Financial Results

Revenue

Revenue in 2008 amounted to EUR 460.3 million (2007: EUR 398.8 million). The increase in revenue compared to 2007 is mainly due to TenneT's assumption of responsibility for the management of the 110 kV and 150 kV grids. The increase concerns only part of the revenue which can be allocated to these grids in 2008. This is a consequence of the interim agreements concluded with the regional grid operators. Under some of these agreements, the economic risk will not be transferred until 2009.

The table below shows a breakdown of revenue:

Revenue from regulated services consists mainly of payments for supplying connection services, transmission services and system services, and amounts charged for balancing the supply of and demand for energy. These activities are subject to supervision by the Dutch industry regulator, the Office of Energy Regulation of the Netherlands Competition Authority, which sets tariffs from year to year.

The revenue from unregulated services is mainly derived from the operation of energy exchanges. Other revenue mainly concerns the sales recorded by other subsidiaries, interest received, and work in progress for third parties.

TenneT strives to improve its efficiency so as to compensate for the tariff reductions imposed by the regulator (known as the 'x factor'). TenneT's long-term objective is to outperform the regulated return while maintaining quality of service within a controlled risk profile.