NMa adds amendments to TenneT's tariff proposal

The Netherlands Competition Authority (NMa) has set the 2010 maximum tariffs for Dutch national-grid operator TenneT's transport tariffs and its tariffs for so-called system services, which are the maximum tariffs that TenneT is allowed to charge end users and regional grid operators for electricity transport. Setting these tariffs is one of the NMa's statutory duties, and is usually the final step in assessments of tariff proposals of TenneT. An average household's energy bill will only marignally increase as a result of these new tariffs: half a euro a year, at the most.

For customers that are connected to the so-called EHS-grids (Extra High Voltage - 220/380 kV), these new tariffs will result in an average decrease in transport tariffs of 1 per cent, compared to 2009. For customers that are connected to the so-called HS-grids (High Voltage - 110/150 kV), the tariffs will result in an average increase in transport tariffs of 21 per cent. End users on HS-grids are faced with a higher increase (31 per cent), because part of the 2009 tariff increase for this category of users was postponed until 2010 and 2011 because of transitional arrangements. An important reason for the tariff increase is that TenneT's sales are going down due to the current economic climate. Because TenneT's tariff revenues are fixed under the Dutch Electricity Act, and because they are unrelated to actual sales, declining sales automatically mean that tariffs must be raised. In total, TenneT is allowed to charge 2 per cent more costs in the transport tariffs in 2010 compared to 2009.

The system services tariff will increase by 6 per cent, compared to 2009. All customers have to pay this tariff for actual electricity consumption. Here too, declining sales are a major reason for the tariff increase. Other reasons include settlements related to previous years (2006, 2007 and 2008). In total, TenneT is allowed to charge 4 per cent more costs in the system services tariff in 2010 compared to 2009. TenneT charges everyone that is connected to its grid a system services tariff, the revenues of which are used to pay for the prevention of major disruptions in electricity transport as well as for measures aimed at enforcing balancing.

TenneT's initial tariff proposal would have meant that transport tariffs for customers connected to the EHS-grids would have been 5 per cent higher, and for customers connected to the HS-grids 48 per cent higher. The system services tariff would have increased by 15 per cent. However, the initial tariff proposal included a number of cost items that, in the opinion of the NMa, would not, or would only partially, qualify for compensation in 2010. TenneT had also failed to take into account the transitional arrangements, which the NMa introduced with the 2009 tariff decision, for end users on the HS-grids. The NMa has added the abovementioned amendments to TenneT's tariff proposal and has thus carried out its regulatory duties.

Interested parties can file an objection or an appeal against this decision, though any objection or appeal proceedings will not postpone the tariffs' start date.

The transport tariffs of regional grid operators for electricity can be found here (in Dutch).
The transport tariffs of network operators for natural gas can be found here (in Dutch).