Review of 2006
January
On 13 January 2006 Gasunie and Nuon decide to set up a partnership for the underground storage of gas in order to further improve the security of gas supply. The total investment for Nuon runs to € 180 million. Each party has equal rights to the storage facility.
February
On 7 February 2006 Nuon announces the completion of the sale of Nuon China International which carried out Nuon’s wind energy activities in China.
On 15 February 2006 Nuon announces that agreement has been reached with the trade unions on a new Social Plan for the 2006-2007 period.
March
On 1 March 2006 Nuon launches Nuon VastePrijsNatuurStroom, a product offering customers clean power at a fixed price. Customers can opt to fix their delivery price by concluding a contract for one, two, three or five years.
In March 2006 Nuon announces that Doede Vierstra (47) has been appointed by the Supervisory Board as member of the Management Board and Chief Financial Officer. Doede Vierstra is responsible for corporate planning & control, tax, treasury, risk management and ICT. He succeeds Maarten Henderson who left Nuon with effect from 1 April 2006.
April
On 10 April 2006 Nuon announces that agreement has been reached with Vitens about the sale of the interest of 36.1% that Nuon holds in Vitens. The transaction fits in with Nuon’s current strategy to withdraw from the water sector. After the merger of Vitens with Hydron companies (1 October 2006) Nuon still retains an interest of 25%. That interest is partly transferred to other shareholders and partly purchased and withdrawn by Vitens in three tranches. The total proceeds were received in December 2006. The final tranche is expected to be settled in May 2007.
On 17 April 2006 the first foundation pile is driven for the offshore wind farm at Egmond aan Zee, marking the official start of the offshore construction work for this wind farm.
On 20 April 2006 Nuon completes the sale of the US water company Utilities Inc. to Hydro Star.
Nuon and Hydro Star reached agreement on the sale of the water company in May 2005. The completion of the transaction took place after the US authorities granted their approval.
At the General Meeting of Shareholders on 24 April 2006, the shareholders of Nuon adopt the financial statements of Nuon for the 2005 financial year. In addition the shareholders consent to a reduction in the number of members of the Supervisory Board from thirteen to eleven. The shareholders also approve adjustments to the remuneration policy which the Supervisory Board proposed in the 2005 annual report published at the end of March.
At the end of April 2006 the Lower Chamber approves the proposed legislation for the unbundling of the energy companies.
In April Nuon takes over Akzo Nobel subsidiary Helianthos. Helianthos develops methods for cheap mass production of solar cells based on thin film technology. In making this acquisition Nuon is looking to achieve a breakthrough in solar energy. The new technology should make solar energy affordable for a broad group of customers as an alternative to electricity from fossil fuels.
May
On 3 May 2006 Nuon announces that Wim Heyselberghs is stepping down as delegated CEO of Nuon Belgium.
In co-operation with the energy sector and the Ministry of Economic Affairs, a structural improvement was found in placing ‘smart’ meters at the premises of all small users.
These meters provide an excellent function in the availability of metering data, necessary for the smooth handling of market processes. This type of meter enables the company to read metering data from a distance and to conduct various other business from a distance. This entails a substantial simplification of the complex administrative processes concerning yearly billing, removing and switching suppliers by customers.
June
After the first foundation pile for the offshore wind farm at Egmond aan Zee had been driven in April 2006, Nuon reports in June that the first four wind turbines of this wind farm have been successfully placed. The offshore wind farm is to be completed by the end of 2006 and will comprise 36 wind turbines with a total capacity of 108 MW, sufficient to deliver renewable power to more than 100,000 Dutch households. The project involves an investment of over € 200 million. The offshore wind farm is owned by NoordzeeWind, a joint venture between Nuon and Shell.
On 29 June 2006 Nuon finalises the sale of its 50% stake in Cascal to the joint venture partner Biwater. The finalisation follows the approval of the sale by the UK authorities. In the summer of 2005 Nuon and Biwater sign an agreement for the sale of Nuon’s stake in the water company.
At the end of June 2006 Nuon starts to dismantle the six wind turbines of the pilot wind farm Burgervlotbrug at Zijpe. This farm was set up in 1988 to establish in practice the most suitable type of wind turbine for enabling agricultural operators to generate their own energy. In the late eighties wind turbine technology was still in its infancy; great technological advances have been made since then.
