DTe: Binding Instructions Issued to 11 Regional Gas Transmission Companies

The Office for Energy Regulation (DTe) has issued binding instructions to 11 regional gas transmission companies. DTe decided to do so because the indicative tariffs and conditions for 2003 submitted by the companies did not comply with the Guidelines for Gas Transmission 2003. In some cases, for instance, the possibility for trading contracts was not included. In addition, some companies did not adequately substantiate their indicative tariffs on the basis of efficient economic costs or decided against publication of this substantiation.

This relates to the following companies: B.V. Netbeheer Haarlemmermeer; Intergas Netbeheer B.V.; InfraMosane N.V.; N.V. Continuon netbeheer; Obragas Net N.V.; ONS Netbeheer B.V.; RENDO Netbeheer B.V.; Essent Netwerk Brabant B.V.; Essent Netwerk Friesland B.V.; Essent Netwerk Limburg B.V.; and Essent Netwerk Noord B.V. These companies are required to adjust their indicative tariffs and conditions within six weeks on the basis of these binding instructions.

The Guidelines set out the system of negotiated access to the network, on which the Gas Act is based. The regional gas transmission companies must take the Guidelines into account when negotiating with market players in relation to the transmission of gas to free customers in 2003. Free customers can negotiate access to the transmission networks with gas transmission companies on the basis of the indicative tariffs and conditions. This will promote the efficient operation of gas transmission companies and their customers and stimulates trade on the gas market. If the market players cannot reach agreement through their negotiations on the basis of indicative tariffs and conditions, they may present the dispute to the Netherlands Competition Authority (NMa) for arbitration. NMa has the Authority to determine the conditions or the tariff for the transmission of gas which is the subject of the dispute.

The number of binding instructions issued is lower than last year. DTe has noticed a clear improvement in compliance with the Guidelines by the gas transmission companies.