NMa fines NRE Netwerk for excessive electricity network tariffs

The Netherlands Competition Authority (NMa) has imposed a fine of EUR 95,000 on NRE Netwerk for three infringements of the Electricity Act 1998. The company was found to have charged excessive tariffs to approximately 2500 business customers over 2004. Also, NRE Netwerk charged consumers with too high a periodic connection tariff.

The Office of Energy Regulation (DTe) of the NMa fixes maximum tariffs with a view to setting fair tariffs for consumers. It is necessary for the NMa to do so, as the network operators are by nature monopolists in their own region. Through tariff regulation, the regulator stimulates network operators to achieve maximum efficiency. Research by DTe established that NRE had during the period under consideration charged connected parties with tariffs in excess of the maximum amount for the single as well as double tariff (day and night tariff). As regards the periodic connection tariff imposed on consumers, NRE also overcharged on an annual basis.


NRE has indicated that administrative mistakes are involved and promised to refund excess payments over 2004, amounting to more than EUR 150,000. Business customers have in the meantime received refunds. In addition, NRE has adjusted its tariffs and implemented measures to prevent recurrence. Nevertheless, the NMa considers the level of the fine to be justified, as NRE's excess tariffs have particularly harmed consumers. Therefore, a severe fine is appropriate.


In January 2006, DTe initiated an investigation into billing procedures among energy companies. This involved a number of visits to NRE company premises and inspections of bills and specifications. In general, DTe found that energy bills were often faulty, with customers unable to verify procedures by themselves. It is for this reason that DTe will continue to focus on the correctness of energy bills in 2007. In the course of this year, DTe will again monitor bills that are sent out. Also, the regulator invites energy companies, through the branch organisation EnergieNED, to submit proposals for improvement. DTe will make available research results coming autumn.