Dutch municipality fails to include all costs in berth tariffs

The Dutch municipality of Heerhugowaard (in the northwestern part of the Netherlands) is competing unfairly with other commercial marinas and berths because it fails to include all berth-related costs in its tariffs. This is not allowed under the Dutch law on competitive neutrality, the Dutch Act on Government and Free Markets. This is the conclusion of an investigation carried out by the Netherlands Authority for Consumers and Markets (ACM).

Municipality to reissue tariff decision

Last year, the municipality of Heerhugowaard carried out a new appraisal and recalculation in order to get a clear picture of the costs. ACM believes that not all costs have been fully included in the tariffs yet. That is why the operating costs are higher than the revenues from the berth tariffs. The municipality thus distorts competition with other commercial marinas. Heerhugowaard has indicated that it will be taking a new decision about the berth tariffs soon, based on a new calculation of the operating costs.

Anita Vegter, Member of the Board of ACM, adds: “I’m glad that this municipality wants to compete fairly with businesses. Heerhugowaard will include all costs in its berth tariffs. However, until that time, they will continue to be considered to be violating the law.”

The Dutch Act on Government and Free Markets

The government is allowed to offer products and services on the market. However, it needs to comply with the rules when offering them. These rules are to protect businesses against unfair competition from the government. The Dutch law of competitive neutrality, the Dutch Act on Government and Free Markets, mandates, among other requirements, all municipalities to include all costs in their tariffs, when offering products and services on the market.