2022Annual Report
2 3Content
Content
2 3
Key figures 4
Group management 8
Group structure 9
Where we operate 8
Our business 9
Letter from the CEO 15
Corporate Governance
Statement of Compliance 18
Risk management 28
Director´s report
Director´s report 36
Board of Directors 48
Declaration pursuant to Section 5-5 of the Securities Trading Act 49
Å Energi Group
Income Statement 54
Comprehensive income 55
Statement of finansial position 56
Statement of cash flows 58
Statement of changes in equity 59
General information and summary of the most important accounting principles 60
Notes 68
Å Energi AS
Income Statement 120
Statement of financial position 121
Statement of cash flows 122
Accounting principles 123
Notes 126
Auditor´s report 138
Alternative performance measures (APM) 144
Sustainability and Corporate Social Responsibility
Sustainability and Corporate Social Responsibility 146
Sustainability in 2022 in brief 147
Value added statement 148
TCFD-index 149
4 5Key figures Key figures
Key figures Key figures
Def.
2022 2021 2020 2019 2018
FROM INCOME STATEMENT
Operating revenues NOK million 35,763 20,625 8,204 13,185 13,980
EBITDA NOK million 2,553 4,622 2,583 3,033 1,626
Operating profit 1 NOK million 1,793 3,858 1,857 2,330 967
Profit before tax NOK million 1,685 4,101 1,694 2,211 853
Net income for the year (controlling interest’s share) NOK million 166 2,062 1,909 1,122 -198
FROM STATEMENT OF FINANCIAL POSITION
Total assets NOK million 73,524 33,074 24,888 23,021 22,616
Equity NOK million 20,604 7,369 5,569 4,082 3,526
Interest-bearing liabilities NOK million 10,912 9,030 10,937 10,758 9,260
Capital employed NOK million 31,516 16,399 16,506 14,840 12,787
Unrestricted liquidity 2 NOK million 6,407 4,927 5,332 3,018 2,864
Net interest-bearing liabilities 3 NOK million 6,497 6,603 10,605 10,740 8,896
Interest-bearing liabilities due over coming 12
months
4 NOK million 3,158 1,284 2,000 2,372 1,657
Bank deposits excluding restricted assets NOK million 4,415 1,407 332 18 364
UNDERLYING PERFORMANCE
Underlying operating revenues 5 NOK million 40,258 21,576 7,191 12,329 15 ,312
Underlying EBITDA NOK million 7 ,049 5,574 1,570 2,178 2,957
Underlying operating profit 1 NOK million 6,289 4,810 844 1,475 2,298
Underlying profit before tax 1 NOK million 6,036 4,582 628 1,202 2,117
Underlying net income for the year
(controlling interest’s share)
NOK million
1,515 1,923 489 340 874
CASH FLOW
Net cash provided by operating activities NOK million 4,027 5,389 1,569 502 2,049
Dividends paid NOK million 755 325 615 592 608
Maintenance investments NOK million 550 484 562 551 397
New investments NOK million 498 730 700 801 1,000
Acquisition of shares/ownership interests and
capital increases NOK million
352 61 55 41 94
2022FINANCIAL POSITION 2021 2020
Def.
2022 2021 2020 2019 2018
KEY FIGURES FOR UNDERLYING PERFORMANCE
Return on capital employed before tax 6 % 26.2 29.2 6.2 10.9 17.8
Return on capital employed after tax 7 % 7.1 12.7 4.5 4.1 8.1
Return on equity after tax 8 % 10.8 29.7 10.8 9.3 21.6
Equity ratio 9 % 28.0 22.3 22.4 17.7 15.6
HYDROELECTRIC POWER
EBITDA NOK million 5,766 5 060 836 1,701 2,629
Actual electricity generation 10 GWh 6,153 8,880 8,112 7,288 8,686
Expected electricity generation 10 GWh 11,300 8,700 8,700 8,300 8,300
Reservoir reserves at 31 Dec. GWh 3,580 2,700 4,914 3,724 3,180
Reservoir capacity GWh 5,321 5,321 5,321 5,321 5,321
Average spot price øre/kWh 213.0 76.0 9.8 38.7 41.5
Electricity price realised øre/kWh 108.3 80.1 18.9 32.8 39.2
Cost of generation/kWh øre/kWh 11.3 10.6 9.5 9.2 10.0
NETWORK
EBITDA NOK million 770 370 578 362 287
Number of transmission and distribution
customers 1 000 313 210 207 205 202
Energy supplied GWh 5,140 5,689 5,347 5,547 5,670
Power grid capital (NVE capital) 11 NOK million 8,762 5,993 5,510 5,275 5,083
KILE cost 12 NOK million 77 61 50 48 187
ELECTRICITY SALES
EBITDA NOK million 474 119 125 98 75
EBITDA margin % 2.3 1.0 3.0 1.5 1.2
Electricity sales GWh 21,425 21,925 18,244 17,060 14,106
Equity
Interest-bearing liabilities
Capital employed
Total assets
20,604
10,912
31,516
73,524
7,369
9,030
16,399
33,074
5,569
10,937
16,506
24,888
6 7Key figures Key figures
2022* 2021 2020 2019 2018
DISTRICT HEATING
EBITDA NOK million 68 42 35 39 41
Energy supplied GWh 147 161 140 151 155
Price of heating sold Øre/kWh 102 71 70 73 72
Gross margin, heating Øre/kWh 60 42 40 43 43
Share of renewable generation % 97 89 99 99 99
EMPLOYEES, HEALTH AND SAFETY
Number of permanent and temporary staff at 31 Dec. 1,345 935 925 1,020 1,005
Number of permanent and temporary full-time equivalents at 31 Dec. 1,305 907 881 987 976
Sickness absence % 3.4 2.8 2.7 3.1 3.6
Total non-lost-time and lost-time injuries per million working hours 3.2 2.2 3.4 1.8 3.8
Key figures
Definitions
1. Operating profit before depreciation and impairment
losses
2. Equity + interest-bearing liabilities.
3. Bank deposits, certificates and unused credit
facilities. Excludes restricted assets.
4. Interest-bearing liabilities - unrestricted liquidity.
5. The underlying figures take the Group’s IFRS
profit and adjust it for unrealised gains and losses
on financial instruments, material gains and
losses on the disposal of businesses or ownership
interests in businesses and changes in the way
that negative resource rent carry forwards are
calculated. See separate detailed description of
alternative performance measures on page 112.
6. (Underlying operating profit + financial income) /
Average capital employed.
7. (Underlying net income for the year + interest
expense after tax) / Average capital employed.
8. Underlying net income for the year / Average equity.
9. Equity / total assets.
10. All power generation figures are quoted less
pumping and losses. Actual electricity generation
includes twelve months Å Energi Vannkraft AS and
one month Glitre Energi Produksjon AS.
11. Basis for calculating the income cap. Set by the
Norwegian Water Resources and Energy Directo-
rate (NVE).
12. Adjustment to income cap for energy not supplied.
Key figures
Underlying performance
NOK million
%
Net income
Operating incomeEBITDA
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Årsresultat
Driftsresultat
EBITDA
202020212022
0
5
10
15
20
25
30
Return on the equity after tax
Return on the equity after taxe
Return on the capital employed (after tax)
Return on the capital employed (after tax)
201420152016
0
5
10
15
20
25
30
Egenkapitalavkastning etter skatt
Avkastning sysselsatt kapital etter skatt
202020212022
* The merger between Glitre Energi and Agder Energi was completed on 29 November 2022. The reported 2022 figures for Å Energi include
12 months of Agder Energi’s figures and Glitre Energi’s figures for December.
988 Group management Group structure
Group management
Steffen Syvertsen
Margrethe Smith
CEO
EVP Customer & Digital
Solutions
Pernille Kring Gulowsen
Jan Erik Eldor
EVP Operations &
Sustain ability
EVP Hydroelectric Power
Håkon Levy
Ingvill Heskestad Mykland
EVP Finance & Corporate
Governance
EVP Technology, Innovation &
Security
Atle Knudsen
Tore Morten Wetterhus
EVP New Industries
EVP Network
Anders Gaudestad
EVP Renewable Energy
Management & Trading
Margit Unander
EVP HR & Communication
CEO
Steffen Syvertsen
EVP HR & Communication
Margit Unander
EVP Hydroelectric
Power
Jan Erik Eldor
EVP Network
Tore Morten
Wetterhus
EVP Renewable
Energy Manage-
ment & Trading
Anders Gaudestad
EVP Customer &
Digital Solutions
Margrethe Smith
EVP New
Industries
Atle Knudsen
Å Energi
Vannkraft
Glitre Energi
Produksjon
Å Energi
Kraftforvaltning
Glitre Nett
Å Strøm**
Glitre Energi
Strøm***
Å Energi Invest
EVP Finance &
Corporate Governance
Håkon Levy
EVP Technology, Innovation
& Security
Ingvill Heskestad Mykland
EVP Operations &
Sustainability
Pernille Kring Gulowsen
Business areas
Administrative functions
Subsidiaries
Group structure
Vibb
Å Energi
Varme
Ergon Nordic
Å Energi
Fleksibilitet
*Glitre Energi Produksjon and Å Energi Vannkraft are set to merge.
The merger is expected to finalize in may of 2023.
**LOS was renamed to Å Strøm in april of 2023.
*** Glitre Energi Strøm and Å Strøm are set to merge.
The merger is expected to finalize in may of 2023.
10 11
Norway
Germany
Switzerland
Belgium
Denmark
Sweden
Finland
10
Where we
operate
UK
11
12 13
Å Energi is organised into five business
areas, which reflect the Group’s core
activities and value chain: Hydroelectric
Power, Network, Renewable Energy
Management & Trading, Customer &
Digital Solutions and New Industries,
as well as the parent company, which
is responsible for shared services. The
Group’s business areas and the admi-
nistrative departments at the parent
company are led by directors. They and
the CEO constitute the senior mana-
gement team. As part of the ongoing
merger and integration process, several
of the businesses described below will
undergo both organisational and ope-
rational changes over the course of the
coming year. Work has also started on
drawing up a new strategy for Å Energi,
which will affect the business areas’
future priorities and goals.
Parent company and shared services
Å Energi AS provides administrative
functions to the Group. Administrative
functions are split into the following
disciplines and areas of responsibility:
• Finance and Corporate Governance
– management accounting/controlling,
finance, treasury, external reporting,
tax, capital allocation/portfolio
management, risk management and
strategic mergers and acquisitions.
• HR and Communications – CSR,
business environment, Early War-
ning, communications, HR, brand,
health and saftety.
• Operations and Sustainability
– shared services, payroll, purchas-
ing, legal/compliance, quality, docu-
mentation, property management
and sustainability.
• Technology, Innovation and Security
– infrastructure/operations, security
and emergency preparedness,
projects and innovation.
Hydroelectric Power
The Hydroelectric Power business
area is responsible for developing,
operating and maintaining the Group’s
72 wholly-owned and part-owned
hydroelectric power stations.
The biggest driver of value creation for
the hydroelectric power business is the
available capacity of its power stati-
ons. This is affected by the availability
of plant at power stations, the reser-
voir volumes permitted by its licence
terms and the addition of new capacity
through investment and by obtaining
new licences. The business area
operates through the companies Å
Energi Vannkraft AS and Glitre Energi
Produksjon AS. The decision to merge
the companies was adopted in March,
and our expectation is that the merger
will be completed in May.
Network
The Network business area is a natu-
ral monopoly that is responsible for
fulfilling Å Energi’s duty to society to
provide electrical energy to end users.
The government caps its revenues,
which means that efficient operation
and successful management of the
power grid are the main drivers of
value for the business area.
The Energy Act establishes rules for
how energy companies can organise
their business if they own a distribution
system operator. This is reflected in the
business area’s organisational struc-
ture, in which the distribution system
operator’s day-to-day operations and
work on developing and upgrading the
grid are managed through the allocation
and supervision of budgets.
The business area, which operates
through Glitre Nett AS, is responsible
for building, operating and maintaining
the regional and local distribution
sys tem in the counties of Agder and in
Buskerud and Hadeland. That company
is an independent entity controlled by
its own AGM and Board.
Renewable Energy Management &
Trading
The Renewable Energy Management
& Trading business area is responsible
for the Å Energi Group’s trading con-
tracts and for managing market risk.
This includes the Group’s management
and trading of energy products in the
Nordic region and Europe.
The business area, which operates
through Å Energi Kraftforvaltning AS,
is responsible for managing and maxi-
mising the return on the electricity
generated by the Group, on behalf
of Å Energi Vannkraft AS and Glitre
Energi Produksjon AS. It does this by
trying to optimise scheduling and by
managing market risks, taking into
account hydrology, weather data and
information about markets. Renewable
Energy Management & Trading is also
responsible for the Group’s trading, ori-
gination and green product portfolios,
and for power purchase agreements
(PPAs) with industrial customers and
investors.
Within the Nordic and continental Euro-
pean markets, it operates in Norway, as
well as having a presence in Sweden,
Germany and Switzerland.
Customer & Digital Solutions
The Customer & Digital Solutions busi-
ness area is responsible for developing
the Group’s portfolio of wholly-owned
and part-owned subsidiaries whose
services include electricity sales to
domestic customers, smart digital
solutions, district heating, flexibility,
electrical contracting and broadband.
Å Strøm AS and Glitre Energi Strøm
are Å Energi’s electricity retailers
serving the domestic market.Å Strøm
is the dominant player in the Agder
region and also serves customers in the
rest of Norway. Glitre Energi Strøm has
most of its customers in Viken. These
companies generate profit from the
margin they achieve on selling green
electricity and associated products, as
well as by having a cost-efficient busi-
ness model. Our digital service pro-
Our business
vider VIBB AS is also included under
electricity sales to domestic customers.
A decision to merge Å Strøm AS and
Glitre Energi Strøm AS was adopted in
March, and our expectation is that the
merger will be completed in May. This
will make the merged company one of
Norway’s biggest electricity retailers.
The district heating business is respon-
sible for the relevant infrastructure,
operations and sales to commercial
and institutional customers in and
around the biggest towns in Agder and
Viken. Å Energi is also a major player
in the bioenergy sector.
Customer & Digital Solutions also
includes Å Energi’s ownership inter ests
and projects related to the Group’s acti-
vities in flexibility services and energy
data (NODES, Nodes-Tech, Enfo,
Glitre Energiløsninger and Oss Nor-
ge). In addition to the above, Å Energi
also has stakes in El-Tilsynet (100%),
the contracting business Nettpartner
(40%) and the fibre broadband compa-
ny Viken Fiber (28.5%). Nettpartner
is an important supplier of services
for the construction, operation and
maintenance of critical infrastruc ture
needed for the green energy transi-
tion. Viken Fiber, which has built and
operates a fibre broadband network
covering much of Eastern Norway,
offers Internet, TV and telephony
services from Altibox to domestic and
business customers.
New Industries
The New Industries business area is
responsible for the Group’s business
development and new ventures. Buil-
ding on its domain knowledge, Å Ener-
gi will seek to build a presence in new
value chains in the green economy.
The New Industries business area
includes the Group’s electricity sales to
the business market, which take place
through Entelios Nordic. Entelios Nordic
is one of the leading energy suppliers
in the Nordic region, and it offers clean
energy, cutting-edge expertise and
technology that enable industrial
companies, big and small businesses
and public enterprises to lead the way
in terms of climate-friendly energy
solutions. It adds value through good
management, tailored solutions and
an efficient operating model. Entelios
Nordic comprises the companies Ente-
lios AS, Entelios AB, Entelios APS and
Entelios OY.
The New Industries business area also
includes Å Energi Invest AS, which is
responsible for the growth companies
in the venture capital portfolio and
manages Å Energi’s ownership inte-
rests the battery businesses Morrow
AS, ECO STOR AS and ECO STOR
GmbH.
Our business Our business
14 15
The uncertainty resulting from the
pandemic and Russia’s war in Ukraine
continues into 2023 and is becoming a
new normal. With energy prices fluctua-
ting at a very high level, energy markets
under stress, unstability in financial
markets, and the Russian invasion
in Ukraine that has been ongoing for
over a year. We have electricity prices
fluctuating around very high levels,
energy markets under stress, instabi-
lity in financial markets and a massive
Russian attack on Ukraine that has
already lasted more than a year.
The worst thing about the war in
Ukraine is the horrific loss of life and
millions of people forced to flee their
homes. But the war has also changed
the security policy outlook in Europe
for the foreseeable future. That affects
everyone whose work involves critical
national infrastructure. Without electri-
city, Norway would grind to a halt. We
have therefore significantly reinforced
our security measures and security
culture. Russia’s systematic attacks on
Ukraine’s energy infrastructure illustrate
why this is needed. I am proud of the
fact that we and the rest of the electric
power industry in Norway are helping
to supply our colleagues in Ukraine
with spare parts, generators and other
equipment to mitigate the impact of
attacks on civilian infrastructure.
Very high electricity prices have been,
and remain, a big challenge for many
consumers, even with the big electricity
subsidy provided to households. For
the companies that generate and sell
electricity, the high prices have created
significant challenges in terms of pro-
tecting their reputations. It is difficult for
most people to understand how prices
are set, particularly since prices were
extremely low two or three years ago.
It has not made it easier that some
customers have been sold tariffs that
have proved highly disadvantageous
to them when prices have periodically
fallen. Our wholly-owned electricity
retailer LOS also had to look it itself
in the mirror and put things right after
receiving some well-deserved criticism.
The high electricity prices and specu-
lations about a supply crisis have also
fuelled a heated political debate about
electricity markets; a debate in which
not all of the contributions and claims
have been equally constructive. In my
view, some of the proposals made would
exacerbate the energy crisis, threaten
our security of supply and lead to per-
manently higher prices. My impression
is that neither the government, nor most
members of the Norwegian parliament
nor the EU want to radically change a
market that has, over several decades,
ensured moderate energy prices and
actually, in the case of Norway, the
lowest electricity prices in Europe. I am
pleased about that.
In spite of everything, last year was a
high point for all of us at Å Energi. After
a thorough and transparent process
lasting just over two years, the share-
holders decided to merge Agder Energi
and Glitre Energi, and on 29th Novem-
ber they became a single entity.
Å Energi launched with a record profit
before tax of NOK 6.3 billion, but at the
same time it had an exceptionally high
tax bill due to the political decision to
raise taxes retroactively.
This will affect our ability to invest in
the future, but we must comply with
our shareholders’ ambition to increase
renewable energy generation, so we
will continuously look at how we can
achieve this, even with tighter finances.
Å Energi is a large organisation: the
biggest electric utility in Norway with
ownership interests and activities
throughout the value chain – renewable
energy generation, electric power
dis tribution, energy management and
trading, and electricity retailing in the
industrial, commercial and domestic
markets. That gives us an incredibly
strong foundation for delivering our social
mission and the instructions given to us
by our shareholders through the merger
agreement. But it is not just about size
and scale. It is also about quality: Å
Energi is a merger of people with spe-
cialist expertise in all of the links in the
value chain. Above all, that is what will
make us even stronger in the future,
whatever challenges we encounter.
Steffen Syvertsen
CEO of Å Energi
A New Normal
Letter from the CEO
16 1717
Corporate
governance
16 Corporate governanceCorporate governance
18 19Corporate governanceCorporate governance
Corporate
governance
Statement of Compliance
In accordance with Section 3-3b of the
Norwegian Accounting Act, Å Energi
has a duty to report on its corporate
governance procedures. Å Energi has
chosen to follow the corporate gover-
nance recommendations set out in the
10th edition of the Norwegian Code of
of Practice in so far as we consider it
relevant and appropriate. Agder Energi
and Glitre Energi merged as of 29th
November.
Practice published by the Norwegian
Corporate Governance Committee
(NUES), published on 14 October 2021.
Å Energi AS has issued bonds that are
listed on Oslo Børs. Consequently, we
have chosen to implement the Code
1. Corporate Governance Statement
The Board of Directors shall ensure that the corporate gover-
nance of the entity is good. In the Directors’ report or in a do-
cument referred to in the annual report, the Board shall give a
general outline of the entity’s corporate governance. This shall
cover all of the individual points in the Code of Practice. Any
nonconformities with the Code of Practice shall be justified,
and the systems in place at the entity shall be explained.
2. 2. Activities
The entity’s articles of association shall clearly set out its
activities. The Board should draw up clear goals, strategies
and risk profiles for the business, so that the entity can create
value for its shareholders in a sustainable way. The Board
should therefore take financial, social and environmental
considerations into account. The Board should assess these
goals, strategies and risk profiles at least yearly.
The adopted corporate governance principles regulate the
relationship between the shareholders, Board of Directors
and executive management of an entity, as well as descri-
bing the relevant roles and reporting structures.
Each heading represents one topic covered by the Code of
Practice. Å Energi has chosen to adapt Sections 5, 6, 7 and
8 to reflect its operations and ownership structure. Apart
from this, Å Energi considers that it complies fully with the
Code of Practice.
Overseas entities
Å Energi also owns overseas entities. These entities comply
with their national rules, as well as following the Group
guidelines on areas such as auditing and internal controls.
The Board has drawn up clear goals, strategies and risk
profiles for the entity. Over the coming year, Å Energi will
review its current goals, strategies and risk profiles. The
entity’s articles of association clearly set out its areas of
activity: “The purpose of the entity is to own, manage and
further develop the group’s electricity generation, distribution
and retailing businesses, as well as to engage in all of the
other business activities that are naturally associated with
doing that. The entity shall be run on commercial terms and
with financial targets.”
Å Energi’s social mission is to increase the production of
clean and affordable renewable energy, distribute it efficient-
ly around its grid, and bring new and better energy-related
services to the market.
