High ambitions ensure that you ask the most of yourself"
Enexis considers itself as having an important role in realizing the energy transition. However, Enexis is also being confronted with a shortage of personnel, materials, and transmission capacity. These two challenges influence each other and demand smart solutions. This is an issue that the Supervisory Board discusses regularly with the Executive Board. ‘We cannot predict what the future will look like. Nevertheless, we already have to start preparing for the future.’
2023 was an eventful year for Enexis. First of all, due the enormous task that the organisation is facing. The energy transition is accelerating and the expansion of the energy grid cannot keep pace. Jos Nijhuis, Chairman of the SB: ‘As a grid operator, you have to reinvent yourself.’ ‘Important questions in the past year were: How can we create more grid capacity? How can we make more use of suppliers and outsource more work to contractors? How can we make more efficient and effective use of the grids? Where should we invest and where is this most productive?’
Departure and reinforcement
In the middle of this evolving organisation, Enexis took leave of valued colleagues in 2023. Jos looks back at the passing away of colleague supervisory board member Paul Rüpp. ‘We still miss him every day - as a person and as a supervisory board member. Paul was exceptionally good at forging connections between society, the political arena, and Enexis. His successor Wilma Mansveld, who was nominated by the shareholders, has started in the meantime. Supervisory Board member Carmen Velthuis will be stepping down in 2024. Her successor will be nominated for appointment at the coming AGM.’
The departure of CEO Evert den Boer also had an impact. Jos: ‘He had already been temporarily absent earlier due to health problems. After a short return, Evert stepped down definitely as CEO of Enexis in 2023. We hope that he will recover soon. Of course, the departure of a CEO has a big impact; however, the three remaining EB members succeeded very well in temporarily assuming his duties. With Rutger van der Leeuw, Enexis now has a good successor. The SB is also pleased that they were able to appoint an internal candidate. Liesbeth Kaashoek has started as COO ad interim in the meantime, so that Rutger can focus completely on his duties as CEO.’
Executing the new strategy
It does appear as if there was many comings and goings; however, according to Jos, this is only normal in a large organisation. ‘It did not interfere with the execution of Enexis's strategy, on which we as SB continue to challenge the EB.’ Joost van Dijk, Vice-Chairman of the SB, adds: ‘Enexis has a clear strategy. A strategy that is feasible and, by now, also well internalised and supported by the shareholders. The energy transition has a huge impact on the organisation effecting both the production and supply side. This demands further expansion of the grids, acceleration, and increasing the number of new connections and upgrades of existing connections for more and more businesses and households. Enexis's work package has increased no less than threefold during the last six to seven years. It is a huge challenge in times of personnel shortages to find and retain sufficient technical personnel to carry out this growing production. This is why we are also outsourcing more work to contractors.’
Preparing for the future
Joost: ‘The energy transition requires a new approach.’ ‘We are transitioning from a grid that was powered by a few large power plants to a multitude of small-scale local solutions. The future is difficult to predict: laws and regulations, subsidies and technical innovations can still have a large effect. Nevertheless, we have to already start preparing our grid.’ A better balance between supply and demand would help to make more efficient use of the capacity of the grid. ‘Flexibility is essential: battery storage as well as congestion management (in other words avoiding peak hours), where we ask large-volume customers, in the event of a potential overload of the grid, to temporarily reduce their transmission demand in exchange for a fee.’ Jos adds: ‘Households and businesses must become more aware of the fact that grid operators are not always able to deliver the requested capacity.’
High ambitions necessary
The SB not only monitors the progress with regard to the implementation of the strategy. Jos: ‘We also brainstorm with the EB’. ‘We conduct an open dialogue about measures. In doing so, we take the various plans and reports into account. As SB, we examine whether investments are effective. How did the EB arrive at the choice for grid expansion? How are they determining priorities? How efficient can the work be carried out? Enexis has high ambitions, and this is also necessary. High ambitions ensure that you ask the most of yourself. As SB, we have ample knowledge, expertise, and experience to challenge the EB on this matter.’
Jos: ‘We realise that Enexis cannot realise all of its ambitions. For instance, the goal of offering everyone access to energy at all times. Nevertheless, the SB supports such high ambitions. If you place the yardstick just a little bit too high, you force yourself to think about how you can still attain your goal. However, it is important to be transparent about this to consumers, businesses, the energy market, and governments.
Gas-free and voltage-free
Safety was high on our agenda in 2023, as in previous years. The SB starts every meeting with this agenda item. Can Enexis ascend further on the Safety Culture Ladder? Which improvements have been implemented? Joost: ‘We are trying to reduce risks further and further. To continue to increase safety, working gas-free and voltage-free is the new standard. This applies to our own employees and to contractors that are helping us carry out the growing work package. The SB strongly supports this choice. Moreover, working gas-free and voltage-free also increases the safety of others, as a lot of the work takes place in public spaces.’
Gaining experience with heating
The fourth Dutch Cabinet Rutte submitted the proposal for the Collective Heat Supply Act [Wet collectieve warmtevoorziening (Wcw)] to the Dutch Council of State in 2023. Jos: ‘Heat is also an agenda item at every SB meeting. It is a new public energy supply, in addition to gas and electricity. Only there is still little experience with it and there are many stakeholders involved; therefore, it is difficult to take the next steps in the right direction. However, Enexis must also prepare for this. This is why we are first gaining experience with small-scale heat infrastructure projects. In Mijnwater in Limburg, for example, where Enexis is working together with various parties. As SB, we focus on identifying and above all limiting risks.’
A sustainable production chain
Increasing the sustainability of the energy chain will be at the top of the SB's agenda in 2024. As from 2024, grid operators must comply with the new European Corporate Sustainability Reporting Directive (CSRD). Jos: ‘Laws and regulations are becoming increasingly strict and are not always clear, whereas the energy chain is also very complex. In addition, we will also be working together more closely with the Central Works Council within Enexis. We explain how we are fulfilling our role as SB. And we are looking forward to continuing our talks on the changing organisation as a consequence of the energy transition.’