NMa: Gas Network Managers Must Amend Conditions for Gas Transmission

In a decision on an administrative appeal, the Netherlands Competition Authority (NMa) has decided on behalf of the Minister of Economic Affairs that the regional gas transmission companies must amend the conditions for gas transmission to small consumers. In NMa's opinion, with a view to the liberalisation of the market for small consumers as of 1 July 2004, a number of clauses must be included in the conditions, for instance in relation to the switching procedure (the transfer of customers to a different energy supplier). In this decision, NMa underlines the position adopted earlier by the Office for Energy Regulation (DTe) that the rights and obligations of the gas network manager with regard to the transmission of gas to domestic and small business customers must be set out clearly.

According to NMa, the conditions must also include a scheme with regard to the connection register, which includes relevant data on the supply of gas to every consumer. On the basis of this, the network manager can establish which consumers are involved if a switch takes place. The conditions should also clearly state what criteria will apply to metering companies which check and read customers' gas meters. In addition, network managers have wrongfully included in their conditions a requirement that customers may not object to the construction of a gas pipeline on their property for a different customer. Furthermore NMa has decided that the network managers must indicate what quality criteria the gas must meet.

The Gas Act includes a section which stipulates that the regional managers of gas networks are obliged to submit "General Conditions for the Transmission of Gas" for assessment by DTe to protect the position of small consumers. These conditions determine the way regional gas network managers carry out the transmission of gas to captive customers. On the basis of this assessment, DTe has required 25 network managers to make amendments to the conditions in certain respects. Network managers who were not in agreement with the DTe's assessment have submitted notices of administrative appeal to NMa.