As one of Norway’s biggest energy groups, Å Energi generates
around 11.3 TWh each year and has approximately 310,000
distribution customers and over 200,000 domestic electricity
customers. Å Energi is a major employer, with approximately
1,350 members of staff. The Group’s core business consists
of hydropower generation, energy management, electricity
retailing and operating the distribution system. Å Energi’s
operations also extend to district heating and venture capital
investment, ownership of a broadband network and owner-
ship interests in development projects for offshore wind, solar
power and battery manufacturing. There is a more detailed
description of the Group’s business activities in a separate
section of this annual report.
Corporate Social Responsibility (CSR)
Section 3-3c of the Norwegian Accounting Act, the Norwegian
Corporate Governance Committee’s Code of Practice and
the Global Reporting Initiative (GRI) all establish rules on
how Å Energi must fulfil its corporate social responsibility and
communicate what it does. These Norwegian and international
guidelines all emphasise the following four areas: human
rights, labour, the environment and anti-corruption activities.
Å Energi participates in the UN Global Compact and the
Norwegian SKIFT network.
Our climate targets have been approved by the Science
Based Targets initiative (SBTi), and we are certified under
the Equality at Work and Eco-Lighthouse schemes. Of the
17 Sustainable Development Goals, we have chosen the
following ones as being most relevant to us:
More information about CSR at Å Energi can be found in Å
Energi’s 2022 sustainability report, which is published along-
side this annual report..
ANSTENDIG ARBEID
OG ØKONOMISK
VEKST
LIVET PÅ
LAND
Recommendation in the NUES Code of Practice
Å Energi’s comments
Recommendation in the NUES Code of Practice Å Energi’s comments
Exemption from the Group’s joint guidelines
The operations of some the subsidiaries in the Group are very
remote from, and have little in common with, the core activities
of Å Energi, and there are few synergies to be realised by inte-
grating them more closely with the Group’s other activities. This
may apply to companies in the Group’s development portfolio,
subsidiary groups or joint ventures. These companies are
exempted from some of the Group’s joint guidelines. Any exem-
p tions are specified in the relevant internal guidelines, and there
are separate internal rules in place of the joint guidelines.
20 21
5. Shares and free negotiability
The entity should not limit the ownership, negotiability or
voting rights of its shares.
The entity should explain any limits on the ownership,
negotiability or voting rights of its shares.
The share capital of Å Energi is NOK 2,473,001,490, con-
sisting of 2,460,698 class A shares and 1,230,349 class B
shares, each with a face value of NOK 670.
The class A shares ensure that Å Energi at all times meets
the public ownership requirements for waterfall rights stipu-
lated by its licences.
The class B shares are freely negotiable without any pre-
emption rights or requirement for consent from the Board.
Class A shares may only be owned, directly or indirectly, by
an owner considered to be a public sector owner pursuant
to the Section 5 of the Waterfall Rights Act; in other words,
an owner in which a state-owned enterprise, municipality
or county council, or a company, business, etc. directly or
indirectly owned by a state-owned enterprise, municipality
or county council, individually or jointly, directly or indirectly,
has at least two thirds of the capital and voting rights, and
where it is clear from the organisational structure that it is
genuinely in public ownership. The sale of class A shares
requires the written consent of the Board.
The current licensing regulations mean that if a public sector
shareholder is not entirely publicly owned, a proportionate
share of the shareholder’s ownership interest will be allo-
cated to the company when assessing the degree of public
ownership of the company. An owner of class A shares who
is not 100% publicly owned must, at all times, own enough
class B shares to, on a proportionate basis, fulfil the above-
mentioned licence requirements relating to public ownership
without limiting the negotiability of other class B shares
(restricted class B shares).
Class A and B shares have equal voting rights and equal
rights to distributions from the entity.
3. Equity and dividends
The Board should ensure that the entity has a good capital
structure that reflects the entity’s goals, strategy and risk
profile.
The Board should establish and disclose a clear and predict-
able dividend policy.
Any proposal for the Board to be given a mandate to approve
the distribution of dividends should be explained.
Mandates granted to the Board to increase the entity’s share
capital or to repurchase shares should be intended for a defi-
ned purpose. Such mandates should be limited in time to no
later than the date of the next annual general meeting.
At 31 December 2022, the Group had NOK 20,604 million
of equity, giving it an equity ratio of 28.0%. The Board of
Directors considers it important for the Group to have a capital
structure that provides financial stability, bearing in mind its
stated credit rating goal, strategy and risk profile.
The goal is for Å Energi to distribute dividends within the
framework of whatever limitations may be imposed by the
Limited Liability Companies Act. The entity’s dividend policy
is based on the following main principles:
(i) The dividend level shall be responsible and reflect the
entity’s investment plans, profit, debt-to-equity ratio, credit
rating, financial forecasts and significant events
(ii) The calculation basis for dividends is the controlling inte-
rest’s share of underlying profit under IFRS in the year prior to
the financial year in question (in order to ensure predictability)
When proposing the dividend, the Board members repre-
senting the shareholders from Agder and Buskerud shall
consider, and discuss with the work committee, to what
extent gains or losses on disposals shall be excluded from
the calculation basis for dividends. The underlying profit
under IFRS is described in greater detail under “Alternative
performance measures” on page 142.
(iii) The dividend payout ratio is set at 70% of the calculation
basis for dividends
(iv) The Board of Directors shall produce an annual forecast
for the dividend floor for the coming 4-year period.
The entity’s dividend policy shall be determined jointly by the
share holders from Agder and Buskerud as described in the coor-
dination agreement. The dividend policy shall ensure pred icti bil ity
and give a clear message to the entity and other stakeholders.
The parties have agreed that the dividend policy shall be
reviewed every four years, in order to ensure that the entity
has a shareholder-friendly and responsible dividend policy
that is good for both the entity and its shareholders.
Equity raising
Equity increases shall be proposed by the Board and dis-
cussed by the AGM. The Board is not currently authorised to
carry out equity increases.
4. Equal treatment of shareholders
Any decision to waive the pre-emption rights of existing share-
holders to subscribe for shares in the event of an increase in
share capital should be justified. Where the Board resolves
to carry out an increase in share capital and waive the pre-
emption rights of existing shareholders on the basis of a
mandate granted to the Board, the justification should be
publicly disclosed in a stock exchange announcement
issued in connection with the increase in share capital.
Any transactions the entity carries out in its own shares
should be done either through the stock exchange or at pre-
vailing market prices if carried out in any other way. If there is
limited liquidity in the entity’s shares, the entity should consi-
der other ways to ensure equal treatment of all shareholders.
Å Energi is not listed on a stock exchange, and due to the
limited negotiability of its shares (cf. recommendation no. 5),
this recommendation is of little relevance to it. With respect
to the activities of subsidiaries, the great majority are wholly
owned, so the recommendations of the Code of Practice are
not particularly relevant to them either.
6. Annual General Meeting
The Board should ensure that the entity’s shareholders can par-
ticipate in the general meeting. The Board should ensure that:
• the resolutions and supporting information distributed are
sufficiently detailed, comprehensive and specific to allow
shareholders to form a view on all matters to be considered
at the meeting
• the registration deadline for the meeting is set as close to
the date of the meeting as possible
• Board members and the chairman of the nomination
committee may attend the general meeting
• the general meeting is able to elect an independent chair
for the meeting
Shareholders should be able to vote on each individual
matter, including on each individual candidate nominated
for election. Shareholders who cannot attend the meeting in
person should be given the opportunity to vote. The company
should provide a form of proxy and nominate a person who
can act as a proxy for shareholders.
The Code of Practice’s recommendation with respect to
ensuring that as many shareholders as possible can partici-
pate in the general meeting has not been implemented at
Å Energi.
Currently, a new ownership strategy for Å Energi is being
drawn up. Under the agreements between shareholders, the
only participants at the AGM are one representative of the
shareholder municipalities and one representative of Stat-
kraft Industrial Holding.
The Chair of the Board, CEO and external auditor shall also
participate. The nomination committee and Board members
are also entitled to participate.
Recommendation in the NUES Code of Practice
Å Energi’s comments
Recommendation in the NUES Code of Practice Å Energi’s comments
Corporate governanceCorporate governance
22 23
8. Board of Directors, composition and independence
The composition of the Board should ensure that the board
can attend to the common interests of all shareholders and
meets the entity’s need for expertise, capacity and diversity.
Attention should be paid to ensuring that the Board can functi-
on effectively as a collegiate body.
The composition of the Board should ensure that it can ope-
rate independently of any special interests. The majority of
the shareholder-elected members should be independent of
senior executives and material business contacts.
At least two of the Board members elected by shareholders
should be independent of the entity’s main shareholder(s).
The Board of Directors should not include senior executives.
If the Board does include senior executives, the entity should
justify this and implement consequential adjustments to the
organisation of the Board’s work, including the use of Board
committees to help ensure more independent preparation
of matters for discussion by the Board, cf. Section 9 of the
Code of Practice.
The general meeting (or the corporate assembly where
appropriate) should elect the chair of the Board.
The term of office for Board members should be no longer
than two years at a time.
The annual report should provide information to illustrate the
expertise of the Board members and information on their record
of attendance at Board meetings. In addition, the annual report
should identify which members are considered to be independent.
Board members should be encouraged to own shares in the
company.
The composition of the Board of Directors is designed to
safeguard the collective interests of the shareholders and
meet the entity’s need for expertise, capacity and diversity.
The Code of Practice’s recommendation that the Chair of the
Board be elected by the AGM has not been implemented at
Å Energi. Under the shareholders’ agreement, twelve people
sit on the Group’s Board of Directors. Six members, including
the Chair and Deputy Chair, are elected at the proposal of
the municipal shareholders, two members are elected at the
proposal of Statkraft and four at the proposal of the employ-
ees. The executive management is not represented on the
Board. Board members are elected for a two-year term.
The Board members are presented in a separate section of
this annual report. The shareholder-elected members are
independent of senior executives and material business
contacts. Details of who has attended Board meetings
during the year can be found in Note 29 to the consolidated
financial statements.
Entitlement of Board members to own shares
The Code of Practice’s recommendation that Board mem-
bers be encouraged to own shares in the entity has not been
implemented at Å Energi. Under the articles of association
and the shareholders’ agreement, neither Board members
nor other private individuals are entitled to own shares in
Å Energi.
10. Risk management and internal controls
The Board of Directors must ensure that the entity has sound
internal controls and systems for risk management that are
appropriate in relation to the extent and nature of its activities.
The Board should carry out an annual review of the entity’s
most important areas of exposure to risk and its internal
control arrangements.
Å Energi integrates risk management, internal controls and
internal auditing into its corporate governance using the
three lines of defence model and in accordance with “COSO
Enterprise Risk Management – Integrating with Strategy
and Performance”, which emphasises the link between risk
management and strategy.
The Group is inevitably exposed to risks in a variety of areas
throughout the value chain. The most important risks relate
to market price movements, interest rate fluctuations, strate-
gic focus areas and investments, the safety and security of
operations and systems, the business environment, reputa-
tion and compliance.
In line with the Board’s guidelines, the Group performs an
annual review of internal controls and risk management in
collaboration with the external auditor. Risk assessments
and changes to the business environment are reported
regularly to the Board through the Group’s second line of
defence, and all subsidiaries produce an annual self-de-
claration on their internal controls in accordance with their
responsibility as the first line of defence.
7. Nomination committee
The entity should have a nomination committee, which should
be laid down in the entity’s articles of association. The gene-
ral meeting should stipulate guidelines for the nomination
committee, elect the chair and members of the nomination
committee, and determine the committee’s remuneration.
The nomination committee should consult with shareholders,
the Board and CEO as part of its work on proposing candidates
for election to the Board.
The members of the nomination committee should be selec ted
to take into account the interests of shareholders in general.
The majority of the committee should be independent of the
Board and other senior executives. The nomination committee
should not include any senior executives or Board members.
The nomination committee’s duties should be to propose ca-
ndidates for election to the Board and nomination committee
(and corporate assembly where appropriate) and to propose
the fees to be paid to members of these bodies.
The nomination committee should justify why it is proposing
each candidate.
The entity should disclose the membership of the committee
and any deadlines for proposing candidates.
The shareholders have agreed that the company shall not
have a nomination committee while the shareholder-elected
Board members are appointed directly by Statkraft and by
the shareholders from Agder and Buskerud in accordance
with the coordination agreement.
However, the parties undertake to consult on the Board’s
gender balance and overall expertise in relation to the
entity’s needs and development.
9. The work of the Board
The Board should issue instructions for its own work as well
as for the executive management with particular emphasis on
clear internal allocation of responsibilities and duties.
These instructions should state how the Board and executive
management shall handle agreements with related parties,
including whether an independent valuation must be obtained.
The Board should also present any such agreements in their
annual directors’ report.
The Board should ensure that Board members and senior
executives make the company aware of any material interests
that they may have in items to be considered by the Board.
In order to ensure a more independent consideration of mat-
ters of a material character in which the Chair of the Board is,
or has been, personally involved, such discussions should be
chaired by some other member of the Board.
The Public Companies Act stipulates that large companies
must have an audit committee. The entire Board of Directors
should not act as the entity’s audit committee. Smaller compa-
nies should consider establishing an audit committee. In addi-
tion to the legal requirements on the composition of the audit
committee etc., the majority of the members of the committee
should be independent of the entity.
The Board of Directors should also consider appointing a
remuneration committee in order to help ensure thorough and
independent preparation of matters relating to compensation
paid to the senior executives. Membership of such a commit-
tee should be restricted to members of the Board who are
independent of the entity’s executive management.
The Board should provide details in the annual report of any
Board committees appointed.
The Board should evaluate its performance and expertise annually
The Board usually holds between eight and ten meetings
each year. The Chair of the Board is responsible for ensuring
that the Board meets as often as is necessary. The Board’s
tasks are regulated by the Limited Liability Companies Act
and other relevant legislation, the entity’s articles of associ-
ation and the Board guidelines. The Board reviews its work
and expertise annually.
The Board appoints the CEO. The Board has drawn up
instructions for, and delegated authority to, the CEO.
Conflicts of interest and abstention
The Board shall ensure that Board members and senior ma-
nagers disclose any significant interests they have in matters
being deliberated by the Board (even if those interests do
not require abstention).
Audit committee
In accordance with the Stock Exchange Regulations, the
Board of Å Energi has established an audit committee that
assists and advises the Board in relation to its supervision
of the Group’s financial reporting, the effectiveness of its
internal control systems and its process for sustainability
reporting.
Remuneration committee
The Board of Å Energi has established a remuneration and
succession planning committee. This committee shall help
the Board with assessing and setting the terms of employ-
ment for the CEO, establishing guidelines for remuneration
processes, and drawing up the main principles and strategy
for remuneration and succession planning for the senior
management team, with a particular emphasis on ensuring
talent development and diversity.
Recommendation in the NUES Code of Practice
Å Energi’s comments
Recommendation in the NUES Code of Practice Å Energi’s comments
Corporate governanceCorporate governance
24 25
The municipal owners understand that the procedures
for reporting financial information to Statkraft mean that
the latter owner is frequently updated before the muni-
cipalities.
The Group publishes quarterly financial reports and
other information for the benefit of its shareholders and
external stakeholders.
14. Acquisitions and disposals
The Board of Directors should establish guiding principles for
how it will act in the event of a take-over bid.
In a bid situation, the Board and manage-ment have an indepen-
dent responsibility to help ensure that shareholders are treated
equally, and that the entity’s business activities are not disrupted
unnecessarily. The Board has a particular responsibility to ensu-
re that shareholders are given sufficient information and time to
form a view of the offer.
The Board should not hinder or obstruct take-over bids for the
company’s activities or shares.
Any agreement with the bidder that acts to limit the entity’s
ability to arrange other bids for the entity’s shares should only
be entered into where it is self-evident that such an agreement
is in the common interest of the entity and its shareholders. This
provi-sion shall also apply to any agreement on the payment of
financial compensation to the bidder if the bid does not proceed.
Any financial compensation should be limited to the costs the
bidder has incurred in making the bid.
Agreements entered into between the entity and the bidder
that are material to the market’s evaluation of the bid should be
publicly disclosed no later than at the same time as the announ-
cement that the bid will be made is published.
In the event of a take-over bid for the entity’s shares, its Board
should not exercise man-dates or pass any resolutions with the
intention of obstructing the take-over bid unless this is approved
by the general meeting following announcement of the bid.
If an offer is made for the entity’s shares, its Board should issue
a statement making a recommendation as to whether sha-
reholders should or should not accept the offer. The Board’s
statement on the offer should make it clear whether the views
expressed are unanimous, and if this is not the case it should
explain the basis on which individ-ual members of the Board do
not support the Board’s statement. The Board should arrange
a valuation from an independent expert. The valuation should
include an explanation, and should be made public no later than
at the time of the public disclo-sure of the Board’s statement.
Any transaction that is in effect a disposal of the entity’s activi-
ties should be decided by a general meeting (or the corporate
assembly where relevant).
The shareholders’ agreement defines the pre-emption rights
of current shareholders in the event of shares being sold.
If Statkraft wishes to dispose of any of its class A shares,
the other shareholders (municipalities) shall have the
opportunity to exercise their pre-emption rights through
the entity stepping in and acquiring the shares in question,
provided that this is permitted by corporate and accounting
legislation, and any other applicable statutory rules.
The disposal and acquisition of the Group’s ownership
interests and subsidiaries is handled in accordance with
the relevant authorisations at Å Energi. Disposals and
acquisitions can take place as a result of the strategic
decisions of companies in the Group or through wholly-
owned subsidiaries.
11. Remuneration of the Board of Directors
The remuneration of the Board of Directors should reflect the
Board’s responsibilities, expertise, time commitment and the
complexity of the entity’s activities.
The remuneration of the Board should not be profit-related.
The entity should not grant share options to Board members.
Board members and/or companies with which they are asso-
ciated should not take on specific assignments for the entity
in addition to their appointment as a Board member. If they do
nonetheless take on such assignments, this should be disclo-
sed to the full Board. The remuneration for such additional
duties should be approved by the Board.
Any remuneration in addition to normal directors’ fees should
be specifically identified in the annual report.
Members of the Board are paid based on their roles. The
remuneration of the Board members nominated by Statkraft
is paid to their employer. Their fees are not profit-related. No
Board members are entitled to a pension, options or termina-
tion compensation from the company, apart from the entitle-
ments of the employee representatives in their capacity as
employees.
Details of the fees paid to individual Board members are pre-
sented in Note 29 to the consolidated financial statements.
13. Information and communications
The Board of Directors should establish guidelines for the
entity’s reporting of financial and other information based on
openness and taking into account the requirement for equal
treatment of all participants in the securities market.
The Board should establish guidelines for the entity’s com-
munication with shareholders other than through general
meetings.
Å Energi satisfies all statutory requirements relating to
financial reporting and disclosure. The entity considers
maintaining good, appropriate lines of communication
with its owners and external stakeholders to be a priority.
The twenty-seven municipal shareholders coordinate
their activities through two forums established for this
purpose: the owners’ meeting and the work committee.
In addition, the municipalities in Agder and Buskerud
have independently entered into separate agreements
to enable geographic coordination on questions that are
due for discussion by the entity’s general meeting.
12. Salary and other remuneration for senior executives
The guidelines on the salary and other remuneration for
senior executives must be clear and easily understandable,
and they must contribute to the entity’s commercial strategy,
long-term interests and financial viability.
The entity’s arrangements in respect of salary and other re-
muneration should help ensure senior executives and share-
holders have convergent interests, and should be simple.
Performance-related remuneration should be subject to an
absolute limit.
Management compensation reflects the Group’s guide-
lines on compensation. The senior management team
has no special bonus arrangement for 2022. Information
about management compensation is presented in Note
29 to the consolidated financial statements.
Information about the Group’s remuneration policy can be
found in Å Energi’s report on Diversity and Equal Oppor-
tunity, which is available on aenergi.no.
The Group’s internal audit service helps the Board to exercise
good corporate governance by providing an independent, un bi-
ased assessment of the most important risks facing the Group
and as the third line of defence it has a mandate to communi-
cate directly with the Board and the Board’s audit committee.
The Group provides various channels for whistleblowing, one
of which is an external one approved by the Norwegian Data
Protection Authority.
There is a more detailed description of Å Energi’s internal
control and risk management systems in a separate section
of this annual report.
Recommendation in the NUES Code of Practice
Å Energi’s comments
Recommendation in the NUES Code of Practice Å Energi’s comments
Corporate governanceCorporate governance
26 27
Recommendation in the NUES Code of Practice
Å Energi’s comments
15. Auditor
The Board of Directors should ensure that the auditor submits
the main features of the plan for the audit of the company to
the audit committee annually.
The Board should invite the auditor to meetings that deal with
the annual accounts. At these meetings the auditor should
report on any material changes in the entity’s accounting prin-
ciples and key aspects of the audit, comment on any material
estimated accounting figures and report all material matters
on which there has been disagreement between the auditor
and the executive management.
The Board should at least once a year review the entity’s inter-
nal control procedures with the auditor, including weaknesses
identified by the auditor and proposals for improvement.
The Board should establish guidelines in respect of the use of
the auditor by the entity’s executive management for services
other than the audit.
Ernst & Young was the Group’s external auditor in 2022.
The auditor shall continue in its role until a new auditor is
appointed.
Each year, the auditor presents an outline plan for the
year’s auditing activities to the audit committee.
The auditor attends the meeting at which the Board revi-
ews the annual financial statements. At the meeting, the
auditor goes over any significant changes in the entity’s
accounting principles, key aspects of the audit, calculati-
ons of significant accounting estimates and all significant
issues where there has been any disagreement between
the auditor and the executive management. Each year the
auditor also discusses the entity’s internal controls with
the Board, including any weaknesses identified by the
auditor and proposals for improvements.
The audit committee shall give prior approval to all signifi-
cant purchases and is kept informed of any consulting, tax
advice and other services provided by the external Group
auditor that are not related to the normal auditing process.
The external Group auditor is responsible for constantly
assessing his own independence.
Corporate governanceCorporate governance
28 29Corporate governanceCorporate governance
The Å Energi Group is currently in the
midst of a wide-ranging integration
process after the merger of Agder
Energi and Glitre Energi, which is
affecting several of the areas cover-
ed by Enterprise Risk Management.
