Corporate Governance

Core values: quality and integrity

TenneT operates in accordance with two core values: quality and integrity. These values express our shared identity as an organisation and guide all our decisions and activities. The core values are explained in TenneT's Company Code, which is also published on TenneT's website.

Quality control in the transmission and system service sectors

The primary risks associated with TenneT's transmission services are failure to maintain the requisite quality standards and failure to make the agreed capacity available. To promote the control of these risks, TenneT produces a Quality and Capacity Plan once every two years. The Quality and Capacity Plan is reviewed by the Office of Energy Regulation. The process of drawing up and reviewing these plans provides an insight into the management of these risks. In addition, an analysis of long-term developments affecting the Dutch electricity supply is provided in the 'Vision2030' document.

Also in the area of quality, the Reliability programme was launched in 2008. The main aim of this programme is to ensure that the chain of processes between the various business units is managed in a manner that is compatible with the organisation's growth. Process management is further ensured by implementing the ISO 9001 quality system for our maintenance organisation. A similar process has been put in place for the part of the organisation responsible for operations.

Security and safety

Security and safety play a key role in the TenneT organisation, both in the formulation of policy and in its day-to-day implementation. In 2008 TenneT appointed a Corporate Security and Safety Manager to coordinate all the measures arising from the Corporate Security Policy. These include measures to prevent deliberate damage to the electricity transmission system. The Corporate Security and Safety Manager also oversees employees' compliance with safety requirements and is the central point of contact for ministries, local authorities, the police, the emergency services and other external parties. With the creation of this new position, TenneT has effectively combined a number of responsibilities in the organisation.

Operational risks are mitigated by the implementation of control measures. Staff working at the National Control Centre are trained to perform their critical tasks and are qualified to perform switching operations. To keep their skills up to the requisite level, they receive periodic refresher training and assessment in accordance with the applicable national and international requirements.

In the system service sector, the primary risk concerns system imbalance leading to non-compliance with national and international agreements, laws and regulations. Various procedures and arrangements are in place with a view to controlling this risk, and a crisis organisation has been set up to deal with any emergencies. The relevant staff members receive regular training in various scenarios. In addition, our internal control of the balance between supply and demand is audited annually. The audit in respect of 2008 will be reviewed by PricewaterhouseCoopers Accountants N.V. in 2009 with a view to extending the assurance report. An assessment of the application of international UCTE contracts was also performed in the year under review.

Integrity

As stated, TenneT's core values are set out in the Company Code. The Company Code describes the implications of the core values in terms of personal conduct. It applies to everyone who works at TenneT: permanent staff members as well as external temporary personnel. Compliance with the Company Code and the Code of Conduct is monitored by a Compliance Officer. The Compliance Officer acts as a point of contact for the company and has an advisory and supervisory role. In addition, the Compliance Officer reports to the Board of Management and prepares an annual compliance report for submission to the Office of Energy Regulation.

Another tool for monitoring integrity in the company is the whistleblower's procedure, which enables our staff to anonymously report suspected irregularities of a general, operational or financial nature that have (allegedly) occurred within the company. Such irregularities can be reported to a specially designated confidential adviser. TenneT has stated explicitly that staff may make such reports without jeopardising their legal position. The whistleblower's procedure has been published on the TenneT website. No irregularities were reported under the whistleblower's procedure during the year under review.

TenneT executes its duties and responsibilities in accordance with the principles of transparency, non-discrimination and objectivity in conformity with Section 11b of the Electricity Act 1998.