ACM awards GTS and TenneT unbundling certificates

GTS and TenneT, the Dutch national transmission system operators (TSOs) of the natural-gas and electricity networks respectively, have received their unbundling certificates from the Netherlands Authority for Consumers and Markets (ACM). The TSOs have sufficiently demonstrated that they carry out their duties with respect to the transmission of electricity and natural gas independently from interests in production, supply and trade in electricity and natural gas.

Level playing field is critical

Under European energy regulation, national TSOs and interconnectors must apply for unbundling certificates with the energy regulator of the country they are active in. The objective of this regulation is to prevent any conflict of interests. Energy companies must be able to compete with one another on a level playing field, without the national TSOs and interconnectors disrupting it. Therefore, the transmission of electricity and natural gas cannot be combined with duties with respect to production, supply and trade in electricity or natural gas. In such cases, TSOs could, for example, have an incentive to exclude certain network users, to make investments or not to make them. Other network users could thus be put at a disadvantage.

In May 2013, ACM already issued a draft version of the decision about the unbundling certificates for these two TSOs. The European Commission has now given its recommendations, too. ACM has taken into account its recommendations, and has now officially issued the decision.

Four companies

In the Netherlands, the certification requirement applies to four companies: TenneT as the transmission system operator of the national high-voltage grid, GTS as the transmission system operator of the national high-pressure grid for natural gas, BBL Company VOF as operator of the gas interconnector between the Netherlands and England, and BritNed Development LTD as operator of the electricity interconnector between the Netherlands and England. The certification procedure for BBL Company VOF has already been completed, while a draft version of the decision for BritNed Development LTD is expected in the first half of 2014.