Work on establishing a strategy for
the new Å Energi Group has also
begun. Within the important areas at
Å Energi, risk management has formed
an integral part of the governance at
both of the merged companies, both
at the strategic and operational levels.
That will continue to be the case in
the new group. “COSO Enterprise
Risk Management – Integrating with
Strategy and Performance” (2017)
highlights the importance of enterprise
risk management in strategic plan-
ning and of introducing enterprise risk
management throughout an organisa-
tion. There follows a brief description
of how COSO’s five components have
been implemented in the Å Energi
Group’s enterprise risk management
system.
Governance and culture
In order to ensure that the instructions
of the owners are followed, and that
the Group is managed appropriately,
the Board has established guidelines
for its own activities, instructions at
subsidiaries and instructions and an
authorisation matrix for the Group
CEO. These documents underpin the
Group’s strategy, which in turn sets
out goals and priorities for the Group
and its busi ness areas. The Board and
senior management team have also
approved a general description of its
corporate governance model, which
together with the adopted risk mana-
gement strategy provides the basis
for the management’s enterprise risk
management activities.
The analysis of Å Energi’s overall risk
exposure takes place at the Group
level, based on individual companies’
reports combined with the strategic as-
sessments of the senior management
team, the technical assessments of
shared services and the Group audi-
tor’s comments. Risk assessments
are included in reports to the Board.
Portfolio management helps us to see
how risks affect the Group as a whole.
Review and Revision
In order to pick up on changes that are
relevant to its business, Å Energi has
established an Early Warning sys-
tem. This system is used to carefully
monitor developments in the regulatory
environment and markets in which the
Group operates, as well as technolo-
gical developments. The information
thus obtained is used to continuously
update risk assessments and in stra-
tegic and commercial decision-making
procedures.
Risk management and performance
is reviewed regularly at individual
companies and at the Group level. The
Group’s risk management strategy,
including the associated appetite for
risk, risk frameworks and authorisati-
ons, are reviewed and revised annually
by the Board. As part of the Group’s
overall progression, corporate gover-
nance will be subject to continuous
improvement and development, in
response to the companies’ own initia-
tives, updated guidelines from shared
functions and the results of internal
audits.
Enterprise Risk
Management
The Board adopts a set of core values
and ethical guidelines for Å Energi,
which form the basis for the organisa-
tional culture at the Group. This is dis-
seminated across the Group through
our mission statement, sustainability
goals, management requirements and
an emphasis on teamwork.
Strategy and Objective-Setting
Based on the Group’s corporate and
risk management strategies, all of the
Group’s business areas have drawn up
business plans. These business plans
include strategic and operational goals,
areas of priority and risk assessments.
Special risk management strategies
and limits on risk exposure, reflecting
the Board’s appetite for risk, have been
established for areas that involve tra-
ding in financial markets. New strate-
gies, goals and business plans for the
new group’s operations will be drawn
up over the coming year.
Implementation of Risk Assess-
ments and Risk Management
The Group’s risk management sys-
tems deal with potential positive and
negative outcomes related to the
company’s strategic and operational
performance. Health and safety has
top priority and is always the first item
on the agenda at management mee-
tings, both at a Group level and within
the individual companies.
Individual companies are responsible
for identifying, prioritising and monitor-
ing their own risk exposures, and risk
management at the operational level
takes place across the organisation as
an integrated part of normal business
activities. Companies report their risk
assessments and risk management
activities to the Group.
Risk management
30 31Corporate governanceCorporate governance
Energy trading and power purchase
agreements (PPAs) are managed and
monitored in separate portfolios, with
their own limits on risk exposure.
Electricity retailing is considered a mar-
gin business and financial hedges are
used to minimise the electricity price
risk and currency risk.
Fluctuations in the price of electricity
futures contracts and large price
differences between areas affect the
value of electricity price hedges and
give rise to counterparty risk. Bilateral
contracts are increasingly being used,
which mitigates the risks and costs
associated with margin requirements,
but conversely raises the Group’s
counterparty risk. The most important
measures to limit counterparty risk are
taken prior to signing contracts. Credit
checks are carried out on counterparti-
es and major contracts are only signed
with financially sound counterparties.
Guarantees and terms of contract furt-
her reduce counterparty risk. Å Energi
could incur significant losses if one of
our largest counterparties were to go
bankrupt.
Strategic Investments
The Group is implementing an ambi-
tious strategy to adapt to the changes
associated with the green transition
facing the electric power industry.
Strategic risk is managed by pursuing
selective profitable growth, continuous
improvement and innovation within
existing business areas, as well as by
investing in new areas related to green
value chains. A new strategy with
associated targets will be drawn up for
the new merged group over the course
of this year.
Å Energi has a clearly stated goal for
its credit rating, both to ensure that the
company is managed well and to pro-
vide access to credit markets. Portfolio
management, scenario-based assess-
ments and long-term capital allocation
are designed to encourage optimal
use of capital at the Group over time. Å
may also seek to share risk by entering
into partnerships with other entities.
Operational Safety
There are operational risks associ-
ated with all of the processes in the
value chain. The most important ones
are the risk of injuries to the Group’s
employees and third parties, damage
to power plants, distribution networks
and other assets, negative impacts on
the environment and climate, negative
impacts on the Group’s reputation and
the risk of failures in administrative
and management processes. Climate
change and extreme weather events
are making it increasingly challenging
to ensure reliability of supply, as well
as the safety of our employees, our
contractors, and the general public.
Personal safety is always our very
highest priority. A growing focus on
sustainability means that our risk
management must consider the whole
spectrum of issues related to ESG
(environmental, social, governance).
Operational risk is managed through
preventive measures and procedures
for responding to incidents. In recent
years, Å Energi has stepped up its
preventive measures for extreme we-
ather events by carrying out extra line
clearing on its electric power grid. Å
Energi participates in the organisation
“Kraftforsyningens beredskapsorgani-
sasjon” (KBO) as a power generating
company, district heating company and
distribution system operator. For the
purpose of risk management, Å Energi
has chosen to establish contingency
plans, training exercises and preven-
tive measures even at companies not
covered by the KBO requirements. Å
Energi has insurance policies to cover
all major types of operational incident.
ICT Security
ICT security is a high priority for the
electric power industry and wider
society. Å Energi continuously and
systematically works to meet external
requirements and internal needs for
the security and robustness of our
ICT infrastructure. It has implemented
an extensive ICT security programme
to protect itself against cyber attacks
and system faults, and to ensure the
secure and stable operation of its
The Group is inevitably exposed to
risks in a variety of areas throughout the
value chain. The most important risks
relate to market price movements,
strategic investments, the safety and
security of operations and systems, the
regulatory environment and reputation.
Sustainability has also been visibly
included in the company’s decision-
making processes and assessments
over the past year. Compliance is ano-
ther area of priority, in order to ensure
compliance with laws, regulations and
good governance practice.
Market Risk
Å Energi is exposed to significant
market risk through the generation and
trading of electricity, with its revenues
from electricity sales being exposed to
electricity price risk and currency risk.
Å Energi generates all of its electricity
in the NO2 and NO1 price areas – two
price areas that experienced record
high electricity prices and unusually
large price fluctuations in 2022. Hed-
ging strategies for the power genera-
tion portfolio are subject to limits on
how much power can be sold through
futures contracts and the results are
closely monitored. Å Energi has built
up a strong team specialising in energy
management, analysis and modelling.
Subject to the above constraints, the
amount of electricity sold through futu-
res contracts is continuously adjusted,
bearing in mind the company’s price
expectations, reservoir reserves and
generating capacity. In 2022, it also be-
came more challenging than in the past
to assess potential political interventi-
ons, such as requirements to restrict
generation/impose rationing due to low
reservoir levels, and more widely the
situation in Europe was very uncertain,
which affected financial markets. All of
this led to large fluctuations and made
it difficult to assess how to hedge risks.
The sale of currency futures also takes
into account electricity price hedging
and the total risk associated with the
generation portfolio. Over the long term,
the hedging strategy both reduces risk
and makes a positive contribution to Å
Energi’s financial performance.
Internal controls are an integral part of
enterprise risk management procedu-
res, and they shall provide reasonable
assurance that goals relating to opera-
tions, reporting and compliance will be
achieved. There follows a description
of how the quality management sys-
tem, control mechanisms, audits and
whistleblowing channels promote good
internal controls at Å Energi.
Internal Control System
Internal controls at the company are
implemented through clear guidelines
and established processes. This is do-
cumented by governance documents
being made available to all employees
through a quality management system.
The quality management system ensu-
res complete and systematic availabi-
lity of information, by providing access
to the full range of the Group’s guiding
documents, from governance docu-
ments through manuals to descriptions
of work processes. Subsidiaries in the
Group implement the quality manage-
ment system across the organisation
through their own corporate gover-
nance systems with company-specific
governance documents.
Control Mechanisms
Å Energi has established control me-
chanisms for safety, security, emergen-
cy preparedness and critical aspects
of its business processes in order to
prevent, or rapidly correct, any non-
conformities.
• Due to increasing levels of digitali-
sation, Å Energi has established an
ICT model and platform with new,
stricter security requirements.
• In the face of growing numbers of
climate-related events, checking
and monitoring weather data plays
an important role in helping us to
manage and adapt the resources
that we administer.
• For our internal procedures, we
have established control mecha-
nisms that combine manual controls
such as check lists and access con-
trols, including electronic approval
processes following the four eyes
principle, and automatic notification
systems, such as position monitor-
ing for trading portfolios.
In addition, all subsidiaries must submit
an annual self-declaration on their in-
ternal controls. This is done through a
common reporting format that makes it
clear what kinds of controls the Group
expects its subsidiaries to implement.
Auditing
Å Energi has an internal audit service,
which assists the Board, senior mana-
gement team and business areas by
providing an independent, unbiased
assessment of the Group’s risk mana-
gement procedures. The internal audit
service’s mandate and guidelines are
approved by the Board, which also
reviews the internal audit service’s
annual report and its audit plans.
The external auditor is chosen by
the AGM, and is responsible for the
financial audit of the parent company,
Group and subsidiaries. Å Energi has
a Group-wide agreement with Ernst
& Young, which must be used by all
subsidiaries for the statutory audit.
Companies in the Group’s international
and venture capital portfolios may use
a different auditor.
Whistleblowing Procedures
The Group has several channels for
whistleblowing, one of which is inde-
pendent of the company. There are
formal procedures in place for dealing
with whistleblower reports. Such
reports are treated in strict confidence.
Å Energi has established procedures
to safeguard the rights of whistle-
blowers. The Group gives priority to
raising awareness within the Group of
its ethical guidelines, standards and
whistleblowing systems/procedures.
Å Energi has systems for reporting
unwanted incidents and suggested
improvements both for its own em-
ployees and for subcontractors. The
system is available through several
platforms, including a mobile phone
app and an online reporting tool, where
people can report and record noncon-
formities, observations, suggested
improvements, accidents and near
misses. The reports are analysed, and
all high risk incidents are investigated,
with a view to limiting potential conse-
quences, ensuring that the causes are
uncovered, sharing learning points and
implementing measures for continuous
improvement.
Internal Controls
Risk Management
Information, Communication, and
Reporting
In order to promote integrated corpo-
rate governance processes, the Group
has implemented a combined gover-
nance and information management
solution, which helps to further integra-
te financial and risk management into
management processes. The system
is used for internal communication within
the business areas and for commu-
nication with the group management
team and Board of Directors.
Uncertainties with respect to key figu-
res, the Group’s financial exposures,
overall risk assessments and external
developments are regularly reported
to the management and Board. Critical
circumstances are reported explicitly.
32 33Corporate governanceCorporate governance
ICT systems. This will continue to be a
priority going forward.
Business Environment
Big changes lie ahead for the electric
power industry, on account of clima-
te change and the need to create a
society based on renewable energy.
Changes in the business environment
and political decisions affect our room
for manoeuvre and constitute a sig-
nificant element of the Group’s risk
exposure. Å Energi works systemati-
cally to: understand how the business
environment is changing; contribute
specialist expertise through expert
committees, industry associations and
independently; exploit any available
room for manoeuvre; and make strate-
gic choices.
Å Energi will need to adapt if it wants
to remain a key player in the electric
power industry, although we do not yet
know the exact nature and extent of
those adaptations. The Group conti-
nuously makes the changes needed
to adapt itself to an industry in a state
of flux. This includes changes to its
technology, such as digitalisation and
cloud computing, and to its culture
and management development/pro-
fessional development. Cooperation
and partnerships will also be important
tools for responding to changes in
the electric power industry. With the
creation of the new, merged group,
building our organisational culture and
identity will play a key role in helping us
to achieve our strategic goals.
Reputation
Reputation risk can affect all or parts of
the Group, or the industry as a whole.
The high electricity prices in 2022 have
put the spotlight on the electric power
industry, everywhere from social media
platforms to political discourse. In order
to protect the reputation of the indus-
try, Å Energi strives to share its expert
knowledge and propose solutions. The
Group’s reputation risk is managed by
having high ethical standards, good
corporate governance and robust
processes, as well as by treating
customers and other stakeholders well.
Compliance
The most important areas of compli-
ance risk for Å Energi are physical and
cash-settled electricity trading, licence
terms, data protection, safety and
security. These risks are managed by
taking a systematic approach to analy-
sing and assessing risks, and prioriti-
sing measures to deal with compliance
risk, as a separate area of our work on
risk management.
Sustainability
Sustainability represents a wide spec-
trum of risks that need to be assessed
in order to ensure that we fulfil the
Group’s ambitions and goals to act as
a catalyst for the green energy trans-
ition and increase renewable energy
generation. These risks are managed
by integrating them into the Group’s
systematic approach to analysing and
assessing risks, and by prioritising
measures within integrated risk mana-
gement.
34 353534
Board of
Directors’
Report
34 35Board of Directors´ ReportBoard of Directors´ Report
36 37
Directors´Report
The merger between Agder Energi and Glitre Energi has created Norway’s
biggest electric utility – Å Energi – with operations throughout the value
chain, from energy production to retailing.
Key events of 2022
Financial performance
Å Energi aims to become the Nordic
region’s most forward-looking renew-
able energy group.
Our social mission is to increase the
production of clean renewable energy,
distribute it efficiently around our grid,
and bring new and better products and
services to the energy market.
Hydroelectric power is the cornerstone
of the new group, which generates
11.3 TWh of electricity each year at 72
wholly-owned and part-owned power
stations in Agder and Buskerud. The
The merger between Glitre Energi and
Agder Energi was completed on 29
November 2022. Å Energi is already
making good progress with integrating
the two businesses, and the Group
will continue to exploit the synergies
that have been created by combining
the two regional electric utilities that
together constitute Å Energi. Creating
a stronger, more competitive business
will help us to create new jobs in the
two regions, and to attract talent, capi-
tal and new business partners.
Electricity prices were at a record high
last year, as well as fluctuating a great
deal. This once again put our industry
in the public spotlight in 2022. The
importance of energy in helping society
to prosper now and into the future has
moved up the agenda, and interconne-
ctions with Europe have become part
of the public debate in Norway.
In February, Å Energi’s Board of Dire-
ctors decided to go ahead with upgra-
Å Energi’s operating revenues were
NOK 35,763 (20,625) million in 2022.
The NOK 15,138 million increase was
due to the record high electricity prices
in 2022, which resulted in higher energy
sales at its Entelios Nordic, Å Strøm
and Hydroelectric Power segments.
The figure for 2022 also includes Glitre
Energi’s turnover in December, which
was NOK 1,935 million. There was a
NOK 5,478 (1,200) million loss on elec-
tricity and currency contracts, mainly
related to the Group’s hedging activities.
The Group’s reported operating profit
came to NOK 1,793 (3,858) million,
which was NOK 2,065 million lower
than the previous year. This fall in
profit was mainly due to higher losses
on hedging activities and the govern-
ment’s introduction of a duty on high-
priced electricity in Norway. Pre-tax
profit was NOK 1,685 (4,101) million.
Net income (controlling interest’s sha-
re) declined from NOK 2,062 million in
merger also created Norway’s second
biggest distribution system operator,
Glitre Nett, with around 320,000 dis-
tribution customers in Buskerud and
Agder. The group manages and trades
over 30 TWh of electricity in the Nordic
region, is Norway’s leading supplier
to the business market and has over
200,000 domestic electricity customers.
The reported figures for Å Energi inclu-
de 12 months of Agder Energi’s figures
and Glitre Energi’s figures for Decem-
ber, as the merger was completed at
the end of November 2022.
ding Holen power station, which will
be done over the period 2023-28. The
power station, which generates around
1,200 GWh in a normal year, is situa-
ted by Lake Botsvatn in Bykle Muni-
cipality, and it is owned by the compa-
ny Otra Kraft. Å Energi Vannkraft and
Skagerak Kraft own 68.6% and 31.4%
of Otra Kraft respectively.
In May, Morrow Batteries, which is
part-owned by Å Energi, brought in
new investors including Siemens, ABB
and the state-owned climate invest-
ment fund Nysnø. With around one
billion Norwegian kroner in new capital,
Morrow now has part of the funding in
place for the first phase of construction
for the planned battery factory in Aren-
dal. Å Energi provided NOK 300 million
of the new equity, and its ownership
interest after the share issue is 33.8%.
In June, Å Energi entered into a part-
nership with BTG Solenergi to build
a solar farm at Birkenes, which may
2021 to NOK 166 million in 2022.
The Group’s hedging of some of its
future electricity generation is designed
to make dividend payments more sta-
ble and predictable over the long term.
In the IFRS financial statements, chan-
ges in the value of cash-settled hedges
must be measured at fair value with
gains and losses recognised through
profit or loss. When forward prices rise
as sharply as they did in 2022, in isola-
tion it leads to a loss on the cash-sett-
led contracts. This is recognised in the
financial statements as it arises. Higher
forward prices also create an expecta-
tion that the value of electricity sold in
the spot market will be higher, but this
increase is only reflected in the finan-
cial statements when the electricity is
actually generated. This asymmetric
timing in the recognition of changes in
the value of the financial hedges and
of the hedged production is the main
reason for the Group’s poor financial
The Group’s profit for the year under
IFRS was NOK 166 million in 2022
(controlling interest’s share), compared
with NOK 2,062 million in 2021. Under-
lying net income under IFRS was NOK
1,515 million (controlling interest’s
share), down from NOK 1,923 million
in 2021.
In 2022, Å Energi’s hydroelectric power
stations generated 6,153 GWh (2021:
8,880 GWh), which was 31% less than
the previous year. This includes 211
GWh of electricity generated by Glitre
Energi in December.
become Norway’s biggest. Constructi-
on is due to start in 2023.
In December, the two companies esta-
blished the company Solutvikling AS,
with the aim of it becoming a leading
centre of expertise for planning, desig-
ning and developing ground-mounted
solar arrays in Norway.
In September, Å Energi’s Board decided
to invest around NOK 60 million in up-
grading Nomeland power station. Each
year Nomeland generates around 178
GWh of clean, renewable energy, equ-
ivalent to the consumption of roughly
11,100 average households. The
amount of hydropower it generates will
not rise as a result of the upgrades, but
its future reliability will improve.
As a result of high electricity prices, the
performance under IFRS in 2022.
Even after adjusting for the losses on
the cash-settled contracts, the Group
has a significant margin on the hedged
electricity generation.
Energy purchases rose to NOK 29,654
million (NOK 13,408 million). This incre-
ase was due to high electricity prices
pushing up the cost of energy purchases
at Entelios Nordic and Å Strøm, as well
as causing the Network segment higher
costs for network losses.
In total, employee benefits, the duty
on high-priced electricity and other
operating expenses were 35 percent
higher than in 2021. The introduction
of a duty on high-priced electricity is
the biggest single factor behind the
increase. Other factors included wage
growth, inflation, higher staff numbers
and new business ventures, as well as
the inclusion of Glitre Energi’s costs for
December.
1 The underlying IFRS figures take the Group’s
IFRS profit and adjust it for the items that are
described in greater detail on pages 143 and 144.
government introduced significant tax
rises in September. These consisted of
an 8 percentage point increase in the
resource rent tax rate, as well as a duty
on high-priced electricity amounting to
23% of the electricity price in excess
of 70 øre/kWh. As well as creating an
uncertain business environment, this
reduces our ability to invest in develo-
ping new projects to generate more re-
newable energy and to increase peak
power generation at hydropower sta-
tions, and limits our capacity to invest
in upgrading the distribution system.
Moreover, it reduces the dividend that
our municipal shareholders can use to
provide services to their inhabitants.
In October, Glitre Nett opened a new
substation at Evje, which will help
ensure a reliable supply of electricity
to the municipality. The substation is
ready for higher power generation from
Fennefoss power station, which will
open in 2023, and has been built with
high voltage switchgear that does not
use the harmful greenhouse gas SF6.
In November, Å Energi signed an agree-
ment to sell its 19.5% ownership interest
in its associate Otera AS to Vinci Energies
Norway AS. The sale was recognised in
the fourth quarter, giving the Group an
accounting gain of NOK 65 million.
Å Energi signed a contract for its new
headquarters in Kristiansand in Dec-
ember. Due for completion in 2025,
the building will be sustainable both in
terms of its design and use of materials,
and its proximity to public transport.
The Å Energi Group’s distribution
system operator, Glitre Nett, reduced
its network tariffs from 1 January 2023.
This was possible thanks to Statnett’s
congestion revenues, which will be
used to reduce the network tariffs in
areas with high electricity prices. For
a customer whose annual consump-
tion is 20,000 kWh, the price cut will
mean an annual saving of just over
NOK 1,700 if they are in Buskerud and
Hadeland, or around NOK 3,000 if they
are in Agder. The difference is due to
the distribution system operators char-
ging different network tariffs in 2022.
The exact saving for individual custo-
mers will depend on their total con-
sumption and consumption patterns.
