NMa tightens up regulation for compensation after power failures

The Netherlands Competition Authority (NMa), by proposal of the Office of Energy Regulation, is to adjust its regulation for compensation. This regulation sets out the automatic right for customers to be compensated by the network operator in the event of a lengthy power failure. In calculating the compensation amount, the new regulation distinguishes between private and small-business consumers. The new regulation for compensation is to take effect on 1 April 2007.

Private consumers
Private consumers will be compensated with EUR 35 in case of a power failure that lasts more than four hours. The compensation will be raised by EUR 20 with every additional four hours.

Small-business consumers
For small-business consumers, the exact location of the power failure and length of the interruption determine the level of compensation:

• In case of a power failure in the high tension network, companies may claim compensation amounting to EURO 195 (previously 35) after a one-hour interruption (previously 4 hours).
• In case of a power failure in the mid tension network, companies may claim compensation after two hours.
• In case of a power failure in the low tension network, small-business consumers may claim compensation amounting to EUR 195 after 4 hours (previously 4 hours). Compensation will increase by EUR 100 for every 4 additional hours of power interruption.

The new compensation regulation intends to give network operators a stronger incentive to solve network problems quickly. Annually, the overall compensation amount for the sector is EUR 3 million. This amount may increase up to EUR 9 million under the new regulation. The network operators are responsible for implementing the compensation regulation. DTe is alert to signals on how the implementation is being carried out. As from today, the regulation is available on the NMa website (https://www.acm.nl) and Consuwijzer (https://www.consuwijzer.nl).