to maintain the same level of efficiency and cost control.
As part of their project activities, Statnett, Fingrid, Energinet.dk and Svenska kraftnät
have established a framework for exchange of experiences so that each party can learn
and benefit from the others’ experiences of project implementation. The initiative is
centred on issues such as health and safety, the environment, contract evaluation and
information management.
03. INVESTMENTS
The expansion of the grid follows the national economy, and the underlying rationale
for Svenska kraftnät’s investment in the grid is defined in Sweden’s energy and climate
policy. This creates requirements for market integration, the expansion of
transmission networks to enable the connection of new generating capacity and
reinvestment to ensure a robust power supply.
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The Group made investments of SEK 4,353 (3,642) million in 2014. New investments
were SEK 3,574 (3,165) million and reinvestments SEK 779 (477) million.
The breakdown of investments by Group company was as follows.
Investments (SEKm)
Parent company
Grid investments
Fibre-optic investments
Intangible assets
Total parent company
Svenska Kraftnät Gasturbiner AB
Total
2014
2013
4,282
1
48
4,331
22
4,353
3,577
3
60
3,640
2
3,642
The Group made total investments of SEK 4,353 (3,642) million. Of this amount,
SEK 4,305 (3,582) million refers to investments in property, plant and equipment. The
Transmission of Electricity on the Grid business segment accounted for the majority,
with investments of SEK 4,326 (3,624) million.
For 2014 the Swedish parliament approved an investment plan of SEK 5,564 (5,000)
million. Actual investments in the grid in were lower than planned, however, for three
main reasons:
>
The contractors were unable to deliver on their undertakings.
>
The price of electricity was low, which meant that external parties did not have
the necessary profitability to be able to complete their planned investments.
>
Projects were started later than expected.
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The shortfall is also explained by delays caused by protracted permitting processes. A
detailed description of deviations is presented in Svenska kraftnät’s Investment and
Financing Plan 2016–2018, which will be submitted to the Swedish government by 1
March 2015.
In 2013 Svenska kraftnät adopted a long-term development plan for the national grid
called Perspective Plan 2025. The plan clarifies Svenska kraftnät’s priorities and
intentions for the development of the grid over the next ten-year period. There are
three principal drivers influencing decisions on investments in the grid: removing
bottlenecks through new construction and integrating the market, connecting new
power generation facilities, and making the necessary reinvestments.
BOTTLENECKS AND MARKET INTEGRATION
Svenska kraftnät is striving to establish an efficient and well functioning competitive
market for electricity. An important objective is therefore to eliminate bottlenecks in
the Nordic transmission network and in transmission lines between Scandinavia and
the continent through new construction.
The SydVästlänken transmission line is Svenska kraftnät’s biggest investment to date,
with an estimated cost of SEK 7,800 million. The line will form an important
transmission link to southern Sweden and help to improve the operational reliability
of the grid in this part of the country. The line will have a capacity of 1,200 MW. On
22 January 2014 Östansjö, the last of three new grid stations on the line, was
completed. SydVästlänken’s 190 km long cable and 250 km long overhead line were
completed in 2014.
MEET THE PEOPLE BEHIND SYDVÄSTLÄNKEN
The SydVästlänken transmission line is taking shape. The project is Svenska kraftnät’s
biggest infrastructure project to date – an investment worth around SEK 8 billion. The
430 km long link will strengthen the operational reliability of the grid and increase
transmission capacity to southern Sweden.
Dialogue an important part of Lina’s work
Lina Andersson is one of our construction inspectors. Her task is to regularly assess
the progress of construction activities and support the contractors in their work in
various ways.
“In my role I serve as an important link between the contractor, which is building the
line, and the project designer, who has done the calculations and modelling,” Lina
explains.
As a construction inspector, Lina’s work was at its most intense during the period
when the locations for the foundations of each pylon were being marked out in the
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power line corridor. Only when digging began was it possible to know for sure what
type of foundation would be needed in each location.
“The foundations have been designed to withstand every conceivable stress. With
pylons expected to stand and remain stable for nearly 70 years, the foundations are a
critical factor for ensuring a robust and reliable grid.”
For a construction inspector every day looks different, with site visits alternating with
meetings.
“What I enjoy most is that I get to be involved in so many different parts of a power
line construction project. I get to see so much and learn new things every day. It is in
the field that all the various parts start to fit together,” Lina says.
Health and safety a key part of Sverker’s leadership
Sverker Ekehage is chief project manager for the SydVästlänken power line project. He
is proud of how the project is being implemented and looks forward to the day when
the link will be transferring electricity over the grid.
“As I see it, we haven’t just built a power line. We have built something that will benefit
society and give Sweden a more secure and reliable electricity supply,” Sverker
explains.
Over 240 people, in-house staff as well as consultants, are working on the project on
the client side, i.e. Svenska kraftnät. Like construction inspectors, health and safety
coordinators, who monitor the work environment, are key individuals for the success
of a project. For SydVästlänken systematic health and safety work has been an
important issue.
“We work actively on ensuring that everyone is able to work in a safe and sound work
environment. My view is that our work on these issues has also made a valuable
contribution to Svenska kraftnät’s other investment projects.”
SydVästlänken is Svenska kraftnät’s biggest investment project to date, and the new
link is attracting a lot of interest, both internally and externally.
“I enjoy work on an infrastructure project that has attracted so much outside interest.
Within the organisation I see a strong commitment and interest, and it feels like all
those working on the project are devoted to their task,” Sverker concludes.
NordBalt is a cross-border transmission line that is being built between Sweden and
Lithuania with an estimated price tag of SEK 3,000 million. The aim is to connect the
emerging Baltic electricity market with the Nordic and European markets. The link will
also help to improve the Baltic states’ security of electricity supply. NordBalt is a
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collaborative project between Svenska kraftnät and the Baltic grid operators Litgrid in
Lithuania and Augstsprieguma tīkls in Latvia. NordBalt is a priority project for the
European Commission. In the framework of the European Energy Programme for
Recovery (EEPR) the European Commission has set aside €175 million for the project.
The line will have a capacity of 700 MW.
Investments for increased market integration and alleviation of bottlenecks in the grid
totalled SEK 3,306 (2,492) million in 2014.
CONNECTING NEW GENERATING CAPACITY
Svenska kraftnät has a duty to connect new generating capacity, which mainly relates
to power increases in nuclear power plants and the connection of new wind farms.
A major expansion of wind power is being planned on Gotland. In 2014 Svenska
kraftnät worked on the design for a new line connecting Gotland to the Swedish
national grid, as the two existing regional network links were insufficient to cater for
the planned expansion of wind power on the island.
There is significant potential to expand wind power in Dalsland, Bohuslän and
Västergötland. In just one area, located between Borgvik to the north and Stenungsund
to the south, there are plans to build up to 2,500 MW of new wind power capacity. A
new 400 kV station is therefore being built in the area.
In the county of Västerbotten there are plans for new wind farms with a projected
increase in capacity of around 800 MW. A new 400 kV station is therefore being built
in the area.
A lower electricity price is creating profitability issues for many planned wind farms.
This has led to increased uncertainty, with some projects being mothballed.
Since the 1980s Sweden’s nuclear power plants have gradually increased their
electricity production. Extensive improvements to the connecting networks are
required to enable the country’s nuclear power plants to further increase production.
The East Svealand programme included plans for significant investments in new
transmission lines and stations to handle the feed-in of additional power from the
three nuclear reactors in Forsmark. However, it now seems clear that the planned
increase in power at Forsmark 3 will not be implemented. Negotiations are underway
on new connection agreements, which will cover all of Svenska kraftnät’s investment
expenditure for Forsmark, including the SEK 31 million which has already been
invested in project design for three transmission lines related to Forsmark 3. In the
event that Svenska kraftnät receives no compensation for its investment expenditure
for these three lines, this would have a negative impact on earnings of SEK 31 million.
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Investments related to the connection of new generating capacity totalled SEK 209
(159) million in 2014.
REINVESTMENTS
In many places the Swedish national grid will soon reach the end of its technical life.
Svenska kraftnät is working on plans to make the necessary investments. In 2014 an
inventory of facilities on the grid was completed. The results of the inventory will be
used as a basis for more detailed programmes for reinvestment in transmission lines
and stations. The status inventory showed that there will be a very significant need to
invest in existing facilities over the coming years. To optimise the replacement of
facilities and minimise outage times owing to replacement and maintenance work, the
company will be using a strategic management approach. This includes adapting to
future conditions and using data and information about the company’s facilities to
make decisions at the right time, in the right place and in the right way.
As the population grows so, too, does the need for electricity. The growth of the
Stockholm region has made it necessary to review the network structure which
provides the city with electricity. In the Stockholms Ström project the electricity grid in
Stockholm is being restructured in a collaborative project involving Svenska kraftnät,
Vattenfall Eldistribution and Fortum Distribution. Together with the local authority
and construction companies in Stockholm County, some 50 new projects affecting 20
municipalities are being funded. In 2014 investments were made in new grid stations,
power lines and cables. Stockholms Ström comprises investments totalling SEK 5,630
million, of which Svenska kraftnät will provide SEK 4,600 million. The aim is to
achieve an improved network architecture, cut energy losses and increase security of
supply. In 2014 work was underway on the overhead line and cable between Hagby
and Anneberg. Work was also undertaken on the Anneberg – Skanstull and Danderyd
– Järva cable projects.
In Kalix work is progressing on a new substation that will increase the operational
reliability of the grid when it is connected to the regional network. A number of
stations are also being converted into modern double breaker stations to increase
reliability.
In 2014 investments were made in new data communication systems connecting
network operations centres and grid stations. The project will result in a modern
communication solution that is able to meet operational requirements for security,
availability and other criteria. The system consists of three parts – an operational
telecommunication network, an operational data network and an operational
monitoring system.
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Svenska kraftnät’s grid control and monitoring system was taken into use in 2001 and
is now nearing the end of its life. Upgrade work is underway to ensure the long-term
operation of the national grid and meet the high standards required for control room
operations.
Reinvestments during the year were SEK 838 (991) million, of which SEK 707 million
refers to reinvestments in existing facilities.
04. BUSINESS SEGMENTS
Svenska kraftnät’s operations are divided into five business segments:
>
Transmission of Electricity on the Grid
>
System Operator Electricity
>
Telecommunications
>
Chargeable Activities
>
Power Contingency Planning
This chapter describes the results of the business segments.
The Telecommunications business segment is presented below broken down by
internal use and use by external customers. The breakdown by segment in the table is
a consequence of this.
Until 31 May 2013 Svenska kraftnät was the Swedish system operator for gas. On 1
June 2013, following a decision by the government, Swedegas AB became the new
system operator. Final settlement was made in the third quarter of the same year.
Some activities, such as primary control and disturbance reserve, are common to
several business segments. The allocation of expenses and revenue is described in the
respective sections.
Group
(SEKm)
Transmission of
Electricity on the Grid
System Operator
Operating revenue
Operating profit
Investments
2014
4,600
2013
4,724
2014
764
2013
997
2014
4,326
2013
3,624
4,376
5,066
-134
-192
15
1
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Electricity
Telecommunications –
external
Telecommunications –
internal
System Operator Gas4
Chargeable Activities
Associates
Power Contingency
Planning
Segment elimination
Total
Parent company
(SEKm)
Transmission of
Electricity on the Grid
System Operator
Electricity
Telecommunications –
external
Telecommunications –
internal
System Operator Gas5
Chargeable Activities
Power Contingency
Planning
Segment elimination
Total
73
75
26
27
-
-
58
51
10
3
12
16
-
31
-
1
-
-
16
254
13
202
4
13
-2
-5
19
0
0
-
1
-
-58
9,319
-51
10,111
681
850
4,353
3,642
Operating revenue
Operating profit
Investments
2014
4,605
2013
4,731
2014
754
2013
966
2014
4,319
2013
3,623
4,377
5,066
-136
-180
-
-
73
75
26
27
-
-
58
51
10
3
12
16
-
31
-
1
-
-
16
254
13
202
4
-2
-5
0
-
1
-
-58
9,325
-51
10,118
656
812
4,321
3,640
Illustration: The Nordic power grid in 2014
TRANSMISSION OF ELECTRICITY ON THE GRID
Network operations comprise the expansion, operation and maintenance of the
national grid in Sweden. Svenska kraftnät’s network customers are large electricity
generating facilities, regional networks and certain consumption facilities that are
connected to the grid. The company concludes a contract of use with customers for
access and use of the grid. The grid tariff is a service-dependent tariff, which means
4
5
Final settlement was made in the third quarter of 2013.
Final settlement was made in the third quarter of 2013.
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that a subscriber is given access to the whole electricity market, regardless of where in
the country the feed-in point is, at the agreed power level.
The grid tariff consists of two charges:
>
The capacity charge covers operation, maintenance, depreciation and capital
costs for the network. The charge is based on the customer’s annual capacity
subscription for supply or consumption at each connection point. Feed-in fees
are lowest in the south and increase linearly with latitude, being highest in the
north. For withdrawal fees the opposite applies. This geographical
differentiation is designed to provide long-term price signals on the siting of
generating and consumption facilities.
>
The usage fee is intended to cover costs for transmission losses on the grid.
The fee is designed to cover the cost of losses in the grid caused by supply or
consumption at individual connection points. Supply or consumption that
results in reduced grid losses reduces the usage fee. This is known as energy
compensation.
Transmission of Electricity
on the Grid
Group (SEKm)
Grid tariff
Capacity charge
Usage fee
Total
Transit revenue
Total
2014
2013
2,327
1,561
3,888
417
4,305
2,350
1,870
4,220
167
,4,387,
Grid tariff revenues were SEK 3,888 (4,220) million. Of the total amount, 60 (56) per
cent refers to capacity charges and 40 (44) per cent to usage fees.
For 2014 usage fees were reduced by 13 per cent for all bidding areas because the
procurement of energy losses was made at a lower price.
Transit revenues, which are earned when the grid is used for transmission of power
through Sweden to other countries, were significantly higher than in the previous year,
at SEK 417 (167) million. Out of total revenues for the year, SEK 119 million and SEK 11
million refer to revenues attributable to 2013 and 2012, respectively, which means that
the actual outcome for 2014 was SEK 287 million.
Power subscription national
grid
2014
2013
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Supply, MW
Consumption, MW
Number of customers
20,781
19,584
24
21,461
19,342
29
Feed-in subscriptions decreased while consumption subscriptions increased somewhat
compared with 2013. The number of customers connected to the grid decreased, to 24
(29). The decrease was due to corporate mergers.
Transmission of Electricity
on the Grid
2014
2013
Energy supplied to the grid, TWh
116.6
119.3
113.6
116.5
19,558
20,003
Energy consumed from the grid,
TWh
Max power consumption, MWh/h
(hour with highest power
consumption)
Energy supplied in 2014 was 116.6 (119.3) TWh and energy consumed 113.6 (116.5)
TWh. The supply of energy to the grid decreased compared with the previous year,
despite marginally higher electricity production in the country. The reason is that
some of the generated electricity is fed into the underlying regional networks. The
reduced consumption is explained by slightly lower electricity use, as 2014 was a year
with an above-normal average temperature.
Transmission losses on the
grid
Energy losses, TWh
Share of energy consumed, %
Max power losses, MWh/h (hour
with highest energy losses)
2014
2013
3.0
2.6
2.8
2.4
881
884
Energy losses in the grid were 3.0 (2.8) TWh, which was slightly higher than in the
previous year. The increased losses are explained by the fact that 2014 was a year with
higher hydropower production in northern Sweden and in Norway than in 2013. This
led to an increase in the transfer of electricity from north to south, which normally
involves long transports from generator to consumer. As transmission losses depend
on distance, this meant that transmission losses were higher in 2014.
2014
2013
Operating revenue
4,600
4,724
Operating expenses
-3,836
-3,727
Operating profit
764
997
Transmission of Electricity on the
Grid (SEKm)
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The operating profit for the business segment Transmission of Electricity on the Grid
was SEK 764 (997) million. Operating revenues decreased by SEK 124 million
compared with the previous year. The lower revenue is due principally to a reduced
usage fee for 2014 and reduced supply and consumption of electricity in the grid. The
reduction in the fee was due to the fact that the procurement of energy losses was
made at a lower price than in 2013. Expenses for energy compensation also declined,
again due mainly to the reduced usage fee. Supply and consumption of electricity in
the grid were both lower than in 2013, which has a certain impact on revenue and
expenses. Energy revenues and energy compensation depend on where in the grid the
energy is supplied and consumed. Supply is to a large extent influenced by generating
capacity at nuclear power plants and by water levels in reservoirs. Electricity prices in
neighbouring countries also affect the use and supply of electricity through exports
and imports, respectively.
Power revenues declined by SEK 23 million, which was mainly due to reduced
revenues form temporary subscriptions, which were SEK 47 million in 2014 compared
with SEK 75 million in 2013.
Svenska kraftnät has both revenues and costs for transit. The compensation agreement
for transit, Inter TSO Compensation, is an agreement among 35 European
transmission system operators and is governed by Regulation (EU) No 838/2010. The
object of the agreement and its calculation mechanism are to ensure that each party
receives and provides economic compensation for the use of networks for transmission
of energy through one country to another. In theory, the compensation consists of two
parts: compensation for infrastructure and compensation for losses. Every month each
party to the agreement submits six snapshot views of flows in each network as well as
the measured values of exchanges through cross-border transmission lines. These are
then calculated centrally and netted to minimise payment flows among the parties.
The compensation which Svenska kraftnät receives and pays is related to the flows of
all participating transmission system operators. There is therefore no or a very weak
correlation between, for instance, Svenska kraftnät’s costs for losses and the
compensation received by the company. The same applies to compensation for
infrastructure. The very weak correlation is explained by the fact that the economic
outcome is not solely dependent on Sweden’s transmission losses, net export situation
and reservoir levels, but depends on the values reported by all European countries.
Transit revenues in 2014 were significantly higher than in 2013, totalling SEK 417
(167) million. Out of total revenues for the year, SEK 119 million and SEK 11 million
refer to revenues attributable to 2013 and 2012, respectively, which means that the
actual outcome for 2014 was SEK 287 million. Costs were also higher, at SEK 183 (104)
million. Out of the total transit costs, SEK 27 million refers to 2013 and SEK 10 million
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to 2012, which means that the actual outcome was SEK 146 million. The increase in
revenues and costs was due to the fact that ENTSO-ITC6 invoiced for the period July –
December 2013 in 2014 and that the previous year’s provisions for these revenues and
costs were too low. The difficulty of predicting the economic outcome for the right
period is due to the complexity of the allocation mechanism in the agreement with
ENTSO as well as the long time lag before invoicing and corrections are made. The
profit for the year is partly based on estimated revenues and expenses.
Revenue from capacity charges and investment grants in 2014 were SEK 149 (136)
million. Of this, SEK 137 (114) million refers to revenues for the year through grants
for grid investment and SEK 12 (22) million to counter-trade costs for the year. The
increase in grants for grid investments is due to the inflow of capacity charges in 2014,
which were used for investments and thus affected the income statement in the form of
settlement of capitalised investment grants.
Operating expenses increased by SEK 109 million compared with 2013, which was
mainly due to increased costs for transit and the recognition of accrued expenditure
related to terminated projects. The increased costs for the purchase of energy losses,
which totalled SEK 1,224 (1,200) million, were due to an increased loss volume. The
price is hedged at the “system price” while the current spot price in each bidding area
is used to determine the energy loss price. A certain portion of the energy loss price is
thus unhedged and depends on the spot price. This cost increased compared with
2013. The hedged loss price was lower during the period than in the previous year,
which partly offset the increased cost.
The Group’s revenues and expenses for primary control decreased. Overall, revenues
declined from SEK 230 million in 2013 to SEK 166 million in 2014 while expenses
declined from SEK 777 million in 2013 to SEK 737 million in 2014. Revenues and
expenses for primary control attributable to the business segment declined. Revenues
were SEK 28 (66) million and expenses SEK 155 (236) million. The decreased expenses
are largely due to a reduced need for one of the components of primary control,
frequency containment reserve - disturbance (FCR-D). The reason for this is that the
audit at Oskarshamn 3 started earlier and took longer than expected. A frequency
containment reserve is maintained as insurance to manage disturbances caused by the
loss of the largest source of production. Oskarshamn 3 is the largest source of
production in the Swedish electricity system, and when this reactor is not in operation
the need to maintain a frequency containment reserve is reduced.
