Regulatory developments

Rates

The ACM has already determined GTS’ rates for 2019. The ACM has also drafted a decision on changes to the rate code, transport code and definitions code, in response to the European network code on transmission rate structures (NC TAR). This introduces a change to the methodology used for determining the rates from rate year 2020 onwards. The ACM is expected to make a final decision on this by October 2018 at the latest.

Moreover, in view of the expected decline in the use of gas infrastructure in the Netherlands, the ACM has initiated research into the long-term development and sustainability of the transport rates.

Method of regulation

In the amended Gas and Mining Act, which currently lies with the Senate for decision-making, the legal task of quality conversion has been extended to quality conversion that is required for the reduction and minimization of extraction from the Groningen field. As a result, the costs of the newly to be built nitrogen plant fall under the legal task and GTS may include these costs in its tariffs. In addition, the ACM has given comfort to GTS that the related efficient costs will not be taken into account in future efficiency benchmarks.

Dutch Progress of the Energy Transition Act

The Dutch Progress of the Energy Transition Act came into force on 1 July 2018. The purpose of this legislation is to create more clarity for all parties involved to work to achieve the energy transition.