NMa welcomes GTS’ initiative for capacity auction pilot project
The Netherlands Competition Authority (NMa) is a proponent of a single, internal gas market within Europe. That is why the NMa, as energy regulator, welcomes an initiative from Dutch transmission system operator GTS on experiments with auctioning bundled transport capacity between the gas networks of GTS and its German affiliate Gasunie Deutschland.
GTS had asked the NMa for assistance in making the initiative possible, since auctioning transport capacity might be in violation of current regulations. Chris Fonteijn, Chairman of the Board of the NMa, sees this initiative as an opportunity to help contribute to the development of the gas market. Mr. Fonteijn explains: ‘As a modern regulator, we welcome such pilot projects because they help advance the European gas market. At the same time, the NMa is officially required to take into account the interests of all parties involved, especially when there are deviations from current regulations. The NMa therefore carefully assesses any request it receives, including GTS’ request. All interested parties will have the opportunity to express their opinions.’
Auctioning as a new way of allocating capacity will have a profound impact on day-to-day activities on the gas market. The European Commission and European regulators, including the NMa, have repeatedly called for pilot projects to facilitate the transition to a new way of capacity allocation. Pilot projects offer participants the opportunity to gain useful operational experience of auctioning transport capacity in anticipation of the introduction of the European grid code.
Benefits of auctioning
With the introduction of transport capacity auctions, the goal of a single, internal gas market is another step closer. Auctions lead to fairer access to scarce transport capacity, as each market participant is able to compete under the same conditions. In addition, capacity will be given price tags that are market-based. This valuation of capacity also serves as a useful indication regarding capacity expansion investments.
On January 1, 2013, the NMa will merge with the Netherlands Consumer Authority and the Independent Post and Telecommunications Authority of the Netherlands (OPTA), creating a new authority: The Netherlands Authority for Consumers and Markets (ACM). This new authority aims to ensure that markets work in order to protect consumer interests. To this end, the ACM will focus on three main themes: consumer protection, industry-specific regulation, and competition oversight.