Dutch gas market serves as an example for the rest of Europe

The virtual trading hubs for natural gas in the Netherlands and the United Kingdom serve as examples for the rest of Europe. That is one of the conclusions of the report about the Gas Target Model published by ACER, the Agency for the Cooperation of Energy Regulators in Europe. The Gas Target Model explains what features a well-functioning gas market should have. Henk Don, Member of the Board of the Netherlands Authority for Consumers and Markets (ACM), adds: “The Dutch knowledge and experience can help other countries improve their gas markets.”

The Dutch gas market is functioning well

It is important that all buyers in Europe have access to well-functioning wholesale markets. ACER comes to the conclusion that the Dutch virtual hub for natural gas is functioning well. Market participants that need natural gas are able to take out supply contracts on the Dutch virtual hub without any problems. Mr. Don explains: “The report reveals that energy suppliers are able to choose from many different gas contracts, including short-term and long-term contracts. That is important, because if a consumer takes out a 3-year contract, their supplier would like to be able to take out a 3-year contract with a producer, too. With multiple companies offering contracts, competition is healthy, leading to lower gas prices, including for consumers.”