When Svenska kraftnät was forced to cancel its contract with Alstom Grid for delivery
of a new network monitoring system the accrued expenditure was charged to expense,
6
Inter transmission system Operator Compensation for Transits (ITC)
.
42/131
reducing earnings by SEK 173 million. Project planning expenditure of SEK 93 million
for the Ekhyddan – Barkeryd transmission line project was also expensed. The project
resulted from the need to handle an increase in power at the Oskarshamn nuclear
power plant. However, new network studies conducted in autumn 2014 showed that it
will be possible to handle both the increase in power at Oskarshamn and ensure the
operational reliability of the future network that will come into being upon completion
of the Gotland and NordBalt projects through the new Ekhyddan – Nybro – Hemsjö
transmission line. The Ekhyddan – Barkeryd project has therefore been terminated.
Earnings for the previous year include a charge of SEK 55 million related to the
decision not to build the western branch to Norway in the SydVästlänken expansion
project.
The operating margin for the business segment was 16.6 (21.1) per cent, which is 4.5
percentage points lower than in the previous year.
The business segment made investments of SEK 4,326 (3,624) million in 2014.
OPERATIONAL RELIABILITY IN 2014
Operational reliability was good in 2014, although disturbances and energy and power
not supplied were higher than in 2013. The number of disturbances in the grid was 205
(177), of which most were handled through automatic disconnection of faults with no
impact on electricity supply. A number of disturbances in the grid did result in energy
not supplied (ENS), however.
OPERATIONAL DISTURBANCES
Operational disturbances in the grid,
no.
Operational disturbances in the grid
resulting in outages, no.
Energy not supplied (ENS), MWh
Power not supplied (PNS), MW
2014
2013
2012
2011
2010
177
202
192
224
1
0.2
10.0
3
6.9
23.0
9
42.3
235.0
10
4.9
43.0
205
22
10.6
84.3
The number of operational disturbances on the grid over the last five-year period is
shown above. The number of disturbances resulting in supply interruptions for
electricity customers was 22 (1). Energy not supplied (ENS) to electricity customers
was 10.6 (0.2) MWh. The target is to keep ENS below 10 MWh/year. Power not
supplied (PNS) was 84.3 (10.0) MW in 2014. The target is to keep PNS below 80 MW
per year.
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Several metering transformers exploded during the hot summer of 2014. The failure of
so many devices in such a brief space of time is very unusual, and it has not been
possible to determine the cause of the explosions. All of the exploded metering
transformers were of the same make and were manufactured in the same year, and
have now been replaced. The relatively high number of disturbances is also explained
by a season with more thunder disturbances than in any previous thunder season.
Several strokes of lightning hit radial7 transmission lines and resulted in brief
interruptions with less than 0.1 MWh of energy not supplied per fault. As several radial
transmission lines were hit by lighting, this resulted in a high level of power not
supplied. An instance of disturbance caused by thunder, leading to faults, resulted in
6.3 MWh of energy not supplied.
SYSTEM OPERATOR ELECTRICITY
Svenska kraftnät is the system operator for electricity, which means that it is
responsible for ensuring a reliable electricity supply and that a balance between supply
and consumption of electricity is maintained at all times, i.e. that the frequency is
50 Hz. To achieve this, Svenska kraftnät concludes agreements on balancing
responsibility for electricity with 28 companies that have undertaken to act as balance
providers.
The business segment also includes Ediel communication and the power reserve that
Svenska kraftnät has been commissioned to procure.
The targets for operational reliability defined by Svenska kraftnät are subject to
approval by the government. To meet these targets, Svenska kraftnät needs to ensure
that voltage, frequency and power flows remain within the defined limits.
BALANCING CONTROL
Responsibility for planning their consumption and production and thus helping to
ensure a balance in the electricity system rests with the companies acting as balance
providers. Svenska kraftnät’s responsibility is to balance the supply and consumption
of electricity during each hour of operation. The balance providers also have economic
responsibility for ensuring that the amount of electricity supplied to the electricity
system is the same as the amount that is used. Any deviations from the plan will have
various economic consequences. The balance provider agreement therefore also
contains pricing schemes that are designed to give the companies an incentive to
maintain the balance.
To maintain the operational reliability of the network as well as the frequency of the
electricity system in cases where the balance providers deviate from their plans,
Svenska kraftnät carries out the necessary balancing control. This means that the
7
Only one line to the connection point.
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company places orders with balance providers to increase or decrease their production
or consumption. In addition to these manual orders in what is known as the regulating
energy market, Svenska kraftnät procures various reserves, including the primary
control, automatic secondary control and disturbance reserves. These are used when
manual orders are insufficient to achieve a balance in the electricity system and keep
the frequency within the permissible limits.
Svenska kraftnät’s expenses and revenues for balancing control depend partly on the
imbalance volume and partly on the price for the necessary adjustments. On a gross
basis, revenues and expenses for balancing control can vary quite significantly from
one year to another, as the price of regulating resources varies with the underlying
market prices for electricity. The adjustments that are ordered in the regulating energy
market are used as a basis for pricing in the balancing settlement system and result in
expenses and revenue for Svenska kraftnät.
Svenska kraftnät’s expenses for reserves are largely funded through fees charged to the
balance providers. The principles for pricing of imbalances are largely defined at the
Nordic level through an agreement among the Nordic transmission system operators
as part of the effort to establish a single Nordic retail market.
In recent years expenses have increased in the business segment, which has been
posting losses for a number of years. In 2014 it was decided to raise the fee on two
occasions to curb the deficits.
On 1 December 2014 the basic fee for consumption was raised along with the balancing
energy fee. On 1 August the fees were raised again following a decision by the Board of
Svenska kraftnät. The basic fee for total consumption was raised again while the
balancing energy fee was left unchanged. The fixed monthly fee paid by each balance
provider was kept unchanged on both occasions.
BALANCING ENERGY BETWEEN BIDDING AREAS
Balancing energy between bidding areas is defined as the difference between planned
and physical flows between bidding areas and may involve a cost for Svenska kraftnät.
Such balancing energy is priced at the average regulating price in each area. Balancing
energy from a high-price area to a low-price area entails a loss for the transmission
system operators concerned in relation to purchased/sold balancing energy/regulating
energy in each area. Similarly, the TSOs will make a profit when this type of balancing
energy goes from a low-price area to a high-price area. On cross-border transmission
lines the risk is shared between Svenska kraftnät and the foreign TSO. Following the
introduced of multiple bidding areas, balancing energy arises also in Sweden.
Discussions are currently underway between the Nordic transmission system
operators on how to reduce the costs. In 2014 costs have been reported on a joint
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Nordic basis broken down by pricing area and transmission system operator. The aim
is to raise awareness of when and how these costs arise.
Illustration: Maps of bidding areas
FREQUENCY CONTROL
Frequency quality is measured regularly as frequency deviation in number of minutes
per year outside the nominal frequency of 50 Hz +/- 0.1 Hz. The target is a frequency
not exceeding 6,000 minutes per year outside the 49.90 – 50.10 Hz range. In 2014 the
frequency was outside this range during 10,366 (11,429) minutes.
Frequency control is done either automatically or manually. Automatic primary
control consists of two products: frequency containment reserve - normal operation
(FCR-N) and frequency containment reserve – disturbances (FCR-D). Through
manual control the frequency is restored to 50 Hz within 15 minutes, and the
automatic reserves are also restored. FCR-N is set to maintain the frequency within the
49.9 to 50.1 Hz range in normal operating conditions. FCR-D is set to ensure that the
frequency does not drop below 49.5 Hz during disturbed operating conditions. In
January a trial of the new automatic reserve for secondary control during normal
operation (FRR-A)8 was started in the Nordic power system. Frequency improvements
have been identified during those hours when the reserve has been used actively. The
trial continued in 2014 with the aim of identifying reasonable levels for volume,
expenses and market functioning throughout the Nordic region. In addition to the
improved operational reliability offered by FRR-A, another key objective is to develop
a well functioning market solution. The work will continue in 2015.
In the final quarter of 2014 Svenska kraftnät conducted a joint pilot project, the Hasle
pilot, together with the Norwegian grid operator Statnett. In the pilot project some
transmission capacity is reserved in the Hasle line between bidding areas NO1 and
SE3. The purpose is to assess how capacity can be reserved on socio-economic
grounds. The results show that it is possible to reserve capacity in such a way that it
benefits the national economy and ensures more efficient use of the available reserves.
In addition to the overarching objectives of creating wider economic benefits and using
resources efficiently, the ambition is to create an environment that will promote
increased competition and lower prices. A potential second phase of the project and
further evaluations will be conducted in 2015.
Illustration: Electricity balance
8
Automatic frequency restoration reserve (FRR-A).
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THE POWER SITUATION
The year began amid relatively high temperatures for the time of year. The highest
level of consumption in the previous winter (2013/2014) occurred on 13 January 2014
with a reading of 24,760 MW, which was 2,000 MW less than the highest consumption
registered in the winter of 2012/2013. Water reservoir levels were slightly below their
20-year average at the beginning and also towards the end of the year. Two nuclear
power plants were subject to audits at the end of the year.
In 2014 a further 1,035 MW of wind power capacity was installed, bringing total
installed wind power capacity in Sweden to 5,504 MW at year-end. The power
situation is also affected by the availability of cross-border transmission lines and the
general conditions for import and export. The Konti-Skan 1 line between Sweden and
Denmark is currently unavailable due to the failure of a transformer on the Swedish
side. The trade capacity for import and export to Jutland in Denmark at the end of the
year was reduced from 700 MW to around 300 MW.
PEAK POWER RESERVE
Under the Swedish Peak Power Reserve Act (2003:436), Svenska kraftnät is charged
with ensuring that a peak power reserve is available during the winter period. The
Peak Power Reserve Ordinance (2010:2004) indicates the quantity to be procured for
each winter period. For the period 16 November 2014 to 15 March 2015 Svenska
kraftnät is required to ensure that a peak power reserve of up to 1,500 (1,500) MW is
available.
The peak power reserve is intended to help maintain electricity supply in extreme
situations that can arise in very cold weather. The reserve is funded through a special
fee levied from the balance providers and is secured through agreements between
Svenska kraftnät and producers, suppliers and users of electricity for the provision of
additional generating capacity or a potential reduction in consumption. In 2014
Svenska kraftnät procured a peak power reserve of 1,500 (1,489) MW, of which 626
(958) MW referred to additional generating capacity and 874 (531) MW to reduced
consumption.
The peak power reserve was not used in 2014. However, the standby time has been
changed to two hours for Karlshamn and Stenungsund 3 and 4. The standby time was
reduced to twelve hours on 12 December, when the risk of storms was deemed to be
very high.
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RESULTS FOR THE BUSINESS SEGMENT
System Operator
2014
2013
Operating revenue
4,376
5,066
Operating expenses
-4,510
-5,258
Operating profit
-134
-192
Electricity (SEKm)
The business segment System Operator Electricity reports an operating loss of
SEK -134 (-192) million. The reduced loss was due to an increase in revenues from
balance providers as a result of an increased basic fee for consumption and production
and an increased fee for balancing energy. However, the fee increases were still
insufficient to cover the increased expenses and achieve breakeven.
Consolidated operating revenues fell by SEK 690 million compared with 2013, to
SEK 4,376 (5,066) million. Operating expenses also decreased, to SEK 4,510 (5,258)
million, resulting in a deficit.
Gross revenue and expenses from balance providers and transmission system
operators increased. On a gross basis, revenues and expenses for purchased and sold
balancing energy are determined by the market price of electricity and volume of
balancing energy in each area. In 2014 both the volume and average price of purchased
and sold balancing energy decreased.
Earnings increased by SEK 58 million compared with the previous year.
On a consolidated basis, total revenue and expenses for primary control decreased in
the business segments Transmission of Electricity of the Grid and System Operator
Electricity. Total revenues declined from SEK 230 million in 2013 to SEK 166 million
in 2014 while expenses fell from SEK 777 million in 2013 to SEK 737 million in 2014.
Revenues in the business segment System Operator Electricity decreased, to SEK 138
(163) million. Expenses for purchased primary control reserves increased to SEK 583
(541) million. The high level of expenses is due to increased prices compared with the
previous year, with the price being affected by factors such as water levels in the
reservoirs. Purchased FCR-N increased to SEK 503 (423) million compared with 2013
while purchased FCR-D was lower, at SEK 80 (118) million, moderating the increased
expense somewhat.
The net loss for balancing energy among bidding areas in 2014 was SEK 68 (44)
million, of which SEK 15 (18) million refers to Sweden internally.
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Revenues from balance providers for the peak power reserve were SEK 112 (138)
million. These revenues are recognised in the winter months, from mid-November to
mid-March. The cost for the peak power reserve in the same period was SEK 112 (138)
million. The change is partly due to a decline in the procured volume. Svenska
kraftnät’s revenues from balance providers are matched with the costs, resulting in a
breakeven result.
The expense for the disturbance reserve was SEK 111 (125) million, of which a third,
SEK 37 (41) million, was recognised in System Operator Electricity.
The business segment reports an operating loss of SEK -134 (-192) million. The
operating margin was -3.1 (-3.8) per cent.
The business segment made investments of SEK 15 (1) million in 2014.
TELECOMMUNICATIONS
To control and monitor the national grid for electricity, Svenska kraftnät maintains a
nationwide telecommunications and data network. This network is essential to
maintaining a high level of reliability in the grid, something that is especially
important during the re-establishment phase after an operation malfunction. For this
reason, the communications network is designed with three separate communication
paths along important stretches. To assure operation in the event of a power outage,
there is also a back-up system in the form of uninterruptible power supply. This is used
by the business segment Transmission of Electricity on the Grid, generating revenues
for the Telecommunications business segment.
The telephone and communications network is required to have an availability of at
least 99.95 per cent measured on redundant (duplicate) connections. The outcome for
the year was 100 (100) per cent.
The communications network consists of optical fibre, which is mainly installed in the
top lines of power lines. The network consists of about 7,950 km of own optical fibre
and about 2,300 km of optical fibre that is leased from other network owners. In 2014
the fibre-optic network was upgraded and expanded with about 450 km of optical
fibre.
Svenska kraftnät is required to operate the communications network in a cost-effective
and competitively neutral manner. The communications network and the amount of
installed fibre provide greater capacity than Svenska kraftnät needs for its own
operations and communication. Svenska kraftnät therefore leases out “dark fibre”, i.e.
optical fibre without active telecom equipment, to major telecom operators, power
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companies and other users. This is done partly through direct sales and partly through
collaboration in the associated company Triangelbolaget D49.
The maintenance of the fibre-optic network is performed by a contractor and forms
part of Svenska kraftnät’s central maintenance procurement. Internal operation,
monitoring and the contingency planning function are coordinated with other
monitoring and contingency planning activities for IT functions. This makes it possible
to maintain cost-effective operation and very low running costs.
In addition, active connections, in the form of capacity, are leased to energy companies
for their operational communications. Revenue is also generated from the lease of
capacity services and antenna locations on masts and pylons.
Telecommunications (SEKm)
Operating revenue
External
Internal
Total
Operating expenses
External
Internal
Total
Operating profit
External
Internal
Total operating profit
2014
2013
73
58
131
75
51
126
-47
-48
-95
-48
-48
-96
26
10
27
3
36
30
Total revenue in the business segment was SEK 131 (126) million, of which SEK 73 (75)
million refers to external operations. The lease of dark fibre accounts for the largest
share of external revenue. Internal revenue from the business segment Transmission
of Electricity on the Grid was SEK 58 (51) million.
The operating profit was SEK 36 (30) million. The lower figure for 2013 was due to
insufficient provisions for inter-segment revenues between Telecommunications and
Transmission of Electricity on the Grid.
The operating margin was 27.5 (23.8) per cent.
Investments in Telecommunications in 2014 were SEK 12 (16) million.
9
www.triangelbolaget.se
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Illustration: The fibre-optic network
SYSTEM OPERATOR GAS
On 1 June 2013 Swedegas AB took over as system operator for Sweden’s natural gas
supply. Final settlement was made in the third quarter of 2013.
System Operator Gas
(SEKm)
2014
2013
Operating revenue
-
31
Operating expenses
Operating profit
-
-30
-
1
CHARGEABLE ACTIVITIES
The business segment Chargeable Activities covers management of electricity
certificate accounts and issuance of guarantees of origin.
TRANSFER OF ACCOUNT MANAGEMENT
RESPONSIBILITY TO THE SWEDISH ENERGY AGENCY
On 2 April 2014 Svenska kraftnät proposed to the Swedish government that
responsibility for the management of electricity certificate accounts and guarantees of
origin for electricity be transferred to the Swedish Energy Agency. On 11 September
2014 the government approved the transfer, which will take place on 1 January 2015,
when the amendments to the relevant regulations take effect.
ELECTRICITY CERTIFICATES
In a joint scheme with Norway, Sweden operates a certificate system that is designed
to promote renewable electricity generation. Under the system, producers of
renewable electricity are entitled to receive one electricity certificate from the
government for each megawatt-hour of generated electricity. In 2014 Svenska kraftnät
was responsible for the issuance of electricity certificates and management of
certificate accounts, for which it charged a fee that is fixed by the government. All
other regulatory duties were handled by the Swedish Energy Agency.
In 2014 Svenska kraftnät issued around 17 (15) million electricity certificates.
Approximately 49 (46) million certificates were traded during the year at an average
price of SEK 196 (203) per certificate. Since the system was introduced about 176 (159)
million certificates have been issued in Sweden.
The surplus of registered electricity certificates increased this year too, as a smaller
number of certificates were cancelled than were issued in 2014.
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Chargeable Activities, electricity
certificates (SEKm)
2014
2013
8
0
8
0
-6
2
-10
-2
Operating revenue
Account fee
Administrative fee
Operating expenses
Operating expenses
Operating profit
GUARANTEES OF ORIGIN
Sweden has a statutory system for guarantees of origin, which means that all generated
electricity is eligible for guarantees of origin, i.e. an electronic document which
guarantees the origin of electricity. Guarantees of origin can be issued, transferred and
cancelled. Cancelled guarantees form the basis for the electricity supplier’s origin
marking of electricity. In 2014 Svenska kraftnät was the agency responsible for issuing
and maintaining accounts for the administration of guarantees of origin. All other
regulatory duties were handled by the Swedish Energy Agency.
In 2014 Svenska kraftnät issued 145.0 (141.6) million guarantees of origin. During the
year 128.7 (127.3) million guarantees of origin were transferred and 76.7 (88.7) million
were cancelled in favour of deliveries of electricity.
The number of guarantees of origin that have been cancelled automatically is 40.0
(44.2) million. Guarantees of origin are cancelled automatically when their validity
expires, which occurs twelve months after the end of the production period. Today
producers are not required to apply for and obtain guarantees of origin for the
electricity they generate.
Revenues increased compared with 2013, which was due to the increase in the fees for
management of guarantee of origin accounts as of 1 May 2013.
Chargeable Activities, guarantees
of origin (SEKm)
Operating revenue
Account fee
Operating expenses
Operating expenses
Operating profit
2014
2013
8
5
-6
2
-8
-3
TOTAL RESULTS FOR THE BUSINESS SEGMENT
Chargeable Activities (SEKm)
Total operating revenue
2014
2013
16
13
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Total operating expenses
Total operating profit for the
business segment
-12
4
-18
-5
Total operating revenue for the business segment Chargeable Activities was SEK 16
(13) million. Operating expenses were SEK 12 (18) million and the operating profit was
SEK 4 (-5) million.
Activities involving electricity certificates and guarantees of origin are not intended to
generate a profit. Instead, the level of revenues should be adjusted to cover the costs
incurred in conducting the activities. Due to the profit for the year and previous years
there is currently an accumulated surplus from electricity certificate revenues of
SEK 48 million and a deficit of SEK -1 million for guarantees of origin. Upon the
transfer of Svenska kraftnät’s regulatory duties to the Swedish Energy Agency, the
accumulated surplus of SEK 16 million (after distribution of 65 per cent of the annual
profits to the State) will be transferred to the Energy Agency.
