Tariffs for regional transmission of natural gas and electricity are reduced by EUR 260 million
The tariffs that the regional network operators are allowed to charge consumers and businesses next year for the transmission of natural gas and electricity are decreased considerably. This has been announced by the Netherlands Authority for Consumers and Markets (ACM). In total, ACM will reduce the revenues of the regional network operators by EUR 260 million. Henk Don, Member of the Board of ACM, explains: “As a result of ACM’s regulation, consumers and businesses pay a reasonable price for the transmission on and connection to the electricity and gas networks. By imposing these maximum tariffs, regional network operators are stimulated to operate more efficiently. At the same time, they are given enough room to make necessary investments.”
260 million less for transmission of electricity and natural gas
The transmission costs for electricity, in particular, are reduced, by about EUR 200 million. Those for natural gas are reduced by about EUR 60 million. “The tariffs can be reduced because ACM believes that the network operators will be able to operate more efficiently, and that they are able to attract capital at lower costs in order to make investments, since interest rates are low,’ says Mr. Don. “And because the projected costs decrease, so can the revenues. The network operators therefore require fewer funds for carrying out their tasks.”
Correction to incorrect costs
ACM had previously checked the books of several network operators. The costs that these network operators had submitted, turned out to be not always correct. Regional network operators are only allowed to claim costs that are related to their tasks concerning the transmission of electricity and natural gas, and connecting customers to the energy networks. Correcting these inaccuracies have led to both upward and downward adjustments, which have now been incorporated into the new tariffs.
Network stability
Transmission system operator TenneT makes sure that grid imbalances are avoided. The costs for this task used to be included in the system services tariff. This tariff will be discontinued from January 1, and will become part of the transmission tariff.
High-voltage grids to TenneT
Some businesses (large-scale users) in the Dutch provinces of Zuid-Holland and Utrecht that are directly connected to the high-voltage grid will be switching network operators. On January 1, 2015, network operators Stedin will transfer its high-voltage grids in Zuid-Holland and Utrecht to TenneT. This transaction has already been incorporated into the 2015 tariffs.
ACM’s regulation
ACM regulates the regional network operators because they do not have any competitors. Each region in the Netherlands has only one network of electricity cables and gas pipelines. It would not be efficient to build another network. That is why ACM sets maximum tariffs, thereby stimulating the regional network operators to have their cables and pipelines in order at the lowest possible costs.