July
On 4 July 2006 Nuon announces the start of gas sales to households in Hamburg and Berlin. Nuon thus wants to offer more choice to retail customers in the German energy market. This initiative is supported by the German regulatory body which advocates more freedom of choice in the gas and electricity market.
On 5 July 2006 Nuon announces that agreement has been reached on the sale of its 50% stake in Paques B.V. to the co-owner. Nuon bought its interest in Paques in the nineties. Paques develops and realises water and gas purification systems using innovative biotechnology. The transaction has meanwhile been completed.
On 10 July 2006 Nuon announces the sale of Industrial Maintenance of Emmtec Services to Imtech N.V. Emmtec Services is part of the Business Customers Division. The sale was announced in May 2006.
On 12 July 2006 Nuon announces the completion of the sale of its German wind farms to CRC Global Structured Energy Fund, a fund that is managed by Christofferson, Robb & Company (CRC). The five wind farms are spread across three German regions and have a joint capacity of 100 MW.
On 19 July 2006 Nuon announces the selection of Eemshaven in the Dutch province of Groningen as the location for its new large power plant (1,200 MW). Understandings have been reached with the Groningen authorities and the Ministry of Transport, Public Works and Water Management. Nuon has also obtained from Shell the licence to apply its modern coal gasification technology.
On 21 July 2006 Nuon announces its plans to construct a new district heating network in the south of Rotterdam. This heating network will enable Nuon to prevent the annual emission of about 700,000 tonnes of CO2 over a period of thirty years. The new heating network will ultimately supply about 18,000 homes, offices and the new hospital Medisch Centrum Rijnmond-Zuid with residual heat from the nearby port industry. The heating network is expected to be completed in 2012.
August
On 17 August 2006 Nuon announces the appointment of Alexander Dewulf as managing director of Nuon Belgium with effect from 1 October 2006, as the successor of Wim Heyselberghs.
On 24 August 2006 Nuon announces the official opening of its cooling station. The station delivers renewable cooling to business and retail customers on the Amsterdam South axis. The cooling is generated from a natural source, so that the system realises a CO2 reduction of about 70% compared to the current cooling methods.
September
On 3 September 2006 Nuon unveils the purchase of an industrial site near Seneffe to the north-west of the Belgian town of Charleroi. Nuon is exploring whether a modern gas-fired power plant can be built there.
October
On 5 October 2006 Nuon announces that Dutch households are now receiving the first kilowatt hours of clean power from the offshore wind farm at Egmond aan Zee. The wind farm will be extensively tested in the coming months. All 36 wind turbines are now in place and are supplying power.
On 6 October 2006 Nuon launches Nuon NatuurCertificaat, a new product enabling customers to compensate for the CO2 emissions of their gas consumption.
On 11 October 2006 Nuon announces its intention to start selling electricity and gas to households in the Walloon Region. The Walloon energy market has meanwhile been liberalised.
November
On 6 November 2006 the shareholders of Nuon decide during an Extraordinary General Meeting to approve several amendments to the articles of association in order to comply with changes in legislation and to bring the articles of association further into line with the Corporate Governance Code. The amendments to the articles of association give shareholders greater control in numerous areas, including the power to propose amendments to the articles of association and to approve investments above € 500 million.
On 14 November 2006 the Upper Chamber decides that the energy companies are not unconditionally required to split into a grid company and a supply company. As a result of a resolution, a compulsory unbundling of the energy companies is now subject to conditions: the grid company and supply company must be split if this is prescribed by European law or if the energy companies jeopardise independent grid management, for instance by entering into high-risk European partnerships. Two parts of the original act will be implemented. The management of the 110 KV grid and higher will be transferred to the national grid manager TenneT. In addition, the integrated energy companies must create a ‘broad’ grid manager.
December
In December 2006 Nuon receives the total purchase price for the sale of its interest in Vitens. After the merger between Vitens and Hydron companies on 1 October 2006, Nuon still retained an interest of 25%. That interest is being purchased and withdrawn by Vitens in three tranches of a maximum of 10% each. The delivery of the final tranche of shares is expected to be settled in May 2007.
