DTe: Binding Instruction to Essent Netwerk Brabant B.V

The Office for Energy Regulation (DTe) has issued a binding instruction to Essent Netwerk Brabant B.V. (ENB). DTe decided to do so after receiving a complaint from the company F&W Energiediensten that Essent Netwerk made an unfair distinction in applying its tariffs for connections to the electricity grid.

The connection of buyers to the electricity grid is the exclusive duty of the grid manager. In accordance with the Electricity Act of 1998, the grid manager is therefore obliged to honour a request for a connection. The Act also stipulates that a grid manager may not discriminate between parties who wish to have a connection.

In the case of connections at medium-voltage level with a desired connection capacity of approximately 1 MvA, a large number of buyers request a connection with a physical supply at the low-voltage level. The transformer necessary for this is installed on the installation side of the circuit breaker and is therefore part of the 'free domain'. Buyers usually opt for a compact transformer station. It appears from the documents submitted by F&W that if a party provides its own transformer, ENB charges a much higher connection tariff than it charges if ENB installs the transformer itself. As a result, competition with possible suppliers of transformers is eliminated.

The binding instruction which DTe has imposed means that ENB may not make a distinction in applying its connection tariffs. In addition, the grid manager is required to inform buyers of the possibility of purchasing the compact transformer station required for this type of connection (a medium-voltage connection 630 KvA) from a third party, with the exception of the medium-voltage section up to the transfer point.