The operating margin was 25.0 (-38.5) per cent.
The business segment made investments of SEK 0 (1) million in 2014.
POWER CONTINGENCY PLANNING
Svenska kraftnät is the government agency responsible for power contingency
planning, which means that the company receives funding to ensure that national
electricity supply is strengthened so as to withstand severe stresses. In 2014 Svenska
kraftnät received SEK 255 (255) million in government funding, of which SEK 248
(202) million was used. The funds were used for preventive preparedness measures,
measures designed to withstand and handle disturbances, and measures for increased
preparedness and war.
RISK AND VULNERABILITY ANALYSES
In 2014 the national risk and vulnerability analysis was developed. Information was
obtained from companies and agencies involved in electricity supply. The request for
information was based on sources of risk identified by Svenska kraftnät in its analyses.
The guidance for risk and vulnerability analyses for the electricity sector was revised.
The guidance is intended to serve as a basis for the preparation of risk and
vulnerability analyses by companies and agencies involved in electricity supply.
In the Nordic preparedness and security forum NordBER a specially appointed
working group produced a risk and vulnerability analysis in which two scenarios were
analysed in order to identify risks and vulnerabilities in the system of electrical supply.
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ACTIVITIES AIMED AT REDUCING RISKS OF SEVERE
DISRUPTIONS
In 2014 Svenska kraftnät allocated funds to the disturbance reserve in order to
maintain the preparedness of Sweden’s gas turbine plants. The aim is to enable a
change-over to island operation10 and electricity generation in priority areas in case of
major operational disturbances. To be able to start planned island operation areas,
Svenska kraftnät has identified and taken measures for enabling black starts, control
capability and voice communication. Operational tests, exercises and training sessions
for employees and organisations were conducted on three occasions in order to verify
island operation capability and increase participants’ knowledge of island operation.
A third mobile distribution substation was procured. The substation enables Svenska
kraftnät, within 48 hours, to temporarily replace and cut down the restore time in case
of the failure of a distribution substation in the Stockholm region and other regions.
Svenska kraftnät has reviewed and verified the redundancy and durability of
operational communications for a number of organisations. The aim is to enable
decisions on technical measures for the use of remote communications to control and
monitor transmission networks and generating facilities.
Back-up generators were installed at five priority facilities to enable a rapid return to
normal operation with functioning communications after extended and widespread
outages in the electricity system. Training and exercises for employees of contractors
in how to operate and maintain back-up generators were conducted.
HARNESSING AND COORDINATION OF RESOURCES
National grid and regional transmission network installers received training in how to
rebuild collapsed power lines using specially designed contingency equipment.
Distribution electricians working in local networks were trained in how to repair
national grid and regional transmission lines. Civil defence personnel working under
voluntary agreements also received training aimed at maintaining their skills.
Emergency response leaders were given training in leadership and repair work, and
employees in Svenska kraftnät’s preparedness organisation for emergency stocks also
received training.
During the year tracked vehicle and crawler tractor drivers, coordination and standby
power operators and pilots from the voluntary organisations were given training in
how to support the electricity companies. Volunteers participated in a regional
coordination exercise.
The forest fire in Västmanland triggered an effort to gather and coordinate the
resources of the local community. Svenska kraftnät provided tracked vehicles driven
10
A local transmission network that is established in case of disturbances.
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by the Volunteer Automobile Corps, Rakel mobile handsets and generators for the
command and control site used by the emergency response leadership. The Voluntary
Radio Organisation supported the tracked vehicle operation with Rakel support.
In NordBER priority was given to development activities related to coordinated repair
preparedness for grid transmission lines, a Nordic preparedness plan and information
security. Grid operators and government agencies in the Nordic countries were invited
to take part in each other’s emergency preparedness exercises.
FAST AND EFFECTIVE COMMAND AND
COMMUNICATION
Training and exercise activities were conducted for employees in the seven electricity
collaboration areas. The aim was to increase the participants’ crisis management skills
through repetition and application of their knowledge of the Susie situation
monitoring and reporting system.
A new version of Susie was launched. The new version focuses primarily on simplifying
the management of resources. A direct link to Swedish Radio’s issue tracking system
has also been created in Susie to enable users to quickly pass on information on
disturbances to Sveriges Radio, Sweden’s public service radio broadcaster. Automatic
reporting to Susie was implemented by half of the network companies.
Svenska kraftnät and the Swedish Post and Telecom Authority (PTS) funded training
and exercises in crisis management. The courses were aimed at participants from the
energy and telecom industries.
During the year Svenska kraftnät trained eight network companies in how to manage
operational situations in case of severe strains on the electrical supply system. They
were briefed on national and electrical supply crisis preparedness measures as well as
electrical phenomena.
CONNECTION TO RAKEL
Rakel is Sweden’s national communication system for coordination and command.
Voice teams11 and guidelines for how to use Rakel in the electricity supply system were
established and adopted during the year. The activities were conducted in
collaboration with the Swedish Civil Contingencies Agency and representatives from
the Swedish electricity industry. Svenska kraftnät participated in the Electricity
Industry’s Rakel Forum.
A pilot project was conducted in which Svenska kraftnät helped five companies in the
electricity supply sector to implement Rakel. The aim was partly to secure these
11
A predefined group that can communicate in Rakel.
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companies’ voice communications and partly to document the implementation
process. The process will later be published in a guidance document for Rakel.
A basic training course for Rakel was produced and about 150 end users in the
electricity supply sector completed the course.
About 30 companies implemented Rakel in connection with the transfer of Rakel
subscriptions to representatives of the electricity coordination leadership teams.
In connection with these exercises and training activities Svenska kraftnät worked to
raise awareness and provide instruction in the use of Rakel among electricity industry
players. Liaison tests were conducted for two of the national voice teams for the
electricity supply system.
CONTINGENCY PLANNING
Svenska kraftnät’s crisis management organisation received training and further
contingency planning activities were conducted.
A guidance document for crisis management in the electricity supply system was
produced. The document is designed to support planning for the management and
minimisation of disruptions to the companies’ operations.
Svenska kraftnät acted as chairman for the technical infrastructure coordination area.
The activities centred on developing focus area and planning work.
SECURITY-RELATED PREPAREDNESS MEASURES
As sector agency for energy supply, Svenska kraftnät works to ensure optimal security
protection in the electricity industry. Security protection involves taking preventive
measures against espionage, sabotage and other crimes which pose a threat to national
security, including protection against terrorism.
Svenska kraftnät works regularly to clarify the security-related requirements and
guidelines that the energy supply sector is required to abide by. Particular effort was
put into briefing relevant parties on Svenska kraftnät’s Regulations and General
Guidelines on Security Protection, SvKFS 2013:1. The company’s own security analysis
was also revised during the year.
A new energy security portal12 was launched in 2014. The portal serves as a reference
site for relevant governing and supporting documents and is designed to facilitate
security work in the industry. The portal is also used to communicate news and
information on recent developments.
www.energisakerhetsportalen.se
12
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To support systematic information security work in the electricity industry, the
company has produced guidance documents for information security.
Svenska kraftnät’s supervisory activities have been developed and closer collaboration
in the field has been established with the Swedish Security Service and the Swedish
Radiation Safety Authority.
Security protection activities, in the form of the strengthening of physical protection,
were implemented at ten facilities in the electricity industry. Five feasibility studies
were conducted and technical requirements specifications were produced.
Svenska kraftnät has promoted research into the security of the SCADA 13 systems by
funding a research project at the Royal Institute of Technology.
DAM SAFETY
Svenska kraftnät works to promote dam safety in Sweden. This includes
>
monitoring and contributing to the improvement of dam safety
>
collaborating with the relevant government agencies and organisations
>
regular reporting to the government on new developments
NEW REGULATIONS FOR DAM SAFETY
A new regulation for dam safety applies from 1 July 2014. In June Svenska kraftnät
submitted its report on a government assignment for the classification of hydroelectric
dams and produced a timetable for classification of the existing dams. Procedures for
the county administrations’ work on dam safety classification and the forms for the
transfer of funds from Svenska kraftnät to the county administrations were drafted
and agreed up. Regulations and general guidelines for impact assessments were
adopted and distributed to the relevant parties.
SUPERVISORY GUIDANCE
Svenska kraftnät is responsible for supervisory guidance for dam safety in accordance
with Chapter 11 of the Swedish Environmental Code. In 2014 the company produced a
national summary of the dam owners’ annual reports for the County Administration
relating to dam safety and also followed up the County Administration’s supervisory
activities. Expanded reporting for dams for which the consequences of a dam failure
would be particularly severe formed part of the regular reporting procedure for the
first time.
13
Supervisory Control and Data Acquisition (SCADA).
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CLIMATE CHANGE AND DESIGN FLOWS FOR DAMS
Svenska kraftnät monitors the impact of climate change on dam safety. Together with
the power industry, mining industry and Swedish Meteorological and Hydrological
Institute, Svenska kraftnät initiated a project in 2014 aimed at revising the guidelines
for design flows for dams with regard to the climate issue and other factors.
CONTINGENCY PLANNING FOR DAM FAILURES AND
HIGH FLOWS
Svenska kraftnät works to reduce the risk of severe disruptions to the normal
functioning of society as a result of the failure of a dam or high flows in regulated
rivers. The company supports the development of coordinated contingency planning
for dam failures in major rivers with hydroelectric power stations. In 2014 flooding
maps were produced for the Viskan and Voxnan rivers. Work on a coordinated
contingency plan for dam failure is currently underway for the twelve largest
hydropower rivers.
KNOWLEDGE DEVELOPMENT AND TALENT
MANAGEMENT
Svenska kraftnät promotes research, development and knowledge exchange in the field
of dam safety. Together with the power industry, the company supports Elforsk AB’s 14
dam safety research and development project. Svenska kraftnät has supported and
participated in about ten projects covering emergency preparedness exercises,
methodology for mapping of properties and facilities at risk of flooding in case of a
dam failure, high flows and climate change. Svenska kraftnät supports the Swedish
Hydropower Centre, a centre for higher education and research that works to secure
long-term access to skilled labour in the field of hydroelectric power and dam safety.
PERMITTING
Svenska kraftnät regularly takes part in consultations and submits opinions on
permitting matters in accordance with Chapter 11 of the Swedish Environmental Code
and referral processes related to dam safety.
05. EMPLOYEES
In 2014 the number of employees, the workload and the need to engage external
assistance continued to increase. Svenska kraftnät’s international operations require
ever greater internal resources while emerging technologies and the new duties
involved demand new skills.
14
The research and development company for the Swedish electricity industry (Elforsk AB).
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Svenska kraftnät has chosen to use in-house staff for strategically important duties. As
a contracting party, the company is not able to directly control the type of skilled
labour that is available in the market. A key challenge for the company is therefore to
work with consultants and contractors to ensure that individuals with key skills remain
in the industry.
Major external changes and an expanded mission require long-term and carefully
considered talent management, based on operational requirements and needs.
Svenska kraftnät strives to maintain a good balance of age, gender and ethnicity. The
company also aims to conduct safe and sustainable operations with healthy employees.
FOCUSING ON BEING AN ATTRACTIVE
EMPLOYER
Svenska kraftnät’s goal is to be one of Sweden’s most attractive employers. An
employee survey conducted at the beginning of the year and a leader survey from the
autumn show that Svenska kraftnät is already a very good employer. Meeting the
challenges of the future is creating ever greater challenges for our leaders. Clear,
grounded and goal-oriented leadership is one of several key criteria for creating a
good, efficient and value-driven workplace. To strengthen its brand and attractiveness
as an employer, Svenska kraftnät has launched a project called “Sweden’s Best
Workplace” which brings together different activities in a development platform that is
aimed at developing and retaining employees and attracting new talent.
AIMING TO BECOME ONE OF SWEDEN’S BEST
WORKPLACES
Svenska kraftnät is currently going through an intensive and expansive period. This
creates a greater need for new employees than ever before.
“Right now we are expanding the Swedish national grid to meet today’s high power
consumption and the need for a secure electricity supply. This means that we need to
recruit new colleagues. But that’s not enough. We also need to ensure that we retain
our employees and managers,” Claes Vallin, HR Director at Svenska kraftnät, explains.
To do this, Svenska kraftnät has set a goal of becoming one of Sweden’s most attractive
employers – an ambitious goal that requires continuous business development and
commitment throughout the organisation.
“Collaboration is a guiding principle for all our processes, which means that our
employees are involved in all development issues, big and small.”
ENSURING THAT SWEDEN NEVER STOPS
Challenging tasks. Clear development paths. A good work-life balance. Good benefits.
Many arguments are put forward when Svenska kraftnät’s employees are given an
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opportunity to say what they think of their workplace. But one factor outweighs all the
others.
“Our work is meaningful. Without us, Sweden stops working, so there is pride in the
walls at Svenska kraftnät,” says Claes Vallin. “The work we do carries a lot of
responsibility but it is often challenging as well, which means that you are constantly
developing your skills.”
“The heart of our culture is working together, sharing knowledge and helping each
other. We all work towards the same goal, and that requires a team spirit,” Claes adds.
Another important feel-good factor that emerges from employee surveys is that
Svenska kraftnät enables a good work-life balance.
“A balance between professional and private life ensures that employees enjoy their
work. We also avoid arranging meetings early in the morning or late in the afternoon,
to enable our employees to juggle their many commitments.”
LEADERS WHO KNOW HOW TO LEAD
Employee surveys over the years have shown that Svenska kraftnät has leaders who are
liked by the employees. The rapid expansion that the company is currently undergoing
is, however, creating new and growing demands, for which clear and goal-oriented
leadership is one of several key criteria. This will be achieved by giving the company’s
leaders development opportunities, tools and other means for handling the different
dimensions of leadership.
KEY PERFORMANCE INDICATORS, TARGETS
AND OUTCOMES
The Group had 530 (478) permanent employees at year-end. The number of annual
full-time equivalents was 522 (471), of whom 338 (314) were men and 184 (157)
women. Staff turnover was 4.0 (6.9) per cent, including retirements. Sick leave during
the year was 2.4 (2.6) per cent. The average age of Svenska kraftnät employees is 44
(44) years. The age profile has changed significantly over the past decade. From being
an organisation with many older employees, the age profile is now balanced.
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Svenska kraftnät is perceived by its employees as a workplace with a high degree of
equality that is parent-friendly and where great respect is shown for employees with
different backgrounds. The proportion of women in the organisation is increasing
steadily and is now over a third. Nearly half of the company’s leaders are women.
KPIs, targets and outcomes
Outcome
Target
Outcome
Target
2013
2014
2014
2015
Number of permanent employees
478
565
530
596
Full-time equivalents
471
550
522
580
Total staff turnover
6.9 %
<5 %
4.0 %
<5%
Staff turnover excl. retirement
4.5 %
<2.5 %
3.4 %
<2.5%
Average age
44 yrs
<45 yrs
44 yrs
<45 yrs
Share of women
33 %
35 %
36 %
>36 %
Share of female managers
48 %
>40%
47 %
>40 %
11 %
>12 %
13 %
>12%
Sick leave
2.6 %
<2 %
2.4 %
<2%
Employees with zero sick leave
54 %
> 60 %
51 %
>60%
Share of employees on long-term
1.2 %
<1 %
0.8 %
<1%
Foreign background (SCB’s
definition)
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sick leave of over 60 days
Employees on full-time sick leave
0
0
1
0
New employees
63
90
74
80
38 yrs
<40 yrs
39 yrs
<40 yrs
37 %
>40%
42 %
>40%
30
>30
22
>30
Average age of new employees
Share of women among new
employees
Job rotation, number of people
The target for the number of permanent employees at year-end 2014 was 565. The
lower outcome, of 530, was mainly due to a later than expected start to the recruitment
processes and the difficulty of finding candidates with certain skills profiles. Sick leave
has declined somewhat and remains at a relatively low level, although the target for
2014 was not achieved.
In Svenska kraftnät’s annual skills assessment each department specifies those areas
of expertise that will be essential to their operations over the next two years and the
skills gaps that need to be filled. The assessment also indicates which parts of the
organisation have a high dependence on key personnel as well as the risks that may
arise if the gaps are not filled. A certain skills gap exists in 49 (54) per cent of Svenska
kraftnät’s areas of expertise and a significant gap exists in 4 (5) per cent. In 24 (24) per
cent of the company’s areas of expertise there is a dependence on key personnel. The
skills assessment shows that the use of consultants and improved methods and
processes are the most common means to address the skills gaps.
An assessment of the experience and skills of employees that will be retiring over the
coming five-year period is performed annually. The analysis shows which employees
have skills that need to be transferred to younger employees in some form. In 2014, 36
(36) employees were covered by plans for such skills transfer, including 15 (16) with
mission-critical skills.
Nearly all employees took part in a performance review during the year, which also
involved formulating individual development plans.
A trainee programme with four young engineers was launched during the year.
Svenska kraftnät participated in three (four) career days at selected universities and
acted as supervisor for five (14) dissertations.
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Svenska kraftnät has continued to focus on being a healthy and safe workplace. The
company responds quickly to cases of long-term sickness. After the second week of sick
leave it is required that a rehabilitation plan be drawn up between the employee and
his or her manager. This has helped nearly all employees on long-term sick leave to
return to work. In the autumn risk assessments of the work environment were carried
out throughout the organisation.
Sick leave (%)
<29 yrs
30–49 yrs
50 yrs
TOTAL
Women
1.8
4.2
5.0
4.2
Men
0.9
1.1
1.9
1.4
TOTAL
1.3
2.4
2.7
2.4
During the year the concept of leadership supply and development was developed and
leadership criteria were defined. To an increasing extent, Svenska kraftnät’s leaders
have also received individual support in their leadership. A leadership programme for
14 leaders was implemented during the year. Planning for a new preparatory
programme for leadership talent in 2015 has now been completed. To further
strengthen its leadership and provide support to all employees in leading roles,
Svenska kraftnät produced a leadership handbook during the year. The handbook is
based on exercises and theories that are used in leadership programmes and that
participants have found to have practical application.
Over the past few years Svenska kraftnät has worked actively to clarify its expectations
on leaders and other employees. In 2014 an initiative aimed at defining employee
criteria was started. The employee criteria are based on Svenska kraftnät’s core values,
leadership criteria and current salary criteria, and are aimed at clarifying these
expectations. To build support for the employee criteria in the organisation and to
enable discussions on the subject with employees, units and departments conducted
workshops during the autumn.
TALENT MANAGEMENT GOALS FOR 2015
In 2015 about 80 new employees will be recruited. Under its current plan, Svenska
kraftnät will have nearly 600 permanent employees by year-end 2015. A continued
focus on effective recruitment processes and a good induction of new employees are
crucially important.
In 2015 the company’s strategy for employee skills development will be further
elaborated. A proposal for a development and career model will be drawn up and
implemented. In 2015 Svenska kraftnät will carry out a skills assessment, which will be
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used as a basis for ensuring that the whole organisation has the right skills to meet its
goals and challenges. The assessment will describe which activities need to be
conducted to assure the necessary transfer of skills from older to younger employees.
As in previous years, special initiatives will be implemented to reduce the company’s
dependence on key personnel.
Support, governance and inspiration on HR issues for the company’s leaders
contribute to good leadership. A leader survey is planned for 2015 to identify the need
for development among Svenska kraftnät’s leaders.
The company will identify twelve potential leaders to participate in a preparatory
leadership programme. A similar programme for project managers will also be carried
out.
Through a continued focus on the psychosocial work environment, Svenska kraftnät
will help to ensure a healthy and safe workplace.
Work on promoting equality and diversity has continued as planned, and the
company’s equality and diversity plan will be updated.
Work on strengthening Svenska kraftnät as an employer and employer brand has
continued, and measurements will be made among our employees as well as students
to assess progress.
The company will be taking part in at least four career days and offer at least ten
dissertations.
Other targets for 2015 are presented in the table for key performance indicators,
targets and outcomes.
