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ACM invites all interested parties to share their opinions about the new tariff methodology

The Netherlands Authority for Consumers and Markets (ACM) invites all interested parties to share their opinions about the new tariff methodology for system operators will be set in the future. Due to the transition from fossil fuels to renewable energy, less and less natural gas is consumed, and more and more electricity from renewable sources needs to be transported. In order to make that possible, system operators over the next few years need to invest billions of euros in grid expansions and adjustments.

Manon Leijten, Member of the Board of ACM, explains: “In order to realize the climate goals, we must accelerate the energy transition. This requires more investments in the grids. Through its regulation, ACM wishes to help realize that. System operators must have sufficient financial leeway in order to be able to make all these investments on time. Over the next few years, this will lead to increasing tariffs for people and businesses. At the same time, we cannot lose sight of affordability. As we need to make important choices, ACM invites all interested parties to share their opinions about the way in which we allocate the costs for the energy transition.”

ACM regulates the tariffs for system operators. ACM’s tariff methodology ensures that system operators have enough revenue to carry out their statutory duties. At the same time, tariff regulation ensures that consumers do not pay too much, since households and businesses are unable to choose from which system operator they take out their services. ACM thus needs to strike the right balance between the three interests of affordability, reliability, and sustainability, now and in the future.

The way in which ACM determines the system operators’ revenues and thus the height of the tariffs is laid down in ACM’s method decisions. ACM sets these method decisions for several years (usually 3 or 5 years). A new regulatory period will start in 2027. As part of the process for setting the method decisions for the period after 2027, ACM is currently already exploring what regulatory method is the most appropriate, since upgrading the grids in connection with the energy transition is an enormous challenge for system operators. ACM has previously published two studies already about this topic, and now invites all interested parties to share their opinions in a public consultation about this topic.

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