DTe: Binding Instructions Issued to Three Grid Managers

The Office for Energy Regulation (DTe) has issued binding instructions to three electricity grid managers. DTe decided to do so after receiving a complaint from the company, ANY-G, that the grid managers did not handle the transfer of customers to a different energy supplier, so-called 'switching', correctly or in a timely manner. On the basis of regulations, pursuant to the Electricity Act of 1998 (the Grid Code), the grid managers are obliged to respond to an application to switch suppliers within one working day.

The grid managers—N.V. Continuon Netbeheer, Nuon's grid company, Essent Netwerk Noord B.V., which belongs to Essent, and ENET Eindhoven B.V., which belongs to NRE—are required to provide DTe with data within three months with regard to, for instance, the time taken to process applications, the number of applications that are rejected and the reason that applications to switch by ANY-G are rejected. On the basis of these data, DTe will check whether the companies are adhering to the applicable requirements and terms. If this is not the case, DTe will issue a further binding instruction, in addition to an order subject to a penalty.

Large and medium-sized companies have been free to choose their own supplier of electricity since 1 August 1998 and 1 January 2002 respectively within the framework of the liberalisation of the energy market. Buyers of green electricity have been free to choose a different electricity supplier since 1 July 2001. On 1 January 2004, all consumers will be free to choose their own energy supplier. Since DTe expects a large number of consumers to switch suppliers, adequate administrative processing is of major importance. Since the beginning of this year, DTe has regularly received reports that difficulties have been experienced in switching suppliers. Following complaints from ANY-G about the respective grid managers in relation to switching, DTe carried out further research. In the coming period, together with the Ministry of Economic Affairs, DTe will respond to serious complaints from consumers in relation to switching. Furthermore DTe will closely monitor preparations by the sector for the opening of the market on 1 January 2004.

In relation to the opening of the market, on 27 November 2002 DTe took a number of decisions amending the technical codes. These decisions have prepared the technical codes for the opening of the market to consumers and have given grid managers and suppliers ample time to prepare their systems for this. One amendment to the codes is necessary for the 'Supplier of Last Resort' scheme. Since to date the grid managers have not submitted joint proposals in this regard to DTe, DTe can no longer guarantee that this amendment to the code will be implemented in time. At present, the Platform for the Acceleration of Energy Liberalisation [Platform Versnelling Energieliberalisering (PVE)] is hard at work preparing the final schemes in relation to, for instance, switching gas suppliers.