TALENT MANAGEMENT GOALS FOR 2016/2017
The long-term goal for the company’s future talent management is to make Svenska
kraftnät one of Sweden’s most attractive employers. The company aims to be viewed as
a modern and stimulating workplace that is committed to retaining and developing the
right skills. Another goal is to be a well known employer among external target groups
that are of interest to Svenska kraftnät. Employer also refers to Svenska kraftnät’s role
as purchaser of consulting and contractor services.
Svenska kraftnät has the following focus for its talent management activities:
>
Leaders and other employees should display those key behaviours that have
been defined in the company’s leadership and employee criteria. By developing
leadership and employeeship, the company clarifies expectations and levels of
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ambition. The expected result is satisfied, efficient and motivated employees
and leaders.
>
Svenska kraftnät aims to recruit, develop and retain individuals with the right
skills to ensure that it is able to realise its goals. By developing and monitoring
its employees and leaders’ skills, the company strives to ensure that it has the
right expertise in relation to its requirements.
>
Svenska kraftnät takes responsibility for sustainability issues and maintains
high standards to ensure that it offers a safe and stimulating work environment
for employees, consultants and contractors.
>
Svenska kraftnät aims to develop a culture of continual learning to ensure that it
operates more efficiently. The company seeks to establish a feedback culture in
which good examples are highlighted and recycled, and in which the company
evaluates what is being done and how it is done, thereby building an
organisation that is flexible and more inclined to change.
06. HEALTH, SAFETY, ENVIRONMENT
AND QUALITY
Svenska kraftnät’s mission is to offer safe, effective and environmentally adapted
transmission of electricity on the Swedish national grid. Our vision, “A leading role for
a secure and sustainable electricity supply,” is based on this mission and expresses the
company’s desire to seek environmentally adapted, safe and sustainable solutions.
Svenska kraftnät has a great responsibility in its efforts to achieve the EU’s climate and
energy targets, but also a responsibility for running its business in a way that is safe for
people as well as the environment.
INDUSTRY-LEADING HSE WORK
Over the past few years Svenska kraftnät has worked consciously to coordinate its
activities in health, work environment, electrical safety, safety and quality (HSE). By
taking a coordinated approach to these issues, the company offers more effective
support to the operations. In order to create a stronger focus on these issues as well as
a clearer governance structure for the activities, a new organisational unit was
established in 2014 with coordinating responsibility for health, safety, environment
and quality. The vision for the new HSE unit is to establish Svenska kraftnät as the
leading player in HSE in the electricity industry.
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The biggest risks for personal injuries and environmental impact exist in the extensive
construction projects that are underway and in the management operations. The need
for support in HSE work is therefore greatest in these operations. To meet this need,
Svenska kraftnät has established an internal support organisation with HSE
coordinators. Their duty is to serve as the extended arm of the HSE unit and provide
coordinated expert support to the investment and management operations in their
HSE activities. Through this solution, the company ensures that HSE work is
conducted in a systematic manner and that internal control and monitoring of the
contractors’ work is effective.
During the year Svenska kraftnät improved the HSE requirements that the company
specifies for construction contracts. The environmental requirements have been
updated and harmonised with those of other major developers. New requirements
have also been introduced for procurements of construction services. In particular,
contractors are now required to describe how their organisation works to ensure
compliance with environmental legislation. Contractors must be able to show that they
have procedures in place for risk management and quality management. The company
has also initiated an effort aimed at formulating requirements for reasonable
employment and working conditions for employees of contractors.
Svenska kraftnät works systematically in all areas of HSE. The company’s
environmental management system has, for example, been certified under the ISO
14001 standard. The certificate was renewed at the end of 2014. Under the Swedish
Environmental Management Ordinance (2009:907), the company is required to
submit a report on its environmental management activities to the Swedish Ministry of
the Environment and the Swedish Environmental Protection Agency on an annual
basis. The report is submitted in connection with the company’s annual report.
Another example is systematic health and safety work in the from of risk analyses and
action plans for addressing risks in accordance with statutory requirements.
MINIMISING RISKS THROUGH EFFECTIVE
INCIDENT MANAGEMENT
A new system for incident management, ENIA, was taken into use in the spring. The
system is used to handle accidents, incidents and deviations in the HSE field. The
purpose of the incident management system is to ensure effective management of
incidents and produce event data that can be used for long-term prevention. Svenska
kraftnät’s general objective is to ensure that no serious accidents or incidents with a
known root cause are repeated.
In 2014 all employees received training in how to use the system, with special training
initiatives aimed at operational managers and consultants. Procedures for incident
management have been implemented in all construction projects and to some extent
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also in the company’s maintenance operations. Contractors can report incidents in a
simple way using a specially designed mobile app.
In total, 669 incidents (including audit non-conformities) were reported in 2014. Of
these, 62 per cent were addressed and closed. Most of the reported incidents originate
from construction projects or relate to the work environment. The number of reported
incidents and observations is low in relation to the number of accidents, which
suggests that some incidents and observations go unreported. Initiatives aimed at
increasing the reporting of incidents and observations will therefore be important
going forward.
Successful incident management relies on complete and correct analyses of root causes
as well as experience feedback in the organisation. Here there is still a potential for
improvement, and the company will continue to work on this issue in 2015.
RISK ANALYSES
Another important measure for preventing injuries and damage to the environment is
to conduct risk analyses at an early stage of planning. In connection with technical
feasibility studies, risk assessment meetings with people from units which influence
and are responsible for the planning, implementation and management of a
construction project. Risk assessment meetings are held to document and ensure that
HSE risks are identified, assessed and addressed. In 2014 risk assessment meetings
focusing primarily on health and safety risks were initiated. In 2015 the risk analyses
will be expanded to comprise environmental risks, which will provide better
documentation for selecting environmentally adapted technical solutions and
materials.
INTERNAL AUDITS PLAY AN IMPORTANT ROLE
IN IMPROVEMENT WORK
Svenska kraftnät uses audits as a tool for systematic follow-up of HSE activities. In
2014 six audits covering environment, health and safety, electrical safety and quality
were conducted in the company’s maintenance operations. Audits were also conducted
in two construction projects. The audits showed that the contractors on the whole are
committed to HSE issues and are open to improvement opportunities. Issues exist in
the systematic work, especially with regard to risk and deviation management.
Electrical safety is an area where announced audits and unannounced inspections are
used as tools for assessing the quality of electrical safety work. The results of the audits
and inspections carried out in 2014 indicate that there is a generally high level of
awareness of electrical safety issues and that electrical safety requirements are
observed by the company’s contractors.
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Internal environmental audits are conducted on a rolling basis, so that the whole
company is audited over a three-year period. A number of employees have completed
external training courses in environmental auditing and an environmental audit team
has been established.
RESPONSIBILITY FOR HEALTH AND SAFETY
HAS BEEN DELEGATED
Ultimate responsibility for health and safety at Svenska kraftnät rests with the
Director-General. To maintain responsibility, Svenska kraftnät put a lot of work into
clarifying roles and responsibilities and delegating duties to managers and project
managers in 2014. In connection with this all relevant employees have completed
health and safety training courses and a number of tools have been developed to assist
managers and project managers who need to be able to handle these duties. In
electricity safety, too, various skills development training programmes and other
initiatives have been implemented.
In 2014 a number of courses and seminars covering a variety of themes were arranged
for maintenance engineers, project managers and contractors. Specially adapted
environmental training courses have been arranged for managers, project managers
and other key categories.
HIGH ELECTRICAL SAFETY – A CENTRAL
OBJECTIVE
Svenska kraftnät has a responsibility for protecting people and property from injury or
damage from electric current. Maintaining a high level of electrical safety is a central
goal for Svenska kraftnät and its subsidiaries.
In Europe work on the maintenance of electrical facilities is regulated in a common
European maintenance standard. The standard was revised in 2013 and has
subsequently been adopted as a Swedish standard. Using the maintenance standard as
a basis, it should, in theory, be possible to implement the same electrical safety
measures regardless of country. To ensure that the safety of individuals is not put at
risk, the company, as a buyer, needs to clearly indicate the requirements that apply in
the services which it procures.
In 2014 Svenska kraftnät took part in the work of completing the revised version of the
Swedish electrical safety instructions (ESA) for the electricity industry, which are
based on the Swedish maintenance standard. The industry intends to introduce these
ESA14 instructions in summer 2015.
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DEVELOPING QUALITY MANAGEMENT IN
CONSTRUCTION PROJECTS
In 2014 Svenska kraftnät conducted an extensive quality survey for the company’s
investment activities. The survey identifies those elements that exist, or are missing,
for ensuring that Svenska kraftnät’s production model for implementation of
construction projects establishes a quality-centred approach. The results show that the
production model is used and works well but needs to supplemented with additional
procedures.
One improvement measure that is proposed is to develop a structured approach for
ensuring greater uniformity in work on quality and control plans. There is also a need
to produce checklists for each field and branch of technology. A number of procedures
and templates will also need to be drawn up.
ENERGY EFFICIENCY AND LIMITATION OF
EMISSIONS
An extensive programme aimed at improving energy efficiency at Svenska kraftnät’s
station facilities is underway. In 2014 an inventory of existing stations, including
energy inspections, was completed. Following an evaluation of the results, an action
programme has been adopted. In an initial stage measures aimed at cutting energy use
and facilitating future monitoring of consumption are being implemented at six grid
stations. The company will then implement appropriate measures for the other
stations on an ongoing basis. The measures relate primarily to ventilation, integrated
control of systems, and the installation of heat pumps and inverters. In 2015 the
knowledge acquired through energy inspections will also be converted into energy
efficiency requirements for new stations.
Following the energy survey conducted in the spring, measures based on an action
plan are now also being implemented at the company’s central grid and emergency
supply depot. Air source heat pumps have been installed, for instance.
Svenska kraftnät is working systematically to limit emissions of the greenhouse gas
sulphur hexafluoride (SF6), which is used in switches and other devices. In 2014, too,
emissions were very small, at 0.2 (0.2) per cent of the total amount of gas. This is well
below the limits for new equipment, with suppliers guaranteeing maximum emissions
of 0.5 per cent. Over the past five years Svenska kraftnät’s average emissions from its
facilities have been around 0.2 per cent, even though a large portion of the equipment
is of an older type. The low emissions are the result of several years of long-term work
on issues like preventive maintenance, training and rapid repairs to leaking
equipment.
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The company recently raised its standards for emissions of carbon dioxide from
machinery and vehicles used in construction projects. As several major construction
projects are now being implemented, total emissions from construction projects are
larger than in previous years.
BETTER CONTROL OVER THE USE OF
CHEMICALS
To improve its control over the use of chemicals, Svenska kraftnät has tightened its
requirements for contractors’ use of chemicals. In early 2014 a chemicals system was
procured that is used for reporting chemicals. Chemicals are examined and classified
before they are cleared for use. The new requirements are designed to promote
reduced use of chemicals that are damaging to health and the environment in the
operations and to ensure improved control over the correct handling of the products.
In 2013 and 2014 Svenska kraftnät conducted an R&D project to obtain better data for
determining how to handle sleeper foundation blocks when power lines are
demolished. The project includes sampling and analysis of the distribution of creosote
in different soil and water conditions. The results showed that the risk that
contaminants will spread beyond the immediate proximity of the foundations is
minimal. Svenska kraftnät’s environmental requirements have been supplemented
with a requirement for foundations and more detailed instructions for the demolition
of foundations are being prepared.
A project is underway aimed at developing prefabricated concrete foundations as an
alternative to creosote-treated wood foundations. The new concrete foundations will
be available for use in locations where use of creosote foundations is inappropriate, for
example in places where there is a high rate of water exchange.
NEW PYLONS DEVELOPED
Svenska kraftnät strives not take up unnecessary space when building new
transmission lines. The traditional angle pylons, in particular, take up a lot of space. In
a development project new angle pylons were designed in 2014. The new pylons take
up much less ground space and also have a smaller visual impact.
In a power line corridor close to Lake Storuman Svenska kraftnät is testing composite
220 kV poles as an alternative to creosote-treated wood poles. Two new poles were
erected in August to replace creosote-treated poles that needed to be replaced due to
rot damage. The new poles are currently being evaluated.
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POWER LINE CORRIDORS CAN CONTRIBUTE TO
FUNCTIONING GREEN INFRASTRUCTURE
Recently there has been growing interest in how infrastructure environments, such as
power line corridors, can contribute to functioning green infrastructure and biological
diversity. The Swedish Board of Agriculture has established a coordinating group for
management of grasslands in infrastructure environments. Svenska kraftnät is taking
part in this work together with several other parties, including the Swedish Transport
Administration, Artdatabanken (Species Data Bank), Vattenfall, Swedavia and
researchers. Correctly managed, infrastructure environments can be resource for
preserving biological diversity.
In one project, conducted in collaboration with the Swedish Biodiversity Centre and
the Swedish University of Agricultural Sciences (SLU), the extent to which power line
corridors act as dispersal corridors for butterflies in different types of landscape was
examined. In 2014 inventories and studies of the movements of tagged individuals
were conducted. The project is scheduled to be completed in 2015.
In another project the University of Agricultural Sciences is developing and testing
methods and designs for a nationwide programme for monitoring of valuable natural
features in power line corridors on the national grid. In 2014 the university studied
different habitats in the field to produce data on which to base decisions on
appropriate methods.
07. RESEARCH AND DEVELOPMENT
Research and development (R&D) in the fields of electric power transmission and
distribution plays an important role in Svenska kraftnät’s operations. The company is
therefore involved in research and technology development projects aimed at
supporting a future electricity system. As today, tomorrow’s electricity system needs to
live up to the defined climate goals, be reliable and sufficiently flexible to adapt to a
changing external environment and changing requirements.
Svenska kraftnät is involved in and supports technological research, development and
demonstration in ten areas of technology:
>
system use and operational reliability
>
system impact from large-scale renewable electricity generation
>
the environment
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>
information and operating systems
>
maintenance
>
dam safety
>
the electricity market
>
technology for stations and transmission lines
>
talent management
>
other initiatives covering multiple technology areas
In 2014 Svenska kraftnät continued to strengthen its R&D work and prepared a
prospective three-year R&D plan.
Svenska kraftnät often conducts research and development activities in partnership
with companies in the industry through Elforsk AB, a company that is jointly owned
with Svensk Energi and that will become Energiforsk AB on 1 January 2015. Working
with universities is another priority. Overall, research and development activities are
of great long-term importance for ensuring access to and developing the skills which
Svenska kraftnät needs to be able fulfil its mission today and in the future.
Together with ABB, Statnett and Det Norske Veritas (DNV), Svenska kraftnät is a joint
owner of the development company STRI AB in Ludvika, which conducts research and
development projects. Several of these are conducted in collaboration with the
shareholders and with the Nordic grid operators. In 2014 the focus on research issues
that are of common interest in Europe continued to increase. Examples of such issues
include integration and balancing of renewable energy across multiple grids.
In 2014 Svenska kraftnät used SEK 26 (20) million for research and development.
During the year projects were conducted that will help improve the operational
reliability, availability and efficiency of the electricity system over the long term. The
following are a few examples:
>
In 2013 and 2014 Svenska kraftnät conducted an R&D project to obtain better
data for determining how to handle sleeper foundation blocks when power lines
are demolished. The project included sampling and analysis of the distribution
of creosote in different soil and water conditions. The results showed that the
risk that contaminants will spread beyond the immediate proximity of the
foundations is minimal.
>
A prototype has been built to test a measurement method for non-contact
temperature monitoring of disconnectors. This was installed on a test basis in
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2012. As of 2013 the data is being analysed at the Royal Institute of Technology
as part of a Ph.D. project. The work continued in 2014.
>
In 2014 further studies were made of how Svenska kraftnät should respond to
the expected reduction of inertia in the power system, which can lead to
unacceptable frequency deviations. A partnership with Fingrid and Nordiska
Analys Gruppen (NAG) resulted in a proposal for solutions on how to prevent
frequency deviations after major disturbances.
>
Power system models for Svenska kraftnät’s Aristo power system simulator were
further developed. The power system simulator is used for operator training,
operational analysis and power system studies. It is also important to ensure
that the simulator is used in higher education, to enhance skills. Aristo is also
used at the Chalmers University of Technology, the Royal Institute of
Technology and the Faculty of Engineering at Lund University.
>
Svenska kraftnät is participating in the Nordic knowledge network for research
into phasor measurement units (PMU). This is a new technology that can help
improve our understanding of the dynamics of the Nordic networks, improve
monitoring capabilities and ultimately provide control mechanisms for the
networks.
>
SCADA15 security is an initiative in information and operating systems that was
established in 2010 and continued in 2014. The initiative is a joint project
between the Royal Institute of Technology, Swedish Defence Research Agency
and Svenska kraftnät in which Svenska kraftnät is funding research at the Royal
Institute of Technology.
>
Svenska kraftnät has strengthened its collaboration with the Royal Institute of
Technology after one employee was appointed visiting professor at the institute
in 2014.
>
In 2014 Svenska kraftnät continued to study two new techniques that can enable
improved assessments of the status and risk of disturbance associated with tall
trees in power line corridors. One method uses advanced laser-based measuring
techniques. The other is based on three-dimensional photography combined
with advanced computerised interpretation. The goal is to introduce the
technique that is best suited for the company’s maintenance activities from an
operational perspective.
>
Svenska kraftnät is providing financial support to two university research
programmes, Elektra and Vindforsk, and is providing direct support to selected
research projects at university colleges.
15
Supervisory Control and Data Acquisition (SCADA).
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>
As part of its work on developing smart grids, Svenska kraftnät is participating
in an Elforsk project. The company has also taken an active role in the Swedish
government’s coordinating council for smart grids.
>
Svenska kraftnät is supporting knowledge and competency building in dam
safety, partly through R&D projects and partly by supporting the Swedish
Hydropower Centre, a centre for higher education and research in the fields o
hydroelectric power and mining dams. The Centre’s activities are divided into
two areas of expertise – hydraulic engineering, and hydro turbines and
generators. Svenska kraftnät supports both areas.
08. INTERNATIONAL COLLABORATION
Svenska kraftnät is working to increase the integration and harmonisation of the
Nordic and Baltic electricity markets and electricity grids. The company is also tasked
with developing electricity market cooperation in Europe to promote the development
of a single market for electricity.
EUROPEAN ELECTRICITY MARKET
COOPERATION
In Europe extensive work is underway to create an integrated European electricity
market with a secure energy supply. The EU’s third legislative package for an internal
electricity market is a key part of this effort, which has prompted in an increased
demand for a European presence and focus for Svenska kraftnät. Svenska kraftnät’s
engagement in European cooperation takes place under the aegis of the European
Network of Transmission System Operators for Electricity (ENTSO-E), which brings
together 41 European grid operators in 34 countries. ENTSO has been tasked by the
European Commission with two principal duties:
>
Produce a proposal for binding European rules, or “network codes” in the areas
of operation, grid connection and the electricity market.
>
Produce a European Ten-Year Network Development Plan (TYNDP).
NETWORK CODES AND COMMISSION GUIDELINES
In 2014 Svenska kraftnät participated in ENTSO’s work on producing a proposal for
network codes. The company has assisted ENTSO in preparing for discussions with the
European Commission and the European Agency for the Cooperation of Energy
Regulators (ACER). The company also assisted the Swedish government prior to the
comitology on the network codes.
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In 2014 the Commission continued to work on the network codes proposed by ENTSO
(see status illustration below). As part of this work, certain network codes have been
reformulated as guidelines. Regardless of whether the proposals are submitted as
network codes or guidelines, they will enter into force as EU regulations. They will thus
become binding for each member state.
In December 2014 the first set of guidelines, Framework Guidelines on Capacity
Allocation and Congestion Management for Electricity, were approved in the first
instance (all member states). The guidelines are expected to become effective in the
second quarter of 2015.
Even if the network codes/guidelines have not yet taken effect, a number of
preparatory projects have been initiated in ENTSO.
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In 2014 Svenska kraftnät started a project called SincE 16, which is aimed at ensuring
that the company complies with the coming network codes/guidelines. During the year
the expected network codes/guidelines were reviewed. In the course of the review
Svenska kraftnät identified changes that are likely to be needed to ensure that the
company lives up to the coming regulations.