From 1 January 2023, Å Energi Varme
introduced a new scheme which also
gives business customers greater dis -
counts. Domestic customers were alrea-
dy similarly compensated through the
electricity subsidy for households. The
discounts result in significantly lower
energy costs for district heating when
spot prices and energy consumption
are high.
In March 2023, Å Energi, Vårgrønn
and Corio launched the brand name
Brigg Vind, which will offer unique
expertise in offshore wind and energy.
Brigg Vind will initially focus on the
Sørlige Nordsjø II area, and it believes
there is a potential market for 50 GW
of offshore wind in Norway by 2050.
Å Energi is also working with Corio
Generation to develop floating offshore
wind, with the initial plan being to bid
for the Utsira Nord area.
Directors´ ReportDirectors´ Report
38 39
Net financial items came to NOK -108
(243) million. Of the NOK 303 (236)
million financial expense, NOK 218
(214) million was interest payable on
the debt portfolio. The Group’s share of
profit of associates amounted to NOK
53 (259) million. The profit for 2022
included a NOK 65 million gain on the
sale of Å Energi’s shares in Otera. The
profit from associates was unusually
high in 2021 due to valuation gains on
Otovo and Morrow and the recognition
of a gain in relation to Fosen Vind. There
was an unrealised gain of NOK 75
(202) million on interest rate contracts
and shareholdings. NOK 144 (133)
million of this related to interest rate
swaps, due to higher market interest
rates. The remaining NOK -68 (69)
million was a revaluation loss (gain) on
our investment in Otovo.
The Group’s tax expense was NOK
1,523 (2,089) million. This consisted
of NOK 441 (831) million of income
tax and NOK 1,082 (1,258) million of
resource rent tax.
Income tax was lower on account of
the fall in profit before tax. The resource
rent tax expense amounted to NOK
1,082 (1,258) million. This comprises
NOK 2,948 (1,560) million of resource
rent tax payable, and a NOK 1,865 (302)
million increase in deferred resource
rent tax assets. The big increase in
resource rent tax payable is due to the
tax rate having been raised from 37%
to 45% as well as hydroelectric power
generated having a higher spot value.
The NOK 1,865 million increase in
deferred tax assets is mainly due to
revaluation losses on contracts liable
for resource rent tax that are measured
at fair value.
Underlying performance
The Group’s underlying profit does not
include unrealised gains and losses,
significant gains from disposals and
the impact of changes in tax rates.
That explains the difference between
the reported and underlying perfor-
mance in 2022, with unrealised gains
and losses on electricity and currency
contracts being the biggest factor.
See the section on “Alternative profit
measures” for information about their
purposes, definitions and presentation.
In 2022, underlying operating revenu-
es came to NOK 40,258 (21,576)
million, and underlying operating
profit was NOK 6,289 (4,810) million.
The increase is mainly explained by
higher underlying operating profit at
the Hydroelectric Power, Network
and Entelios Nordic segments. In the
case of Hydroelectric Power, this is
mainly due to higher electricity prices,
partially offset by lower generation; at
Network the most important reasons
for the increase include the transfer of
congestion revenues from Statnett and
lower transmission charges in the nati-
onal transmission grid; and at Entelios
Nordic the increase is mainly down to a
strong performance in energy mana-
gement.
The Group’s underlying profit before
tax was NOK 6,036 (4,582) million. The
tax expense on our underlying profit
rose sharply to NOK 4,532 (2,661)
million, an increase of NOK 1,871
million. In addition, there was a NOK
309 million special duty on high-priced
electricity. The main reason for the
increase in the tax expense was higher
profit before tax and higher resource
rent tax due to significantly higher spot
prices and a retroactive increase in the
resource rent tax rate applied from 1
January 2022. This means that 76% of
the Group’s pre-tax profit is returned to
society through income tax, resource
rent tax and the special duty.
The high tax expense meant that the
Group’s underlying net income (con-
trolling interest’s share) fell to NOK
1,515 (1,923) million.
Capital structure and cash flow
The aim behind the Group’s manage-
ment of its capital structure is to keep an
appropriate balance between financial
strength and investment capacity, while
maintaining a strong credit rating of at
least BBB+.
Å Energi had total assets worth NOK
73,524 million at the close of 2022,
compared with NOK 33,074 million in
2021. The significant increase is mainly
due to the merger with Glitre Energi,
for which assets and liabilities were
measured at fair value. High electricity
prices have also resulted in significantly
higher trade receivables, higher gross
derivative values and an increase in
cash and cash equivalents.
The Group’s book equity rose by NOK
13,235 million to NOK 20,604 (7,369)
million at the year-end. This increase
was due to the merger with Glitre Energi.
The Group’s equity ratio at the end of
the year was 28% (22%).
At the end of 2022, the Group had NOK
10,912 (9,030) million of gross interest-
bearing liabilities. Its net interest-bearing
liabilities were NOK 6,497 (6,603)
million. The average interest rate was
2.7%, up from 2.1% the previous year.
Our interest rate duration, which is ma-
naged by using fixed-interest loans and
interest rate derivatives, was 2.8 (4.3)
years at the turn of the year.
Liquidity risk is managed through cash
flow forecasts and by having an ade-
quate liquidity buffer, committed credit
facilities, access to a variety of sources
of financing and markets, and a smooth
maturity structure on our debt. The
Group’s liquidity buffer at the end of the
year comprised NOK 3.5 (2.5) billion
of unused credit facilities and NOK 4.4
(2.4) billion of bank deposits and short-
term interest-bearing securities.
Strong finances and good risk manage-
ment practices are important to maintai-
ning Å Energi’s credit rating, and it has a
credit rating of BBB+ (positive outlook)
from Scope Ratings.
Cash flow from operating activities
came to NOK 4,027 million in 2022,
compared with NOK 5,389 million the
previous year. A strong underlying per-
formance, particularly in the Hydroele-
ctric Power segment, is one key reason
for the strong cash flow. In addition, the
cash flow statement includes a NOK
5,934 million adjustment for non-cash
gains and losses. A significant proportion
of this relates to timing effects arising
from customer management at Entelios
Nordic. Entelios offers various services
that aim to minimise the electricity price
paid by the customers who use its
management services. These services
leave Entelios with an electricity price
exposure with respect to its customers.
In order to hedge its net exposure, the
company uses exchange-traded con-
tracts. These exchange-traded contracts
are futures contracts, and changes in
their value are settled daily. Entelios’
contracts with its customers are forward
contracts, which are only settled on their
delivery dates. The big increase in prices
in 2022 resulted in significant gains on
the exchange-traded contracts and the
associated cash receipts, whereas cash
payments for the roughly equivalent
losses on contracts with customers were
not affected to the same extent. Tax paid
rose considerably to NOK 2,735 (139)
million in 2022.
Investment in property, plant and equip-
ment and intangible assets amounted to
NOK 1,048 (1,214) million. The Hydro-
electric Power and Network segments
were responsible for 95% of the invest-
ments in property, plant and equipment.
There was a NOK 1,033 million net
change in loans, NOK 1,020 million
of which related to the redemption of
interest-bearing financial instruments
(bonds and commercial paper), which
is where excess liquidity is invested.
Glitre’s NOK 1,171 million of cash and
cash equivalents at the time of the
merger is included under cash flow from
investing activities.
NOK 755 (325) million was paid out in
dividends. Net cash provided by opera-
ting activities less dividends therefore
came to NOK 3,272 (5,215) million. As
a result, net investment for the year was
financed by cash flow from operating
activities.
Proposed dividends
Å Energi’s dividend policy states that
the proposed dividend should be deter-
mined on the basis of the Group’s un-
derlying net income the previous year,
in order to ensure predictable dividends
of our shareholders. The guideline
dividend payout ratio is 70%.
The dividend calculated for the merged
group Å Energi is based on the control-
ling interest’s share of the combined
underlying IFRS profit for 2021 of the
companies that merged, Agder Energi
and Glitre Energi, which was NOK
1,571 million. As part of the exchange
ratio negotiated between the two parties
to the merger, the merger plan also stipu -
lates that an extraordinary dividend shall
be paid by the merged company to the
shareholders of the former Agder Energi,
amounting to NOK 1,100 million in total
over the three-year period 2023-25.
Based on that, the Board of Directors
proposes a total dividend payout of NOK
1,938 million for the 2022 financial year.
The net income for the year of the parent
company Å Energi AS was NOK 522
(1,440) million under NGAAP. The Board
proposes that Å Energi AS’s net income
for the year be appropriated as follows:
Going concern assumption
In accordance with the Norwegian
Accounting Act, the Board of Directors
confirms that the annual financial
statements have been prepared on the
basis of a going concern assumption,
and that the assumption is justified.
Segments
Å Energi is organised as a corporate
group, with Å Energi AS as the parent
company. The segments are presented
in line with how the management team
makes, reviews and evaluates its deci-
sions. The segments reported in 2022
were Hydroelectric Power, Network,
Å Strøm, Entelios Nordic and Other
Activities.
The merger between Glitre Energi and
Agder Energi was completed as of
1 December 2022. Glitre Energi’s figu-
res, which are included for December,
are presented under Other Activities.
From 2023 onwards, Glitre Energi’s
business will be reported as an integra-
ted part of the new segments.
The financial figures for the segments
are reported on an underlying IFRS
basis, since that is what is used in
internal reporting to the management
and Board. A more detailed description
of the segments is given below.
Hydroelectric Power
This segment is responsible for devel-
oping, operating, maintaining and
refurbishing the Group’s hydroelectric
power stations, and it is one Norway’s
largest producers of electricity. The
reported figures for the segment only
cover the hydroelectric power operati-
ons of what was formerly Agder Energi,
as Glitre Energi’s figures for December
are presented under Other Activities.
Excluding Glitre Energi’s hydropower
business, the Hydroelectric Power seg-
ment expects to generate 8,700 GWh
in a normal year, and it owns 50 hydro-
electric power plants, either directly or
through joint arrangements. Most of its
power stations are in Agder, but it also
owns power stations in the counties of
Rogaland and Vestfold og Telemark.
All of its electricity is generated in the
NO2 price area. The segment’s ope-
rating revenues come from the sale of
the power that it generates in the spot
market, electricity contracts with indus-
trial customers, the sale of concession
power and financial trading.
The Hydroelectric Power segment had
NOK 7,419 (6,357) million of operating
revenues in 2022, while its operating
profit was NOK 5,232 (4,751) million.
Operating profit mainly rose on acco-
unt of significantly higher electricity
prices, partially offset by significantly
lower electricity generation, as well
as a NOK 276 million effect from the
introduction of the special duty on high-
priced electricity from 28 September
2022.
Directors´ ReportDirectors´ Report
(Amounts in millions of NOK)
Allocated for dividends 1,938
Transferred from other equity -1,415
Total allocations 522
40 41
Electricity prices fluctuated a great deal
over the course of the year. The war in
Ukraine resulted in a significant decline
in the supply of energy, particularly gas,
from Russia to Europe. This, combined
with low reservoir levels in Southern
Norway for much of the year and low
generation, led to record high electricity
prices in the NO2 price area in 2022.
The autumn of 2022 saw heavy pre-
cipitation in Southern Norway, while
mild weather in Europe enabled gas
storage facilities to be filled. Over the
course of the fourth quarter, fears of
energy shortages therefore abated,
both in Norway and on the continent.
This resulted in a sharp fall in electricity
prices, and forward prices on Nasdaq
for the NO2 area indicate that electricity
prices in 2023 and the following years
will be significantly lower than in 2022.
The average spot price in the NO2
area in 2022 was a record high 213
øre/kWh (76 øre/kWh), an increase
of 179%. The volume-weighted spot
price for the electricity generated by
the segment in 2022 was 203 øre/
kWh. Achieved electricity prices also
rose significantly, but they were lower
than spot prices. As well as our duty
to supply compensation power and
concession power at regulated prices,
this reflected a significant negative
contribution from our hedges.
In 2022, the segment generated
5,963 GWh (8,897 GWh), which was
the lowest in its history and 33% less
than the volume generated in 2021.
In the latter part of the year, heavy
precipitation combined with genera-
tion remaining low led to a significant
improvement in our hydrological
resources. Reservoir reserves rose
from 2.7 TWh at the start of the year to
3.6 TWh at the end of last year. That
means the reservoirs are at 67% (51%)
of their capacity. At the end of 2022,
the average reservoir level for all of the
electric utilities in the NO2 price area
was 63% (50%) of capacity, 13 percen-
tage points higher than last year, but
12 percentage points below the 75%
average for the past ten years.
In 2022 the segment made a pre-tax
profit of NOK 5,097 (4,647) million. As
well as paying ordinary income tax,
the Hydroelectric Power segment pays
resource rent tax. Its total tax expense
was NOK 4,106 (2,670) million. The
effective tax rate was 81% (58%). The
main reason for the tax expense rising
was a NOK 502 million increase in re-
source rent tax, as a result of a higher
tax rate and significantly higher spot
prices. The effective tax rate including
the duty on high-priced electricity was
82%.
Net income in 2022 fell by NOK 986
million to NOK 991 (1,977) million. The
sharp deterioration was mainly due to
the NOK 778 million income statement
effect of an increase in the resource
rent tax rate applied retroactively from
1 January 2022 and the introduction of
a duty on high-priced electricity.
NOK 393 (390) million was invested
in property, plant and equipment, with
the biggest individual projects being
the new Fennefoss power station near
Evje and the new turbine at Høgefoss
power station. In addition, several re-
furbishment and government-imposed
projects are being implemented.
Network
The reported figures for the Network
segment only cover the distribution
business of what was formerly Agder
Energi, since Glitre Energi Nett’s
December figures are presented under
Other Activities. As of 2023, Glitre
Energi’s business will be reported as an
integrated part of the new segments.
The new distribution system opera-
tor will be called Glitre Nett, and in
the segment reporting for 2023 it will
comprise Agder Energi Nett and Glitre
Energi Nett, as well as a 51% owners-
hip interest in Asker Nett. Glitre Nett is
responsible for the development, ope-
ration and maintenance of the regional
and local distribution systems in Agder,
Buskerud and Hadeland.
The Network segment had NOK 2,224
(1,613) million of operating revenues
in 2022. Operating revenues rose by
NOK 611 million, mainly due to the
recognition of congestion revenues
from Statnett.
In 2022, high electricity prices meant
that the cost of network losses was
NOK 247 million higher than in 2021.
When the Norwegian Energy Regula-
tory Authority (RME) sets distribution
system operators’ permitted revenues,
it includes compensation for distribu-
tion network losses. The tariffs that
Agder Energi charged to its customers
in 2022 did not fully reflect the rising
cost of network losses. These will in
principle be included in the tariffs and
recognised in future financial periods.
However, in September 2022 the
government announced that some of
the extraordinarily high congestion
revenues received by Statnett would
be passed on to the regional distri-
bution system operators in Southern
Norway. The aim is to compensate the
distribution system operators for the
rising cost of network losses, in order
to reduce the need for higher network
tariffs. This arrangement was approved
in the fourth quarter, and will apply to
the whole of 2022 and 2023. In 2022,
NOK 519 million was received from
Statnett and recognised. The arrange-
ment was an important reason why the
distribution business could reduce its
network tariffs in 2023.
Operating profit was NOK 436 million,
up from NOK 74 million in 2021. The
transfer of congestion revenues from
Statnett and lower network charges
in the national electricity transmission
system were the most important rea-
sons for the improvement.
The cost of resolving faults in the grid
and KILE was roughly as expected.
KILE is a reduction applied to the
company’s revenue cap in the event of
power outages.
In 2022, the segment invested NOK
539 (696) million, NOK 157 million less
than in 2021. The decline was due to
higher than normal investment in 2021.
That in turn was a result of custo-
mer-initiated projects and several ma-
jor projects being completed after they
were delayed or postponed in 2020
due to the Covid-19 pandemic. Includi-
ng NOK 194 (151) million of customer
contributions, gross investment was
NOK 733 (847) million.
Å Strøm
Å Strøm (formerly LOS) is one of
Norway’s leading electricity retailers. It
supplies electricity to domestic custo-
mers all over Norway, with the bulk of
them being in Southern Norway. The
company’s turnover in 2022 was NOK
3,304 million, compared with NOK
1,660 million the previous year. The
increase in turnover was due to higher
spot prices. The supplied volume was
1.7 TWh, compared with 2.0 TWh in
the same period the previous year.
This reduction was due to lower con-
sumption as a result of higher electri-
city prices and higher temperatures.
The segment’s operating profit was
NOK -13 (38) million. In September,
Å Strøm offered its customers a fixed
price for November and December, and
at the same time hedged the purchase
price for the expected electricity con-
sumption under the contracts it signed.
After this, prices fell significantly, and the
company allowed its customers to back
out of the contracts, although Å Strøm
still had to buy the electricity at the hed-
ged price. That resulted in a significant
loss, and it is the main reason why the
company made an operating loss.
Entelios Nordic
Entelios Nordic is one of the leading
energy retailers in the Nordic region.
In Norway, the company is the leading
supplier of electricity to the commercial
market. Entelios Nordic also has signi-
ficant turnover in Sweden, Finland and
Denmark.
In 2022, Entelios Nordic’s turnover was
NOK 25,421 million, up from NOK 9,995
million in 2021. This increase was due
to higher spot prices. The gross volume
of electricity supplied to consumers and
producers was 19.6 TWh (19.9 TWh).
The decline in volume is assessed to be
related to the general fall in consumer
demand. The underlying portfolio was
slightly bigger than in 2021, and volu-
mes are expected to grow in 2023.
The segment’s operating profit was NOK
530 (70) million. The increase in opera ting
profit was mainly due to a strong contri-
bution from energy management. Over
the course of the year, public and pri-
vate sector customers saved billions of
kroner in electricity costs as a result of
Entelios helping them to lock in advan-
tageous forward electricity contracts.
Entelios Nordic is the part of the Group
with greatest exposure to customers.
High electricity prices have increased
this exposure, due to both an increase in
trade receivables and a higher probabi-
lity of customers experiencing payment
difficulties. The management of Entelios
closely monitors this exposure, and in
spite of the exceptional circumstances,
realised losses on trade receivables are
in line with earlier periods.
Other Activities
This segment comprises the parent
company Å Energi, which includes
shared functions such as corporate
governance, technology, innovation,
safety, security, sustainability, commu-
nication and financing. In addition, it
includes Å Energi Fornybar Forvalt-
ning, which is responsible for mana-
ging and maximising the return on the
electricity generated by Hydroelectric
Power. Other Activities also includes
the New Industries business area,
which is responsible for the Group’s
venture capital activities, business
development and new ventures, and
Agder Energi Varme, as well as vario-
us smaller companies.
Other Activities also includes the figu-
res for December for what was former-
ly the Glitre Energi Group. From 2023
onwards, Glitre Energi will be included
in the normal segment reporting.
The Glitre Energi Group made an
operating profit of NOK 196 million for
the month of December. Glitre Nett’s
hydropower business contributed
NOK 208 million, while its distribution
system business contributed NOK 38
million. Glitre Energi’s net income in
December came to NOK 10 million as
a result of a very high tax burden on
the hydropower business. In Decem-
ber, Glitre Energi generated 211 GWh.
The Glitre Energi Group’s performance
in 2022 was affected by historically low
electricity generation, a negative con-
tribution from hedges and big negative
impacts from a higher tax burden.
In the coming years, Glitre Energi’s
former business is expected to make a
positive contribution to the new group’s
financial performance and help it to
develop its operations.
Å Energi Varme develops, builds and
supplies district heating and cooling
services for homes and commercial
buildings, mainly in Kristiansand,
Arendal and Grimstad. The company’s
turnover was NOK 161 (124) million
in 2022, while its operating profit was
NOK 45 (19) million.
In 2022, the company had a compen-
sation scheme based on the model of
the government’s electricity subsidy for
all of its domestic customers. The volu-
me of billable energy supplied was 136
GWh (149 GWh). Volumes fell as a re-
sult of a milder winter, and high energy
prices also led to less heat being used
in a number of buildings. The compa-
ny’s hedging of energy contracts made
a negative contribution. NOK 9 (17)
million was invested in 2022.
Directors´ ReportDirectors´ Report
42 43
As two groups with the same social
mission – producing and managing
renewable energy and developing the
energy systems of the future – there
are clear similarities between Agder
Energi and Glitre Energi’s areas of
focus, material topics and targets rela-
ting to sustainability.
Å Energi’s aim is to run its operations
as sustainably and ethically as pos-
sible. Both Glitre Energi and Agder
Energi have had clear strategies and
policies to promote sustainable busi-
ness practices. In 2023, Å Energi will
establish a joint, sustainable strategy
for the Group, in light of which various
policies and guidelines will need to
be written and updated. The common
goals for the Group shall be implemen-
ted at individual subsidiaries, which will
in turn draw up company-specific goals
and plans of action.
Å Energi adheres to the UN Global
Compact’s Ten Principles for respon-
sible business practice. These ten
principles guide the Group’s approach
to human rights, anti-corruption activities
and protecting the environment. No
breaches of laws and regulations were
recorded in 2022. Å Energi is engaging
actively with the Sustainable Develop-
ment Goals (SDGs), and 7 of the 17
SDGs form the basis for Å Energi’s
sustainability targets at the Group level.
The Global Reporting Initiative (GRI)
is the most widely used framework for
sustainability reporting, both in Norway
and worldwide. A separate sustainability
report has been produced for 2022
with reference to GRI. The GRI stan-
dards require companies to perform an
analysis of material topics to determine
which sustainability topics are materi-
al for the Group, and which ones are
important to the Group’s stakeholders.
Over the course of 2023, this will be
done in accordance with the updated
GRI standards.
Corporate social responsibility (csr) and sustainability
Risk management and internal
controls
The Board and senior management
team have established general guide-
lines for the Group’s corporate gover-
nance model. The Group’s corporate
strategy sets out goals and priorities
for the Group and its business areas,
which provide the basis for the executive
management’s integrated risk manage-
ment activities, together with the adopted
authorisations and risk management
strategy. The merged Å Energi Group is
currently conducting a strategy review
that will come up with targets, a risk
management strategy and updated busi-
ness plans for the group’s operations.
