NMa imposes binding instruction on chemical company Dow Benelux

As end user of electricity, Dow Benelux, the Benelux branch of American chemical company Dow, has to pay Dutch transmission system operator TenneT the system services tariff. This has been laid down in the binding instruction that the Netherlands Competition Authority (NMa) has imposed on Dow Benelux.

Dow Benelux v. TenneT

TenneT had requested the NMa to impose the binding instruction on Dow Benelux because the chemical company refused to pay the system services tariff. Meanwhile, Dow Benelux had filed a complaint against TenneT over the exact same issue. Dow Benelux believes it is not required to pay the system services tariff, because it does not have a direct connection with TenneT's grid. However, TenneT is of the opinion that it indeed can rightfully charge Dow Benelux the system services tariff, because, as end user of electricity, Dow Benelux benefits from Tennet's system services. Dow Benelux uses electricity for the production of plastics and chemicals. The chemical company is (indirectly) connected to TenneT's grid through a (separate) private network.



All users benefit equally

TenneT does not only provide system services for its own networks and for the networks of regional network operators, but also for private networks. Users that are connected to a private network equally benefit from the system services as any other user. The NMa has therefore granted TenneT's request, thus requiring Dow Benelux to pay TenneT the system services tariff for its consumption of the system services, and to hand over to TenneT the information needed to issue the invoice for the system services tariff. The NMa has subsequently rejected Dow Benelux's complaint.


TenneT provides system services to ensure that, among other things, major disruptions of the transport of electricity are resolved, and that balance on all Dutch grids is guaranteed. The costs that TenneT incurs for providing these system services are covered by the system services tariff.