Dutch Pipeline Operator to Cut Fees from July

Netherlands regulator Authority for Consumers & Markets (ACM) has set higher productivity targets for the country’s transmission system operator Gasunie for five years from July. 

The so-called x-factor means that the tariffs set by state-owned Gas Transport Services will be lowered, yielding a saving to customers amounting to €200mn ($212mn). In addition, the method decision will result in a one-off depreciation of the GTS network of €450mn, Gasunie said.

The method decision was established after a process in which ACM, GTS and various representative bodies of energy producers and large corporate energy consumers discussed their views and positions. This led to an agreement between all parties on the main elements of the method decision, Gasunie said February 27. Last summer, Gasunie challenged the methodology the regulator had proposed, pointing out its flaws.

"As a result, all parties concerned agreed to forego their right to appeal on these elements. Thereby, the agreement offers clarity for GTS customers on the tariffs and for GTS on its allowed revenues. In addition to certainty, it offers all parties concerned the required scope to focus on the challenges of tomorrow’s energy supply," it said.

GTS network in Netherlands and northern Germany

(Source: Gasunie)

GTS will start work on a tariff proposal, expected to come into effect on 1 July 2017. Until then, 2016 tariffs will continue to apply. The tariff proposal for 2017 will take into account the revenues received by GTS in the first half of the year.

The above measures concern only the Netherlands gas grid. Gasunie Deutschland's tariffs are regulated by the German federal networks regulator, the Bundesnetzagentur.

William Powell