Based on the Group’s corporate and
risk management strategies, all of the
Group’s business areas will draw up
business plans. The business plans
will include strategic and operational
goals, areas of priority and risk assess-
ments. Areas that involve trading in
financial markets have their own risk
management strategies and limits on
risk exposure.
The Group’s risk management sys-
tems deal with potential positive and
negative outcomes in relation to the
company’s goals. Individual compani-
es are responsible for identifying and
monitoring their own risk exposures,
and risk management at the operatio-
nal level takes place across the organi-
sation as an integrated part of normal
business activities. High-level analysis
of Å Energi’s overall risk exposure
takes place at the Group level and is
reported to the Board.
In order to promote integrated corpo-
rate governance processes, the Group
has implemented a combined gover-
nance and information management
solution, which helps to further integra-
te financial and risk management into
management processes.
Internal controls at the company are
implemented through clear guideli-
nes and established processes that
are made available to all employees
through a quality management sys-
tem. Through the quality management
system, all of the Group’s governance
documents – from steering documents
through manuals to descriptions of
work processes – are available on the
Group’s intranet. Subsidiaries in the
Group implement the quality manage-
ment system across the organisation
through their own corporate gover-
nance systems with company-specific
governance documents.
Å Energi has established control me-
chanisms for safety, security, emergen-
cy preparedness and critical aspects
of its business processes in order to
prevent, or rapidly correct, any non-
conformities.
Risk management and internal controls
at Å Energi are described in greater
detail in this report’s section on “Inte-
grated risk management”..
Risks
The most important risks relate to
market price movements, interest rate
fluctuations, strategic focus areas and
investments, the safety and security of
operations and systems, the business
environment and reputation. Sustai-
nability has also become a growing
priority for the Group and a bigger part
of its activities, and risk assessments
covering this area are also carried out
to help it achieve its goals. Compliance
is also an area of priority, in order to
ensure compliance with laws, regula-
tions and good governance practice.
There follows a brief description of the
relevant risks. Risks and risk manage-
ment are described in greater detail in
this report’s section on “Integrated risk
management”.
Risk management and internal controls
Directors´ ReportDirectors´ Report
Employees and skills development
Health and safety
The Group’s sickness absence rate has
remained steady at low levels in recent
years, and in 2022 it was 3.4% (2.8%).
Of that, 1.4% (0.8%) was short-term
absence and 2.0% (2.0%) was long-
term absence (more than 16 days). The
Group aims to have a sickness absence
rate below 3%, and for some time we
have been working hard to provide an
early, tailored response to absences.
In 2022, 3 (3) occupational acci-
dents were recorded involving our
own employees, and 9 (4) involving
contractors. The injuries were mainly
related to people falling while walking.
The accident figures are equivalent
to a total injury frequency (number of
injuries, whether or not they resulted in
lost time, per million work hours) of 3.2
(2.2).
For Å Energi, safety is the top priority.
The safety of our contractors and
third parties is just as important as the
safety of our own employees, and the
aim is to prevent all personal injuries. A
lot of effort has been put into making Å
Energi a safe company where injuries
don’t occur, and into creating a good
working environment. We work syste-
matically on continuous improvement
in relation to the health and safety of
our own employees, contractors and
third parties. There is an emphasis
on sharing experiences and learning
across industries. Root cause analysis
is performed in the event of incidents
with a high risk of injury. The aim is to
learn even more from incidents that
could have led to injuries, and to share
knowledge across the Group and
throughout the energy industry.
Staff and organisational
structure
At the close of 2022, the Group had
1,345 (935) full-time and temporary
employees, representing 1,307 (907)
full-time equivalents. The merger with
Glitre Energi has resulted in an increase
of around 300 employees. There has
also been an increase in the number of
new hires in the Network segment and
in the Group’s venture capital activities.
The parent company had 206 (147)
permanent employees at the end of the
year. This increase was mainly due to
the merger with Glitre Energi. During
2022, 2 (3) apprentices worked at
the Group.
Women make up 26% (26%) of the
Group’s employees, and 42% (39%)
of the parent company’s. Women
make up 40% (23%) of the Group’s
managers, and there are four women
and six men in the senior manage-
ment team. Women occupy 33%
(42%) of the seats on the Board.
Å Energi recruits, develops and
deploys human resources in the way
that is best for achieving the Group’s
goals. This involves offering competi-
tive salaries, ongoing training, conti-
nuous improvement, a good working
environment, and a strong emphasis
on health and safety and leadership.
Å Energi works systematically on
equal opportunity and diversity, which
includes participating in the project
Equality at Work (Norw.: Likestilt
arbeidsliv). The project is about
equality in the widest possible sense,
and involves providing equal oppor-
tunity regardless of gender, religion,
ethnicity, any disability and sexual
orientation. More detailed information
and a report on our work in this area
can be found in the report “Diversity
and equal opportunity” on our website
aenergi.no.
In 2023, Å Energi will carry out a strategy
review for the new group, which will set a
common path for work to promote sustai-
nability. Targets and KPIs will be set that
reflect upcoming statutory requirements
with respect to sustainability reporting,
including the Corporate Sustainability
Reporting Directive.
The Group has drawn up a Supplier
code of conduct, and we take a sys-
tematic approach to due diligence in
our value chain. The Transparency Act
aims to promote companies’ respect
for fundamental human rights and
decent conditions in conjunction with
the production of goods and supply
of services. Å Energi will publish a
separate report that complies with the
stipulations of the Transparency Act by
30 June 2023.
The EU Taxonomy Regulation is
part of the European Green Deal for
sustainable economic activities. This
is a classification system designed to
ensure that financial markets channel
capital into sustainable activities and
projects that are profitable. The Taxo-
nomy Regulation is being incorporated
into Norwegian law through the Act on
Sustainability-related Disclosures in
the Financial Sector and a framework
for sustainable investment (the Sustai-
nable Finance Act) which came into
force on 1 January 2023. Consequ-
ently, non-financial entities such as
Å Energi will have to report to what
extent their activities can be classified
as sustainable under the taxonomy.
The reporting requirement only applies
from the 2023 financial year onwards,
so we will publish this information in
2024. Å Energi supports the introducti-
on of the taxonomy, and it is working
systematically to assess the Group’s
activities in light of the taxonomy.
Further details about the performance
of the two groups can be found in Å
Energi’s 2022 sustainability report,
which is available on the Group’s web-
site aenergi.no.
44 45
Insurance for Board members and
Managing Director
The company has Directors’ Liability
Insurance covering any culpable acts
or omissions of the executive mana-
gement or Board of Directors leading
to the plaintiff suffering financial
losses. The insurance policy does not
cover personal injuries or damage to
property.
The Group’s NOK 2,473 million of share
capital is made up of 2,460,698 class
A and 1,230,349 class B shares, each
with a face value of NOK 670.
The class A shares ensure that Å Energi
at all times meets the licence conditions
The Board of Directors expects the
electric power industry to change
greatly over the coming years, and for
those changes to create new business
opportunities. The Group’s investment
in R&D and innovation shall lay the
foundations for long-term, profitable
growth and promote development
activities to increase the potential of
the core business.
Within the field of hydroelectric power,
most of this work is done in partnership
with research institutions. Å Energi
has continued its contribution to, and
participation in, the national research
centre HydroCen. The centre focuses
on research relating to hydroelectric
power, including ways to reduce any
environmental impacts.
In relation to environmental impacts,
the main focus in recent years has
been on the downstream migration of
salmon smolts past run-of-the-river
plants, and measures to increase sal-
mon production in river systems. For
example, a project run by the Norwegi-
Å Energi uses the Norwegian Code of
Practice published by the Norwegian
Corporate Governance Committee
for waterfall rights as relate to public
ownership. The class B shares are
freely negotiable without any pre-emp-
tion rights or requirement for consent
from the Board. However, in the case of
restricted class B shares, the Board’s
consent is required. Class A and B
an Institute for Water Research (NIVA)
has looked at the downstream migrati-
on of smolts and the upstream migra-
tion of mature salmon past Rygene
power station in Agder. The knowledge
generated by this project is being used
in dialogue with regional and national
authorities with a view to changing the
rules governing the operation of the
dam at Rygene power station.
In addition, work has continued on
developing a system for error detecti-
on, digital supervision and predictive
maintenance management.
For a number of years, the Network
segment has been increasingly using
drones to inspect power lines and
analyse images. Compared with using
helicopters, drones reduce the risk of
injuries and accidents, so this is an
important health and safety measure.
Drones can be used in more challeng-
ing weather conditions than helicopters,
which makes it possible to quickly
identify what faults need rectifying.
This has significantly simplified work
(NUES), within the framework set by
the company’s organisational structu-
re and ownership.
shares have equal voting rights and equal
rights to distributions from the entity.
There is also a shareholders’ agree-
ment between the shareholders in the
entity which the entity itself is also a
party to.
.
on restoring the electricity supply in
emergency situations.
The Network segment is also participa-
ting in several collaborative projects in-
volving other companies in the electric
power industry. These projects cover
areas such as the development of the
power grid of the future, maintenance
of grid equipment, pilot flexibility proje-
cts and digitalisation.
In recent years, the Group has been
developing new business opportunities
in relation to demand flexibility, and it is
participating in several projects in Nor-
way and the EU. These development
activities are supported by government
funding, and the projects put Å Energi
in a strong position to help shape the
flexible energy system of the future,
which will be based on electrification
and renewable energy.
Å Energi is working with the University
of Agder within a number of its speci-
alist areas. This includes technology
and machine learning, and Master’s
Shareholder information
Research and development
Corporate governance
Directors´ ReportDirectors´ Report
Market risk
Å Energi is exposed to significant
market risk through the generation and
trading of electricity, with its revenues
from electricity sales being exposed to
electricity price risk and currency risk.
Hedging strategies for the power gene-
ration portfolio are subject to limits on
how much power can be sold through
futures contracts and close monitoring
of downside risks. Energy trading and
power purchase agreements (PPAs)
are managed and monitored in se-
parate portfolios, with their own limits
on risk exposure. Electricity retailing
is considered a margin business and
financial instruments are used to
minimise the electricity price risk and
currency risk.
Fluctuations in the price of electricity
futures contracts and large price diffe-
rences between geographical areas
affect the value of electricity price
hedges and give rise to counterparty
risk. Bilateral contracts are increasingly
being used, which mitigates the risks
and costs associated with margin re-
quirements, but conversely raises the
Group’s counterparty risk. The most
important measures to limit counter-
party risk are taken prior to signing
contracts. Credit checks are carried out
on counterparties and major contracts
are only signed with financially sound
counterparties. Guarantees and terms
of contract further reduce counterparty
risk. Å Energi could incur significant
losses if one of our largest counterpar-
ties were to go bankrupt.
Strategic risk
The Group has an ambitious strategy
to adapt to the changes facing the
electric power industry associated with
the green transition. Strategic risk is
managed by pursuing selective profi-
table growth, continuous improvement
and innovation within existing business
areas, as well as by investing in new
areas related to green value chains. In
2023, a new strategy with associated
goals for the merged group will be
drawn up.
Å Energi has a clearly stated goal
of having a rating of BBB+. Portfolio
management and long-term capital
allocation are designed to encourage
optimal use of capital at the Group over
time. Å Energi may also seek to share
risk by entering into partnerships with
other entities.
Operational risk
The most important operational risks
are the risk of injuries to the Group’s
employees and third parties, damage
to infrastructure and other assets,
negative impacts on the environment
and climate, negative impacts on the
Group’s reputation and the risk of
failures in administrative and manage-
ment processes. Climate change and
extreme weather events are making
it increasingly challenging to ensure
reliability of supply, as well as the sa-
fety of our employees, our contractors,
and the general public. Personal safety
is always our very highest priority. A
growing focus on sustainability me-
ans that our risk management must
consider the whole spectrum of issues
related to ESG.
Operational risk is managed through
preventive measures and procedures
for responding to incidents. For the
purpose of risk management, Å Energi
has chosen to establish contingency
plans, training exercises and preven-
tive measures even at companies not
covered by “Kraftforsyningens bered-
skapsorganisasjon” (KBO). Å Energi
has insurance policies to cover all
major types of operational incident.
Security
Å Energi continuously and systema-
tically works to meet external requ-
irements and internal needs for the
security and robustness of our ICT
infrastructure, to protect itself against
cyber attacks and system faults, and to
ensure the secure and stable operation
of its ICT systems.
Å Energi has contingency plans for
all areas of the Group’s activities. The
Group often performs emergency
response exercises involving a variety
of scenarios. This is so we are ready
to respond well to any extraordinary
circumstances such as major power
outages, flooding, cyber attacks, etc.
The war in Ukraine makes this even
more important, and it is an area of pri-
ority for the Group and its companies.
Regulatory risk
Changes in the regulatory environ-
ment and political decisions affect the
company’s room for manoeuvre and
constitute a significant element of the
Group’s risk exposure. Å Energi works
systematically to understand how the
business environment is changing,
contribute specialist expertise, exploit
any available room for manoeuvre and
make strategic choices.
The Group continuously makes the
changes needed to adapt itself to an
industry in a state of flux, in areas such
as technology/digitalisation, a culture
of change/teamwork and collaborati-
ons/partnerships.
Reputation
The high electricity prices in 2022
have put the spotlight on the electric
power industry, everywhere from social
media platforms to political discourse.
In these debates, Å Energi strives to
share its expert knowledge and propo-
se solu tions. The Group’s reputation
risk is managed by having high ethical
standards, good corporate governance
and robust processes, as well as by
treating customers and other stakehol-
ders well.
Compliance
The most important areas of compli-
ance risk for Å Energi are physical and
cash-settled electricity trading, licence
terms, data protection, safety and
security. These risks are managed by
taking a systematic approach to analy-
sing and assessing risks, and prioritising
measures to deal with compliance risk.
Sustainability
Sustainability represents a wide spe-
ctrum of risks that need to be assessed
in order to ensure that Å Energi fulfils
its ambitions and goals in relation to
acting as a catalyst for the green ener-
gy transition and increasing renewable
energy generation. Risks are managed
by integrating them into the Group’s
system for analysing and assessing
risks, and by prioritising measures
within integrated risk management.
Matters relating to corporate governance
are described in greater detail in a
separate section of this annual report.
.
46 47
Thanks to its experience and excellent
understanding of the market, Å Energi
is in a strong position to create more
value from trading activities, as well as
being a complete supplier of products
and services, particularly to renewable
power generators and power-intensive
industries. Building on its own exper-
tise, Å Energi will proactively build a
presence in new value chains in the
green economy.
High levels of investment are expected
in the Hydroelectric Power segment
over the coming years, due to the requ-
irements of the Norwegian dam safety
regulation and the need for power station
rehabilitation projects, amongst other
things. Meanwhile, regulatory changes
such as the increase in the resource
rent tax and duty on high-priced electri-
city will have a negative impact on the
profitability of new hydropower projects
and the capacity of the Group to invest.
Network
Distribution system operators will play
a key role in the green energy transiti-
on and ensuring that grid connections
are provided as quickly as possibly
will be vital to developing our society.
There is strong demand for additional
grid capacity and the Network seg-
ment is focusing hard on measures to
make even better use of the existing
infrastructure and to expand the grid in
ways that are cost-efficient. There is a
long lead time for building new power
stations, and the time it takes to license
and approve new projects must be
reduced if we want to meet society’s
overarching goals within the deadlines
that have been set.
The Network segment seeks to pro-
vide its customers with an electricity
supply that is as reliable as possible
at the lowest possible price. New tools
are being introduced to reduce costs
and lead times as much as possible.
Power grid digitalisation, making use of
available customer flexibility and a new
model for network tariffs are tools that
are being used alongside traditional
operational and investment activities.
Consumer flexibility can be facilitated
through connection agreements that
allow the distribution system operator
to disconnect customers when the
grid is under a lot of strain and through
market models that reward customers
who are flexible in their electricity
consumption.
The Network segment has installed
instrumentation in much of the power
grid, and it is using the new information
this provides to operate and develop
the grid more efficiently. A growing
amount of real-time information is
providing new opportunities to optimise
the operation of the grid and reduce
the risk of power outages. Drones
are used to inspect the electric power
system and laser scanning is used to
analyse forest growth and high-risk trees.
New technology and digitalisation are
creating new opportunities that will be
further developed over the coming years.
Å Strøm
The electricity retailers Å Strøm and
Glitre Energi Strøm will be merged
during May 2023.
The electricity market is highly compe-
titive and participants are investing
heavily in new technology. Å Strøm and
Vibb expect to continue growing in the
domestic market by developing relevant
digital solutions for customers and by
making greater use of strategic partners.
Entelios
Entelios Nordic is the leading supplier
of energy to the commercial market
in the Nordic region. The company’s
growth strategy aims to develop a
balanced, profitable portfolio, primarily
through organic growth. It is focusing
on offering management and energy
services through partnerships.
Kristiansand, 24 April 2023
Board of Directors of Å Energi AS
Ann Christin Andersen
Chair
Lars Erik Torjussen
Deputy Chair
Morten A. Yttreeide
Board member
Lars Petter Maltby
Board member
Gro Elisabeth Lundevik
Board member
Kristin Steenfeldt-Foss
Board member
Asbjørn Grundt
Board member
Marit Ektvedt Kjær
Board member
Oddvar Emil Berli
Board member
Rune Bæver
Board member
Roger Thorsland
Board member
Jan Helmen
Board member
Steffen Syvertsen
CEO
Directors´ ReportDirectors´ Report
The Board of Directors expects the
electric power industry to change greatly
over the coming years, which will create
new business opportunities. In 2023, the
Board will draw up a new strategy for Å
Energi, to ensure that the new group is
ready to seize the fresh market oppor-
tunities that arise in conjunction with the
green energy transition. Through various
partnerships, Å Energi is participating in
major industrial projects in sectors like
offshore wind, hydrogen, solar power
and batteries, and its ambition is to cre-
ate a future powered by clean energy.
Hydroelectric Power
The futures market for electricity in
the NO2 area for the coming years
suggests that the electricity price in
the area will be around 70-120 øre/
kWh, which is less than half the level in
2022, but nevertheless double the typi-
cal electricity price in the past. The fact
that prices will remain high over the
coming years reflects plans to make
Europe independent of Russian gas.
Over the longer term, the expectation
is that the EU will manage to become
independent of Russian gas, while
also undergoing an energy transition
from fossil fuels to renewable energy
in order to reduce greenhouse gas
emissions in line with the EU’s goal of
achieving net zero emissions by 2050.
The energy transition envisages coal
being phased out in the early 2030s,
as a result of climate goals and political
decisions. Gas will continue to provide
flexible electricity, but its use is expe-
cted to gradually decline. The expe-
ctation is that other kinds of flexibility,
particularly on the demand side, will be
introduced to replace flexible gas-fired
power generation. The production of
cheap hydrogen, which can also be
used to generate power at the times
when prices are highest, is expected to
play an important role. The amount of
electricity generated by wind and solar
power is expected to rise significantly
– here in the Nordic countries, on the
continent and in the United Kingdom.
Offshore wind is likely to play a particu-
larly important role in the future. The
ambition is for Europe to have 100 GW
(approximately 450 TWh) of offshore
wind by 2030, three times as much as
total electricity generation in Norway.
And by 2050 the aim is to increase off-
shore wind power in Europe to 450 GW
(approximately 2,000 TWh). The Nor-
wegian government has expressed its
ambition to award licences for 30 GW
(approximately 135 TWh) of offshore
wind off the Norwegian coast by 2040.
Electricity consumption in the Nordic
region is expected to grow between
now and 2030, but slightly slower than
previously thought on account of the
high prices over the next few years.
Electricity consumption will rise in
response to growing demand from the
electrification of the transport sector,
the need for power from shore for oil
and gas installations and the develop-
Outlook
Events after the reporting period
theses that are related to the Group’s
activities, particularly in the fields of
hydropower and distribution systems.
Through its ownership interest in NOR-
CE, the Group supports the renewable
energy research community in the region.
Å Energi is also participating in the
R&D and innovation project Green
Platform Ocean Grid, in partnership
with SINTEF and the offshore wind
industry. The project will develop new
technology, knowledge and solutions
ment of new energy-intensive indus-
tries such as data centres, battery
factories and hydrogen production. Up
to 2030, consumption is expected to
rise faster than production, which will
reduce the electricity surplus. Beyond
2030, offshore wind power may help
to offset growing consumption, and in
due course create a growing electricity
surplus that can be exchanged with the
countries surrounding the Nordic region.
The transition from a fossil fuel-based
electric power system to a renewable
one will lead to a growing proportion
of non-dispatchable sources such as
wind and solar power. That is expected
to lead to greater price fluctuations
than we have seen in the past. That
will create challenges with respect to
optimising generation and consumpti-
on, but it also provides opportunities to
achieve higher prices for dispatchable
generation.
These changes are making existing
markets more complex, while systems
and balancing markets are being
developed to deal with the new chal-
lenges. We will need to build up the
necessary knowledge, expertise and
analytical skills, as well as developing
models and new technology, in order to
continue adding value from energy
management. This applies both to the
value we add to our own electricity
generation and trading, and to our ma-
nagement of market risk and financial
challenges on behalf of market players
who don’t have that capacity themselves.
aimed at enabling profitable offshore
wind development on the Norwegian
continental shelf, including in relation
to how the wind farms will be connec-
ted to the grid.
There have been no incidents in 2023
that have a significant impact on the
financial statements for 2022. Events
after the reporting period that may
impact the Group’s future financial
performance are discussed below.
The Board would like to thank all of Å Energi’s employees for their hard
and productive work in conjunction with the merger.
