Intervention by NMa Results in Change in the Behaviour of Electricity Grid Managers

Following an intervention by the Netherlands Competition Authority (NMa), four electricity grid managers have promised to reduce the settlement rates for transformer losses. Two grid managers have also set up a compensation scheme for affected customers.

This is the outcome of the follow-up investigation carried out by NMa into all regional grid managers following an earlier complaint by a wind energy producer about the excessively high settlement rate charged by Essent. At the time, Essent reduced the rate and set up a scheme for customers who were affected. Other grid managers, whose customers experienced this problem, have now also changed their behaviour. For this reason, NMa has closed its investigation into the possible abuse of a dominant position by grid companies in this regard.

Some customers of energy companies, such as small decentralised generators, are connected to the electricity grid at the mid-voltage level, but their electricity is supplied and metered at the low-voltage level. Connections of this type result in energy losses due to the use of a transformer. Such losses are also referred to as transformer losses. Grid companies charge such customers settlement rates for these transformer losses.

It appeared from NMa's subsequent investigation that six grid managers do not charge a settlement rate for transformer losses and that this problem therefore did not apply to them. The other grid managers, Inframosane, NRE Netwerk, Continuon and E-Netbeheer possibly do charge settlement rates which are too high, varying from 1.5% to 2.5%. In response to NMa's investigation, these grid managers promised to reduce their rates to 1.3%, 1.43%, 1.4% and 1.4% respectively.

Inframosane and Continuon have announced that they will set up compensation schemes for customers with retrospective effect from January 2002 to the moment at which the new settlement rate was introduced. Inframosane has reserved an amount of approximately EUR 50,000 per annum and Continuon and amount of approximately EUR 1,600,000 per annum. NRE Netwerk and E-Netbeheer have indicated that they will not set up a compensation scheme such as this because their customers were not adversely affected by a possibly excessive rate. NMa has approved this on the basis of the information provided by NRE Netwerk and E-Netbeheer.