ACM: no obstacles in sustainable-energy experiments if consumers are protected
Over the next few years, consumers will be faced more and more often with pilot projects that test new sustainable sources of energy in real-life situations. One such example is the use of hydrogen for heating homes. The Netherlands Authority for Consumers and Markets (ACM) believes it is important that experience is gained from the use of hydrogen. That is why ACM wishes to make these kinds of experiments possible. At the same time, ACM finds it important that consumer interests, including safety, are well protected and are statutorily safeguarded. Since system operators play a major role in hydrogen experiments, ACM is calling on the Dutch Ministry of Economic Affairs and Climate Policy (EZK) to create a statutory framework for that role.
ACM makes this call to the ministry in this year’s edition of InSight (in Dutch: Het Signaal 2021), which it has presented to the Ministry of EZK, and published on 3 June 2021. Each year, ACM publishes InSight, often containing a call to create new legislation or amend existing legislation.
Manon Leijten, Member of the Board of ACM, adds: “Experiments can play a key role in making the energy transition possible. ACM wishes to create room for such experiments. This will need to take place within a well-defined framework, so that consumer interests and safety are properly safeguarded. ACM wishes to draw up that framework for experiments, together with other market participants involved. At the same time, we are calling on the Ministry of EZK to speed up the legislative process regarding relevant legislation so that the proper statutory rules are in place, safeguarding consumer interests and the role of system operators in experiments.”
The interests of residents
The use of hydrogen in built-up areas is currently still in its infancy. In this year’s edition of InSight, ACM notes that the interests of residents in districts or buildings where experiments are held with hydrogen as a replacement for natural gas are not yet statutorily safeguarded. That means that ACM is currently unable to oversee such experiments, and is unable to take action if, for example, the security of supply is not sufficiently ensured. In addition, the legislature has not designated a regulator for safety issues regarding the supply of hydrogen to consumers. That is why ACM is calling on the Ministry of EZK to create regulations that safeguard consumer interests in hydrogen experiments, including safety, and to designate a regulator for safety issues. The Dutch State Supervision of Mines (SodM) and the Human Environment and Transport Inspectorate (ILT) already have specific expertise in safe natural-gas transmission in built-up areas and in high-pressure hydrogen transmission.
Role of system operators
ACM notes that system operators are currently statutorily not allowed to take part in these kinds of experiments. System operators are only allowed to perform their statutory duties (operation of the power grids and gas networks). At this point, the transmission of hydrogen does not fall under these duties. This can pose a problem because the knowledge and experience of system operators can be vital in these kinds of experiments. ACM is therefore calling on the Ministry of EZK to create a statutory framework for the role of system operators. Since it is important for the energy transition that experiments can go on in the meantime, ACM, together with other market participants involved, wishes to flesh out pre-conditions for such experiments.