Taking care of optimal energy-distribution networks

The Board of the Netherlands Competition Authority (NMa) today released its vision on the regulatory framework for distribution networks of natural gas and electricity. It describes the basic principles the NMa uses for achieving optimal energy-distribution networks. The current regulatory framework has proven to be a success. Regulation has resulted in lower tariffs, while, at the same time, the electricity and natural gas networks have continued to be highly reliable. In its vision document, the NMa emphasizes the importance of stability and flexibility. Having a stable regulatory framework is essential, not just to network operators but also to consumers. Regulatory stability is needed to assure network operators and their investors that they will be able to recover the costs of their investments, while the networks' users are guaranteed that tariffs continue to be cost-oriented. The vision document was drawn up after an extensive empirical study had been carried out into the actual effects of regulation, and after consultations had been held with several of the parties involved, such as network operators and other interest groups.

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NMa: current regulatory framework for electricity and natural-gas distribution networks has been successful, but will be made more flexible to better take into account special circumstances