NMa Commences Regulation of Public Transport

Since 1 January 2002, the Netherlands Competition Authority (NMa) has been responsible for the regulation of municipal transport companies. These duties have been assigned to a separate unit within NMa, namely the Transport Chamber, which is currently being set up and is managed by Dr Monique Ravoo.

This regulatory task arises from the Passenger Transport Act of 2000 [Wet personenvervoer ]. This Act took effect on 1 January 2001 and has the aim of increasing the use of public transport, while simultaneously reducing the level of subsidy. This aim must be achieved through the introduction of more market forces. Within this framework, the Act provides, for instance, for the separation of the public transport activities and the non-public transport activities of municipal transport companies. The intended separation must be realised by 1 January 2002. To combat cross-subsidisation, the Passenger Transport Act of 2000 contains provisions with regard to the financial relationship between municipal transport companies and their subsidiaries/investments. The municipal transport companies must have an independent expert draw up an annual statement in this regard.

The other regulatory tasks arising from the Public Transport Act of 2000, namely the so-called market domination clauses, will take effect in mid-2002. NMa will be given the task of issuing non-objection certificates in relation to tender procedures. This means that NMa will test the market share of a public transport company that wishes to acquire a concession on the basis of a percentage determined beforehand. On request, NMa will also report to the Minister of Transport, Public Works and Water Management on the effects on competition of any applications for exemption from the obligation to place tenders for a concession relating to trams or metros.