48 4948
Board of directors
Ann Christin Andersen
Oddvar Emil Berli
Gro Elisabeth Lundevik
Steffen Syvertsen
Chair
Board member
Board member
Board member
Board member
Board member
CEO
Lars Erik Torjussen
Rune Bæver
Kristin Steenfeldt-Foss
Deputy chair
Board member
Board member
Board member
Board member
Board member
Morten A. Yttreeide
Roger Thorsland
Asbjørn Grundt
Lars Petter Maltby
Jan Helmen
Marit Ektvedt Kjær
48
Declaration pursuant to Section § 5-5 of the
Securities Trading Act
We confirm that, to the best of our knowledge, the annual
financial statements have been prepared in accordance with
current accounting standards, and that the information contained
therein provides a true and fair view of the assets, liabilities,
financial position and overall results of the parent company
and of the Group. We also confirm that the annual report gives
a true and fair view of the performance, results and financial
position of the parent company and the Group, as well as des-
cribing the most important areas of risk and uncertainty facing
the Group’s businesses.
Kristiansand, 24 April 2023
Board of Directors of Å Energi AS
Ann Christin Andersen
Chair
Lars Erik Torjussen
Deputy Chair
Morten A. Yttreeide
Board member
Lars Petter Maltby
Board member
Gro Elisabeth Lundevik
Board member
Kristin Steenfeldt-Foss
Board member
Asbjørn Grundt
Board member
Marit Ektvedt Kjær
Board member
Oddvar Emil Berli
Board member
Rune Bæver
Board member
Roger Thorsland
Board member
Jan Helmen
Board member
Steffen Syvertsen
CEO
Directors´ ReportDirectors´ Report
50 5151SeksjonstittelSeksjonstittel50
Å Energi
Group
50 51Å Energi Group Å Energi Group
52 53
Å Energi Group
Financial statements
52 53
Income Statement 54
Comprehensive income 55
Statement of financial position 56
Statement of cash flows 58
Statement of changes in equity 59
General information and summary of the most important accounting principles 60
Notes
Note 1 Segment information 68
Note 2 Energy sales 75
Note 3 Transmission revenues 76
Note 4 Gains and losses on electricity and currency contracts 77
Note 5 Employee benefits 77
Note 6 Property taxes and licence fees 78
Note 7 Other operating expenses 78
Note 8 Auditor’s fee 79
Note 9 Financial income and expenses 79
Note 10 Tax 80
Note 11 Depreciation and impairment losses 82
Note 12 Intangible assets 82
Note 13 Property, plant and equipment 84
Note 14 Associates and joint arrangements 87
Note 15 Non-current Financial Assets 90
Note 16 Receivables 90
Note 17 Cash and cash equivalents 91
Note 18 Share capital and shareholder information 92
Note 19 Unearned revenue and provisions 93
Note 20 Pensions 94
Note 21 Interest-bearing liabilities 97
Note 22 Other non-interest-bearing current liabilities 98
Note 23 Financial instruments 98
Note 24 Derivatives 101
Note 25 Financial risk management 102
Note 26 Accounting hedges 107
Note 27 Mortgaged assets, liabilities and guarantees issued 108
Note 28 Events after the end of the reporting period 108
Note 29 Management compensation, etc. 109
Note 30 Related parties 111
Note 31 Acquisitions, disposals and buy-out of non-controlling interests 112
Note 32 Group structure 114
Å Energi Group Å Energi Group
54 55Å Energi GroupÅ Energi Group
(Amounts in millions of NOK) Note 2022 2021
Energy sales 2 37,606 19,643
Transmission revenues 3 2,148 1,381
Other operating revenues 1,487 800
Gains and losses on electricity and currency contracts 4 -5,478 -1,200
Total operating revenues 1 35,763 20,625
Energy purchases 2 -29,654 -13,408
Transmission expenses -43 -264
Other raw materials and consumables used -623 -134
Employee benefits 5 -1,050 -958
Depreciation and impairment losses 11 -760 -764
Property taxes and licence fees 6 -226 -225
Duty on high-priced electricity 10 -309 0
Other operating expenses 7 -1,304 -1,013
Total operating expenses -33,969 -16,767
Operating profit 1,793 3,858
Share of profit of associates and joint ventures 14 53 259
Financial income 9 67 17
Unrealised gains and losses on interest rate contracts 9 75 202
Financial expenses 9 -303 -236
Net financial income/expenses -108 243
Profit before tax 1,685 4,101
Income tax 10 -441 -831
Resource rent tax 10 -1,082 -1,258
Tax expense -1,523 -2,089
Net income from continuing operations 162 2,012
Net income from discontinued operations 31 0 45
Net income 162 2,058
Of which attributable to non-controlling interests 32 -4 -5
Of which attributable to controlling interest 166 2,062
Income statement
(Amounts in millions of NOK) Note 2022 2021
Net income 162 2,058
Other comprehensive income and expenses
Cash flow hedges 26 120 54
Translation differences 5 -9
Tax impact 10 -26 -12
Total items that may be reclassified to income statement 98 33
Remeasurements of pensions 20 -395 2
Tax impact 10 11 7 15
Total items that will not be reclassified to income statement -277 17
Total other comprehensive income and expenses -179 50
Comprehensive income -17 2,108
Of which attributable to non-controlling interests 32 -4 -5
Of which attributable to controlling interest -13 2,1 13
Comprehensive income
56 57
(Amounts in millions of NOK) Note 2022 2021
Deferred tax assets 10 0 2 11
Intangible assets 12 6,097 380
Property, plant and equipment 13 33,145 17,345
Investments in associates and joint ventures 14 4,969 177
Derivatives 24 6,910 1,617
Other non-current financial assets 15 1,053 1,334
Total non-current assets 52 ,174 21,063
Inventories 295 136
Receivables 16 10,201 7,618
Derivatives 24 6,424 2,842
Cash and cash equivalents 17 4,430 1,415
Total current assets 21,350 12,01 1
TOTAL ASSETS 73,524 33,074
Paid-in capital 18 14,870 1,907
Retained earnings 4,795 5,424
Non-controlling interests 939 37
Total equity 20,604 7,369
Deferred tax 10 4,402 1,1 12
Provisions 19 1,830 2,483
Derivatives 24 12,406 1,772
Interest-bearing non-current liabilities 21 7,754 7,746
Total non-current liabilities 26 393 13,1 14
Interest-bearing current liabilities 21 3,158 1,284
Tax payable 5,782 2,707
Derivatives 24 1 1,425 4,842
Other non-interest-bearing current liabilities 22 6,161 3,759
Total current liabilities 26,527 12,592
TOTAL EQUITY AND LIABILITIES 73,524 33,074
Statement of
financial position
Kristiansand, 24 April 2023
Board of Directors of Å Energi AS
Ann Christin Andersen
Chair
Å Energi GroupÅ Energi Group
Lars Erik Torjussen
Deputy Chair
Morten A. Yttreeide
Board member
Lars Petter Maltby
Board member
Gro Elisabeth Lundevik
Board member
Kristin Steenfeldt-Foss
Board member
Asbjørn Grundt
Board member
Marit Ektvedt Kjær
Board member
Oddvar Emil Berli
Board member
Rune Bæver
Board member
Roger Thorsland
Board member
Jan Helmen
Board member
Steffen Syvertsen
CEO
58 59
Statement of
cash flows
(Amounts in millions of NOK) Note 2022 2021
Cash flow from operating activities
Profit before tax from continuing operations 1,685 4,101
Profit before tax from discontinued operations 31 0 45
Depreciation and impairment losses 11 760 764
Non-cash gains and losses 4. 9 5,934 2,681
Share of profit of associates and joint ventures 14 -53 -259
Gain/loss on sale of businesses 0 -48
Tax paid -2,735 -139
Change in net working capital, etc. -1,564 -1,755
Net cash provided by operating activities 4,027 5,389
Investing activities
Purchase of property, plant, equipment and intangible assets 12. 13 -1,048 -1,214
Purchase of businesses/financial assets -352 -61
Net change in loans 16 1,033 -1,018
Sale of property, plant, equipment and intangible assets 8 5
Sale of businesses/financial assets 159 46
New cash and cash equivalents from merger 1,171 0
Net cash used in investing activities 972 -2 241
Financing activities
New long-term borrowings 21 0 177
Repayment of long-term borrowings 21 -1,284 -1,505
Net change in current liabilities 0 -500
Transactions with non-controlling interests 56 19
Dividends paid -755 -325
Net cash used in financing activities -1,983 -2,136
Net change in cash and cash equivalents 3,015 1,013
Cash and cash equivalents at start of period 1,415 402
Cash and cash equivalents at end of period 17 4,430 1,415
(Amounts in millions of NOK) Note Paid-in
capital
Cash
flow
hedges
Translation
differences
Retained
earnings
Total for
controlling
interest
Non-con-
trolling
interests
Total
equity
Equity at 01/01/2021 1,907 -126 7 3,746 5,535 34 5,569
Net income 0 0 0 2,062 2,062 -5 2,058
Other comprehensive income
and expenses 0 42 -9 17 51 0 50
Dividends paid 0 0 0 -325 -325 0 -325
Other changes in equity 0 0 0 9 9 9 18
Equity at 31/12/2021 1,907 -83 -1 5,509 7,331 37 7,369
Equity at 01/01/2022 1,907 -83 -1 5,509 7,331 37 7,369
Net income 0 0 0 166 166 -4 162
Other comprehensive income
and expenses 0 93 5 -277 -179 0 -179
Dividends paid 0 0 0 -755 -755 0 -755
Merger with Glitre Energi 31 12,962 0 0 94 13,056 849 13,905
Other changes in equity 0 0 0 45 45 56 102
Equity at 31/12/2022 14,870 10 3 4,782 19,665 939 20,604
Statement of
changes in equity
Å Energi GroupÅ Energi Group
60 61
Å Energi GroupÅ Energi Group
62 63
Å Energi GroupÅ Energi Group
64 65
Å Energi GroupÅ Energi Group
66 67
Å Energi GroupÅ Energi Group
68 69
Å Energi GroupÅ Energi Group
70 71
Å Energi GroupÅ Energi Group
72 73
Å Energi GroupÅ Energi Group
74 75
Å Energi GroupÅ Energi Group
76 77
Å Energi GroupÅ Energi Group
78 79
Å Energi GroupÅ Energi Group
80 81
Å Energi GroupÅ Energi Group
82 83
Å Energi GroupÅ Energi Group
84 85
Å Energi GroupÅ Energi Group
86 87
Å Energi GroupÅ Energi Group
88 89
Å Energi GroupÅ Energi Group
90 91
Å Energi GroupÅ Energi Group
92 93
Å Energi GroupÅ Energi Group
94 95
Å Energi GroupÅ Energi Group
96 97
Å Energi GroupÅ Energi Group
98 99
Å Energi GroupÅ Energi Group
100 101
.
Å Energi GroupÅ Energi Group
102 103
Å Energi GroupÅ Energi Group
104 105
Å Energi GroupÅ Energi Group
106 107
Å Energi GroupÅ Energi Group
108 109
Å Energi GroupÅ Energi Group
110 111
Å Energi GroupÅ Energi Group
112 113
Å Energi GroupÅ Energi Group
114 115
Å Energi GroupÅ Energi Group
116 117117SeksjonstittelSeksjonstittel116
Å Energi AS
116 117Å Energi AS Å Energi AS
118 119
Å Energi AS
Financial statements
118 119Å Energi AS
Income statement 120
Statement of financial position 121
Statement of cash flows 122
Accounting principles 123
Notes
Note 1 Intra-group transactions and balances 126
Note 2 Employee benefits, management compensation, etc. 127
Note 3 Pensions 127
Note 4 Intangible assets 129
Note 5 Property, plant and equipment 129
Note 6 Auditor’s fee 130
Note 7 Other operating expenses 130
Note 8 Financial income and expenses 130
Note 9 Tax 131
Note 10 Equity 132
Note 11 Investments in subsidiaries and associates 133
Note 12 Other non-current financial assets 134
Note 13 Cash and cash equivalents 134
Note 14 Provisions 134
Note 15 Interest-bearing liabilities 135
Note 16 Market and financial risk 135
Note 17 Other non-interest-bearing current liabilities 136
Note 18 Contingent liabilities 136
Note 19 Mortgaged assets, liabilities and guarantees issued 136
Note 20 Merger 137
Auditor’s Report 138
Alternative performance measures (APM) 144
Å Energi AS
120 121Å Energi ASÅ Energi AS
(Amounts in millions of NOK) Note 2022 2021
Other operating revenues 1 337 327
Total operating revenues 337 327
Employee benefits 2, 3 -235 -227
Depreciation and impairment losses 4, 5 -8 -9
Other operating expenses 1, 6, 7 -277 -217
Total operating expenses -519 -453
Operating profit -182 -127
Financial income 1, 8 2,428 3,116
Financial expenses 1, 8 -1,622 -1,149
Net financial income/expenses 807 1,967
Profit before tax 624 1,840
Tax expense 9 -102 -399
Net income 522 1,441
Allocation of profit:
Proposed dividends 10 1,938 755
Transferred to/from other equity 10 -1,415 686
Total appropriations 522 1,441
(Amounts in millions of NOK) Note 2022 2021
Deferred tax assets 9 498 113
Intangible assets 4 8 12
Property, plant and equipment 5 25 19
Investments in subsidiaries 11 17,484 3,548
Investments in associates 11 4,389 102
Other non-current financial assets 12 6,871 10,330
Total non-current assets 29,275 14,124
Receivables 1 3,205 4,424
Cash and cash equivalents 13 3,830 902
Total current assets 7,035 5,326
TOTAL ASSETS 36,310 19,451
Paid-in capital 10 14,870 1,907
Retained earnings 10 1,544 3,153
Total equity 16,414 5,061
Provisions 3, 14 182 178
Interest-bearing non-current liabilities 15, 16 7,383 7,601
Total non-current liabilities 7,564 7,779
Interest-bearing current liabilities 15, 16 9 ,622 4,733
Tax payable 9 410 437
Other non-interest-bearing current liabilities 1, 17 2,299 1,441
Total current liabilities 12,331 6,611
SUM EGENKAPITAL OG GJELD 36,310 19,451
Income statement Statement of
financial position
Kristiansand, 24 April 2023
Board of Directors of Å Energi AS
Ann Christin Andersen
Chair
Lars Erik Torjussen
Deputy Chair
Morten A. Yttreeide
Board member
Lars Petter Maltby
Board member
Gro Elisabeth Lundevik
Board member
Rune Bæver
Board member
Roger Thorsland
Board member
Jan Helmen
Board member
Steffen Syvertsen
CEO
Kristin Steenfeldt-Foss
Board member
Asbjørn Grundt
Board member
Marit Ektvedt Kjær
Board member
Oddvar Emil Berli
Board member
122 123
Statement of cash flows
(Amounts in millions of NOK) Note 2022 2021
Cash flow from operating activities
Profit before tax 624 1,840
Depreciation and impairment losses 4,5,8 28 64
Income from investments in subsidiaries -678 -1,943
Income from investments in associates -81 -64
Tax paid -437 -1
Change in net working capital, etc. -97 350
Net cash provided by operating activities -641 247
Investing activities
Purchase of property, plant, equipment and intangible assets -9 0
Acquisitions/financial investments and equity investments in subsidiaries -18 -179
Net change in loans/cash equivalents 993 -1,203
Dividends received from associates 4 4
Sale of property, plant, equipment and intangible assets 3 0
Sale of businesses/financial assets 196 0
New cash and cash equivalents from merger 999 0
Net cash used in investing activities 2,168 -1,379
Financing activities
New long-term borrowings 0 175
Repayment of long-term borrowings -1,234 -1,439
Net change in current interest-bearing liabilities 0 -500
Net change in cash pooling arrangement 1,564 3,257
Intra-group distributions received 1,943 135
Intra-group distributions paid out -532 -50
Dividends received from subsidiaries 414 530
Dividends paid -755 -325
Net cash used in financing activities 1,401 1,783
Net change in cash and cash equivalents 2,928 650
Cash and cash equivalents at start of year 902 252
Cash and cash equivalents at end of year 3,830 902
Accounting principles
The financial statements have been
presented in compliance with the
Norwegian Accounting Act and gene-
rally accepted accounting principles.
Accrual, classification and
measure ment principles
In accordance with generally accepted
accounting principles, the financial
statements are based on the historical
cost, revenue recognition, matching,
conservatism, hedging and congruence
principles. In the event of uncertainty,
best judgement is applied. Financial
statements are prepared using uniform
principles that are applied consistently
over time. The financial statements
have been prepared on the assumption
of the business being a going concern.
Recognition of revenues and
expenses
Revenues and expenses are recognised
in profit or loss when they are earned/in-
curred. Revenues from the sale of goods
are recognised on delivery. Revenues
from services are recognised in the
income statement as they are supplied.
General principles for measurement
and classification
Current assets and current liabilities
cover items that are due for payment
within one year of the transaction date,
as well as items relating to the busi-
ness cycle. Other items are classified
as non-current assets or non-current
liabilities. Current assets are carried at
the lower of cost and fair value. Current
liabilities are carried at their nominal
value on the initial date.
Non-current assets are carried at cost,
but are written down to the recoverable
amount if there is evidence of impair-
ment, in compliance with the Norwegi-
an accounting standard on the impair-
ment of non-current assets.
Intangible assets
Intangible assets are included on the
statement of financial position if they
meet the criteria for capitalisation, with
the exception of research and de-
velopment costs, which are expensed
as they are incurred. This means that
expenses associated with intangible
assets are included on the statement
of financial position if it is considered
probable that future economic benefits
attributable to the assets will flow to the
company and it has been possible to
reliably measure the acquisition cost of
the asset.
Property, plant and equipment
Property, plant and equipment is ca-
pitalised and depreciated in a straight
line over its anticipated useful life.
Maintenance on property, plant and
equipment is considered an operating
expense, while upgrades and repla-
cements are added to the acquisition
cost of the asset and are depreciated
together with the asset. The distinction
between maintenance and upgrades/
improvements is judged on the basis of
the condition of the asset when it was
acquired.
Non-current financial investments
The historical cost method is used
for shares, bonds and other financial
instruments. This means that shares/
ownership interests are carried at
cost, and any dividends received are
recognised as other financial income.
Dividends and intra-group distribu-
tions received are recognised if the
underlying profit was earned while
the asset was owned by the Group.
Intra-group distributions received are
recognised in the year that they are
allocated by subsidiaries. Dividends
from subsidiaries are also recognised
in the year that they are appropriated
by the subsidiary. Investments are
written down to fair value if there is
evidence of other-than-temporary
impairment. Dividends from associ-
ates are recognised when they are
approved.
Interest rate swaps
Interest rate swaps are used to match
the duration and interest rate sensitivity
of the company’s debt portfolio to the
Group’s policy and strategy. Interest
rate swaps are managed within the
context of the Group’s overall debt
portfolio. Instruments in the hedging
portfolio thus meet the criteria for hed-
ge accounting, which means that all
profit and loss effects are recognised
over the contract period and the value
of the portfolio is kept off the statement
of financial position.
Foreign currency and currency
instruments
The finance department manages the
Group’s overall exposure to currency
risk. To some extent, Å Energi AS acts
as a counterparty within the Group
when it does not make sense to hedge
subsidiaries’ exposure to currency
risk directly in the market. Where the
parent company has acted as a coun-
terparty in conjunction with the need
of subsidiaries to hedge their currency
risk exposure arising from electricity
sales, the contracts are accounted for
as part of the Group’s currency hed-
ging activities. These contracts are
presented on the statement of financial
position at fair value, with changes in
fair value recognised through profit or
loss.
Receivables
Trade debtors and other receivables
are presented on the statement of
financial position at their nominal value
less anticipated bad debts. Provisions
for bad debts are made on the basis of
individual assessments of the individu-
al receivables.
Cash pooling arrangement
Å Energi AS is part of a cash pooling
arrangement with its subsidiaries. This
means that the Group has a joint bank
account for short-term deposits and
short-term loans. Interest income and
Å Energi ASÅ Energi AS
124 125
interest expenses arising from the cash
pooling arrangement are classified
as external in the company’s income
statement.
Pensions
Defined benefit pension plan
Pension costs and pension liabilities
are calculated using a linear accumu-
lation model based on assumptions
relating to discount rates, projected
salaries, the level of benefits from the
National Insurance Scheme and future
returns on pension plan assets, as well
as actuarial calculations of mortality,
voluntary turnover, etc. Pension plan
assets are measured at their fair value,
and have been deducted in the net
pension liabilities presented on the
statement of financial position. Re-
measurements over the course of the
year are recognised in the statement of
financial position at the end of the year,
so that the carrying amount always
reflects the full extent of the liabilities.
In the event of changes in pension obli-
gations arising from plan amendments,
the portion of the change that has
already been accrued at the time of the
amendment is recognised directly in
the income statement. Pension expen-
ses and net pension liabilities include a
charge for employers’ national insuran-
ce contributions.
Defined contribution plan
For defined contribution plans, the
pension expense is equivalent to the
premiums/contributions paid over the
course of the year.
Taxes
Income tax is calculated in accordance
with standard tax rules. The tax expen-
se in the income statement consists of
tax payable and changes in deferred
tax liabilities/assets. Tax payable is
calculated on the taxable profit for the
year. Deferred tax liabilities/assets are
calculated on the basis of the tempo-
rary differences that exist between
accounting and tax values, as well as
the tax effect of any loss carryforwards.
Deferred tax assets are only recogni-
sed on the statement of financial positi-
on if it is likely that they will be realised
in the future. Tax on equity transactions
is recognised directly in equity.
Liabilities
Å Energi AS uses the amortised cost
principle, and consequently the ef-
fective interest rate method, to me-
asure interest and liabilities. Under
the effective interest rate method, the
carrying amount of a loan is the sum
of future cash flows attributable to the
loan discounted by the original effecti-
ve interest rate calculated for the cash
flows. This means that loan arran-
gement fees are deducted on initial
recognition, and that over the duration
of the loan, the difference between the
nominal interest rate (the rate char-
ged) and the effective interest rate (the
rate expensed) is recognised in the
statement of financial position under
amortisation. In practice loans are the-
refore initially recognised at their face
value less arrangement fees, which
means that the debt is not carried on
the statement of financial position at its
nominal value.
