Economic dimension
GRI 201: Economic performance
GRI 103: Management approach (103-1, 103-2, 103-3)
Relevance
An integral part of Alpiq's corporate purpose is to contribute to a better climate and to strengthening the security of supply in Switzerland and in the European markets by pursuing a sustainable, financially sound and risk-adjusted energy business based on a clear strategy. Securing long-term economic success is an essential prerequisite for this goal.
Management approach
The pillars of the business activities are Swiss power production from highly flexible hydropower and nuclear energy as well as European power production from renewable energy sources, consisting of wind turbines and photovoltaic systems as well as small-scale hydroelectric complexes, supplemented by highly flexible gas-fired combined-cycle power plants in Italy, Hungary and Spain. Alpiq’s core business also includes power plant management, marketing the power produced from in-house and third-party plants, direct marketing of energy to business customers and international energy trading.
Alpiq invests in the expansion of energy trading, in increasing the flexibility of existing production facilities as well as in marketing third-party portfolios of renewable energy sources. In addition, targeted investments in digitising the core business are intended to improve competitiveness and efficiency.
Assessment
The key developments in the 2020 reporting year can be found in the Alpiq Holding Ltd. Annual Report 2020.
GRI 201-1: Direct economic value generated and distributed
|
|
|
|
|
|
Economic value generated and distributed |
|
|
Mio. CHF |
2020 |
2019 |
|
Economic value generated 1 |
4,026 |
4,437 |
|
Net revenue from energy transactions and related services |
3,911 |
4,098 |
|
Other operating income |
65 |
47 |
|
Income from associated companies and financial investments |
25 |
24 |
|
Income from sale of assets and subsidiaries |
25 |
268 |
|
Economic value distributed 2 |
3,896 |
4,116 |
|
to supplies opex |
3,460 |
3,680 |
|
to supplies capex |
66 |
71 |
|
to employees |
186 |
190 |
|
to capital providers |
41 |
48 |
|
to government |
141 |
127 |
|
to community |
1 |
1 |
|
Economic value retained 3 |
130 |
320 |
1 Net revenue from energy transactions and associated services as well as other operating income are presented on an accrual basis. Income from associated companies and financial investments as well as income from sale of assets and subsidiaries represent payments received during this reporting period.
2 The economic value that is distributed to suppliers (operating expenses), to employees and to government represents costs incurred in the reporting period and is presented on an accrual basis. The other items merely include payments that were transacted during the reporting period and are therefore not reported on an accrual basis.
3 Only continuing operations
These key financial figures are based on the scope of consolidation of Alpiq Holding Ltd., which can be found in note 5.4 of the 2020 consolidated financial statements of Alpiq Holding Ltd. The “economic value distributed to government” line also contains the taxes paid, fees and water taxes of the associated Swiss partner power plants, as they account for a significant part of the price paid for the purchased energy. The “Economic value retained” cannot be compared directly with the earnings after tax from continuing operations of the consolidated financial statements of Alpiq Holding Ltd., as some items only contain the part of the transactions with an impact on cash flows, meaning that certain non-cash income and expenses, such as deferred taxes or the results of associated companies are not included.
GRI 201-3: Defined benefit plan obligations and other retirement plans
The group has various employee pension schemes in line with the statutory provisions in the respective country. The group companies in Switzerland are members of the legally independent pension fund PKE Vorsorgestiftung Energie, which is a joint institution of the energy sector. All staff employed in Switzerland are insured in a defined contribution scheme, where Alpiq as the employer covers more than 60 % of the contribution payments. As of 30 September 2020, PKE has a positive coverage ratio of 106.3 % (31 December 2019: 109.2 %). Further details can be found in note 6.3 of the 2020 consolidated financial statements of Alpiq Holding Ltd.
GRI 201-4: Financial assistance received from government
In 2020, as in 2019 and 2018, Alpiq received a market premium for large-scale hydropower plants in Switzerland. Further details are provided in note 2.3 of the 2020 consolidated financial statements of Alpiq Holding Ltd. In addition, Alpiq was able to benefit from contributions from funding programmes for power generation from renewable energy sources in Switzerland and internationally. The rules for the awarding of funds are the same for all market participants.