In ENTSO work has begun on implementing certain requirements and on developing
coordinating methods. Svenska kraftnät participated in this work during the year. One
example is the ongoing market coupling project in north-western and southern
Europe.
Market coupling in Europe
The integration of electricity markets in Europe remained a key issue for Svenska
kraftnät and its European partners in 2014. During the year Svenska kraftnät
continued to be involved in those projects which are aimed at deepening the
integration of electricity markets in the Nordic region, central and western Europe,
Switzerland and the United Kingdom through price coupling of several regions. This
means that the power exchanges simultaneously and using the same methods of
calculation calculate market prices and trading volumes between areas for the coming
24-hour delivery period, with the aim of assuring correct prices and flows between
exchange regions. Through price coupling it is possible to use the overall resources
more efficiently and thus achieve increased security of supply within and among the
countries in the region. The project originates in the EU regional initiatives that were
launched in 2009 by the relevant regulators with the support of system operators and
power exchanges.
On 5 February 2014 market prices and trading volumes for day-ahead trading in the
northwest European region were calculated for the first time, simultaneously and
using the same calculation method. Price coupling covered about 75 per cent of the
European electricity market and marks an important step towards the establishment
of a single European electricity market in line with the EU’s ambition. The expansion
of collaboration in Europe will continue also after this. On 13 May 2014 the number of
countries participating in the price coupling project increased as Spain, France and
Portugal joined the scheme. Work is underway on also involving Italy and Switzerland
in the partnership.
In 2014 Svenska kraftnät, along with the power exchanges and other transmission
system operators, was involved in a development project aimed at creating a single
intraday trading system covering the Nordic region, central, southern and western
Europe, including the United Kingdom and Switzerland. The project is in the form of a
pilot project for ENTSO and is being closely monitored by the European Commission
16
Svenska kraftnät Implementation of Network Codes in Europe.
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and ACER. The purpose is to enable more efficient trading among European countries
and further the integration of a larger volume of renewable electricity through
integrated capacity allocation and a single order book. It is also expected that the
project could result in reduced costs for balancing and reserves. The idea is that the
intraday solution that is produced will over time be expanded to also comprise other
regions in Europe. The goal is to implement the new platform for intraday trading at
the end of 2015.
NEW EUROPEAN TEN-YEAR NETWORK DEVELOPMENT
PLAN
Svenska kraftnät is participating in ENTSO’s biannual preparation of a European TenYear Network Development Plan (TYNDP). Based on various visions, the plan
describes the potential development of the electricity network over the next 10 to 15
years in accordance with directives from the EU. The plan identifies needs for
investments to ensure that the transmission network contributes to the EU’s energy
policy objectives related to security of supply and climate change while also furthering
the process of creating an integrated electricity market.
The latest version, TYNDP2014, which was completed in 2014, points to potential grid
investments in Europe of up to €150 billion in the period to 2030. These
improvements to the network, which have already been adopted, initiated or are under
consideration, will have a positive impact on the European economy and environment,
and will pave the way for an increased share of renewable electricity production.
INCREASED ACCESS TO MARKET INFORMATION
The Transparency Regulation aims to give European market players access to the
market information they need to be able to make effective decisions on trading,
production and other matters. As of 5 January 2015 the information has been available
to the public on a platform17 created by ENTSO. In 2014 Svenska kraftnät participated
in ENTSO’s work on setting up the platform. The company has also been engaged in a
project aimed at ensuring that the demanded information, such as unavailability of
production facilities, total production volumes and regulating energy prices, is passed
on from Nord Pool Spot and Svenska kraftnät to the platform.
NORDIC HARMONISATION
NORDIC BALANCING SETTLEMENT (NBS)
Together with its counterparts in Finland and Norway, Fingrid and Statnett, Svenska
kraftnät is conducting a project called Nordic Balancing Settlement, which is aimed at
establishing a joint Nordic balancing settlement system. The work forms an important
part in the development of a Nordic retail market. The goal for the project is to
17
https:\\transparency.entsoe.eu\
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establish a joint company, along with an IT system and balancing settlement system,
that will cut down on administration and lead to long-term cost savings. Against this
background a jointly owned company called eSett Oy was established in 2013.
Work on the project continued during the year with the harmonisation of the market
models and implementation of new system support for balancing settlement.
Together with the Swedish Energy Markets Inspectorate, Svenska kraftnät has
identified necessary amendments to the Swedish Electricity Act, ordinances and
regulations following the introduction for NBS. The report of the Energy Markets
Inspectorate on legal amendments has been out for consultation and is now going
through a drafting process at the government.
THE REGULATING ENERGY MARKET
In 2014 Svenska kraftnät and the other Nordic system operators reviewed the function
of the Nordic regulating energy market with the aim of developing the joint regulating
energy market. This work has resulted in a proposal for improvements which relate to
reduced requirements for bid volumes, electronic orders, harmonisation of activity
times used in determining prices and the permissibility of “recovering bids”. The
measures are aimed at increased efficiency and development to obtain more bids, and
at adapting the regulating energy market in line with the coming balancing network
code and preparing for increased exchanges with neighbouring non-Nordic countries.
Based on the Nordic review, Svenska kraftnät and the other Nordic system operators
are participating in one of the European pilot projects for implementation of the
coming balancing network code in Europe. The objectives are to:
>
develop the Nordic regulating energy market in accordance with the proposed
measures for improving the liquidity and efficiency of the regulating energy
market.
>
expand the Nordic regulating energy market to include more neighbouring
countries.
Currently three studies into the possibility of establishing exchanges with non-Nordic
neighbouring countries – Germany, the Baltic states and Poland – are underway. The
Nordic-Baltic study is an extension of a project established in the Baltic Energy Market
Interconnection Plan (BEMIP). The purpose is to clarify how the Baltic TSOs can
develop the Baltic regulating energy market to bring it into full conformity with the
Nordic market. The project forms part of the implementation of EU rules.
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DEVELOPING THE ELECTRICITY MARKET IN
THE BALTICS
In 2014 efforts to integrate the Baltic and Nordic electricity markets continued. The
work is based on BEMIP and was initiated by the European Commission with the aim
of introducing a common regime for reserves and a balancing energy market. The
regime needs to be consistent with the regulations and market mechanisms that apply
in the Nordic market and implemented by the deadline indicated in European
legislation.
The whole Baltic region is now integrated with the Nordic electricity market in terms
of day-ahead and intraday trading. The integration has been effected in two ways.
Firstly, by expanding the electricity market to the Baltics with the help of Nord Pool
Spot. Secondly, by expanding the grid in cases where this is of strategic importance for
the European electricity market, for example between Sweden and Lithuania. The new
transmission line, called NordBalt, is a direct current cable between Sweden and
Lithuania. The cable is necessary for the establishment of a Nordic-Baltic electricity
market and commissioning is scheduled for the end of 2015.
SEVEN-YEAR REVIEW OF THE GROUP
Some development work remains to be done before the market benefit of NordBalt and
the linked-up Nordic-Baltic market can be realised. This applies, for instance, to the
goal of further integration, for example through the establishment of a Nordic-Baltic
regulating energy market and joint handling of capacity allocation and network
limitations.
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2014
2013
2012
2011
2010
2009
2008
Income statement, SEKm
Operating revenue
Operating expenses excluding depreciation,
amortisation and impairment
9,319
10,111
9,789
9,282
10,547
6,851
7,717
-7,724
-8,565
-7,999
-7,965
-9,098
-5,881
-6,328
Depreciation, amortisation and impairment
-927
-715
-811
-676
-664
-613
-585
13
19
23
9
20
31
1,069
681
850
1,002
650
805
388
1,873
52
4
-64
-42
-22
-7
-67
733
854
938
608
783
381
1,806
-2
-5
-15
-14
-10
-6
-3
-
1
27
-13
-4
1
0
731
850
950
581
769
376
1,803,
Profit/loss from interests in associates
Operating profit
Financial items
Profit after financial items
Tax
Minority share of profit after tax
Profit for the year
Balance sheet, SEKm
Intangible assets
Property, plant and equipment
Non-current financial assets
Inventories
Current receivables
Cash and cash equivalents
Total assets
Equity
Minority interests
Deferred tax liability
188
328
306
308
282
284
259
20,096
16,498
13,568
12,465
10,400
9,782
8,893
160
122
98
105
96
347
1,528
85
87
84
86
89
88
89
1,584
1,440
1,666
1,844
1,972
1,023
842
225
160
210
733
370
130
104
22,338 18,635
15,932
15,541
13,209
11,654
11,715
8,114
9,026
8,849
8,625
8,054
7,971
7,457
-
-
34
61
48
44
45
32
33
32
40
38
32
28
Non-current liabilities
Interest-bearing
6,202
3,775
1,854
2,768
1,972
1,835
1,621
Non-interest-bearing
5,031
3,870
3,272
1,794
936
507
393
663
681
633
537
478
433
392
Provisions
Current liabilities
Interest-bearing
Non-interest-bearing
Total equity and liabilities
Key performance indicators
Return on adjusted equity after tax18
-
-
-
82
82
82
98
1,384
1,427
1,482
2,205
1,684
1,264
1,024
22,338 18,635
15,932
15,541
13,209
11,654
11,715
19.8
%
7.2
8.6
9.5
6.1
8.4
4.3
Return on capital employed
%
5.0
7.6
9.7
6.5
9.0
4.5
21.6
Equity/assets ratio
%
35.7
42.0
47.0
45.6
53.1
57.2
60.9
Operating margin
%
7.3
8.4
10.2
7.0
7.6
5.7
24.3
Capital turnover ratio
times
0.5
0.6
0.6
0.7
0.9
0.6
0.7
Debt/equity ratio
%
83.3
54.8
30.4
37.4
30.8
33.2
28.1
Self-financing ratio
Interest coverage ratio19
times
0.3
0.4
0.8
0.6
1.1
0.7
1.6
times
n/a
n/a
14.8
13.9
14.0
13.3
25.7
Return after flat-rate tax of 22 per cent from 2013. Adjusted equity refers to the average of opening and closing restricted
equity for the year and 78 per cent of non-restricted equity.
19 As the interest expense in 2013 and 2014 was positive, this key performance indicator is not applicable for these years.
18
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Other
Internally allocated funds
SEKm
1,271
1,460
1,680
1,189
1,370
983
1,347
Net debt
SEKm
6,640
4,296
2,277
2,655
2,162
2,220
2,007
Investments
SEKm
4,353
3,642
2,375
2,771
1,276
1,527
963
Dividend paid to the government
SEKm
553
618
378
499
244
1,172
476
Man-years
No.
504
461
422
375
344
317
295
Energy supplied to the grid
TWh
116.6
119.3
123.5
113.5
110.3
104.4
115.0
Energy consumed from the grid
TWh
113.6
116.5
120.0
110.8
108.0
101.7
112.1
Energy losses
TWh
3.0
2.8
3.5
2.7
2.4
2.7
2.9
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09. FINANCIAL STATEMENTS
CONSOLIDATED INCOME
STATEMENT
SEKm
Not
e
Jan-Dec
Jan-Dec
2014
2013
4,305
4,264
112
248
4,387
4,977
138
202
Operating revenue
- Revenue from transmission of electricity
1
- Revenue from balancing and frequency control
- Revenue from peak power reserve
- Government grant for power contingency
planning
- Other external revenue
2
3
259
280
9,188
110
21
9,319
9,984
110
17
10,111
-458
-1,738
-4,391
-112
-74
-424
-516
-432
-1,806
-5,197
-138
-83
-419
-469
-7,255
-8,112
13,14
-927
-11
-8,651
-715
-21
-9,280
8
13
19
681
850
0
3
49
-1
2
3
733
854
-4
2
-
-3
-2
1
Net sales
Capitalised expenditure
4
Other operating revenue
Total operating revenue
Operating expenses
Staff costs
- Costs for transmission of electricity
5
6
- Costs for balancing and frequency control
- Peak power reserve
- Disturbance reserve
- Operations and maintenance expenses
- Other external expenses
7
Miscellaneous external expenses
Depreciation, amortisation and impairment of
property, plant and equipment and intangible assets
Other operating expenses
Total operating expenses
Profit/loss from interests in associates
Operating profit
Profit/loss from financial investments
Profit/loss from securities and receivables
classified as non-current assets
Other interest income and similar items
Interest expense and similar items
9
10
11
Profit after financial items
Tax on profit for the year
Deferred tax
Minority share of profit after tax
12
12
82/131
731
Profit for the year
850
BALANCE SHEET BY BUSINESS SEGMENT
(SEKm) 2014
Transmission System
of Electricity
Operator
on the Grid Electricity
Name
Revenue from transmission of electricity
Revenue from balancing and frequency control
Revenue from peak power reserve
Government grants for power contingency
Other external revenue
NET SALES
Capitalised expenditure
Other operating revenue
ADDITIONAL OPERATING REVENUE
TOTAL OPERATING REVENUE
Staff costs
STAFF COSTS
Costs for transmission of electricity
Costs for balancing and frequency control
Disturbance reserve
Peak power reserve
Operations and maintenance expenses
Other external expenses
Consolidation adjustment disturbance reserve
MISCELLANEOUS EXTERNAL EXPENSES
Depreciation, amortisation and impairment
DEPREC, AMORT & IMP OF PPE AND INTANGIBLE ASSETS
OTHER OPERATING EXPENSES
TOTAL OPERATING EXPENSES
INTERNAL ITEMS
TOTAL INTERNAL ITEMS
Profit/loss from shares in associates
Operating profit
3031, Effektavgift, fasta
TelecomChargeable Power
munications Activities Contingency
Operations
4 305
28
0
0
165
4 498
88
14
102
4 600
-367
-367
-1 738
-155
-37
0
-387
-242
8
-2 551
-853
-853
-7
-3 778
-58
-58
0
4 236
112
0
12
4 360
12
4
16
4 376
-50
-50
0
-4 236
-37
-112
-17
-54
16
-4 440
-20
-20
0
-4 510
0
0
0
0
0
0
67
67
3
3
6
73
-14
-14
0
0
0
0
-21
-4
0
-25
-52
-52
-4
-95
58
58
0
0
0
0
15
15
1
0
1
16
-4
-4
0
0
0
0
0
-6
0
-6
-2
-2
0
-12
0
0
0
0
0
248
0
248
6
0
6
254
-23
-23
0
0
0
0
1
-210
-24
-233
0
0
0
-256
0
0
764
-134
36
4
-2
Associates
13
13
Total
4 305
4 264
112
248
259
9 188
110
21
131
9 319
-458
-458
-1 738
-4 391
-74
-112
-424
-516
0
-7 255
-927
-927
-11
-8 651
0
0
13
681
83/131
INCOME STATEMENT BY BUSINESS SEGMENT
(SEKm) 201320
Transmission System
of Electricity
Operator
on the Grid Electricity
Name
Revenue from transmission of electricity
Revenue from balancing and frequency control
Revenue from peak power reserve
Government grants for electricity contingency
Other external revenue
NET SALES
Capitalised expenditure
Other operating revenue
TOTAL OEPRATING REVENUE
STAFF COSTS
Costs for transmission of electricity
Costs for balancing and frequency control
Disturbance reserve
Peak power reserve
Operations and maintenance expenses
Other external expenses
MISCELLANEOUS EXTERNAL EXPENSES
Depreciation, amortisation and impairment
Other operating expenses
TOTAL OPERATING EXPENSES
Internal revenue
Internal expenses
INTERNAL ITEMS
TOTAL INTERNAL ITEMS
Profit/loss from shares in associates
OPERATING PROFIT
Telecom- Chargeable
munications Activities
Power
Contingency
Operations
System
Operator
Gas
Associates
4 387
66
0
0
155
4 608
110
6
4 724
-391
-1 806
-236
-41
0
-382
-179
-2 644
-600
-60
-3 695
18
-50
-32
-32
0
4 911
138
0
12
5 061
0
5
5 066
-25
0
-4 961
-42
-138
-17
-53
-5 211
-19
-3
-5 258
0
0
0
0
0
0
0
0
69
69
0
6
75
-3
0
0
0
0
-20
-7
-27
-47
-1
-78
50
-17
33
33
0
0
0
0
13
13
0
0
13
-2
0
0
0
0
0
-9
-9
-2
-4
-17
0
-1
-1
-1
0
0
0
202
0
202
0
0
202
-10
0
0
0
0
0
-192
-192
0
0
-202
0
0
0
0
0
0
0
0
31
31
0
0
31
-1
0
0
0
0
0
-29
-29
0
0
-30
0
0
0
0
997
-192
30
-5
0
1
Total
(SEKm)
4 387
4 977
138
202
280
9 984
110
17
10 111
-432
-1 806
-5 197
-83
-138
-419
-469
-8 112
-668
-68
-9 280
68
-68
0
0
19
850
0
0
19
19
COMMENTS ON THE INCOME STATEMENT
OPERATING REVENUE
Operating revenue fell in 2014, to SEK 9,319 (10,111) million, a decrease of SEK 792
million. The decrease is mainly attributable to the business segment System Operator
Electricity. A small portion of the decrease is attributable to the business segment
Transmission of Electricity on the Grid.
Revenue from balancing and frequency control declined by SEK 713 million to
SEK 4,264 (4,977) million, which was largely due to lower revenues from balance
providers and system operators on the back of a lower electricity price and lower
volumes compared with the previous year.
Revenue from transmission of electricity declined to SEK 4,305 (4,387) million, chiefly
as a result of a reduced usage fee and lower supply of electricity to the grid. Supply to
the grid decreased compared with the previous year, despite marginally higher
electricity production in the country. The reason is that some of the generated
electricity is fed into the underlying regional networks. Transit revenue increased
compared with the previous year, however.
OPERATING PROFIT
The consolidated operating profit was SEK 681 (850) million, which is SEK 169 million
less than in 2013. The operating profit includes external revenue and expenses, shares
The allocation key for revenue and expenses by business segment was changed in 2014 to improve the allocation of revenue
and expenses to the correct business segment. Figures for 2013 have not been adjusted, which means that revenue and
expenses for each row and business segment are not fully comparable.
20
84/131
in the profit or loss of associated companies and depreciation, amortisation and
impairment in the Group.
Operating expenses were SEK 8,651 (9,280) million. Some categories of expense relate
to two business segments: Transmission of Electricity on the Grid and System
Operator Electricity. Expenses that cannot be directly attributed have been allocated
between the two segments on a standardised basis.
Transmission of Electricity on the Grid is the dominant profit-generating business
segment in Svenska kraftnät’s operations. The operating profit for the year for the
business segment was SEK 764 (997) million. The lower profit was mainly due to the
recognition of impairment losses in 2014, as described below. Energy revenues and
energy compensation were lower than in 2013 due to the reduction of the usage fee,
which was prompted by the lower than expected price achieved in the procurement of
energy losses. The supply and consumption of electricity were both down on 2013. In
2014 costs for energy losses increased by SEK 24 million compared with the previous
year.
Transit revenues in 2014 were significantly higher than in 2013. The increase was due
to the time lag before settlement with ENTSO-ITC is made, with settlement for
revenues earned in 2013 being made in 2014. Transit costs were also higher. In view of
the complexity of the allocation mechanism in the agreement with ENTSO, coupled
with the long time lag before invoicing and corrections are made, it is hard to predict
the economic outcome for the right period. The profit for the year is partly based on
estimated revenue and expenses.
Revenue and expenses for primary control were down on 2013, which was largely due
to a reduced need for one of the components of primary control, frequency
containment reserve – disturbance (FCR-D).
The business segment System Operator Electricity reported an operating loss of
SEK -134 (-192) million. The turnover for balancing and frequency control reflect the
level of electricity prices during the year, which is evident in the form of a significant
gross deviation compared with the previous year. In 2014 both the volume and price of
purchased and sold balancing energy fell. The improved operating profit was due to
increased revenues from fees from balance providers after fees were raised on two
occasions during the year. The raised fees were still insufficient to cover the increased
expenses and achieve breakeven. Revenues for primary control were down somewhat
while expenses increased for the business segment.
The Telecommunications business segment reported an operating profit of SEK 36
(30) million. The lower figure for last year was due to insufficient provisions for inter-
85/131
segment revenues between Telecommunications and Transmission of Electricity on
the Grid.