A provision is made for Å Energi AS’s
proposed dividends at 31 December.
Contingent liabilities and contingent
assets
If there is a greater than 50% proba-
bility that an uncertain liability will
need to be settled, a provision is made
based on a best estimate of what the
settlement will be. If there is a smaller
than 50% probability that an uncertain
liability will need to be settled, informa-
tion is provided in the notes. Contin-
gent assets are not recognised, but if
there is a greater than 50% probability
that the company will receive payment,
information is provided in the notes.
The amount is not estimated if it would
be inappropriate to do so under gene-
rally accepted accounting principles.
Furthermore, under generally accepted
accounting principles entities shall be
able to recognise liabilities/provide
information based on best judgement
without this prejudicing the outcome of
any court case.
Statement of cash flows
The statement of cash flows has been
prepared using the indirect method.
Cash and cash equivalents includes
cash, bank deposits and other short-
term, liquid investments that can be
converted into known cash values
immediately and at insignificant risk,
and that mature less than three months
after their acquisition dates.
Å Energi ASÅ Energi AS
126 127
Notes
(Amounts in millions of NOK) Note 2022 2021
Intra-group balances
Other non-current financial assets 12 6,357 9,683
Trade receivables 52 47
Other current receivables 698 2,365
Intra-group receivables in cash pooling arrangement 2,178 865
Total receivables 20,411 12,959
Deposits in cash pooling arrangement 3,823 501
Total bank deposits in cash pooling arrangement 3,823 501
Trade payables 17 5 2
Other current liabilities 17 136 532
Intra-group liabilities in cash pooling arrangement 6,550 3,510
Total liabilities 6,691 4,044
Revenues and expenses relating to intra-group transactions
Other operating revenues 317 306
Total operating revenues 317 306
Other operating expenses 11 26
Total operating expenses 11 26
Income from investments in subsidiaries 8 678 1,943
Other interest and financial income 702 482
Other interest and financial expenses 229 345
Net financial income/expenses 1,151 2,080
(Amounts in millions of NOK) Note 2022 2021
Employee benefits
Salary 172 167
Employers’ National Insurance Contributions 26 24
Pension expense including employers’ NICs 3 15 18
Other benefits and reimbursements 22 17
Total 235 227
Full-time equivalents (permanent and temporary staff) at 31 Dec. 202 146
(Amounts in millions of NOK) 2022 2021
The pension expense for the year has been calculated as follows
Current service cost 7 9
Interest income/expenses on pension assets/liabilities -8 -6
Other expenses, defined benefit pension plan 2 3
Pension expense for the year, defined benefit plans 1 5
Defined contribution pension plans (including employers’ NICs) 14 13
Total pension expense recognised in the income statement 15 18
Note 1 Intra-group transactions and balances
Note 2 Employee benefits, management compensation, etc.
Note 3 Pensions
Of the increase in the number of full-time equivalents, 46.3 FTEs are due to the merger. For details of management com-
pensation and non-executive Directors’ fees at Å Energi AS, please see Note 29 to the consolidated financial statements.
The company’s pension plans
Defined benefit pension plans:
Å Energi has an occupational pension plan for employees born before 1963. This funded public sector pension plan provi-
des defined future pension benefits. Benefits are based on the employee’s number of years of service and salary on re-
aching retirement age. The pension plan meets the legal requirements for public sector occupational pension plans. Previo-
usly, all employees were members of this pension plan, but first it was closed to new members, and then later all employees
born in or after 1963 were transferred to the defined contribution plan. Pension rights accrued prior to the transfer to the
defined contribution plan are included in the pension liability as an accrued pension entitlement.
Public early retirement scheme:
Employees born in 1962 or earlier have an early retirement scheme, known as an AFP scheme. The scheme does not
receive any government subsidy. The entity is therefore fully liable for all of its obligations in the scheme.
Defined contribution pension plan and private AFP scheme:
All employees born after 1963 are covered by a defined contribution pension plan and are also entitled to a private AFP
scheme. The private AFP scheme is a lifelong supplement to their retirement pensions from the National Insurance Sche-
me. The AFP scheme is funded by contributions made by the employer. It is considered a defined benefit plan, but it is
accounted for as a defined contribution plan.
Å Energi ASÅ Energi AS
128 129
(Amounts in millions of NOK) 2022 2021
Change in defined benefit pension liabilities
Net defined benefit pension liabilities at 1 Jan. 439 432
Pension expense recognised in profit or loss excl. employee contributions -1 -6
Company contributions including employers’ NICs 40 0
Pension benefits included under operating expenses 11 12
Remeasurements -239 26
Acquisitions through business combinations -29 0
Dividends paid by the pension fund 0 -25
Net pension liabilities (-)/assets (+) recognised at 31 Dec. 222 439
Pension plan assets 394 596
Pension liabilities 172 157
Net pension liabilities (-)/assets (+) recognised at 31 Dec. 222 439
Remeasurements are made up of:
Gains (+)/losses (-) on gross pension liabilities -48 -87
Gains (+)/losses (-) on pension plan assets -190 113
Remeasurements recognised on statement of financial position -239 26
(Amounts in millions of NOK) 2022 2021
Pension liabilities and pension plan assets
Gross funded pension liabilities 1,099 979
Unfunded pension liabilities 172 157
Gross pension liabilities at 31 Dec. incl. emp. NICs 1,271 1,136
Fair value of pension plan assets at 31 Dec. 1,493 1,575
Net pension plan assets at 31 Dec. 222 439
2022 2021
Assumptions used to determine pension liabilities at 31 Dec.
Discount rate in % 3.40 % 1.90 %
Annual wage growth in % 3.75 % 2.75 %
Increase in the National Insurance Scheme’s basic amount (“G”) in % 3.50 % 2.50 %
Annual indexing of pensions in % 2.75 % 1.75 %
Mortality and disability table K2013 K2013
(Amounts in millions of NOK) Software Total intang ible
assets
Cost as of 01/01/2022 22 22
Additions 0 0
Disposals 0 0
Cost as of 31/12/2022 22 22
Accumulated depreciation at 31/12/2022 14 14
Accumulated impairment losses at 31/12/2022 0 0
Carrying amount at 31/12/2022 8 8
Depreciation for the year 4 4
Impairment losses for the year 0 0
Useful life/depreciation period 3-5 years
(Amounts in millions of NOK) Properties Vehicles, fix-
tures, fittings
and machinery
Work in
progress
Total property,
plant and
equipment
Cost as of 01/01/2022
34 13
0 47
Acquisitions through business combinations
0 24
0 24
Additions
0 6
3 9
Disposals
3 1
0 3
Cost as of 31/12/2022
31 42
3 76
Accumulated depreciation at 31/12/2022
20 31
0 51
Accumulated impairment losses at
31/12/2022
0 0
0 0
Carrying amount at 31/12/2022
11 11
3 25
Depreciation for the year
2 2
0 4
Impairment losses for the year
0 0
0 0
Useful life/depreciation period 25 years/not
depreciated
3-8 years
Note 4 Intangible assets
Note 5 Property, plant and equipment
Å Energi ASÅ Energi AS
130 131
(Amounts in NOK 000s excl. VAT) 2022 2021
Statutory audit 748 529
Other certification services 0 0
Tax advice 0 80
Other services not related to auditing 872 1,589
Total 1,620 2,199
Note 6 Auditor’s fee
The table above shows the fees paid to the auditor for auditing and other services.
* Profit/loss from investments in subsidiaries comprises allocated dividends, intra-group distributions from subsidiaries and gains on the disposal
of subsidiaries. These amounts are recognised in the income statement as they are considered to reflect the return on the investment.
(Amounts in millions of NOK) 2022 2021
Property-related expenses, lease of machinery and office equipment 94 66
Purchase of plant and equipment 18 19
External services 143 117
Office supplies, telecommunications, postage, etc. 5 8
Travel expenses, subsistence allowances, mileage expenses, etc. 7 2
Sales, advertising, representation, membership fees and gifts 8 8
Other operating expenses 3 -3
Total 277 217
(Amounts in millions of NOK) 2022 2021
Income from investments in subsidiaries* 678 1,943
Income from investments in associates 81 64
Exchange rate gains 1,232 867
Other interest and financial income 437 242
Total financial income 2,428 3,116
Impairment charge against non-current financial assets 20 55
Exchange rate losses 1,230 865
Other interest and financial expenses 372 229
Total financial expenses 1,622 1,149
Net financial income/expenses 807 1,967
Note 7 Other operating expenses
Note 8 Financial income and expenses
(Amounts in millions of NOK) 2022 2021
The tax expense consists of
Income tax payable 445 554
Change in deferred income tax -344 -155
Tax expense in income statement 102 399
Tax payable on the statement of financial position
Profit before tax 624 1,840
Permanent differences -161 -26
Change in temporary differences -1,561 704
Profit/loss for income tax purposes 2,024 2,518
Income tax payable 445 554
Taxable intra-group distributions -35 -117
Tax payable on the statement of financial position 410 437
Reconciliation of nominal tax rate with effective tax rate
Profit before tax 624 1,840
Expected tax based on nominal rate 137 405
Tax effect of
Non-deductible expenses/non-taxable income -35 -6
Tax expense in income statement 102 399
Effective tax rate 16% 22%
Breakdown of temporary differences/deferred tax assets
Property, plant and equipment -9 -7
Pension liabilities -60 125
Derivatives -2,203 -647
Other 7 15
Total taxable (+)/deductible (-) temporary difference -2,265 -514
Total capitalised deferred tax liabilities (+)/assets (-) -498 -113
Changes in net deferred income tax over the year:
Net deferred tax liabilities (+)/assets (-) at 1 Jan. -113 47
Correction to net deferred tax liabilities (+)/assets (-) for business combination 3 0
Change in net deferred tax liabilities (+)/assets (-) recognised through profit or loss 0 0
Change in net deferred tax liabilities (+)/assets (-) on items recognised in equity -45 -5
Change in deferred tax liabilities (+)/assets (-) recognised through profit or loss -344 -155
Net deferred income tax liabilities (+)/assets (-) at 31 Dec. -498 -113
Changes in deferred tax on items recognised in equity
Remeasurements of pensions 45 5
Total change 45 5
Note 9 Tax
Å Energi ASÅ Energi AS
132 133
(Amounts in millions of NOK) Note Share Share
premium
account
Other paid-in
equity
Other
reserves
Total equity
Equity at 01/01/2022 1,809 47 51 3,153 5,061
Changes in equity from
business combinations 664 12,298 0 0 12,962
Remeasurements of pensions
3
0 0 -194 -194
Net income for the year 0 0 522 522
Allocated dividends 0 0 -1,938 -1,938
Equity at 31/12/2022
2,473 12,346 51 1,544 16,414
Note 10 Equity
For details of share capital and shareholder information, please refer to Note 18 to the consolidated financial statements.
(Amounts in millions of NOK) Business
office
Company’s
equity
Company’s Ownership
interest
Voting
rights
Carrying
amount*
Subsidiaries
Å Energi Vannkraft AS Kristiansand 3,323 906 100.0% 100.0% 1,937
Å Energi Fornybar Forvaltning AS Kristiansand 19 10 100.0% 100.0% 20
Å Energi Kraftforvaltning GmbH Berlin 70 -3 100.0% 100.0% 65
Glitre Nett AS Drammen 7,949 268 87.8% 87.8% 6,489
Å Strøm AS Kristiansand 149 -12 100.0% 100.0% 251
Entelios AB Stockholm 171 -8 100.0% 100.0% 295
Entelios AS Kristiansand 733 399 100.0% 100.0% 110
Å Energi GKV AS 1) Kristiansand 197 0 100.0% 100.0% 197
Å Energi Invest AS 1) Kristiansand 30 -20 100.0% 100.0% 49
Stoaveien 14 AS Kristiansand 20 3 100.0% 100.0% 1
Stoa 192 AS Kristiansand 1 0 100.0% 100.0% 2
Stoa 234 AS Kristiansand 1 0 100.0% 100.0% 2
Å Energi Utvikling AS Kristiansand 6 -1 100.0% 100.0% 7
Å Energi Fleksibilitet AS Kristiansand 52 -10 100.0% 100.0% 99
Glitre Energi Produksjon AS Drammen 1,582 -811 100.0% 100.0% 7,336
Glitre Strøm Holding AS Drammen 148 0 50.1% 50.1% 395
Glitre Energiløsninger AS Drammen 58 -11 100.0% 100.0% 69
Miljøvarme VSEB AS Drammen 19 3 100.0% 100.0% 60
Viken Energi AS Drammen 0 0 100.0% 100.0% 0
2VK Invest AS Drammen 52 2 91.7% 91.7% 93
El-Tilsynet AS Bærum 7 -1 100.0% 100.0% 6
Total shares in subsidiaries 17,484
Associates 2)
North Connect KS Kristiansand 7 -10 22.3% 22.3% 0
North Connect AS Kristiansand 0 -1 22.3% 22.3% 0
Hadeland Energi AS Gran 781 300 49.0% 49.0% 567
Campus Tofte AS Asker 30 0 40.0% 40.0% 12
Nettpartner AS Ås 251 -19 40.0% 50.0% 198
Drammen Fjernvarme AS Drammen 221 52 50.0% 50.0% 494
Viken Fiber Holding AS Drammen 2,287 310 26.6% 50.0% 3,062
NGK Utbygging AS Oslo 190 63 25.0% 25.0% 57
Total for associates 4,389
Note 11 Investments in subsidiaries and associates
* Carried at the lower of cost and fair value
1) Subsidiaries of Å Energi AS with subsidiary groups. For an overview of the Group’s organisation structure, please refer
to Note 32 of the consolidated financial statements.
2) The equity and profit/loss of associates has been estimated for 2022.
Å Energi ASÅ Energi AS
134 135
Note 12 Other non-current financial assets
Note 13 Cash and cash equivalents
Note 14 Provisions
1) Other non-current receivables comprise non-current receivables arising from the disposal of Fosen Vind (NOK 20 million),
a loan to Agder Energi Invest AS in conjunction with the sale of Entelios AG including interest (NOK 31 million), and a
subordinated loan to Enfo including interest (NOK 4 million).
Other non-current provisions include a NOK 9 million bad debt provision on a lease contract at Kjøita and a NOK 1 million
provision for redundancy packages.
Risk management policy and strategy
The Group’s Board of Directors has formulated an overall risk management policy containing frameworks and guidelines to
ensure a uniform approach to risk management throughout the Group. In order to manage exposure to market and financial
risk, and based on the risk management policy, separate risk strategies have been drawn up for the following areas:
• Generation
• Electricity trading
• Retail market
• Finance (interest rates and foreign currency)
One of the main purposes of the risk management policy and strategies is to hedge against fluctuations in future cash flows.
Electricity derivatives with subsidiaries and NASDAQ as counterparties
Several of Å Energi AS’s subsidiaries trade cash-settled electricity derivatives on NASDAQ. Formally the contracts are in
the name of Å Energi AS, but Å Energi AS also enters into identical contracts with the relevant subsidiaries.
The company uses hedge accounting for these contracts, so they are not capitalised. The net value of contracts with NASDAQ
was NOK 181.9 million at 31 December 2022. The value of the company’s contracts with its subsidiaries was NOK -181.9 million.
Debt portfolio
The Å Energi Group’s whole loan portfolio is held by Å Energi AS. This exposes the company to a significant interest rate risk.
The Group has a central finance department within Å Energi, which has overall responsibility for banking services, financing,
currency operations, corporate finance and other financial services.
Interest rate risk is measured by modified duration, which is kept within a target period of 1 to 5 years. Rules on durations and
other rules relating to interest rate portfolios, liquidity risk, etc. are given in the risk policy and finance strategy. The chosen
strategy aims to minimise net financial expenses over the long term, while reducing risk to an acceptable level. Exposure to
interest rate risk is measured and monitored. The group finance department is responsible for taking positions.
The company’s debt portfolios include foreign currency loans. 203 million euros in loans are used as a hedge against fluctua-
tions in the Group’s revenues in that currency. Å Energi AS has lent an equivalent amount in euros to Agder Energi Vannkraft
AS. Å Energi AS has also taken out interest rate and currency swaps for 53 million euros of mirrored loans provided to Agder
Energi Vannkraft AS.
(Amounts in millions of NOK) Note 2022 2021
Loans to Group companies 1 6,357 9,683
Loans to associates and joint arrangements 49 0
Investments in shares and ownership interests 5 1
Other non-current receivables 1) 65 50
Pension assets 3 394 596
Total non-current financial assets 6,871 10,330
(Amounts in millions of NOK) 2022 2021
Cash and cash equivalents 7 401
Deposits in cash pooling arrangement 3,823 501
Total 3,830 902
(Amounts in millions of NOK) Note 2022 2021
Pension liabilities 3 172 157
Other non-current provisions 10 21
Total provisions 182 178
Note 15 Interest-bearing liabilities
Note 16 Market and financial risk
Guarantees and obligations relating to interest-bearing non-current liabilities are described in greater detail in Note 19.
(Amounts in millions of NOK) 2022 2021
Non-current liabilities with a term to maturity of more than 1 year
Bonds
3,822 4,624
Liabilities to financial institutions 3,561 2,977
Total interest-bearing non-current liabilities 7,383 7,601
Interest-bearing current liabilities
Commercial paper and repayments of long-term debt due within one year 3,072 1,222
Intra-group liabilities (cash pooling arrangement) 6,550 3,510
Total interest-bearing current liabilities 9,622 4,733
Å Energi ASÅ Energi AS
136 137
Note 17 Other non-interest-bearing current liabilities
Note 18 Contingent liabilities
Note 19 Mortgaged assets, liabilities and guarantees issued
Å Energi AS had no significant contingent liabilities at the end of the year.
Mortgages
Å Energi AS currently has no mortgage loans.
Liabilities and guarantees issued
Å Energi AS has no covenants relating to financial key figures in its loan agreements.
The company’s loan agreements do contain negative pledge clauses, which also cover its subsidiaries. This means that any
new security interests require the consent of the lenders.
Å Energi AS has NOK 801 million in outstanding off-statement of financial position bank guarantees for electricity trading,
network tariffs passed on to customers, tax deducted at source, contracts, etc. There is also a NOK 140 million portfolio of
payment guarantees that will expire in 2023. This portfolio of guarantees relates to a company that was sold in 2022, and
it includes a counter-guarantee from a company with an A- credit rating, which means it represents a negligible risk to Å
Energi AS.
At the close of the year, Å Energi AS had issued parent company guarantees worth NOK 564 million for external liabilities,
the great majority of which relate to bilateral contracts signed in conjunction with electricity retailing.
Contractual obligations
Å Energi Group leases office premises at Kjøita in Kristiansand. The lease contract is between Kjøita 18 AS and Å Energi AS.
The current lease contract runs until 30 September 2025. A contract has been signed to lease new offices in Kristian sand
from 2025 onwards. The start date of the contract is 15 May 2025 and it runs for 15 years. The lease contract is between
Kvartal 14 AS and Å Energi AS.
Å Energi AS also leases offices at Grønland 67 in Drammen. The lease contract is between Grønland 67 AS and Å Energi
AS. The current lease contract runs until 31 December 2041. The contract was renegotiated in 2021, to add extra floor
area and extend the previous lease contract by 10 years.
Note 20 Merger
The merger between Glitre Energi AS and Agder Energi AS was completed on
29 November 2022, with Glitre Energi AS as the acquiree.
The consideration paid to Glitre Energi’s shareholders consisted of shares in
Agder Energi. The valuation of the consideration was based on negotiations
between independent parties.
The merger was accounted for using the acquisition method. The consideration
and goodwill has provisionally been allocated as follows:
The acquiree contributed NOK 22 million to Å Energi’s operating revenues and
NOK -9 million to Å Energi’s profit before tax in the period from its acquisition
until 31 December 2022.
If the merger had been completed on 1 January 2022, the acquiree would have
contributed NOK 97 million in operating revenues, and NOK 40 million to the
Group’s profit before tax.
(Amounts in millions of NOK) Note 2022 2021
Trade payables 64 37
Intra-group trade payables 1 5 2
Unpaid government taxes and duties, tax deducted at source, etc. 23 15
Allocated dividends 1,938 755
Other current liabilities 134 100
Other current liabilities to Group companies 1 136 532
Total other non-interest-bearing current liabilities 2,299 1,441
(Amounts in millions of NOK) Fair value
Assets
Investments in subsidiaries 10,415
Investments in associates 4,446
Other non-current assets 97
Receivables 508
Bank deposits 999
Total assets 16,465
Liabilities
Deferred tax -3
Interest-bearing non-current liabilities -1,140
Other non-current liabilities -26
Interest-bearing current liabilities -1,621
Other non-interest-bearing current liabilities -713
Total liabilities -3,503
Total net identifiable assets 12,962
Consideration comprising issued shares 12,962
Å Energi ASÅ Energi AS
138 139
Auditor’s Report
Å Energi ASÅ Energi AS
Statsautoriserte revisorer
Ernst & Young AS
Markens gate 9, 4610 Kristiansand
Postboks 184, 4662 Kristiansand
Foretaksregisteret: NO 976 389 387 MVA
Tlf: +47 24 00 24 00
www.ey.no
Medlemmer av Den norske Revisorforening
A member firm of Ernst & Young Global Limited
INDEPENDENT AUDITOR'S REPORT
To the Annual Shareholders' Meeting of Å Energi AS
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Å Energi AS (the Company) which comprise the financial
statements of the Company and the consolidated financial statements of the Company and its
subsidiaries (the Group). The financial statements of the Company comprise the balance sheet as at 31
December 2022 and the income statement and statement of cash flows for the year then ended and
notes to the financial statements, including a summary of significant accounting policies. The
consolidated financial statements of the Group comprise the balance sheet as at 31 December 2022, the
income statement, statement of comprehensive income, statement of cash flows and statement of
changes in equity for the year then ended and notes to the financial statements, including a summary of
significant accounting policies.
