NMa sets maximum transmission tariffs for regional grid administrators in the Netherlands

The Netherlands Competition Authority (NMa) has today published the maximum tariffs for Dutch regional grid administrators for 2009 with regard to transmission and connection of electricity, as well as to transmission of natural gas. Setting these tariffs is one of the NMa's statutory tasks. On balance, total revenues of all administrators will decrease in 2009 by 3.8 per cent for natural gas and by 4.4 per cent for electricity. One of the reasons for this decrease has been the so-called efficiency regulation that the NMa has applied, which has been incorporated into the tariffs. This regulation acts as an incentive for the grid administrators to operate more efficiently.

Consumers and companies pay these tariffs through their energy bills, part of which is the transmission bill. From January 1st, 2009 onwards, that transmission bill will, for the most part, be taken up by the capacity tariff. Previously, the transmission bill for consumers used to be partially based on actual consumption, while the capacity tariff is based on the size of the connection (capacity). A grid administrator no longer needs to take meter readings in order to be able to draw up the transmission bill for consumers. Less communication is thus required between the energy supplier and the grid administrator that takes care of the transmission. This reduces the risk of administrative errors. Costs of energy transmission are primarily determined by the size and the capacity of the transmission grid. That is why the capacity tariff fits in better with the expenses that a grid administrator incurs with energy transmission.

As a result of the introduction of the capacity tariff, individual consumers may notice differences in their due amounts in 2009 compared to 2008. The Dutch Ministry of Finance in consultation with the Dutch Ministry of Economic Affairs and the energy industry have developed a reimbursement plan in the energy tax scheme in order to correct those differences in individual cases. More information can be found online on the websites of the Dutch Ministry of Finance ( https://www.minfin.nl (external website) ) and the Dutch Ministry of Economic Affairs ( https://www.minez.nl (external website) ).

The regional grid administrators have submitted their proposals for the 2009 tariffs to the NMa, based on the method decisions that the NMa published in April and August 2008. The NMa has set the tariffs after having reviewed these proposals. The grid administrators and other interested parties can object and appeal these tariff decisions. Objections to the tariff decisions will not prevent the tariffs from taking effect.