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ACM sets new tariffs for the transmission of natural gas

The Netherlands Authority for Consumers and Markets (ACM) has set the transmission tariffs of the Dutch transmission system operator for natural gas, Gasunie Transport Services (GTS), for 2022. These tariffs will increase, on average, by 18 percent in 2022. Since the costs for natural-gas transmission represent only a small part of the total energy bill, consumers are expected to see their energy bills increase by less than 1%.Setting the tariffs for natural-gas transmission is part of ACM’s regulation of system operators, which enjoy a monopoly on the transmission and distribution of natural gas and electricity. With its sector-specific regulation, ACM ensures that the transmission tariffs are not higher than necessary. At the same time, it ensures that system operators earn market-based returns on their investments. Through its regulation, ACM thus helps realize an affordable, secure, and sustainable supply of energy.

In order to determine the transmission tariffs, ACM first sets the total allowed revenues of GTS. These are subsequently divided by the forecasted transmission capacity.

GTS expects to sell considerably less transmission capacity in 2022 than in 2021, because less natural gas is exported, and because natural-gas consumption in the Netherlands is not growing. The costs are thus spread over less transmission capacity. These are the most important reasons for the increase in tariffs. Another reason for the tariff increase is that, starting in 2022, GTS is allowed to depreciate its assets faster. In addition, several corrections are made to GTS’s allowed revenues. On the whole, the total allowed revenues of GTS increase by approximately 4%.

Consumers will hardly notice anything

Gas suppliers and other users of GTS’s system pay the transmission fees. These suppliers are able to pass on these costs to consumers. As the costs for the transmission of natural gas are less than 5% of the consumer’s total energy bill, the consequences for consumers will be limited.

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