DTe Sets New Price Cap for TenneT

The Office for Energy Regulation (DTe) has determined a new price cap (the so-called x factor) for TenneT B.V., the grid manager of the national high-voltage grid.

The x factor is 7.2 per annum and applies to the second regulatory period from 2004 up to and including 2006. By means of this x factor, the supervisor gives TenneT an incentive to operate more efficiently. The level of the tariffs which TenneT may charge its buyers is determined on the basis of this x factor. This will result in total savings of EUR 27 million in the second regulatory period due to the fact that TenneT is required to lower its tariffs to cover the cost of grid management by 7.2 percent every year.

The decision on the x factor in relation to TenneT can be found on DTe's website.