In our opinion
the financial statements comply with applicable legal requirements,
the financial statements give a true and fair view of the financial position of the Company as at 31
December 2022 and its financial performance and cash flows for the year then ended in
accordance with the Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway,
the consolidated financial statements give a true and fair view of the financial position of the
Group as at 31 December 2022 and its financial performance and cash flows for the year then
ended in accordance with International Financial Reporting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the audit committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of
the financial statements section of our report. We are independent of the Company and the Group in
accordance with the requirements of the relevant laws and regulations in Norway and the International
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants
(including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for 19 years from the election by the general meeting of the
shareholders on June 1
st
2004 for the accounting year 2004, with a renewed election on May 23
rd
2014.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements for 2022. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
140 141Å Energi ASÅ Energi AS
3
Independent auditor's report - Å Energi AS 2022
A member firm of Ernst & Young Global Limited
calculated to NOK 5 571 million. The transaction
is material to the consolidated financial
statements, and accounting for a merger involves
the use of management’s judgement and
estimation both when setting the transaction price,
identifying assets and liabilities, and valuing the
assets and liabilities. Based on the amounts
involved and the judgements involved, we
considered the accounting for the merger as a key
audit matter.
obtained an understanding that the principles
used are in accordance with the description in
note 31.
Other information
Other information consists of the information included in the annual report other than the financial
statements and our auditor’s report thereon. Management (the board of directors and Chief Executive
Officer) is responsible for the other information. Our opinion on the financial statements does not cover
the other information, and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information,
and, in doing so, consider whether the board of directors’ report, the statement on corporate governance
and the statement on corporate social responsibility contain the information required by applicable legal
requirements and whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the
work we have performed, we conclude that the other information is materially inconsistent with the
financial statements, there is a material misstatement in this other information or that the information
required by applicable legal requirements is not included in the board of directors’ report, the statement
on corporate governance or the statement on corporate social responsibility, we are required to report
that fact.
We have nothing to report in this regard, and in our opinion, the board of directors’ report, the statement
on corporate governance and the statement on corporate social responsibility are consistent with the
financial statements and contain the information required by applicable legal requirements.
Responsibilities of management for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements of the
Company in accordance with the Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway and of the consolidated financial statements of the Group in accordance
with International Financial Reporting Standards as adopted by the EU, and for such internal control as
management determines is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate the
Company or the Group, or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
2
Independent auditor's report - Å Energi AS 2022
A member firm of Ernst & Young Global Limited
opinion on these matters. For each matter below, our description of how our audit addressed the matter is
provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial
statements section of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material misstatement
of the financial statements. The results of our audit procedures, including the procedures performed to
address the matters below, provide the basis for our audit opinion on the financial statements.
Accounting for financial derivatives and long-term delivery contracts
Basis for the key audit matter
Å Energi produces electric power that primarily is
sold in the Norwegian market, where the spot
price is volatile and nominated in Euro at Nord
Pool Spot. The exposure for changes in the power
spot price and currency exchange rates are partly
hedged using financial derivatives and long-term
delivery contracts. Financial derivatives comprise
of energy and currency derivatives, which are
accounted for at fair value with changes in fair
value recognized in the consolidated income
statement. Some long-termed delivery contracts
are priced in Euro, where the embedded currency
derivative is accounted for at fair value. Changes
in spot price for power and currency lead to
significant changes in the fair value of financial
derivatives and embedded derivatives in long-
termed delivery contracts. Financial derivatives
and long-termed delivery contracts are considered
to be a key audit matter basted on the number of
transactions, complexity and degree of judgment
related to the assessment of fair value.
Our audit response
We have throughout our audit evaluated the
group’s internal control over trading, monitoring
and accounting for financial derivatives and long-
termed delivery contracts. Our audit procedures
included test of existence, completeness and
contractual terms for the financial derivatives
through external confirmations. Additionally we
have tested the valuation for a sample of the
group’s financial derivatives through external
confirmations. Fair value of embedded currency
derivatives were assessed through external
benchmarks of future exchange rates and interest
rate curves. We performed analytical procedures
and evaluated management’s analysis of changes
in fair value of financial instruments related to the
power generating portfolio. Further we have
evaluated the presentation and classification of
the financial derivatives and long-termed delivery
contracts in the consolidated financial statements,
including information presented in the notes.
See note 4, 23, 24, 25 and 26.
Accounting for merger
Basis for the key audit matter
Agder Energi and Glitre Energi merged their
parent companies with accounting effect
December 1
st
2022. In the merger Agder Energi
was defined as the acquirer, while Glitre Energi
was defined as acquiree accounted for at fair
value at the transaction date in the consolidated
financial statements of Å Energi. The estimated
value of Glitre Energi was estimated to
NOK 12 962 million. The purchase price allocation
was carried out by a third-party valuation expert.
The surplus values were allocated to the identified
assets and liabilities, and the goodwill was
Our audit response
As part of our audit procedures, we obtained an
understanding of the merger, the valuation
process and the valuation methods used to
determine the value of Glitre Energi at the
transaction date, and the process and methods
used to carry out the purchase price allocations.
We were supported by our internal valuation
specialists. We further reviewed the merger
agreement. We evaluated the identified assets
and liabilities, and we tested the principles used
for recognition and allocation of the purchase
price. As part of evaluation of used principles, we
142 143
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Independent auditor's report - Å Energi AS 2022
A member firm of Ernst & Young Global Limited
Report on other legal and regulatory requirement
Report on compliance with regulation on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Å Energi AS we have performed an assurance
engagement to obtain reasonable assurance about whether the financial statements included in the
annual report, with the file name aenergias-2022-12-31-en, have been prepared, in all material respects,
in compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on the
European Single Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5 of the
Norwegian Securities Trading Act, which includes requirements related to the preparation of the annual
report in XHTML format and iXBRL tagging of the consolidated financial statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all material
respects, in compliance with the ESEF Regulation.
Management’s responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF
Regulation. This responsibility comprises an adequate process and such internal control as management
determines is necessary.
Auditor’s responsibilities
Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all material
respects, the financial statements included in the annual report have been prepared in accordance with
the ESEF Regulation. We conduct our work in accordance with the International Standard for Assurance
Engagements (ISAE) 3000 – “Assurance engagements other than audits or reviews of historical financial
information”. The standard requires us to plan and perform procedures to obtain reasonable assurance
about whether the financial statements included in the annual report have been prepared in accordance
with the ESEF Regulation.
As part of our work, we perform procedures to obtain an understanding of the company’s processes for
preparing the financial statements in accordance with the ESEF Regulation. We test whether the financial
statements are presented in XHTML-format. We evaluate the completeness and accuracy of the iXBRL
tagging of the consolidated financial statements and assess management’s use of judgement. Our
procedures include reconciliation of the iXBRL tagged data with the audited financial statements in
human-readable format. We believe that the evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Kristiansand, April 24
th
2023
ERNST & YOUNG AS
Finn Espen Sellæg
State Authorised Public Accountant (Norway)
(This translation from Norwegian has been prepared for information purposes only.)
4
Independent auditor's report - Å Energi AS 2022
A member firm of Ernst & Young Global Limited
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s and the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s and the Group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company and the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group audit.
We remain solely responsible for our audit opinion.
We communicate with the board of directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the board of directors, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
144 145
Alternative performance measures (APM)
Å Energi’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards
(IFRS). Alternative performance measures are used to provide relevant supplementary information to the IFRS financial statements
by adjusting for impacts that are not considered relevant to the underlying profit for the period. Using alternative performance meas
-
ures that better reflect the underlying value added by the Group will make it easier to compare results and cash flows over time. The
alternative performance measures are defined, calculated and used consistently and transparently over time.
The alternative performance measures are used for internal management and governance purposes, and the municipal majority
shareholders in Å Energi have decided that the dividend policy should be based on the previous year’s underlying profit under IFRS.
Å Energi uses the following alternative performance measures:
- Underlying operating revenues: Operating revenues +/- the adjustments described below
- EBITDA: Operating profit before depreciation and impairment losses
- Underlying EBITDA: EBITDA +/- the adjustments described below
- Underlying operating profit: Operating profit +/- the adjustments described below
- Underlying net income: Net income +/- the adjustments described below
The following adjustments are made to calculate the Group’s underlying operating revenues, EBITDA, operating profit and net income:
1. +/- Unrealised gains and losses on electricity and currency contracts, interest rate contracts and shareholdings at fair value
and currency loans
Å Energi has a significant volume of contracts that are measured at fair value under IFRS. These are mainly financial contracts
whose aim is to hedge the value of future electricity generation. Future electricity generation is only recognised when it occurs. Fluc
-
tuations in the value of the financial contracts are excluded from the underlying results and are only included when they are settled.
This ensures consistency in the timing of when the hedging instruments and hedged items are included in the underlying results.
It also reduces fluctuations in the results and gives a more accurate idea of how Å Energi has performed in the reporting period.
Changes in the fair value of compensation power agreements and other contracts measured at fair value are also excluded from
the underlying results. However, changes in the market value of the Group’s trading portfolios are included in the underlying results.
The underlying operating revenues, EBITDA and operating profit are adjusted for the pre-tax effect of unrealised gains and losses
on electricity and currency contracts and of currency loans
Underlying net income is adjusted for the post-tax effect of unrealised gains and losses on electricity and currency contracts and
of currency loans. In addition, it includes the post-tax effect of unrealised gains and losses on interest rate swaps and shareholdings.
2. +/- Material impairments and material gains and losses on the disposal of businesses or ownership interests in businesses.
An adjustment is made for material impairments and material gains and losses on the disposal of businesses or ownership
interests in businesses, since these are not considered to be part of the underlying performance in the reporting period. An item
is considered material if its impact on net income is NOK 25 million or more within a single financial year. Even if several items
individually have a smaller impact than NOK 25 million, they are considered material if their total impact is greater than NOK
50 million in a financial year. When several items are analysed together, impairments and material gains/losses are considered
separately. Any reversal of past impairments is treated in the same way as impairments. In conjunction with disposals, gains
and losses are presented as other operating revenues and other operating expenses respectively. Gains and losses on the
disposal of ownership interests in businesses that are not controlled by Å Energi are presented under financial items.
Underlying operating revenues, EBITDA and operating profit include the pre-tax effect of gains and losses on disposals.
Underlying net income includes the post-tax effect of gains and losses on disposals of businesses or ownership interests in
businesses that are not controlled by Å Energi.
3. +/- Depreciation and impairment losses and reversal of impairment losses relating to the acquisition adjustment from the
merger with Glitre Energi
When Glitre Energi and Agder Energi merged, Glitre’s assets and liabilities were measured at fair value. Any acquisition ad
-
justment relating to depreciable assets is depreciated over the remaining useful life of the assets. Measurement at fair value
results in a significantly higher depreciation expense than if the two businesses had remained separate. However, the two
groups had relatively similarly business operations and the owners remain the same. We do not consider the higher deprecia
-
tion expense to be the result of a decline in underlying value creation.
The underlying operating profit and net income include the pre-tax effect of depreciation and impairments and the reversal of
impairments relating to the acquisition adjustment.
The underlying net income includes the post-tax effect of depreciation and impairments and the reversal of impairments relat
-
ing to the acquisition adjustment from the merger with Glitre Energi.
4. +/- Effect of changes to tax rates
Changes in tax rates alter the carrying amount of deferred tax liabilities and assets. The recognition of changes to deferred tax lia bilities
as a result of changes in tax rates is not considered part of the underlying performance. An adjustment is therefore made for material
effects on profit arising from changes in tax rates. Effects are considered material if they exceed NOK 25 million for the Group.
This adjustment is reflected in the underlying net income.
5. +/- Changes in deferred tax assets arising from negative resource rent carryforwards at power stations
The accounting rules require future tax savings from negative resource rent carryforwards to be included on the balance sheet
as an asset. Å Energi has implemented this requirement by including the estimated value of tax savings over the coming ten
years on its balance sheet. This calculation is highly sensitive to changes in parameters like electricity prices in euros and the
EUR/NOK exchange rate. The carrying amount of this accounting estimate is almost entirely governed by external factors such
as electricity prices and the EUR/NOK exchange rate, so changes in the estimate recognised in the income statement tell us
nothing about the underlying performance during the reporting period.
This adjustment is reflected in the underlying net income.
(Amounts in millions of NOK) 2022 2021
IFRS operating revenues
35,763 20,625
Unrealised gains and losses, electricity and currency
4,496 951
Material gains on the disposal of businesses or ownership interests in businesses
0 0
Underlying operating revenues
40,258 21,576
IFRS operating profit
1,793 3,858
Depreciation and impairment losses
760 764
IFRS EBITDA
2,553 4,622
Unrealised gains and losses, electricity and currency
4,496 951
Material gains on the disposal of businesses or ownership interests in businesses
0 0
Underlying EBITDA
7,049 5,574
IFRS operating profit
1,793 3,858
Unrealised gains and losses, electricity and currency
4,496 951
Material gains on the disposal of businesses or ownership interests in businesses
0 0
Underlying operating profit
6,289 4,810
IFRS net income (controlling interest's share)
166 2,062
Changes in unrealised gains and losses after tax (see Note 3)
1,326 107
Changes in deferred tax assets from neg. resource rent carryforwards
-36 69
Material gains on the disposal of businesses or ownership interests in businesses and reclassifications
122 0
Underlying net income (controlling interest's share)
-65 -316
Underliggende resultat etter skatt (majoritetens andel)
1,515 1,923
Å Energi ASÅ Energi AS
146
147
Sustainability and CSR
Renewable power Operations that protect
the Climate and natural
environment
A reliable partnerr Our people
Glitre Energi Agder Energi
27% women
at the Group
out of the 10 biggest
suppliers have set their
own climate targets.
Target of 10/10 by 2025
sickness absence rate
Target of under 3%
H2 injuries in 2022: 0
availability of
hydropower plants
Target of 97.5%
network availability
Target of close to 100%
generated
Greenhouse Gas
Emissions
(tCO2e, location-based
approach)
Carbon intensity
(tCO2e/million hours worked,
location-based approach)
7
5.8%
96.1%
99.98%
2,353 GWh
2022
5,348
8,588
8,271
2021
2020
25 % women
at the Group
of purchases by value from
suppliers with environmental
certification.
Target of 95% by 2025
sickness absence rate
Target of under 3%
H2 injuries in 2022: 4.3
availability for
hydropower plants
Target of 98%
network availability
Target of 98,98%
Share of renewable
sources in district heating
Target of 99%
generated
Greenhouse gas emissions
(tCO2e, location-based
approach)
Science Based Targets
Target to reduce Scope 1+2
emissions by 50% from
2019 to 2030.
Performance in 2022:
20% increase in Scope 1
+ 25% reduction in Scope 2
emissions since 2019
(market-based approach)
56%
3.2 %
95.2%
99.98%
97%
5,968 GWh
3,320 3,807 2,250
2020
2021
2022
Sustainability in 2022 in brief
2020
2021
2022
3,164 9,561 4,275
For legal purposes, Agder Energi and
Glitre Energi merged in November
2022. As two groups with the same
social mission – producing and mana-
ging renewable energy and developing
the energy systems of the future – there
are clear similarities between Agder
Energi and Glitre Energi’s areas of focus,
material topics and targets relating
to sustainability. As they only merged
in November, the two group’s results
are reported separately in Å Energi’s
2022 sustainability report. The results
are organised under four joint strate-
gic areas of focus: Energy systems of
the future, Conserving nature and the
environment, Local communities and
CSR, and Our people.
The Global Reporting Initiative (GRI)
is the most widely used framework for
sustainability reporting, both worldwide
and in Norway. In 2021, Glitre Energi
produced a separate sustainability
report with reference to GRI, while Agder
Energi has reported on sustain ability
in accordance with GRI since 2010.
The 2022 report is with reference to
the GRI standards, since the new
group does not meet all of the require-
ments for reporting in accordance with
GRI. Since the reporting for the two
companies is clearly separated in the
report, each company also has its own
associated GRI index. The goal is that,
from 2023 onwards, the Group will
once again report in accordance with
GRI standards.
Over the course of the year, Å Energi
will carry out a major strategy review,
which will include setting a common
path for work on sustainability. This
will involve performing a new double
materiality analysis, and we will set
targets and KPIs that reflect upcoming
statutory requirements with respect to
sustainability reporting, including the
Corporate Sustainability Reporting
Directive (CSRD). We aim to become
the Nordic region’s most forward-
looking renewable energy group. In
order to succeed in this, we will need
a strong organisational culture and
employees who are motivated and
committed. In 2022, both Glitre Energi
and Agder Energi carried out detailed
organisational culture assessments.
This was an important step towards
successfully integrating the businesses
and building a culture for the new orga-
nisation. In 2023 we will use what we
learned from the culture assessments
to develop joint values for Å Energi,
and each day we will strive to put our
values into practice.
Å Energi has committed itself to
following the UN Global Compact’s 10
Principles. In addition, we will engage
in activities and partnerships that
contribute towards the achievement
of the UN’s Sustainable Development
Goals. We also cooperate closely
with other organisations on matters
relating to sustainability and business
development: Skift – The Business
Community’s Climate Leaders, ZERO
and Klimapartnere.
As well as the sustainability report,
we have produced a separate report
on what we are doing in relation to
climate risk, which adheres to the
recommendations of the Taskforce on
Climate-Related Financial Disclosures
(TCFD). Our activities in 2022 related
to diversity and equal opportunity are
also presented jointly in a separate
diversity report: Diversity and Equal
Opportunity.
Sustainability and
Corporate Social
Responsibility
Sustainability and CSR
147
148 149Value added statement TCFD-index
The value added statement gives an account of the wealth created by
the Group over the year, and shows how it is distributed amongst the
stakeholder groups: employees, lenders, the public sector, shareholders
and the company itself. The figure for value added is adjusted for unrea-
lised gains and losses on energy, currency and interest rate contracts.
(Amounts in millions of NOK)
2022 2021 2020
(restated)
Operating revenues 41,241 21,674 7,091
Goods consumed/operating expenses -31,548 -14,601 -4,521
Gross added value 9,693 7,073 2,570
Capital depreciation -760 -764 -726
Net added value 8,933 6,309 1,844
Net financial items, excl. interest 30 207 124
Discontinued operations - 45 668
Available for distribution 8,963 6,561 2,636
DISTRIBUTION OF ADDED VALUE
Employees
Gross salaries and benefits 1,183 1,082 947
Tax paid by employees -294 -250 -260
Employers' National Insurance Contributions -143 -120 -103
Net amount received by employees 746 712 584
Lenders
Interest, etc. paid to lenders 213 166 187
Net amount received by lenders 213 166 187
The public sector
Ordinary taxes 441 831 352
Property taxes 170 169 153
Resource rent tax 309 - -
Tax paid by employees 1,082 1,258 70
Employers' National Insurance Contributions 294 250 260
Net amount received by the public sector 143 120 103
Netto fordelt det offentlige 2,439 2,628 938
Shareholders
Allocated for distributions by the company (dividends/guarantees) 1,938 755 325
Net amount received by shareholders 1 938 755 325
The company
Retained earnings 3,631 2,305 571
Non-controlling interest's share of profit -4 -5 30
Net amount received by the company 3,627 2,300 601
Total amount distributed 8,963 6,561 2,636
Value added statement
TCFD-index
TCFD Recommendations Reference
Governance Describe how the organization manages climate-related risks and opportunities
a) Description of the Board’s oversight of climate-related risks and opportunities TCFD report p. 3
Annual report p. 18, 23 and 28
b) Description of management’s role in assessing and managing climate-related
risks and opportunities
TCFD report p. 3
Annual report p. 32
Strategy Describe relevant and potential impacts of climate-related risks and opportunities
on the organization’s businesses, strategy, and financial planning
a) Describe climate-related risks and opportunities the organization has
identified over the short, medium, and long term
TCFD report p. 4
Annual report p. 18, 23 and 28
b) Impact of climate-related risks and opportunities on the organization’s
businesses, strategy, and financial planning
TCFD report p. 5
Annual report p. 15, 30, 45
og 46
c) Describe the potential impact of various scenarios, including a 2°C scenario,
on the organization’s businesses, strategy, and financial planning
TCFD report p. 5
Annual report p. 15 and 30
Risk
Manage-
ment
Describe how the organization identifies, assesses and manages climate-
related risks
a) Describe the processes used by the organization to identify and assess
climate-related risks
TCFD report p. 5
Annual report p. 23 and 28
b) Describe the organization’s processes for managing climate-related risks TCFD report p. 6
Annual report p. 28, 30, 36,
39, 40, 41 and 44
c) Describe how processes for identifying, assessing, and managing climate-
related risks are integrated into the organization’s overall risk management
TCFD report p. 6
Annual report p. 23 and 28
Metrics and
Targets
Report on the methods, metrics and targets used to assess and manage
relevant climate-related risks and opportunities
a) Describe the metrics used by the organization to assess climate-related
risks and opportunities in line with its strategy and risk management processes
TCFD report p. 6
Annual report p. 23 and 28
b) Organizations should report Scope 1, Scope 2 and, if relevant Scope 3
greenhouse gas emissions, as well as the related risk factors
Sustainability report p. 7, 56-71
TCFD report p.6
Annual report p. 118
c) Describe the targets used by the organization to manage climate-related
risks and opportunities, and performance against those targets
Sustainability report p. 14-52
Å Energi’s website
(aenergi.no)
TCFD report p. 7
Annual report p. 32 and 147
150
2022Annual report
P. O. Box 603 Lundsiden, N-4606 Kristiansand, Norway
Visiting address main office:
Kjøita 18, N-4630 Kristiansand, Norway
www.aenergi.no
Organisation number: NO 981 952 324