DTe: Independence of Grid and Network Managers Largely in Compliance with the Act

From the audits which the Office for Energy Regulation (DTe) carried out amongst 45 electricity grid managers and gas network managers, it appeared that, with the exception of four companies, the electricity grid and gas network managers satisfy the criteria which the Electricity Act of 1998 and the Gas Act stipulate with regard to the independence of electricity grid and gas network companies. DTe draws this conclusion in a final report to the Minister of Economic Affairs.

In the case of two of the four companies which did not satisfy the criteria, DTe has already carried out a subsequent investigation. It appeared from this that these companies now satisfy the statutory requirements. DTe will carry out another assessment of the other two companies in the fourth quarter of 2003.

The applicable legislation and regulations require electricity grid and gas network companies and the respective supply companies, which are part of the same group, to operate independently of each other and to promote competition on the market for the supply of gas and electricity. On the basis of audits, DTe carried out assessments in 2002 and 2003 to ascertain whether electricity grid managers and gas network managers complied with this statutory obligation. Every investigation was concluded with a confidential report in which DTe gave its opinion on the extent to which the grid or network manager met the statutory requirements and, where appropriate, what action still had to be taken to meet these requirements.

The independence of grid and network managers was a regular topic of debate in the Lower House of the Dutch Parliament in relation to the liberalisation of the energy market. The Minister of Economic Affairs requested DTe to carry out the audits in 2001.