Review of 2007
January
Underground gas storage operational
On 4 January our first underground natural gas storage facility is taken into use in the German town of Epe, just across the border at Enschede. This gas buffer enables us to respond flexibly to peaks in gas demand, thus increasing the security of supply for our customers. The storage facility involved an investment of more than € 100 million.
Electricity supply starts in Stuttgart
On 30 January Nuon Germany starts delivering power to households in and around Stuttgart under the name ‘Lekker Strom’. Stuttgart is the third major city after Berlin and Hamburg where we offer energy to consumers.
February
Merger with Essent announced
On 1 February Nuon and Essent sign an agreement in principle confirming their intention to merge. A formal merger proposal is expected to be put to the shareholders in mid-2007. In mid-March the merger proposal is presented to the Netherlands Competition Authority (NMa).
March
Nuon Belgium holds successful newspaper campaign
Nuon Belgium runs a campaign where the readers of De Morgen newspaper can win a year of free green energy every day until 7 March. In an online competition, the participants are invited to answer questions on energy saving. Nuon Belgium is put on the map as a supplier of renewable energy.
April
Offshore Wind Farm
On 18 April HRH Prince Willem-Alexander officially inaugurates the first Dutch wind farm in the North Sea. The Egmond aan Zee Offshore Wind Farm was constructed by Nuon and Shell on the initiative of the Ministry of Economic Affairs. The wind farm started producing power in the second half of 2006 and its performance has been excellent so far, providing renewable electricity to about 100,000 households.
General Meeting of Shareholders
The General Meeting of Shareholders of n.v. Nuon is held on 25 April. At this meeting the shareholders adopted the financial statements for the 2006 financial year and the dividend proposal, whilst also ratifying the actions of the Management Board and the Supervisory Board during the 2006 financial year.
CO2 Storage
On 27 April we sign a letter of intent with the Ministry of Housing, Spatial Planning and the Environment (VROM) and the province of Groningen for the further exploration of opportunities for CO2 storage. This marks an important step towards the reduction of CO2 emissions in the Netherlands.
May
DTe
On 2 May the Dutch Office of Energy Regulation (DTe) publishes a press release on its investigations into the network management profits of the four largest energy companies. The DTe confirms that the energy companies achieved their profits legally and within the current legal and regulatory framework, but believes that the average return per household is higher than reasonable.
June
Extraordinary General Meeting of Shareholders
An Extraordinary General Meeting of Shareholders is held on 14 June as an important preparatory step in the decision-making process for the proposed merger with Essent. Shareholders also approve the proposal to pay out an extra dividend of 5%, chargeable to the reserves.
July
CO2-OK
On 6 July Nuon launches its new ‘Are you CO2-OK’ campaign during Live Earth. The aim of the campaign is to make people aware of the importance of CO2 reduction. We show how you can do this in a very simple way.
The campaign is a logical sequel to Nuon’s long-standing energy-saving activities and investments in renewable energy. It is also the visible reflection of our sponsoring of Live Earth and helps customers to reduce CO2 in a practical way. Our ultimate aim is to motivate everyone in the Netherlands to save more energy, thus ensuring that we all contribute of the national CO2 reduction targets. See also www.co2ok.nl.
August
Unbundling
August 2007 sees the publication of the Royal Decree outlining further provisions for the implementation of the WON (Independent Network Operation Act). By no later than 1 July 2008, Nuon must transfer the economic ownership of the electricity and gas networks to Continuon Netbeheer, which from that date onwards is required to carry out its statutory tasks independently. In addition, Nuon must unbundle into a production and supply company and a network company by no later than 1 January 2011.
September
Merger process
On 7 September the termination of the merger process with Essent is announced as there is no longer a basis for continuing the process. Despite the constructive attitude of both companies during this process, the parties are unable to reach a final agreement on certain aspects.
Nuon Germany
In Germany we continue to build our customer portfolio. On 3 September Nuon Germany also starts selling electricity to consumers in various cities in North Rhine-Westphalia. In Düsseldorf our customers can now also buy gas in addition to electricity.
Phased construction of multi-fuel Nuon Magnum power station due to high building costs
The Management Board decides on 18 September to phase the construction of the planned Nuon Magnum multi-fuel power station in Groningen, principally due to the recent increase in prices for processing installations and construction work. The first phase comprises the construction of the natural gas-fired part of the power station. Nuon expects to decide on the construction of the coal and biomass gasification and CO2 capturing installation within two years.
October
Nuon starts CO2 capture pilot
Nuon becomes the first company in the world to start a pilot for CO2 capture at a coal gasification power station (at Buggenum). We want to make this method suitable for the electricity sector, thus achieving a sharp reduction in CO2 emissions. The CO2 can be captured before the fossil fuels are burned, which potentially offers many advantages as well as being a cleaner alternative to post-combustion capture.
Collective labour agreement (CAO)
On 18 October the negotiated agreement for the new Energy CAO between employers and trade unions is signed by all parties. It is agreed that the Energy CAO will take effect from 1 January 2008, so that from then onwards a single CAO will apply to the entire energy sector. This CAO replaces the current CAOs for Distribution and Production as well as the master CAO. On 1 June 2007 the wages of all employees were structurally raised by 2.5%. This wage increase is applicable with retroactive force from that date.
Nuna4 wins World Solar Challenge
Nuon is the chief sponsor of the Nuon Solar Team of TU Delft. On 25 October the Nuna4 wins the World Solar Challenge in Australia for the fourth successive year.
November
Kick-off of WINergy
The kick-off of WINergy, Nuon’s Professional Women’s Network, takes place on 2 November. The aim of this network is to help Nuon achieve its diversity objectives by offering a platform for the personal and professional development of women within Nuon. We are aspiring to create a climate with more balance between the genders in leadership at all levels of the organisation.
Extraordinary General Meeting of Shareholders approves Nuon Magnum
On 22 November the investment of up to a maximum of € 1.5 billion in the first phase of Nuon Magnum is approved during an Extraordinary General Meeting of Shareholders. In addition, the Management Board provides further information on the unbundling process and the strategy.
December
Nuon hands out 3.2 million energy-saving lamps
Via free home-delivered newspapers over 3 million households receive a voucher for a free energy-saving lamp at one of our Energy shops. If all these households replace a conventional light bulb with this energy-saving light bulb, 128,000 tons of CO2 emissions can be avoided. That is comparable to the annual CO2 emissions of some 42,500 passenger cars. We hope this will encourage people to switch to energy-saving lamps.
Power outage at Tieler- en Bommelerwaard
On 12 December an Apache helicopter of the Royal Air Force hits a high-voltage line across the river Waal near Hurwenen during a practice flight. This causes a power outage affecting about 30,000 households and businesses in the surrounding area of Tieler- en Bommelerwaard. Despite difficult conditions, Continuon Netbeheer succeeds in restoring the power supply within 48 hours.
