There are various parts to our financial model of income and expenditure, as charted below.
Notes on the main cash flows within Alliander
Alliander's income is made up of approximately 85% income from the regulated activities of Liander and 15% other income, the latter being income from the activities outside the Netherlands, income related to new activities and other income such as from the rental of large-user meters and transformers and income from the activities of other companies both inside and outside the regulated energy sector. The network operator Liander will be publishing its own annual report on its performance in 2016 during the second quarter of 2017.
The main expenditure relates to maintenance work on the electricity and gas distribution networks and the operating expenses connected with all other activities. In total, those items account for approximately 50% of our overall expenditure. On top of that, we invest in excess of half a billion euros a year in capital projects, mainly concerned with replacing existing assets and expanding the networks, as well as the installation of smart meters. This investment equates to roughly 30% of our total expenditure. Additionally, there is the dividend payable to our shareholders and the interest payments to the holders of the subordinated perpetual bond loan and the providers of borrowed capital. The dividend and interest payments for 2016 together amounted to approximately 10% of our overall expenditure. Finally, we pay sufferance tax charges to municipal authorities and corporate income tax to the Dutch Tax & Customs Administration. This accounts for another 10% of our outgoings approximately.