43.     Equity

Share capital
On the balance sheet date, the company’s authorised share capital amounted to EUR 500 million, divided into one million shares of five hundred euros. Of these shares, two hundred thousand have been issued and paid-up. There was no change in this item during the year under review.

Revaluation reserve
The revaluation reserve serves to cover the revaluation of tangible fixed assets within the national high-voltage grid of TenneT TSO B.V. Following the implementation of IFRS on 1 January 2004, the fair value exception provided for in IFRS 1 has been applied. This (once-only) exception allows tangible fixed assets to be stated at their fair value on the transition date. This figure is subsequently used as the ‘deemed cost price’. The size of the revaluation reserve corresponds to that part of the restated value of the tangible fixed assets that results from application of the fair value exception, less the deferred tax liability.

Hedging reserve
The hedging reserve relates to changes in the fair value of interest rate swaps that are recorded in equity.

Reserve for exchange rate differences
The reserve for exchange rate differences serves to cover movements in exchange rates associated with participating interests in the UK (including goodwill).

Reserve for participating interests
The reserve for participating interests relates to the increase in value of TenneT’s minority participating interest in Belpex S.A., for which TenneT cannot secure payment.

The revaluation reserve, the hedging reserve, the reserve for exchange rate differences and the reserve for participating interests are not freely distributable.