ACM and system operators explore opportunities for reducing the effects of staff shortages
Many sectors of the Dutch economy are currently experiencing difficulties as a result of the shortage of skilled technical workers. The Netherlands Authority for Consumers and Markets (ACM) has conducted a market survey in order to get an overview of the effects of staff shortages on system operators. The survey revealed that the shortage of skilled technical workers is a structural problem in the energy sector too. It causes project delays (especially at major system operators such as TenneT, Liander, Enexis, and Stedin), which means that new connections are installed later or upgrades take longer to complete.
Based on the discussions that ACM held in the second half of 2021 as part of the market survey, it was confirmed that, with regard to technical skilled staff, supply and demand are not balanced, and that this imbalance is a structural problem. Demand for skilled technical workers has risen considerably because system operators and other businesses in the energy sector have seen their range of duties expand as a result of the energy transition. This increasing demand for technicians has not yet led to an increase in the number of skilled technical workers because vocational schools do not (or not yet) produce sufficient graduates to catch up with demand.
Manon Leijten, Member of the Board of ACM, comments: “We see that the problem of technicians shortages is truly a structural problem for system operators. It causes delays in projects, and can also affect the pace of the energy transition. That’s why, together with system operators, we will examine how we are able to reduce the effects of staff shortages as much as possible. System operators have already launched all kinds of initiatives to deal with the problem of technician shortages, for example, by working together with vocational technical schools or by organizing such programs themselves. In that context, system operators could also learn from each other by sharing best practices.”
ACM finds it important that system operators are transparent about the consequences of technician shortages. That is why ACM will discuss with system operators on a regular basis the strategy for dealing with the problem of technician shortages. In those discussions, ACM will talk about the direction by and strategy of the system operators in order to see what opportunities exist for reducing the problem, and to see what role system operators and other market participants (including ACM as regulator) can play in that process. In that context, ACM will also examine whether it is possible and desirable to introduce additional incentives and opportunities in the regulatory regime for system operators to help system operators reduce the problem of technician shortages. In addition, ACM already announced earlier this year that it would examine whether system operators are able to give priority to projects that contribute positively to the energy transition. This will not be enough to fix the structural problem of technician shortages, but it may soften the effects on the energy transition.
ACM’s market survey also revealed that system operators do not always utilize their existing staff (technical or otherwise) to the fullest. There is still room for improvement when it comes to strategies for large projects (project management), to making workflows steady and predictable for system operators, and to improving cooperation between system operators and chain partners.