Annual Report 2017 Annual Report 2017 2 Fjordkraft.No Contact Table of Contents Tel: +47 23 00 61 00
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fjordkraft.no Tel: +47 23 00 61 00 Fjordkraft Holding ASA and the Fjordkraft Group Annual Report 2017 Annual report 2017 2 fjordkraft.no Contact Table of contents Tel: +47 23 00 61 00 MAIN OFFICE, BERGEN: SANDEFJORD: TRONDHEIM OSLO: STAVANGER: Fjordkraft AS Fjordkraft AS Trondheim Kraft AS Fjordkraft AS Fjordkraft AS Folke Bernadottes vei 38 Østre Kullerød 3 Sluppenvegen 17 B, 5 etg. Lilleakerveien 6 DNB Arena, Ishockeyveien 1 5147 Fyllingsdalen 3241 Sandefjord 3073 Trondheim 0283 Oslo 4021 Stavanger Contents PREFACE 3 PART 3 26 0.1 2017 Highlights 3 3.1 Strategy and strategy Key figures 2017 5 planning at Fjordkraft 26 0.2 Social responsibility 6 PART 4 30 Corporate social responsibility 4.1 Annual Report 2017 30 at Fjordkraft 7 Board of Director’s report 31 Ethics at Fjordkraft 8 Market 32 Organisation 33 PART 1 9 Environment 34 1.1Letter from the CEO 9 Risk and risk management 35 A word from the CEO 10 Outlook 36 PART 2 12 4.2 Financial statement Fjordkraft Group 38 2.1 Fjordkraft at a glance 12 Our business 13 4.3 Notes Fjordkraft Group 46 2.2 Management 14 4.4 Financial statement Organisation 15 Fjordkraft Holding ASA 104 Annual Report Fjordkraft Holding ASA 2.3 Board of Directors 20 4.5 Notes Fjordkraft Holding ASA 108 and the Fjordkraft Group Design: 4.6Auditor’s report 117 Geelmuyden Kiese Annual report 2017 3 fjordkraft.no Preface – 0.1 2017 Highlights Tel: +47 23 00 61 00 Preface 0.1 2017 Highlights Annual report 2017 4 fjordkraft.no Preface – 0.1 2017 Highlights Tel: +47 23 00 61 00 • Fjordkraft Netthandel was launched. 150 external customers. There are four local grid • New major customers. Competition in the 2016. This indicates that we have somewhat online stores give Fjordkraft’s electricity companies and electricity suppliers who tender market is tough. Among the largest more satisfied customers than the survey customers discounts. Because Fjordkraft purchase their settlement and billing services public new customers in 2017 was NTNU, average. The score must exceed 70 points has a large number of customers, we are an from Fjordkraft. whose buildings have an annual consump- in order for the customers to be character- attractive partner for vendors and brands who tion of approximately 100 GWh. Tine is a ized as satisfied. would like to give our customers discounts. • Increased awareness. More than 50 per cent customer with an annual consumption of of Norway’s population mention Fjordkraft 364 GWh, which renewed their contract • Committed employees. The employees’ • Ladestasjoner.no was acquired in March. unaided when asked to mention an electric- in 2017. identification with the company and how Fjordkraft has upgraded the website and ity supplier. 95 per cent of the adult popula- they experience the management and work launched a new application that provides tion has heard of Fjordkraft. • Brand awards. Google Global Partner situation is measured twice yearly. The an overview of more than 2,200 charging Summit in New York presented Fjordkraft energy index for permanent employees is stations across Norway with a total of more • Fjordkraft has been an advocate of consol- on the stage as Best Practice in digital cus- at 25.5 – which is an increase on the previ- than 10,000 charging points. The application idated billing. We sell electricity all over tomer insight and marketing. Fjordkraft was ous survey. The benchmark for good human also displays the location and specification Norway and in 114 grid areas. Fjordkraft has one of the five finalists at the Change Awards capital index is 24. of charging stations in the Nordic region. entered into an agreement with local grid on Iceland, a forum that recognises the best companies on consolidated billing, and the energy brands in the world. Competitors • The Solstrøm electricity contract was intro- • Digitization. IT is no longer a staff func- vast majority of Fjordkraft’s customers can included Energia, Enel, EON and EDP. EON duced. Fjordkraft buys excess production tion. The reorganization 1 April facilitates now pay for electricity and the grid tariff at won. and encourages renewable production by increased digitization as the IT and business the same time. paying extra for solar power produced by operations were integrated in the Technology • The wholesale market. Electricity prices in private customers. and Production division. • Interest from the UN. The United Nations 2017 were higher than in 2016. The average Framework Convention on Climate Change price on the Nordic power exchange in 2017 • GDPR. An internal audit project of the status • Fjordkraft Mobil was launched on 25 April. (UNFCCC) commended Fjordkraft’s was 27.43 øre/kWh excl. VAT, compared to for GDPR compliance was conducted in the We already had a well-known brand, a Klimanjaro initiative. The goal is to con- 24.97 øre/kWh excl. VAT in 