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ACM has established measures against grid congestion and published basic principles for future tariff changes

The Netherlands Authority for Consumers and Markets (ACM) has handed down decisions regarding three measures that seek to ensure that large-scale users are incentivized to utilize the grid less or not at all during peak hours. In that way, they free up capacity for other users and for producers of sustainable electricity. ACM expects that, over the next few years, even more measures regarding grid tariffs will be necessary for promoting a more-flexible utilization of the grid, as well as for keeping the grid costs manageable in the long term. That is why ACM has established several basic principles that it will use for future changes to the tariff structure.

In April 2024, ACM announced a comprehensive package of measures against grid congestion. With the publication of these three decisions, ACM has established all but one of these measures. ACM finds it important that market participants start working with these measures as soon as possible. That is why ACM has included a tight, yet realistic deadline in the decisions.

Manon Leijten, Member of the Board of ACM, adds: “By publishing these decisions, ACM has established a comprehensive package of measures against grid congestion. It is important that market participants start working with these measures soon. At the same time, we know that, over the next few years, additional measures will be necessary. The criteria that have been drawn up will help market participants gain insight into what proposals can improve the tariff structure. In addition, ACM already offers several directions. ACM is ready to sit down with system operators as well as with other parties involved to work out these and other adjustments.”

Measures to promote a more flexible utilization of the grid

Grid congestion mostly occurs during peak hours when there is more supply or demand for electricity than the grid can handle. Outside of these peak hours, there is sufficient capacity. From 1 January 2025, all large-scale users that are connected to transmission system operator TenneT’s national high-voltage grid will get a discount, if they make sure they use their connections not so much during peak hours. Large-scale users that still use their connections to capacity during peak hours will then pay more. In addition, from 1 April 2025, system operators will also be able to offer contracts where large-scale users are not allowed to use their connections at all during certain busy hours (in exchange for lower tariffs). These types of contracts are appealing to companies that are able to adjust their consumptions accordingly. Large-scale users on regional grids with such contracts will then be able to use their connections only during agreed upon hours (timeframe-bound contracts). Large-scale users that are connected to the high-voltage grid will be able to use their connections for at least 85 percent of the time with this new contract type (duration-bound contracts).

Basic principles for future tariff changes

ACM expects that, over the next few years, additional measures will be necessary for encouraging a more flexible utilization of the grid. For that reason, ACM has developed basic principles for future changes to the tariff structures. System operators can use these basic principles when proposing changes. Other parties involved can also use these basic principles for working out ideas. In principle, ACM assesses any changes that score positively on these basic principles as positive. ACM can also, of its own accord, work out and establish proposals based on these basic principles.

One example of these types of new tariff structures is the implementation of a feed-in tariff. ACM is currently studying this. With a feed-in tariff, connected parties that feed electricity into the grid must pay for the transport of electricity, too. The costs for all other grid users will therefore go down. At the moment, grid tariffs are only paid by users. Another example is tariff differentiation for small-scale users, which system operators are currently studying. Small-scale users with connections of up to 3 x 25 Ampere currently all pay the same tariffs, regardless of how they use their connections.

Grid tariffs make up an ever larger part of energy bills. All efficient costs that system operators incur must be distributed fairly, objectively, and transparently over all different types of grid users. Tariff differentiation for types of users is only possible if it complies with the European principles regarding cost reflectivity, the promotion of system efficiency, transparency, and non-discrimination. ACM also points out that this is always a distribution problem: if one grid user pays less, other grid users must pay more. After all, total costs for operating the grids do not change. ACM is therefore not allowed to have companies pay a lower tariff because they would ot/node/25304herwise have a hard time competing with companies in other countries. Should there be a social desire to treat certain sectors or types of users differently, this must be done outside of the tariff structure, for example through subsidies.

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