ACM makes it possible for system operators to prioritize projects with a social function
The Netherlands Authority for Consumers and Markets (ACM) will make it possible for system operators to prioritize projects that solve or reduce congestion problems when giving access to the grid. ACM also wishes to make it possible for system operators to prioritize other public-interest projects, such as new housing, fire and police departments, health care, or schools. This means that, in areas with shortages in transport capacity, system operators are able to deviate from the principle that the first applicant will be the first one to gain access to the grid (‘first come, first serve’). In that context, the basic principle is that priority will be given on the basis of objective and transparent criteria, and that priority is necessary for achieving the objectives (social or otherwise) that have been set.
ACM will soon launch a code amendment process to statutorily give the opportunity to deviate from the principle of ‘first come, first serve’. ACM aims to publish the draft code decision in May 2023. In the meantime, ACM will allow system operators to act in the spirit of the code amendment in advance of the decision. ACM considers this to be desirable. If, in specific cases, system operators are able to justify why priority is necessary, ACM will not take enforcement action.
Scarcity in transport capacity
At the moment, there is insufficient grid capacity in many places in the Netherlands to meet all demand for electricity transport. As a result, system operators are not able to give market participants access to the grid straight away. This subsequently leads to waiting lists, which will continue to exist until sufficient transport capacity becomes available again, either as a result of upgrades to the grid or by using congestion management measures.
Deviating from the principle of ‘first come, first serve’ is possible
The principle of ‘first come, first serve’ has been laid down in the Grid Code, and is an interpretation of the (European) non-discrimination principle. This principle works well when there is sufficient capacity, but when capacity is scarce, it can lead to undesirable social outcomes. Market participants that, for example, are actually able to contribute greatly to solving congestion problems will have to wait for access to the grid.
ACM believes that scarcity in transport capacity must not stand in the way of the realization of important social goals, such as solving congestion, housing development, or health care. That is why ACM gives system operators the opportunity to deviate from the principle of ‘first come, first serve’ in areas where transport capacity is scarce, and if this is needed for achieving such goals. If system operators prioritize on the basis of objective and transparent criteria under these conditions, they act, according to ACM, in accordance with the (European) non-discrimination principle, which is thus allowed.
ACM will further discuss with the system operators about the way in which they are able to prioritize. In addition, ACM will clarify the way in which system operators are able to prioritize in the explanatory notes to the code amendment. This will offer system operators guidance when interpreting the opportunity to prioritize individual projects in connection with grid access. ACM believes it is important that system operators take active responsibility in this area, and, to that end, draw up prioritization criteria, together with local governments and ACM.