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National gas transmission tariffs to increase by 3.7 percent in 2021

22-05-2020

The transmission tariffs of the Dutch transmission system operator for natural gas, Gasunie Transport Services (GTS), will increase, on average, by 3.7 percent in 2021. Consumers will hardly be affected by the tariff increase. This has been established by the Netherlands Authority for Consumers and Markets (ACM).

The main reason for the increase is that, according to the court, GTS should have been able to earn more revenues between 2017 and 2019 than ACM determined at the time. The difference is now settled in the 2021 tariffs. Another reason for the increase is that GTS is selling less capacity. GTS's tariffs are determined by dividing the total allowed revenues by the forecasted contracted capacity. If that capacity decreases, the tariffs will rise.

Hardly any effects for consumers

Consumers are not directly charged the national gas transmission costs, but natural-gas retailers and other users of the GTS network are. They may pass these costs on to consumers. Consumers, however, will hardly be affected by said 3.7 percent tariff increase, because the national gas transmission tariffs account for less than 5 percent of consumers' total energy bills (3.7% of 5% = 0.185%).

Towards an affordable, secure, and sustainable supply of energy

ACM supports the objective of realizing an affordable, secure, and sustainable supply of energy, also in the energy transition. It regulates system operators, which enjoy a monopoly on the transmission and distribution of natural gas and electricity. ACM’s regulation ensures that transmission tariffs are not higher than necessary. At the same time, it offers system operators a market-based return on their investments.