14.03.2025 | Dutch competition authority
The Netherlands Authority for Consumers and Markets (ACM) has responded to the 'Interministerial Policy Review (IBO) of Funding of Electricity Infrastructure,' recognizing the complexity of reducing energy bills. The IBO emphasizes the need for coordinated efforts from the Dutch central government and highlights ACM's regulatory role in managing system operators and network tariffs.
ACM's strategy aligns with the IBO's three main pillars: enhancing grid efficiency, redistributing costs, and streamlining decision-making processes. By promoting responsible and flexible use of grid capacity, ACM aims to mitigate cost increases. Measures against grid congestion, such as mandatory flexibility offerings, have already been implemented.
The IBO's projected tariff increases align with ACM's earlier forecasts, indicating significant challenges ahead. Smart energy consumption and grid utilization choices are essential to alleviate investment burdens. ACM has introduced new tariff structures that offer substantial discounts for larger companies that reduce power consumption during peak hours.
ACM is also exploring alternative cost distribution methods, ensuring that users pay for the costs they incur. The IBO suggests that future users should bear more costs for certain investments, prompting ACM to investigate intergenerational fairness and legal frameworks within Europe.
Public funding may be justified to alleviate high costs for current users, but ACM agrees that discounts through network tariff redistribution are inconsistent with the principle of cost causation. The IBO emphasizes the need for streamlined decision-making processes regarding investments and network tariffs, with ACM adjusting its regulatory framework accordingly.
European harmonization of transmission tariff methods is crucial, as varying tariffs across member states create an uneven playing field for companies. ACM has previously raised this issue, and the European Commission has indicated plans to recommend harmonization methods.
As the sole authority for setting network tariffs, ACM plays a vital role in facilitating the transition to sustainable energy and has already implemented various measures to support this goal.
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