ACM fines Westland Infra Netbeheer for supplying energy meters

The Netherlands Authority for Consumers and Markets (ACM) has imposed a fine of EUR 600,000 on distribution system operator Westland Infra Netbeheer for supplying gas meters and electricity meters to large-scale users between 1 January 2013 and 1 January 2017. Westland Infra Netbeheer has violated the Dutch Electricity Act and the Dutch Gas Act by supplying gas meters, and by supplying electricity meters outside its own distribution area.

Free market

Large-scale users are allowed to decide for themselves whom they wish to buy or rent energy meters from, and who conducts metering activities under their authority. This is a free market, which means distribution system operators are not allowed to be active on this market, given their public task.

Henk Don, Member of the Board of ACM, explains: “If system operators were to engage in commercial activities such as supplying certain meters for large-scale users, it could have an anticompetitive effect. Competitors would be put at a disadvantage, since system operators, given their public task, have access to customer data, and are able to benefit from their name recognition.”

Financial risks

Next to the risk of putting competitors at a disadvantage, there is another reason as to why system operators have been barred from engaging in commercial activities: such activities pose financial risks to system operators. By taking such risks, system operators make it more likely that their statutory task of ensuring a smooth transmission of energy comes under pressure.