2016. latter half of the year. The results are used skilled customer service centre and expertise tribute to reduced CO2 emissions by cre- in the company’s preparations for GDPR from the electricity market. For Fjordkraft, ating a domino effect through imposing • Norsk Kundebarometer showed that the compliance. the path from being an electricity retailer climate requirements on the company’s electricity industry saw negative develop- to also becoming a mobile phone operator suppliers and creating a market where cli- ments in 2017. Higher electricity prices, • Stock exchange. On 24 November it was was short. Fjordkraft’s electricity customers mate-neutral becomes the new standard. negative stories about new electricity meters announced that the company’s owners are get more value for money with cheap mobile and uncertainty related to consolidated bill- considering listing the company and that the phone subscriptions. • Increased market share: 19% of electricity ing (same invoice for electricity and grid process will be concluded in 2018. customers state that they are customers of tariff) may have had an impact on Norsk • New services for power plants. The Fjordkraft. This is the first time such a high kundebarometer. “Fjordkraft Factory” accepted its first exter- market share has been reported for one elec- nal customers. The process and IT system tricity supplier in Norway (TNS Kantar Q3 • Customer satisfaction. Fjordkraft achieved for settling and billing which was developed 2017). 72.6 points on Norsk Kundebarometer 2017, by Fjordkraft, “Fjordkraft Factory,” accepted a decline of 4.5 points from the top score in Annual report 2017 5 fjordkraft.no Preface – 0.1 2017 Highlights Key figures 2017 Tel: +47 23 00 61 00 Key figures Key figures NOK in millions 2017 2016 2017 Revenue 4 453 3 925 Operating result (adjusted) 354 325 Profit for the year 252 257 Electricity price (Nord Pool System price) y= NOK/MWh 400 350 305,74 304,48 300 269,06 287,16 285,54 282,05 277,55 250 200 150 100 50 0 2012 2013 2014 2015 2016 2017 2017 jan jan jan jan jan jan des Number of switches between elctricity providers in Norway per year (000’)1 500 400 300 200 100 1) Supplier change figures from NVE. Not included churn from relocations 0 and/or churn from financial inability to pay for customer (hence cancellation 2012 2013 2014 2015 2016 LTM 2017 of subscription by electricity supplier). LTM as of Q3 2017. Annual report 2017 6 fjordkraft.no Preface – 0.2 Social responsibility Tel: +47 23 00 61 00 0.2 Social responsibility Fjordkraft believes that companies have responsibilities beyond maximising profits for the shareholders. Fjordkraft has addressed this responsibility in its climate Initiative “Klimanjaro”, where we require our suppliers to be climate neutral by 2019. Fjordkraft has chosen to focus its corporate social responsibility work on the greatest challenge of our time – anthropogenic climate change. Annual report 2017 7 fjordkraft.no Preface – 0.2 Social responsibility Corporate social responsibility at Fjordkraft Tel: +47 23 00 61 00 Corporate social There is broad consensus that climate change To prevent “Klimanjaro” from grinding to a is accelerating, and the Paris Agreement states halt due to disagreement on methods or defi- responsibility that we need to keep the global temperature nitions of climate neutrality, we use the UN’s from rising more than two degrees Celsius over recognised standards for measuring climate at Fjordkraft preindustrial levels, or else climate change will impact. The initiative has already been praised spiral out of control. by the United Nations Framework Convention In Norway, the Confederation of Norwegian on Climate Change (UNFCCC). Enterprise (NHO) and the Norwegian Confederation of Trade Unions (LO) actively Green shift with a green bottom line urge the private sector to lead the way and According to NHO and LO, the actions of small introduce initiatives to combat climate change. and medium-sized businesses have an enor- However, the changes that companies and mous impact on Norway’s overall greenhouse policymakers are willing to implement are not gas emissions. Nevertheless, only one in ten in keeping with the seriousness of the impend- small to medium-sized businesses currently ing crisis. measure their climate footprint, according to a survey conducted for NHO and LO in con- Results first nection with the ITUC “Climate Action Week” Fjordkraft has been climate neutral since campaign. 2007. Now we are requiring all our suppliers In the same survey, eight out of ten small and to become climate neutral too, multiplying this medium-sized businesses reported that they “Klimanjaro” is a made-up portman- impact by 100. are extremely or very environmentally aware, teau word, combining “climate” in In other words: internal measures are all well but only four out of ten believe environmental Norwegian with the name of Africa’s and good, but we need a green value chain to initiatives can be profitable.