DTe Approves Gas Guidelines for 2003

The Director of the Office for Energy Regulation (DTE) has approved the Guidelines for Gas Transmission and Gas Storage for 2003. Gas companies must take these guidelines into account when negotiating with market players. This is the third time that DTe has approved gas guidelines. These guidelines will promote the operation of market forces in the gas sector. In addition, the guidelines provide a basis for dispute resolution by the Netherlands Competition Authority (NMa).

The guidelines stipulate that Gas Transport Services, the network part of Gasunie, will be required to reduce its transmission tariffs next year by 5 percent. In addition, Gasunie must set up a national balancing point where gas contracts can be traded easily. This will make a significant contribution to the liberalisation of the gas market.

DTe en NMa have also announced that they will carry out joint research into (obstructions to) the operation of the market for low calorific gas. This market is of particular relevance to customers who are at present captive customers and will be freed on 1 October 2003. The results of this research are expected in the course of 2003.

The regional gas transmission companies must substantiate their tariffs on the basis of efficient economic costs. By requiring this, DTe has provided an incentive which will strengthen the negotiating position of network users.

The gas storage companies, NAM and the Bergen Concessionaries, must make a considerable part of their storage capacity available to third parties next year. They must base the tariffs for their services on efficient economic costs and relevant substitutes, such as storage facilities elsewhere.

From the consultation round preceding the approval of the guidelines, it emerged that in the case of gas there is also a need for an independent system operator (TSO), like TenneT in the case of the high-voltage grids. At the beginning of 2003, DTe will start conducting research into how this can be implemented.