During the year the Power Contingency Planning business segment used SEK 248
(202) million of the appropriation for power contingency planning, which was funded
through grants.
The operating profit for the Chargeable Activities business segment was SEK 4 (-5)
million.
Svenska kraftnät is still in a recruitment phase and has added 51 (31) new full-time
employees since December 2013. Staff costs increased by SEK 26 million from
SEK 432 million in 2013 to SEK 458 million in 2014.
Depreciation, amortisation and impairment of non-current assets increased by
SEK 212 million from SEK 715 million to SEK 927 million. Depreciation and
amortisation of non-current assets decreased by SEK 8 million to SEK 660 million.
The decrease is explained by the fact that several facilities were fully depreciated
during the year. The increase refers to the expenses arising as result of the impairment
losses that were recognised in 2014, which totalled SEK 267 million.
Svenska kraftnät has cancelled its contract with Alstom Grid for delivery of a new
network monitoring system. The accrued expenses have been charged to expense,
which has had a negative impact on earnings of SEK 173 million. Project planning
expenditure of SEK 93 million for the Ekhyddan – Barkeryd transmission line project
was also charged to expense. The project resulted from the need to handle an increase
in power at the Oskarshamn nuclear power plant. However, new network studies
conducted in autumn 2014 showed that it will be possible to handle both the increase
in power at Oskarshamn and ensure the operational reliability of the future network
that will come into being upon completion of the Gotland and NordBalt projects
through the new Ekhyddan – Nybro – Hemsjö transmission line. The Ekhyddan –
Barkeryd project has therefore been terminated.
Earnings for last year include a SEK 55 million charge related to the decision not to
build the western branch to Norway in the SydVästlänken project, of which SEK 47
million referred to impairment losses.
The East Svealand programme included plans for significant investments in new
transmission lines and stations to handle the feed-in of additional power from the
three nuclear reactors in Forsmark. The increase in power at Forsmark 3 will not be
implemented, however. Negotiations are underway on new connection agreements,
which will cover all of Svenska kraftnät’s investment expenditure for Forsmark,
including the SEK 31 million which has already been invested in project design for
86/131
three transmission lines related to Forsmark 3. If no compensation is paid to Svenska
kraftnät for its investment expenditure for the three transmission lines for Forsmark 3
for which planning work has been completed, this would have a negative impact on
earnings of SEK 31 million.
Earnings from interests in associates were SEK 13 (19) million, which is SEK 6 million
less than in the prior year. Out of the total figure, SEK - (5) million is due to the result
of a share offering in Nord Pool Spot occasioned by the addition of new shareholders.
The consolidated operating margin was 7.3 (8.4) per cent, which is 1.1 percentage
points lower than in the previous year.
NET FINANCIAL INCOME
Net financial income in the Group was SEK 52 (4) million, which is an increase of
SEK 48 million compared with the previous year. Interest income in the Group was
SEK 3 (2) million. The improvement in net financial income was mainly due to an
elimination of SEK 50 million related to indexation of the parent company’s pension
liability under the bases for safeguarding of pensions adopted by the National
Government Employee Pensions Board (SPV). The indexation for the previous year
was SEK -1 million. Despite increased borrowing, the interest expense for loans from
the National Debt Office has decreased by SEK 1 million to SEK -21 million, which is
due to a lower interest rate environment than in 2013. The parent company’s interest
on loans to the National Debt Office at 31 December 2014 was 0.0 per cent. The same
applies for interest expenses during the construction period that have been capitalised.
Despite the high level of investment, these declined by SEK 7 million from the previous
year due to the interest rate environment, which had a negative impact on net financial
income.
PROFIT FOR THE YEAR
The consolidated operating profit for the year was SEK 731 (850) million, which is
SEK 119 million less than in 2013. The profit represents a return on adjusted equity of
7.2 (8.6) per cent. Under the government appropriation letter for 2014, Svenska
kraftnät’s target is to achieve a return on adjusted equity of 6 per cent over the course
of a business cycle. The net profit margin after flat-rate tax was 6.1 (6.6) per cent.
87/131
CONSOLIDATED BALANCE SHEET
SEKm
Note
31 Dec
2014
31 Dec
2013
88/131
ASSETS
Non-current assets
Intangible assets
Capitalised software development costs
Land rights
Rights of use for fibre-optic cables
Assets under construction
Property, plant and equipment
Buildings and land
Machinery and other technical equipment
Assets under construction
Non-current financial assets
Interests in associates
Non-current receivables from associates
Other non-current receivables
13
52
52
18
66
67
55
23
183
188
328
455
9,981
9,660
419
9,750
6,329
20,096
16,498
128
15
17
121
1
160
122
20,444
16,948
85
87
592
25
96
77
794
561
11
135
64
669
1,584
1,440
225
160
225
160
1,917
1,687
22,338
18,635
14
17
18
19
Total non-current assets
Current assets
Inventories
Raw material inventories
Current receivables
Accounts receivable
Receivables from associates
Other receivables
Receivables from the State
Prepaid expenses and accrued income
20
21
22
Short-term investments
Cash and bank balances
Total current assets
TOTAL ASSETS
Contingent assets
SEKm
29
Note
31 Dec
2014
31 Dec
2013
89/131
EQUITY AND LIABILITIES
Equity
Restricted equity
Government capital
Other restricted capital
Non-restricted equity
Retained earnings
Profit for the year
Total equity
Minority interests
600
3,633
600
3,626
4,233
4,226
4,062
731
3,773
850
4,793
4,623
9,026
8,849
-
-
Deferred tax liability
23
32
33
Provisions
Provisions for pensions and similar obligations
Other provisions
24
663
0
681
-
663
681
6,202
5,031
3,775
3,870
11,233
7,645
657
107
620
761
0
43
623
1,384
1,427
22,338
18,635
None
None
Non-current liabilities
Interest-bearing liabilities
Non-interest-bearing liabilities
Current liabilities
Accounts payable
Tax liability
Other liabilities
Accrued expenses and deferred income
25
26
27
28
TOTAL EQUITY AND LIABILITIES
Pledged assets
Contingent liabilities
29, 30
90/131
COMMENTS ON THE BALANCE SHEET
TOTAL ASSETS
Consolidated total assets were SEK 22,338 (18,635) million. This is an increase of
SEK 3,703 million, which is mainly due to increased assets under construction.
NON-CURRENT ASSETS
Svenska kraftnät’s intangible assets consist of land rights, rights of use for fibre-optic
cables, licenses and capitalised software development costs. The carrying amount was
SEK 188 (328) million. Investments in software, mainly the upgrading of the network
monitoring system, were SEK 34 (60) million. Amortisation of intangible assets for the
year was SEK 23 (35) million. In addition, impairment losses of SEK 165 (-) million
have been recognised.
Property, plant and equipment mainly comprise power lines, stations, buildings and
land, fibre-optic cables and other technical equipment as well as assets under
construction. Property, plant and equipment had a total value of SEK 20,096 (16,498)
million, which is an increase of SEK 3,598 million. Investments during the year were
SEK 4,305 (3,582) million and depreciation was SEK 637 (633) million. In addition,
impairment losses of SEK 57 (47) million have been recognised.
Other non-current assets comprise interests in associates and non-current receivables.
Interests in associates were SEK 128 (121) million. In 2014 the parent company
received SEK 4 (4) million in dividends from Nord Pool Spot AS. The profit from
shares in associates was SEK 13 (19) million.
INVENTORIES
Inventories, which totalled SEK 85 (87) million, include fuel for gas turbines in the
subsidiary company Svenska Kraftnät Gasturbiner AB.
CURRENT ASSETS
Current assets were SEK 1,894 (1,687) million, of which SEK 225 (160) million refers
to cash and cash equivalents. The increase mainly relates to accrued income for
balancing energy, which was not invoiced during the period and for which provisions
have therefore been made.
EQUITY
Consolidated equity at year-end was SEK 9,026 (8,849) million. During the year
SEK 553 (618) million was distributed to the State. The consolidated profit for the year
was SEK 731 (850) million.
91/131
NON-CURRENT LIABILITIES
The Group’s non-current liabilities consist of the parent company’s credit line with the
National Debt Office in the amount of SEK 6,202 (3,775) million. The increase of
SEK 2,427 million is explained by increased investments compared with the previous
year, which has increased debt. The average interest rate on the Group’s loans in 2014
was 0.42 (0.78) per cent.
Non-interest-bearing non-current liabilities, which consist of contributions from
landowners, investment grants from stakeholders, capacity charges recognised as
liabilities, advances from customers in the fibre-optic business and other customers
were SEK 5,031 (3,870) million. The change was mainly due to funded capacity
charges for the year in the amount of SEK 813 (356) million, which could not be used
as investment grants in 2014 due to a shortage of investments meeting the criteria for
allocation from external capacity charges. The change is also due to an increase in
capitalised investment grants and capacity fees.
Net debt increased by SEK 2,344 million to SEK 6,640 (4,296) million. This affected
the debt/equity ratio, which increased to 83.3 (54.8) per cent. As above, the primary
reason was increased investments, leading to a higher debt level. The 2014 government
appropriation letter for Svenska kraftnät specifies a maximum debt/equity ratio of 120
per cent.
CURRENT LIABILITIES
Accounts payable decrease from SEK 761 million in 2013 to SEK 657 million in 2014
while accrued expenses and deferred income decreased from SEK 623 million in 2013
to SEK 620 million in 2014. Accounts payable are affected by payment plans for the
projects and therefore vary from year to year.
92/131
CONSOLIDATED CASH FLOW STATEMENT
SEKm
Operating activities
Operating profit before financial items
Jan-Dec
Jan-Dec
2014
2013
681
850
878
715
Adjustment for non-cash items
Depreciation, amortisation and impairment
Other items
Financial income and expense
Dividend received
Tax paid
Cash flow before change in working capital and
investments
Change in inventories
Change in current receivables
Change in current liabilities
Cash flow before investments
Investing activities
Investments in intangible assets
-268
-78
-20
-22
4
4
-4
-9
1,271
1,460
3
-79
2
-3
162
77
1,197
1,696
-48
-60
-4,217
-3,739
-31
-18
-
19
Net investments in operations
-4,296
-3,798
Cash flow after investments
-3,099
-2,102
Change in interest-bearing loans
2,427
1,920
Change in other non-current liabilities
1,290
750
-553
-618
3,164
2,052
160
210
225
160
65
-50
Investments in property, plant and equipment
Investments in financial assets
Sale of non-current assets
Financing activities
Dividend paid
Financing activities
Change in liquidity
Cash and cash equivalents incl. short-term investments at
beginning of year
Cash and cash equivalents incl. short-term investments at
end of year
Change in cash and cash equivalents
93/131
COMMENTS ON THE CASH FLOW STATEMENT
The cash flow statement is intended to describe the Svenska kraftnät Group’s ability to
generate cash and cash equivalents and supplements the description of profitability
and financial position presented in the income statement and balance sheet. Cash and
cash equivalents refer to cash and bank balances.
Cash flow from operating activities before changes in working capital declined by
SEK 189 million from 2013 to SEK 1,271 (1,460) million. The decrease is primarily
attributable to a lower operating profit. Cash flow from operating activities decreased
by SEK 74 million compared with 2013 to SEK 1,197 (1,696) million. The decrease is
chiefly due to an increase in current receivables, in particular increased provisions for
accrued income.
The Group’s investments increased in 2014, to SEK 4,353 (3,642) million, of which
SEK 4,265 (3,798) million refers to investments affecting cash flow. Investments
affecting cash flow are influenced by the inclusion of payments relating to investments
for the previous year in cash flow for the period (the same applies to the previous
year’s investments). Investing cash flow has also been adjusted for non-cash items,
such as capitalised construction interest.
The change in interest-bearing loans was SEK 2,427 (1,920) million. The increased
need for borrowing is explained by the high rate of investment. Other non-current
liabilities increased by SEK 1,290 (750) million, mainly as a result of an increase in
allocations of capacity charges and external investment grants. SEK 553 (618) million
was distributed to the State.
Cash flow for the year was SEK 65 million, compared with SEK -50 million in 2013.
94/131
CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY (SEKm)
Government
capital
Retained
earnings
incl. profit
for the year
Other
restricted
capital
Total
equity
600
3,603
4,422
8,625
-
-
-618
-8
-618
-8
-
23
-23
0
-
-
850
850
Closing balance 2013
600
3,626
4,623
8,849
Opening balance 2014
600
-
3,626
-
4,623
-553
-1
8,849
-553
-1
-
7
-7
0
-
-
731
731
600
3,633
4,793
9,026
Opening balance 2013
Dividend
Translation difference
Transfer between
restricted/non-restricted
capital
Profit for the year
Dividend
Translation difference
Transfer between
restricted/non-restricted
capital
Profit for the year
Closing balance 2014
Consolidated equity was SEK 9,026 (8,849) million, of which SEK 4,233 (4,226)
million refers to restricted equity.
The appropriation of retained earnings proposed in the annual report for 2013 was
approved by the Swedish government.
95/131
PARENT COMPANY INCOME
STATEMENT
Jan-Dec
2014
Jan-Dec
2013
4,316
4,264
4,397
4,978
2
112
248
138
202
3
254
276
9,194
9,991
110
21
110
17
9,325
10,118
5
-458
-432
6
-1,738
-1,806
-4,392
-112
-124
-5,202
-138
-131
-395
-532
-395
-485
-7,293
-8,157
-906
-696
-12
-21
-8,669
-9,306
656
812
6
3
49
36
1
4
Profit after financial items
714
853
Profit for the year
714
853
SEKm
Note
Operating revenue
- Revenue from transmission of electricity
1
- Revenue from balancing and frequency control
- Revenue from peak power reserve
- Government grant for power contingency
planning
- Other external revenue
Net sales
Capitalised expenditure
4
Other operating revenue
Total operating revenue
Operating expenses
Staff costs
- Costs for transmission of electricity
- Costs for balancing and frequency control
- Peak power reserve
- Disturbance reserve
- Operations and maintenance expenses
- Other external expenses
7
Miscellaneous external expenses
Depreciation, amortisation and impairment of
property, plant and equipment and intangible assets
13,14
Other operating expenses
Total operating expenses
Operating profit
Profit/loss from financial investments
Profit/loss from securities and receivables
classified as non-current assets
Other interest income and similar items
Interest expense and similar items
9
10
11
96/131
97/131
THE PARENT COMPANY AFFÄRSVERKET
SVENSKA KRAFTNÄT
Operating revenue was SEK 9,325 (10,118) million, of which SEK 12 (13) million
related to sales to Group companies. The profit after financial items was SEK 714 (853)
million.
The parent company’s investments in property, plant and equipment and intangible
assets totalled SEK 4,331 (3,640) million. Cash and cash equivalents at 31 December
2014 were SEK 192 (150) million.
The parent company finances its operations with equity and loans from the National
Debt Office. At year-end outstanding debt was SEK 6,202 (3,775) million and equity
SEK 8,799 (8,638) million.
In 2014 the parent company received co-funding for a number of investment projects
and used capacity charges received to fund investments that are designed to enhance
or maintain electricity transmission capacity in the grid.
98/131
PARENT COMPANY BALANCE SHEET
SEKm
Note 31 Dec 2014
31 Dec
2013
ASSETS
Non-current assets
Intangible assets
Capitalised software development costs
Land rights
Rights of use for fibre-optic cables
Assets under construction
13
Property, plant and equipment
Buildings and land
Machinery and equipment
Assets under construction
14
Non-current financial assets
Interests in Group companies
Receivables from Group companies
Interests in associates
Receivables from associates
Other non-current receivables
15
16
17
18
19
Total non-current assets
52
52
18
67
55
23
66
188
183
328
444
9,810
9,660
407
9,582
6,327
19,914
16,316
9
75
66
15
15
9
66
65
-
180
140
20,282
16,784
591
22
25
95
77
794
561
21
11
135
64
669
1,604
1,461
192
150
22,078
18,395
Current assets
Current receivables
Accounts receivable
Receivables from Group companies
Receivables from associates
Other receivables
Receivables from the State
Prepaid expenses and accrued income
20
21
22
Short-term investments
Cash and bank balances
TOTAL ASSETS
Contingent assets
29
99/131
PARENT COMPANY BALANCE SHEET
SEKm
Note
31 Dec 2014
31 Dec
2013
600
3,314
3,914
600
3,314
3,914
4,171
714
4,885
3,871
853
4,724
8,799
8,638
663
681
0
-
663
681
EQUITY AND LIABILITIES
Equity
Restricted equity
Government capital
Other restricted capital
Non-restricted equity
Retained earnings
Profit for the year
Total equity
Provisions
Provisions for pensions and similar obligations
24
Other provisions
Total provisions
Non-current liabilities
Interest-bearing liabilities
25
6,202
3,775
Non-interest-bearing liabilities
26
5,031
3,870
11,233
7,645
651
8
107
617
1,383
759
8
43
621
1,431
Total liabilities
12,627
9,076
TOTAL EQUITY AND LIABILITIES
22,078
18,395
None
None
Current liabilities
Accounts payable
Liabilities to Group companies
Other liabilities
Accrued expenses and deferred income
27
28
Pledged assets
Contingent liabilities
29,
30
100/131
PARENT COMPANY CASH FLOW STATEMENT
SEKm
Jan-Dec
2014
Jan-Dec
2013
656
812
Operating activities
Operating profit before financial items
Adjustment for non-cash items
Depreciation, amortisation and impairment
857
704
-256
-68
-18
-21
4
4
1,243
1,431
0
2
-79
145
3
82
Cash flow before investments
1,161
1,660
Investing activities
Change in non-current receivables
Change in other financial assets
-9
-30
22
33
Investments in intangible assets
-48
-60
-4,195
-3,737
Investments in financial assets
-1
-18
Sale of non-current assets
0
19
Net investments in operations
-4,283
-3,741
Cash flow after investments
-3,122
-2,081
Change in interest-bearing loans
2,427
1,920
Change in other non-current liabilities
1,290
789
-553
-618
3,164
2,091
150
140
192
150
42
10
Other items
Financial income and expense
Dividend received
Cash flow before change in working capital and
investments
Change in inventories
Change in current receivables
Change in current liabilities
Investments in property, plant and equipment
Financing activities
Dividend paid
Financing activities
Change in liquidity
Cash and cash equivalents incl. short-term investments at
beginning of year
Cash and cash equivalents incl. short-term investments at
end of year
Change in cash and cash equivalents
101/131
PARENT COMPANY STATEMENT OF CHANGES
IN EQUITY (SEKm)
Government
capital
Other
restricted
capital
Retained
earnings
incl. profit
for the year
Total
equity
Profit for the year
600
—
—
3,314
—
—
4,489
-618
853
8,403
-618
853
Closing balance 2013
600
3,314
4,724
8,638
Opening balance 2014
Profit for the year
600
—
—
3,314
—
—
4,724
-553
714
8,638
-553
714
Closing balance 2014
600
3,314
4,885
8,799
Opening balance 2013
Dividend
Dividend
of which SEK 3,914 (3,914) million refers to restricted equity.
The dividend is accounted for in the following income item:
Income item, SEK ‘000
2116 Dividend paid in by parent company and
payment of the same in government tax
Amount to
pay in
Amount
paid in
553,000
553,000
102/131
10. ADDITIONAL DISCLOSURES AND
NOTES
ACCOUNTING AND VALUATION PRINCIPLES
BASIS OF PREPARATION OF FINANCIAL STATEMENTS
Svenska kraftnät’s financial statements comply with the Swedish Bookkeeping
Ordinance (2000:606) and the regulations and general directions of the Swedish
National Financial Management Authority. The Ordinance is consistent with the
Swedish Accounting Act but is adapted for the circumstances applying for government
agencies and state enterprises. With certain addenda notified in government
appropriation letters, prepared in accordance with the Swedish Annual Accounts and
Budget Documentation Ordinance (2000:605) and the regulations and general
directions of the Swedish National Financial Management Authority. A part of Svenska
kraftnät’s operations, power contingency planning, is financed by government grants.
These operations are also subject to the Swedish Appropriation Ordinance
(1996:1189), which, in particular, sets forth the principles for settlement of
appropriations and the transfer of unused funds between budget years.
