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Energy network operator Rendo fined for inadequate inspection of metering equipment

The Netherlands Authority for Consumers & Markets (ACM) has imposed two fines on Dutch energy network operator Rendo in the Dutch city of Meppel, totaling EUR 1.6 million. Rendo has performed inadequate inspections of the metering equipment in a biomass power station and failed to report important information about its financial position to ACM on time.

Metering equipment in biomass power station

Rendo had declared the metering equipment in a biomass power station in the town of Steenwijk suitable, but failed to perform adequate inspections to that end. For this violation, ACM has imposed on Rendo a fine of over EUR 1 million.

Henk Don, Member of the Board of ACM, explains: “The metering equipment should have measured the correct amount of sustainably generated electricity. However, the metering data were found to be incorrect. This could have been avoided if the metering equipment had been properly inspected. Rendo performed this inspection inadequately, and is imposed a fine for this.”

Requirements regarding financial position

In addition, Rendo should have notified ACM on time that it failed to meet the requirements for the financial position of network operators. These requirements ensure that network operators have sufficient funds to perform their duties. By notifying ACM too late about this, Rendo has hindered ACM in its oversight of Rendo’s financial position. For this violation, Rendo is imposed a fine of EUR 530,000.

“ACM needs to be able to trust that it receives the correct data on time, otherwise we cannot check whether network operators are functioning well. Fortunately, Rendo has not been at risk financially, but it could have been, and, in such cases, ACM needs to be able to step in. The security of energy supply is essential for consumers and businesses, and network operators are an important link in this process,” says Mr. Don.