ACM favors study into the Dutch Heat Act

The Netherlands Authority for Consumers and Markets (ACM) is of the opinion that a study should be conducted into the No More Than Otherwise principle (in Dutch: Niet-Meer-Dan-Anders-principe or NMDA) in the Dutch Heat Act. According to this principle, consumers that get their energy through a heat network cannot pay more than they would have paid if they had had a natural-gas connection. “We are wondering whether this is actually the case in the real world,” said Remko Bos, director of the Energy Department of the Netherlands Authority for Consumers and Markets (ACM), during a round-table discussion with Dutch MPs. “In addition, we are also wondering whether, for the future, we should actually hold on to this principle. After all, initiatives for sustainable heat networks are unable to get off the ground if the costs cannot be covered by the revenues.”

Heat price

Approximately half a million Dutch consumers get their heat from individual-building heating or district heating. They are protected by the Dutch Heat Act because they are unable to switch suppliers. ACM enforces compliance with the Dutch Heat Act, and, every year, it sets the maximum tariff for supplying heat. Mr. Bos explains: “If we look at how the maximum tariff is calculated now, it should be assessed whether the values that are currently attached to the different items correspond with the real world. Furthermore, various other costs are also added by the supplier, which fall outside that maximum tariff, and of which we may only assess the reasonableness. Think of the costs for heat exchangers and heating cost distributors. Consumers complain that costs are calculated incorrectly or that too high costs are charged. It might be better if those cost items were also capped by maximum tariffs.”

Sustainable initiatives

It remains to be seen whether sustainable heat networks in particular can truly be profitable under the NMDA principle. Mr. Bos adds: “We are seeing that society demands more sustainable alternatives. If potential revenues do not cover the costs, sustainable initiatives in particular will have a hard time getting off the ground.”

Questions and complaints

Since the introduction of the Dutch Heat Act on January 1, 2014, ConsuWijzer, the consumer information portal of ACM, has received 970 questions and complaints about heat, while ACM has received 690 questions and complaints from businesses.

In a letter, the Minister of Economic Affairs last year already announced several amendments to the act.