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Decision of 26 July 2008 laying down rules on the financial management of the network operator (Network Manager Financial Management Decision)
We Beatrix, at the grace of God, Queen of the Netherlands, Princess of Orange-Nassau, etc. etc. etc.
On the nomination of Our Minister for Economic Affairs of 24 June 2008, No WJZ8070077;
Considering Article 18a of the Electricity Act 1998 and Article 10th of the Gas Act ;
The Council of State heard (opinion of 9 July 2008, No W10.08.0241/III);
Having regard to the further report of our Minister of Economic Affairs of 11 July 2008, No WJZ/8085772;
Have found good and understand:
For the purposes of this Decision, an approved credit rating agency shall mean a credit rating agency as referred to in Article 1 of the Prudential Rules Decision , that is Article 88 of that Decision is acknowledged.
1 The Network Manager shall meet the following requirements:
a. The operating result for interest and tax divided by gross interest expense shall be at least 1,7;
b. the sum of the net profit from ordinary business, depreciation, amortization, latent taxes, other cost items for which no cash payment is necessary and gross interest expense divided by gross interest expense shall be at least 2,5;
c. the sum of the net profit from ordinary business, depreciation, amortization, latent taxes and other cost items for which no cash payment is necessarily divided by the total debt shall be at least 0,11;
d. total debt divided by the sum of total debt and equity including minority interests and preferred shares is up to 0,7.
2 For the purposes of compliance with the requirements referred to in paragraph 1, the calculation shall include the financial obligations of legal persons and companies belonging to the group which may be charged to the group of net persons belonging to the group.
3 The first paragraph shall not apply where a credit quality step has been allocated to the network operator by an approved credit assessment agency.
The network operator shall add each year to its separate accounts referred to in Article 32 of the Gas Act and Article 43 of the Electricity Act 1998 :
a. A summary showing that the network manager complies with the Article 2, first paragraph , the said requirements, or
b. a statement indicating that a credit quality strap has been allocated to the network manager as intended by an approved credit assessment agency Article 2 (3) .
1 In addition to Article 2 has a network manager in the management of its nets from the time when he is no longer part of a group referred to in the Article 24b of Book 2 of the Civil Code which also belongs to a legal person or company that produces or supplies electricity or gas in the Netherlands or acts on its own funds including minority interests and preference shares of at least 40% of the sum of the shares of the total debt and own funds including minority interests and preference shares.
2 When satisfying the requirement referred to in paragraph 1, the calculation shall include the financial obligations of the legal persons and companies belonging to the group which may be charged to the group of net persons belonging to the group.
3 Provided that: Article 2 a net administrator may, by way of derogation from the first member, have a lower percentage of equity including minority interests and preference shares, if he demonstrates that the reduction in that percentage is entirely due to the funding of investments made after the time, referred to in the first paragraph, and necessary to comply with the case or under the Electricity Act 1998 and Gas Act to perform, renew, maintain and extend tasks and obligations to have its nets in operation.
4 The first and third paragraphs shall not apply to network operators who were not part of a group as referred to in Article 13 (2) of the EC Treaty on 27 March 2009. Article 24b of Book 2 of the Civil Code which also belongs to a legal person or company that produces or supplies electricity or gas in the Netherlands.
This Decision shall enter into force from the day following the date of issuance of the Official Journal in which it is placed.
This Decision is referred to as: The Network Manager Financial Management Decision.
Charges and orders that this Decision will be placed in the Official Journal by means of the note of explanatory note accompanying it.
Tavarnelle, 26 July 2008
Beatrix
The Minister for Economic Affairs,
M. J. A. van der Hoeven
Published the twenty-first August 2008The Minister of Justice,
E. M. H. Hirsch Ballin
