ACM publishes market report on hydrogen transport tariffs

In this market report, the Netherlands Authority for Consumers and Markets (ACM) comes to the conclusion that, as a result of various obstacles and uncertainties, the development of the hydrogen chain is getting off to a slow start in the Netherlands. Since hydrogen volumes are lagging behind, and investment costs are higher than expected, the tariffs for the hydrogen transport network can, without any additional measures, increase considerably compared with the current tariff set by the Dutch Ministry of Climate Policy and Green Growth (KGG). Starting in 2033 at the latest, ACM sets the network tariffs for the hydrogen transport network of Hynetwork, a subsidiary of Gasunie.

A cohesive set of measures is needed in order to help the hydrogen market get off the ground. Multiple stakeholders, including the Dutch government, need to do their part.

In order to realize the hydrogen ambitions in the Netherlands, policy measures that are aimed at increasing hydrogen volumes transported through the network are of the utmost importance. In addition, higher hydrogen volumes also help towards creating an affordable hydrogen transport network.

In addition, ACM has several other levers to pull in order to prevent a tariff increase. For example, European regulations on hydrogen offer hydrogen network operators some latitude for recouping the costs for the installation of hydrogen transport networks through network access tariffs by spreading these costs over a greater period of time (‘intertemporal cost allocation’). In order to realize this, the Dutch legislature must make this possible under Dutch law, and ACM would subsequently have to approve this.

ACM is in favor of this, since it can help get the hydrogen market off the ground, and it will help towards a fairer distribution of the initial costs of the network’s roll-out between the first users and future users.

ACM invites all stakeholders to submit their opinions about the contents of the market report by sending an email to acm-post [at] acm [punt] nl. More specifically, ACM is interested in market participants’ opinions of the measures mentioned in the report that can contribute towards realizing an affordable hydrogen transport network.