BASIS OF PREPARATION OF THE CONSOLIDATED
FINANCIAL STATEMENTS
The parent company’s functional currency is Swedish kronor, which is the reporting
currency for the parent company as well as the Group. Unless otherwise indicated, all
indicated amounts are rounded to the nearest million Swedish kronor. Income
statement items refer to the period 1 January – 31 December. Balance sheet items refer
to 31 December. Figures in parentheses refer to the previous year’s values.
GROUP ACCOUNTING PRINCIPLES
GROUP ACCOUNTING PRINCIPLES
The Svenska kraftnät Group comprises the parent company Affärsverket svenska
kraftnät, one subsidiary and seven associated companies. The parent company is a
Swedish state enterprise with registered office in Sundbyberg. The Swedish
government has a controlling interest in the Group.
The subsidiary and associated companies are limited companies or companies with an
equivalent legal status abroad.
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements are prepared in accordance with the purchase
method, which means, essentially, that the cost of shares in the subsidiary are
103/131
eliminated in equity in the subsidiary at the acquisition date. The recommendations on
consolidation of the Swedish Financial Accounting Standards Council are applied.
Intercompany profits are fully eliminated.
Associated companies are accounted for by applying the equity method. This means
that the carrying amount of shares and interests in associates in the consolidated
financial statements are measured at the Group’s share of equity in the associates.
Svenska kraftnät’s share of the profit or loss of an associate is thus included in profit or
loss and dividend paid in the consolidated financial statements. The share is included
in retained earnings.
UNTAXED RESERVES/APPROPRIATIONS
In preparing the consolidated financial statements, untaxed reserves and
appropriations in the subsidiary have been divided between deferred tax and restricted
equity. The deferred tax liability has been calculated at the current tax rate.
RECOGNITION OF REVENUE
Revenue is recognised to the extent that it is likely that the economic benefits will
accrue to the Group and the revenue can be reliably measured. Revenue is recognised
net of VAT. Intercompany sales are eliminated in the consolidated financial
statements.
Revenue from transmission of electricity
Revenue from transmission of electricity comprises capacity charges and usage fees as
well as compensation for transits. Capacity charges are fixed annual charges for
subscriptions, which are recognised on a straight-line basis over the period which the
charge is intended to cover, while usage fees are recognised in connection with use of
Svenska kraftnät’s services.
Revenues for transit are received when the grid is used for transmission of energy
through Sweden to other countries. The compensation agreement for transit, Inter
TSO Compensation, is an agreement among 35 transmission system operators in
Europe. The object of the agreement and its calculation mechanism are to ensure that
each party receives and provides economic compensation for the use of networks for
transmission of energy through one country to another. In theory, the compensation
consists of two parts: compensation for infrastructure and compensation for losses.
The compensation which Svenska kraftnät receives and pays is set in relation to the
flows of all other participating TSOs.
Revenue from balancing and frequency control
This form of revenue consists chiefly of sold balancing energy. If a customer has made
a net purchase of balancing energy during the settlement period this is reported as
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balancing energy revenue for Svenska kraftnät. If the customer has instead made a net
sale of balancing energy, this is reported as a balancing energy cost.
Revenue from capacity charges
Revenue from capacity charges refers to compensation from received capacity charges
for covering counter-trade costs for the year as well as revenue from capitalised
capacity charges. Revenue from capitalised capacity charges is settled at the same
intervals as the depreciation charges for the investment projects for which capacity
charges have been used. How received capacity charges may be used is regulated in
Regulation (EC) No 714/2009 of the European Parliament and of the Council.
Other revenue
Other revenue includes revenue from chargeable activities and use of the Eidel IT
system as well as revenue for covering the costs for the peak power reserve. Revenue
from capitalised expenditure and government grants for power contingency planning
are also recognised here.
Other revenue is recognised as the services are provided.
SEGMENT REPORTING OR BUSINESS SEGMENTS
The Svenska kraftnät Group’s primary segments are business segments. The Group’s
operations are divided into five business segments. A business segment is a unit of
Svenska kraftnät that is distinguishable for accounting purposes from other operations
based on the risks and opportunities created by Svenska kraftnät’s engagements.
ALLOCATION OF REVENUE AND EXPENSES TO
BUSINESS SEGMENTS
Revenue and expenses which relate to several business segments are allocated to these
using the following allocation keys:
>
Expenses for the disturbance reserve are dividend into three, with one third
allocated to each of Transmission of Electricity on the Grid, System Operator
Electricity and Power Contingency Planning.
>
For Revenue and expenses for primary control in case of operational
disturbances (FCR-D) one third is allocated to System Operator Electricity and
two thirds to Transmission of Electricity on the Grid. For revenue and expenses
for primary control during normal operation (FCR-N) and secondary control
(FRR-A) the full amount is allocated to System Operator Electricity.
>
Shared revenue and expenses are allocated using the following allocation key:
Transmission of Electricity on the Grid: 80 per cent, System Operator
Electricity: 11 per cent, Power Contingency Planning: 5 per cent,
Telecommunications: 3 per cent and Chargeable Activities: 1 per cent.
105/131
>
The Telecommunications business segment provides a nationwide
telecommunications and data network that is essential to maintaining a high
level of operational reliability in the grid. Transmission of Electricity on the Grid
uses the service and incurs internal expenses.
INTEREST INCOME
Interest income is recognised as earned. It is accounted for in the income statement in
the period in which it arises.
INTEREST EXPENSE
Interest expense comprises interest and other expenses incurred in connection with
the borrowing of capital. The interest expense is recognised in the period to which it
refers. Interest expenses during the period of construction are capitalised in respect of
the construction of non-current assets worth more than SEK 100 million.
RECEIVABLES AND LIABILITIES
Assets and liabilities have been measured at cost unless otherwise indicated. Doubtful
receivables are assessed individually and stated at the amount that is expected to be
paid.
RECEIVABLES AND LIABILITIES IN FOREIGN
CURRENCY
Receivables and liabilities in foreign currency have been translated at closing rates.
The difference between the value at the acquisition date and the value at the closing
date has been charged to earnings.
INVENTORIES
Inventories in the Group consist of fuel for operating gas turbines. Inventories have
been measured at the lower of cost and fair value in accordance with the FIFO
principle.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise bank balances.
DERIVATIVES
The parent company uses derivatives to hedge against financial risks, primarily
electricity price risks and currency risks for electricity losses.
MEASUREMENT OF ELECTRICITY FUTURES
Electricity futures which reflect actual operational requirements with no intentional
over-hedging are not accounted for in the balance sheet. Electricity futures which
exceed requirements are measured at the lower of cost or market (LCM), which means
106/131
that a contract which constitutes an over-hedge is recognised as an expense
immediately. Any gains should not be recognised. LCM also means that changes in
value are recognised on an ongoing basis from the date of concluding the contracts.
The actual requirement for electricity is defined as the lowest annual volume for
Svenska kraftnät’s electricity losses over the last five years broken down by quarter.
ACCOUNTING OF LEASES
All leases constitute and are accounted for as operating leases. They are charged to
expense on a straight-line basis. There are no finance leases.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are recognised at cost less accumulated scheduled
depreciation and impairment. New construction as well as extensions and conversions
which increase the long-term standard, quality or performance of assets are classified
as investments.
Expenditure for repairs and maintenance is expensed in the period in which it is
incurred. Work that is required to ensure that an item of property, plant and
equipment can be used as originally intended, but which does not increase its
performance or materially extend its life is classified as maintenance.
Interest expenses during the construction period are capitalised if the asset under
construction has a value exceeding SEK 100 million.
INTANGIBLE ASSETS
Expenditure for land rights, rights of use for fibre-optic cables, licenses, assets under
construction and software development costs is capitalised and amortised on a
straight-line basis over the useful life of the asset. All intangible assets have
determinable useful lives. Land rights are amortised over the useful life of the
transmission line concession, normally 40 years.
Rights of use refer to fibre-optic cables and are amortised over a period of 15 to 25
years in accordance with the term of the contract. The parent company’s settlement
system is estimated to have a useful life of ten years. The assessment is based on the
development time, the complexity of the system and the difficulty of replacing it.
DEPRECIATION
Scheduled depreciation is based on the cost and estimated useful life of the asset.
Linear depreciation is used for all items of property, plant and equipment.
Residual values and useful lives of assets are reviewed on an ongoing basis and
adjusted where required.
107/131
Annual depreciation rates
(%)
Transmission lines, excluding submarine cables and associated lines
2.5
Underground and submarine cables and associated lines
3.3
Control equipment in stations
6.7
Other station components
3.3
Fibre-optic cables
4.0
Spare parts
Telecom and information systems
6.7
6.7-20.0
Gas turbine plants
5.0
PCs and equipment
33.3
IMPAIRMENT
In connection with the closing of the books assets are tested for indications of
impairment to determine whether any items of property, plant and equipment or
intangible assets have been impaired. A non-current asset with a fair value that is less
than the carrying amount should be written down to this value if it can be assumed
that the decline in value will be permanent. The value for the operations is the higher
of the replacement cost for an equivalent asset and net realisable value. Impairment
losses are charged to the income statement.
PROVISIONS
A provision is recognised in the balance sheet when there is a legal or constructive
obligation as a result of a past event, it is probable that an outflow of resources will be
required to settle the obligation and the amount can be reliably estimated.
TAXES
Svenska kraftnät’s subsidiaries are liable to pay income tax for limited companies
while Svenska kraftnät itself, as a state enterprise and part of the Swedish State, is
exempt from income tax. Deferred tax on differences between the accounting and
taxable profit is not accounted for by the parent company and the Svenska kraftnät
Group, with the exception of deferred tax on untaxed reserves in the subsidiary.
Deferred tax assets are recognised to the extent that it is deemed likely that sufficient
taxable profits will be available in the foreseeable future.
PENSIONS
Since 2003 a pension agreement, PA-03, has applied for State employees born in 1943
or later. PA-91 applies for employees born in 1942 or earlier. The size of the pension
liability is calculated by the National Government Employee Pensions Board (SPV).
PA-03 includes old-age pension, survivor’s pension and disability pension.
PA-03 includes defined contribution pensions – individual old-age pension and
supplementary old-age pension, Kåpan. Premiums are paid for these. Defined benefit
pensions are also included – old-age pension on incomes over 7.5 income base
108/131
amounts and old-age pension in accordance with transition rules for employees born
between 1943 and 1972. These obligations are accounted for in the item Provisions for
pensions.
The provision for pension liabilities for the year and premiums paid have been charged
to expense. The interest portion of pension expense for the year has been recognised as
an interest expense.
About one per cent of the employees had not been updated. The pension liability for
these employees has there been calculated at a flat rate. Updating means that SPV
reviews all positions which a State employee has held, in the State, municipal or
private sector. If there are gaps in the term of employment the pension liability is
calculated at a flat rate. This means, for instance, that SPV will assume that the
employee has been a State employee since the age of 28 and that the liability is
calculated using a factor of 0.95. The actual liability may thus be lower or higher.
Svenska kraftnät does not deem that the pension liability is too low and has chosen to
recognise the liability calculated by SPV.
The recognised pension comprises the actuarially calculated estimated amounts for
which Svenska kraftnät is liable under the PA-91 and PA-03 pension agreements. The
pension liability has been calculated on the bases defined by the Board of Directors of
SPV. In defining the bases, it was deemed permissible to use the basis of calculation
for either 2014 or 2015 in determining the pension liability for 2014. In essence, the
difference between the two is that basis of calculation for 2015 is based on a higher
assumed return (0.8 per cent instead of 0.5 per cent). Svenska kraftnät has recognised
the liability in accordance with the 2015 basis of calculation, as this is the latest
available calculation of the liability. The portion of the change in the pension liability
that is due to the transition to the 2015 basis of calculation has been accounted for as
an interest expense.
Svenska kraftnät pays special payroll tax on pension payments in accordance with the
Ordinance on the Determination of Special Payroll Tax on State Pension Expenses
(1991:704), not based on provisions for pensions. As the pension liability refers to
future pension payments, a provision for special payroll tax is made based on the size
of the pension liability at year-end.
INVESTMENT GRANTS
External contributions to investments do not reduce the cost of the investment but are
recognised as a liability in the balance sheet in the amount of the received
contribution. As the non-current asset is depreciated or amortised revenue from
capitalised investment grants is deducted as other revenue in the income statement.
109/131
CAPACITY CHARGES
In accordance with Regulation (EC) No 714/2009 of the European Parliament and of
the Council on conditions for access to the network for cross-border exchanges in
electricity, capacity charges received are recognised as current liabilities in the balance
sheet on an ongoing basis and are deducted primarily from (settled in the first hand
against) counter-trade costs during the financial year. The remaining capacity charges
are reclassified to non-current liabilities and can be used for investment grants/cofunding of investments which maintain or enhance the transmission capacity of the
grid.
RESEARCH AND DEVELOPMENT COSTS
Development work is an integral part of Svenska kraftnät’s operations and refers to
long-term improvement measures which are expensed on an ongoing basis over the
course of the year. Svenska kraftnät conducts research and development work with the
aim of increasing the operational reliability, efficiency and environmental standards of
the company’s network and system operations. No research expenditure is therefore
capitalised.
CASH FLOW STATEMENT
The cash flow statement is prepared using the indirect method. The reported cash flow
comprises transactions involving incoming and outgoing payments. This means that
differences may occur compared which changes in individual items in the balance
sheet.
BORROWING
Borrowing is recognised at the nominal amount.
INTERESTS IN GROUP COMPANIES
Interests in Group companies are stated at cost less any impairment. Dividends
received are recognised when the right to a dividend is deemed to be secure.
SUPERVISORY AUTHORITY
The supervisory authority for Svenska kraftnät’s network operations is the Swedish
Energy Markets Inspectorate.
110/131
NOTES
NOTE 1
REVENUE FROM TRANSMISSION OF
ELECTRICITY
Group
SEKm
Capacity charges
Usage fees
Transit revenue
Total
2014
2,327
1,561
417
4,305
Parent company
2013
2,350
1,870
167
4,387
2014
2,338
1,561
417
4,316
2013
2,360
1,870
167
4,397
NOTE 2 GRANTS FOR POWER CONTINGENCY
PLANNING
Reporting of grants for parent company
SEK ‘000
Grant
Opening
transfer
amount
Allocation for the
year under
appropriation letter
Total
disposable
amount
Expenditure
Closing
transfer
amount
Expenditure area 21 Energy
1:10 Power contingency
planning
Appropriation
item 1, Power
contingency
planning
136,528
255,000
391,528
-247,651
143,877
Total
255,000
391,528
-247,651
143,877
136,528
Terms for appropriation under
appropriation letter
SEKm
Administrative expenses in operations
Max amount
Outcome
24
20
Of the funds used during the year in the amount of SEK 248 (202) million, SEK 10
million was used for crisis preparedness measures, SEK 29 million for repair
preparedness, SEK 141 million for measures for robust electricity supply, SEK 22
million for security protection and information security measures, SEK 14 million for
electronic communications, SEK 12 million for dam safety measures and SEK 20
million for management. Out of the funds used during the year, SEK 157 million was
passed on.
111/131
For the grant there is also an authorisation limit, such as binding civil liabilities
obligations resulting in future expenditure. These are presented in the table below. The
application for the authorisation limit is based on actual as well as forecast obligations.
Use of the authorisation limit in 2014 was lower than expected. This was partly due to
the fact that planned training activities were not implemented. The financial
compensation for the disturbance reserve was also lower than expected. Costs for
technical measures related to mobile stations, the replacement of engines in tracked
vehicles, measures in network operations centres and security protection measures at
facilities were also lower than expected or have been transferred for implementation in
2015. Due to staff changes during the year, the administrative expenses were also
lower than expected.
Expenditure area
21 – Energy
1:11 Power
contingency
planning
Authorisation,
relating to
outstanding
obligations
Outstandin
g
obligations
Opening
obligations
Allocation per year
SEK ‘000
Appropriation item
1, Power
contingency
planning
2015
300,000
252,730
212,450
186,403
2016-
25,047*
*Of which SEK 6,300 thousand refers to 2017 and 2018.
NOTE 3
OTHER EXTERNAL EXPENSES
Group
SEKm
Parent company
2014
2013
2014
2013
Revenue from capitalised capacity charges
Revenues from capacity charges (countertrade)
Revenue from capitalised investment
grants
Telecom revenue
System revenue – natural gas
Revenue from chargeable activities
Other revenue
120
99
119
99
12
22
12
22
17
65
15
30
15
69
31
13
31
17
65
15
26
15
69
31
13
27
Total
259
280
254
276
NOTE 4
CAPITALISED EXPENDITURE
112/131
The item refers to labour costs for Svenska kraftnät’s own employees that has been
capitalised in respect of investment projects. The investment projects refer partly to
assets under construction and partly to capitalised IT development projects.
Group and parent
company
SEKm
Assets under construction
Capitalised software development costs
Total
NOTE 5
2014
2013
100
10
110
89
21
110
STAFF COSTS
The Group’s staff costs were SEK 458 (432) million, of which SEK 281 (255) million
refers to payroll costs. In addition, the Group had retirement benefit costs of SEK 49
(59) million and paid social-security contributions of SEK 103 (95) million. All staff
costs are attributable to the parent company, as the subsidiary company Svenska
Kraftnät Gasturbiner has no employees.
The number of man-years in the Group was 504 (461). At 31 December the Group had
530 (478) permanent employees, of which 530 (478) were employed in the parent
company.
The average number of employees in 2014 was 529 (481). The breakdown between
men and women is shown in the table below.
Employees
Number
Women
Men
Total
Group
2014
187
342
529
2013
167
314
481
Parent company
2014
2013
187
167
342
314
529
481
The Director-General’s salary was SEK 1.4 (1.3) million and the retirement benefit cost
SEK 0.6 (0.9) million, based on calculations by the National Government Employee
Pensions Board (SPV). The Deputy Director General’s salary was SEK 1.2 (1.2) million
and the retirement benefit cost SEK 0.8 (1.5) million.
Board of Directors
Number
Women
Men
Total
2014
2013
3
2
7
7
10
9
113/131
Remuneration in Swedish kronor paid to Board members, etc. is presented in the
following table.
Board
member
Position
Bo
Källstrand
Chairman
Born Appoint Directorships in other
ed
government agencies
1949
Directorships
in limited
companies
2009
Fee
83,004
Seventh AP Fund, National
Government Employee
Pensions Board (SPV)
Anna-Stina
NordmarkNilsson
Deputy Chairman
Advisor and
consultant in own
company, Regina
AB
1956
2004
Mikael
Odenberg
Director-General
1953
Karin
Stierna
Municipal
commissioner,
Strömsund
municipality
1970
2008 Board of the Swedish Agency
for Government Employers,
National Total Defence
executive team, the Crisis
Management Council of the
Swedish Government. The
Coordination Council for
Smart Grids.
2007
56,004
Björn
Carlsson
CEO Ackkärrs
Bruk. Investment
banking consultant
1952
2010
56,004
Bo Netz
Deputy DirectorGeneral, Sida
1962
2013 Swedish Arts Council
1947
1954
2010 Member of the Energy
Development Committee at
the Swedish Energy Agency.
The Coordination Council
for Smart Grids.
2014
1981
2013
-
1956
2012
-
Bo
Normark
Charlotte
Zackari
Oskar
Engblom
Stefan
Ekberg
Total
General Counsel,
Swedish Customs
Employee
representative,
SACO
Employee
representative, ST
Sveaskog AB
(publ),
Sveaskog
Förvaltnings AB,
Softronic AB
(publ), Dedicare
AB (publ)
AB Trav och
Galopp
69,000
56,004
56,004
28,002
404,02
2
114/131
Under the instructions governing its activities, Svenska kraftnät is required to have a
council that has insight into the company’s power contingency planning activities as
well as a council that can assist the company in its work on dam safety issues. The
members of the Power Contingency Planning Council are appointed by the Swedish
government while the members of the Dam Safety Council are appointed by the
Director-General.
