Amsterdam airport Schiphol is denied new permit for managing its own energy networks

Amsterdam airport Schiphol has been denied a new permit for managing its own networks for electricity and natural gas. This has been the outcome of a decision by the Netherlands Authority for Consumers and Markets (ACM).

With its current permit, Schiphol is allowed to decide itself how it wishes to manage the network and what transmission tariffs for electricity and natural gas it charges its customers. These customers are the businesses that are located at Schiphol such as shops, fast-food chains, shipping firms or airline offices. With regard to networks with such permits, ACM is charged with oversight on their safety, quality, and the reasonableness of the transmission tariffs. With the introduction of new statutory rules in 2012, businesses with these permits such as Schiphol had to reapply for a new permit.

Network regulation

In the Netherlands, every business and household are statutorily required to be connected to the grid and/or the natural-gas network through a public network operator. ACM not only regulates, for example, the safety of these networks, but it also sets the supply conditions and the maximum transmission tariffs that the network operators are allowed to charge their customers. In some situations, permits (exemptions) may be awarded, allowing owning and managing one’s own network, for example if the network primarily transmits electricity or natural gas for its owner.

Schiphol

For years, Schiphol has had such a permit, allowing it to manage its own network. Schiphol was thus allowed to set the transmission tariffs it wished to charge its customers. However, ACM is charged with oversight on the safety and quality of the network, and whether customers are able to switch energy suppliers. With the introduction of new statutory rules in 2012, businesses that had had permits until then, were required to reapply for a new permit. The reason behind this mandatory reapplication process was that additional requirements were imposed on the management of such networks. Since these new rules for example, ACM is also allowed to assess the calculation method used for the transmission tariffs.

New permit denied

After receiving Schiphol’s application, ACM launched an investigation into Schiphol’s network. This investigation revealed that Schiphol actually has multiple networks, which all operate independently of one another. This means that Schiphol must file an application for each network, which is something Schiphol refuses to do. Henk Don, Member of the Board of ACM, adds: “We have sat down with Schiphol several times, trying to reach a solution. We asked for additional information to, if necessary, be able to assess for ourselves whether we could grant those multiple permits. Schiphol refuses to provide us that information. This leaves us no choice but to deny Schiphol the statutorily required permit. Schiphol thus has to make a choice: either it appoints a network operator that will take over the network management task from Schiphol, which means a permit would no longer be required, or it files an appeal. Another scenario would be that the Minister of Economic Affairs decides to step in and appoint a network operator himself.”