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ACM emphasizes importance of consumer protection in the process of phasing out natural gas in districts

In the Climate Agreement, it has been agreed that, by 2030, 1.5 million existing homes will have to be made more sustainable, and that these can no longer be connected to the natural-gas network. The Netherlands Authority for Consumers and Markets (ACM) finds it important that homes are made more sustainable, and points out that support among residents is critical in having this heat transition occur smoothly. That is why ACM calls for attention to the concerns of consumers, and it offers several recommendations for safeguarding the rights of consumers. This is how ACM wishes to increase consumer confidence and, by extension, support for the heat transition.

The process of connecting homes to alternative heat sources and phasing out natural gas will take place on a district-by-district basis. Municipalities will coordinate this process. Phasing out natural gas in homes leads to significant changes in people’s personal lives. Connecting to alternative heat sources also requires residents making choices and investments themselves.

Consumers should not experience the transition from natural gas to a new heat source as a step backward. That is why it is important that they are able to exercise their rights if the quality of their heat supply falls short. The rights of consumers with regard to security of supply have been laid down clearly in the Dutch Gas Act. ACM finds it important that all consumers are protected statutorily in the same manner. The degree of consumer protection can therefore not depend on differences in heat sources, homes, consumer types or heat supply network types. During and after the heat transition, consumers must be afforded as much as possible the same protection as they are now with natural-gas connections.

Consumers must also be provided sufficient information before taking a decision about switching from natural gas to, for example, a heat network or an electric heat pump. In order to be able to take a well-informed decision, they must have access to correct and complete information in a timely manner. That is why consumers must receive a transparent and realistic overview of the costs and benefits, while accounting for the differences in types of homes and consumers. In order to prevent uncertainties in the district-based approach of the heat transition, it must be clear in advance what the heat transition’s consequences are for people’s living expenses and for the distribution of subsidies. It is additionally important that people have a choice, where possible. With collective heat networks, households will, in most situations, not be able to select their own supplier. However, that choice can exist before a heat network infrastructure is installed.

In its paper ‘Safeguards for consumers in the district-based approach’ (in Dutch: ‘Waarborgen voor consumenten in de wijkgerichte aanpak’), ACM publishes recommendations for policymakers and other parties involved in the heat transition. This paper is part of a series of publications with which ACM wishes to make a substantive contribution to the choices that need to be made as part of the energy transition. ACM previously already published a paper on the development and regulation of hydrogen infrastructure, as well as a paper on market systems for the market for district heating, and the role of network companies, and also a market scan regarding energy storage.

See also:

26-11-2021 Safeguards for consumers in the district-based approach (in Dutch)