NMa sets calculation methods of network operators' tariffs

The NMa today made three draft method decisions available for perusal. In these decisions, the NMa lays down, among other things, how the regional network operators for electricity and national grid operator TenneT are allowed to calculate their tariffs in the next regulatory period (2011 through 2013). The NMa requires these tariffs to be cost-oriented. It is imposing this requirement by specifying the tariffs' calculation method in these decisions.

Regulating monopolists
The NMa regulates the network operators because they do not face any competition on the market; in their own areas, they are monopolists by nature. Consumers are therefore bound to the respective network operator in their area. The NMa is stimulating network operators to work more efficiently, thus simulating competition in these monopolists-controlled markets for the benefit of consumers. By regulating these markets, the NMa prevents network operators from unnecessarily charging high tariffs for their transport, connection and system services.

Fair tariffs
By issuing these draft method decisions, the NMa ensures that the tariffs continue to be a genuine reflection of the costs. The consequences for consumers are that they will not pay more than is necessary for transport, connection and system services. In addition, the NMa has allowed for a reasonable compensation for interest and dividend to be included in the tariffs. The network operators thus remain able to attract enough capital to invest in their networks to continue to be able to guarantee electricity supply in the future.

From draft version to final version
The draft versions of the method decisions will be available for perusal for six weeks and can be found on the Office of Energy Regulation's website (in Dutch). Selected stakeholders may submit their opinions within those six weeks. The NMa will be using these opinions when it formulates the final method decisions later this year. The effects on the transport, connection and system services will be determined when the 2011 tariff decision is finalized at the end of this year.