The remuneration, in Swedish kronor, paid to the members of the Power Contingency
Planning Council in 2014 was:
Johan Askelund
Greta Berg
Lars Joelsson
Daniel Jonsson
Rémy Kolessar
Ove Landberg
Jan Mörtberg
Cecilia Nyström
Anders Richert
Mikael Toll
Mats Wallinder
Total
2,925
1,950
1,950
2,925
1,950
2,925
2,925
2,925
975
2,925
1,950
26,325
The remuneration, in Swedish kronor, paid to the Dam Safety Council in 2014 was:
Henrik Löv
36,000
The remuneration paid for representation on the Telecommunications Interference
Committee in 2014 was:
Alf Andersson
32,000
Of the above amounts, SEK 48,575 was paid in 2015.
NOTE 6
COSTS FOR TRANSMISSION OF ELECTRICITY
SEKm
Group
2014
2013
Parent company
2014
2013
Purchase of energy losses
Energy compensation
Transit costs
1,224
331
183
1,200
502
104
1,224
331
183
1,200
502
104
Total
1,738
1,806
1,738
1,806
115/131
NOTE 7
OTHER EXTERNAL EXPENSES
Group
SEKm
Counter-trade for the grid
R&D measures
Power contingency planning measures
Natural gas, purchase and operations costs
Other external expenses
Total
Parent company
2014
2013
2014
2013
12
22
12
22
26
20
26
20
204
274
516
162
28
237
469
228
266
532
186
28
229
485
NOTE 8 PROFIT/LOSS FROM INTERESTS IN
ASSOCIATES
SEKm
Nord Pool Spot AS
eSett Oy
STRI AB
Kraftdragarna AB
Other
Total
Group
2014
2013
14
-2
2
-1
0
13
16
2
1
0
19
NOTE 9 PROFIT/LOSS FROM SECURITIES AND
RECEIVABLES CLASSIFIED AS NON-CURRENT ASSETS
SEKm
Profit/loss from liquidation of subsidiaries
Dividends on shares and interests in associates
Interest income on long-term receivable in
subsidiaries
Total
Group
2014
2013
0
-1
Parent
company
2014
2013
0
30
-
-
4
4
-
-
2
2
0
-1
6
36
116/131
NOTE 10 OTHER INTEREST INCOME AND SIMILAR
ITEMS
Group
2014
0
3
3
SEKm
Interest income from bank deposits
Other interest income
Total
2013
1
1
2
Parent company
2014
2013
0
0
3
1
3
1
Shares in the profit or loss of associates are presented in a separate note. Dividends
and profits or losses from the sale of shares and interests in associates are presented in
Note 8.
NOTE 11
INTEREST EXPENSE AND SIMILAR ITEMS
Group
SEKm
Interest expense, pension liability
Interest expense, non-current
liabilities
Interest expense, loans from the
National Debt Office
Interest expense, current liabilities
Interest expense, currency futures
Capitalised construction interest
Foreign exchange differences
Total
Parent company
2014
-45
0
2013
4
3
2014
-45
0
2013
4
-
21
22
21
22
0
7
-32
0
-49
1
9
-39
0
-3
0
7
-32
0
-49
1
8
-39
9
-4
Interest and foreign exchange differences should be viewed in a single context
irrespective of whether the foreign exchange differences are positive or negative.
NOTE 12
TAX ON PROFIT FOR THE YEAR
Group
SEKm
Current tax
Deferred tax
Total
2014
-4
2
-2
2013
-3
-2
-5
117/131
As most of the consolidated profit before tax is earned in the parent company, which is
exempt from income tax, the relationship between the tax expense for the year and the
reported consolidated profit before tax is not presented.
NOTE 13
INTANGIBLE ASSETS
Intangible assets comprise land rights in the form of easements and transmission line
rights, rights of use for fibre-optic cables, licenses and capitalised software
development costs.
Group and parent
company, SEKm
Capitalised
software
development
costs
Land
rights
Rights of
use for
fibre-optic
cables
Assets under
construction
Total
Cost at beginning of
year
Acquisitions
Impairment
203
180
82
183
648
0
-
-
-
48
-165
48
-165
Cost at end of year
203
180
82
66
531
Amortisation at
beginning of year
Amortisation for the
year
136
125
59
-
320
15
3
5
-
23
Amortisation at
end of year
151
128
64
-
343
Amortised cost at
end of year
52
52
18
66
188
Amortisation
previous financial
year
27
3
5
-
35
NOTE 14 PROPERTY, PLANT AND EQUIPMENT
Group, SEKm
Cost at beginning of year
Adjustment opening balance
Acquisitions
Sales and disposals
Impairment
Reclassifications
Buildings
and land
Machinery and
other technical
equipment
Assets under
construction
Total
755
-6
59
21,226
470
29
-140
828
6,329
4,276
-57
-888
28,310
470
4,305
-146
-57
-1
118/131
808
22,413
9,660
32,881
Depreciation at beginning of
year
Adjustment opening balance
Sales and disposals
Depreciation for the year
336
11,476
-
11,812
-6
23
470
-128
614
-
470
-133
637
Depreciation at end of
year
353
12,432
-
12,786
Depreciated cost at end of
year
455
9,981
9,660
20,096
18
615
-
633
Cost at end of year
Depreciation previous
financial year
Parent company, SEKm
Buildings and
land
Machinery
and other
technical
equipment
Assets under
construction
Total
736
-6
60
20,001
470
7
-140
826
6,327
4,276
-57
-886
27,064
470
4,283
-146
-57
0
Cost at end of year
790
21,164
9,660
31,614
Depreciation at beginning of
year
Adjustment opening balance
Sales and disposals
Depreciation for the year
329
10,419
-
10,748
-6
23
470
-128
593
-
470
-134
616
Depreciation at end of
year
346
11,354
-
11,700
Depreciated cost at end
of year
444
9,810
9,660
19,914
18
596
-
614
Cost at beginning of year
Adjustment opening balance
Acquisitions
Sales and disposals
Impairment
Reclassifications
Depreciation previous
financial year
The term Machinery and other technical equipment includes switchgear, power lines,
submarine cables, control equipment, fibre-optic cables, and telecom and information
119/131
systems. Disposals occur mainly in connection with the commissioning of facilities
after reinvestments. The assessed value for properties in the Group is SEK 66 (52)
million.
NOTE 15
INTERESTS IN GROUP COMPANIES
Company
Corporate ID
number
Regd
office
Svenska Kraftnät
Gasturbiner AB
Total
556451-0260
Stockholm
Share
,%
No.
Nominal
value
100
900
9
Carryin
g
amount
9
9
9
NOTE 16 RECEIVABLES FROM GROUP COMPANIES
Parent
company
2014
2013
SEKm
Loan receivable from subsidiary
Total
75
75
66
66
Refers to a loan receivable with conditional repayment terms. During the year a new
loan of SEK 11 million was issued, of which SEK 9 million refers to the non-current
portion. No repayments were made in 2014. A repayment of SEK 11 million was made
on 5 January 2015.
NOTE 17
INTERESTS IN ASSOCIATES (SEKm)
Company
Corporate ID
number
Regd
office
Share
%
No.
Group
Parent
company
Nord Pool Spot AS
STRI AB
Kraftdragarna AB
Elforsk AB
Energiforsk AB
Triangelbolaget D4
AB
eSett Oy
Total
984058098
556314-8211
556518-0915
556455-5984
556974-2116
556007-9799
Lysaker
Ludvika
Västerås
Stockholm
Stockholm
Stockholm
28.20 4,320
25
375
50 5,000
25
750
20 1,000
25
525
76
20
15
1
0
0
42
4
1
0
1
0
2582499-7
Helsinki
33.33
16
128
18
66
1,250
Cost is equal to the carrying amount in the parent company.
120/131
NOTE 18 NON-CURRENT RECEIVABLES FROM
ASSOCIATES
Group
SEKm
Loan receivable from associate
Total
2014
15
15
Parent company
2013
-
2014
15
15
2013
-
NOTE 19 OTHER NON-CURRENT RECEIVABLES
Group
2014
2013
SEKm
Collateral for financial trading on Nasdaq/OMX
Total
17
17
1
1
Parent
company
2014
2013
15
15
-
NOTE 20 OTHER RECEIVABLES
Group
2014
2013
SEKm
VAT receivable
Tax asset
Parent
company
2014
2013
55
124
55
124
1
-
-
-
Review supplier invoices
40
7
40
7
Other current receivables
Total
0
96
4
135
0
95
4
135
NOTE 21
RECEIVABLES FROM THE STATE
The outstanding receivable of SEK 77 (64) million refers to the difference between
funds withdrawn and deposited on Svenska kraftnät’s checking account with the State
and deduction of expenditure/payment of income in relation to the State budget.
SEKm
Parent company
2014
2013
Collection
Recognised in respect of income item (dividend)
-553
-618
121/131
Collected funds paid to non-interest-bearing flow
Appropriations in non-interest-bearing flow
Opening balance (receivable +, liability -)
Recognised in respect of appropriations
Funds attributable to transfers etc. paid
to non-interest-bearing flow
Closing balance
553
0
618
0
64
248
-235
3
202
-141
77
64
NOTE 22 PREPAID EXPENSES AND ACCRUED INCOME
Group
SEKm
Parent company
2014
2013
2014
2013
Prepaid premises expenses
Other prepaid expenses
Accrued network revenue
Accrued revenue, balance providers
and system operators
Other accrued income
9
16
288
476
8
16
245
396
9
16
288
476
8
16
245
396
5
4
5
4
Total
794
669
794
669
NOTE 23 DEFERRED TAX LIABILITY
Group
SEKm
Deferred tax liability
Total
2014
32
32
2013
33
33
The deferred tax liability is attributable to untaxed reserves.
NOTE 24 PROVISIONS FOR PENSIONS
Group and parent company
SEKm
Opening balance
Pensions paid
Annual indexation of pension liability
Interest on pension liability
Interest on provisions for payroll tax
Adjustment of pension liability and payroll tax due to
change of calculation principle (reduced interest rate
2014
2013
681
-13
35
4
6
-50
633
-11
46
3
9
1
122/131
assumption)
Closing balance
663
681
NOTE 25 NON-CURRENT INTEREST-BEARING
LIABILITIES
Group and parent
company
SEKm
Opening balance
2014
3,775
2013
1,854
New loans raised
7,832
5,711
Repayment of loans
-5,405
-3,790
Liability to National Debt
Office
6,202
3,775
The available credit line is SEK 9,300 million.
NOTE 26 NON-INTEREST-BEARING LIABILITIES
Group
SEKm
Contributions from landowners
Parent company
2014
159
2013
219
2014
159
2013
219
Investment grants b/f
475
382
475
382
Capitalised investment grants
420
303
420
303
Deducted investment grants
-36
-18
-36
-18
Capacity charges b/for
1,169
356
1,169
356
Capitalised capacity charges
3,091
2,745
3,091
2,745
-284
-165
-284
-165
31
43
31
43
-
-
-
0
6
5
6
5
5,031
3,870
5,031
3,870
Deducted capacity charges
Advances from fibre-optic
customers
Advances fibre-optic Group
companies
Liability provision for skills
development
Total
NOTE 27 OTHER LIABILITIES
Group
SEKm
Advances from customers
Parent company
2014
15
2013
14
2014
15
2013
14
17
14
17
14
4
14
4
14
EU grants not passed on
71
-
71
-
Other current liabilities
-
1
-
1
Staff-related liabilities
Derivatives, unrealised loss
123/131
Total
107
43
107
43
NOTE 28 ACCRUED EXPENSES AND DEFERRED
INCOME
Group
SEKm
Accrued expenses, balance
providers/system operators
Accrued expenses, balancing control
Accrued expenses, peak power reserve
Accrued expenses, energy crediting
Accrued expenses, peak power reserve
Accrued expenses, transit compensation
Accrued payroll costs
Accrued maintenance costs
Accrued power contingency planning
costs
Accrued expenditure, investments
Other accrued expenses
Prepaid telecom revenue
Total
Parent company
2014
369
2013
304
2014
369
2013
304
59
19
31
5
58
15
29
13
66
25
49
7
50
17
34
10
59
19
31
5
58
15
29
13
66
25
49
7
50
17
34
10
0
22
1
620
41
19
1
623
0
19
1
618
41
17
1
621
NOTE 29 CONTINGENT ASSETS AND CONTINGENT
LIABILITIES
Alstom Grid SAS has filed a claim against Svenska kraftnät with the Stockholm District
Court, demanding around SEK 12 million and calling for the court to rule that Alstom
is entitled to compensation for damage to goodwill. Responding to the charge, Svenska
kraftnät has contested Alstom’s petitions, called for the court to reject Alstom’s claim
for compensation on the grounds of damage to goodwill and filed a counterclaim
against Alstom for SEK 63 million plus interest. The amount refers to repayment of
payments made, damages as result of the cancellation and penalties for delays. Written
preparations in the district court are currently underway.
NOTE 30 FUTURE LEASE LIABILITIES
Contracted future lease liabilities fall due as shown below. All leases refer to operating
leases. The amounts for the parent company also include liabilities to the subsidiary
company Svenska Kraftnät Gasturbiner AB.
Group
Parent
company
124/131
SEKm
Within 1 year
Later than 1 year but within 5 years
Later than 5 years
Total
2014
275
763
215
1,253
2013
276
651
386
1,313
2014
348
907
215
1,470
2013
348
651
386
1,385
11. APPROPRIATION OF RETAINED
EARNINGS
The State’s share of retained earnings is SEK 4,793 million, of which SEK 731 refers to
the profit for the year. In accordance with Svenska kraftnät’s dividend policy, it is
proposed that SEK 475 million be allocated for dividends and that the surplus be
carried forward.
Non-restricted equity in the parent company is SEK 4,885 million, of which SEK 714
million refers to the profit for the year.
The Board of Directors proposes that the parent company income statement and
balance sheet and consolidated income statement and balance sheet for 2014 be
approved.
We certify that the annual accounts give a true and fair view of the results of the
operations and of expenses, revenues and the financial position of the parent company
and the Group.
We deem that the internal governance and control at the parent company is
satisfactory.
Sundbyberg, 23 February 2015
Bo Källstrand
Chairman
Anna-Stina Nordmark-Nilsson
Deputy Chairman
Mikael Odenberg
Director-General
125/131
Björn Carlsson
Bo Netz
Karin Stierna
Charlotte Zackari
Bo Normark
sTE
Oscar Engblom
Employee representative
SACO
Stefan Ekberg
Employee representative
ST
12. AUDITOR’S REPORT
126/131
BOARD OF DIRECTORS
Bo Källstrand
Chairman
Born 1949, appointed 2009.
Former Governor of Västernorrland County.
Chairman of the Seventh AP Fund, Director of the Ebba och Sven Schwartz foundation
and Director of the Royal Swedish Academy of Engineering Sciences, Dept. II,
Electrical Engineering.
Anna-Stina Nordmark-Nilsson
Deputy Chairman
Born 1956, appointed 2004.
Advisor and consultant in own company, Regina AB, Director of Sveaskog AB (publ),
Sveaskog Förvaltnings AB, Softronic AB (publ) and Dedicare AB (publ). Chairman of
the Swedish Sports Organisation for the Disabled and Swedish Paralympic Committee.
Mikael Odenberg
Director-General
Born 1953, appointed 2008.
Former government minister. Director of the Swedish Agency for Government
Employers, National Total Defence executive team and the Crisis Management Council
of the Swedish Government. Director of the Royal Swedish Academy of War Sciences
and the Business Executives Council of the Royal Swedish Academy of Engineering
Sciences.
Karin Stierna
Born 1970, appointed 2007.
Municipal commissioner in Strömsund.
Björn Carlsson
Born 1952, appointed 2010.
CEO Ackkärrs Bruk and investment banking consultant.
Bo Netz
Born 1962, appointed 2013.
Deputy Director-General of SIDA, Director of the Swedish Arts Council and AB Trav
och Galopp.
Bo Normark
Born 1947, appointed 2010.
Member of the Energy Development Committee at the Swedish Energy Agency.
Charlotte Zackari
Born 1954, appointed 2014.
General Counsel at Swedish Customs.
Oskar Engblom
Born 1981, appointed 2013. Employee representative, SACO.
Stefan Ekberg
Born 1956, appointed 2012. Employee representative, ST.
127/131
DEFINITIONS
DEFINITIONS OF KEY PERFORMANCE
INDICATORS
RETURN ON ADJUSTED EQUITY
Profit after financial items less flat-rate tax (22 per cent) as a percentage of adjusted
equity. The return is calculated exclusive of any surplus or deficit from operations
related to electricity certificates and guarantees of origin. Adjusted equity is calculated
as the average of opening and closing restricted equity for the year (government capital
and restricted reserves) and 78 per cent of non-restricted equity.
RETURN ON CAPITAL EMPLOYED
Profit after financial items plus interest expense as a percentage of average capital
employed. Average capital employed is defined as total assets less non-interest-bearing
liabilities including deferred flat-rate tax in equity.
EQUITY/ASSETS RATIO
Adjusted equity at year-end as a percentage of total capital. Adjusted equity includes
adjustment for flat-rate tax.
OPERATING MARGIN
Operating profit as a percentage of operating revenue.
DEBT/EQUITY RATIO
Interest-bearing net liabilities divided by adjusted equity.
SELF-FINANCING RATIO
Cash flow before investments divided by investments in property, plant and equipment
and intangible investments affecting cash flow.
INTEREST COVERAGE RATIO
Profit for the year plus interest expense divided by interest expense.
NET DEBT
Provisions and interest-bearing liabilities less interest-bearing financial assets.
CAPITAL TURNOVER RATE
Turnover divided by average total assets.
128/131
INTERNALLY ALLOCATED FUNDS
Cash flow before change in working capital and investments. Obtained from the cash
flow statement.
129/131
ADDRESSES
Svenska kraftnät, head office
Box 1200, SE-172 24 Sundbyberg
Visiting address: Sturegatan 1
Tel: +46 (0)10-475 80 00 Fax: +46 (0)10-475 89 50
www.svk.se E-mail: [email protected]
Invoice address: Svenska kraftnät
FE 5105, SE-838 77 Frösön
Svenska kraftnät, Halmstad
Region Syd
Box 819, SE-301 18 Halmstad
Visiting address: Kristian IV:s väg 3
Tel: +46 (0)10-475 80 00
Fax: +46 (0)35-12 17 31, +46 (0)35-12 83 65
Svenska kraftnät, Sollefteå
Nipan 51, SE-881 52 Sollefteå
Tel: +46 (0)620-78 76 10 Fax: +46 (0)620-121 46
Svenska kraftnät, Sundsvall
Region Nord
Box 603, SE-851 08 Sundsvall
Visiting address: Erstagatan 2
Tel: +46 (0)60-19 57 00 Fax: +46 (0)60-19 57 09
Elforsk AB
Olof Palmes gata 31, SE-101 53 Stockholm
Tel: +46 (0)8-677 25 30 Fax: +46 (0)8-677 25 35
www.elforsk.se
Energiforsk AB
Olof Palmes gata 31, SE-101 53 Stockholm
Tel: +46 (0)8-667 25 30
www.energiforsk.se
eSett Oy
Bleckslagargatan 21, FIN-00620 Helsinki, Finland
Tel: (+358) 30 39 55 000
Kraftdragarna AB
Norra Seglargatan 15, SE-721 32 Västerås
Tel: +46 (0)21-17 04 80 Fax: +46 (0)21-17 04 85
www.kraftdragarna.se
Nord Pool Spot AS, head office
P.b. 121, NO-1325 Lysaker, Norway
Tel: (+47) 67 10 91 00 Fax: (+47) 67 10 91 01
www.nordpoolspot.com
130/131
STRI AB
Box 707, SE-771 80 Ludvika
Tel: +46 (0)240-795 00 Fax: +46 (0)240-150 29
www.stri.se
Svenska Kraftnät Gasturbiner AB
Box 1200, SE-172 24 Sundbyberg
Visiting address: Sturegatan 1
Tel: +46 (0)10-475 80 00 Fax: +46 (0)10-475 89 50
Triangelbolaget D4 AB
Box 26, SE-237 21 Bjärred
Tel: +46 (0)706-64 04 19 Fax: +46 (0)46-29 28 11
www.triangelbolaget.se
131/131