ACER recommends aligning Dutch gas transmission tariffs with the network code's information requirements

ACER releases its report on the Dutch gas transmission tariffs, directed at Autoriteit Consument & Markt (ACM), the National Regulatory Authority (NRA) of the Netherlands. The report provides guidance on addressing the requirements of the Network Code on Harmonised Transmission Tariff structures (NC TAR) when defining the gas transmission reference price methodology (RPM) for the period 2025–2029.

For the new methodology, building on the previous one, ACM proposes to:

• Apply the same postage stamp RPM of the past regulatory period (2020-2024).

• Increase the discount at the storage facilities’ entry and exit points.

• Introduce a discount at Liquified Natural Gas (LNG) facilities’ entry points.

What does ACER say?

ACER identified several elements (required by the NC TAR) that are not adequately addressed in the consultation process established by ACM. Consequently, it is not possible to conduct a complete assessment on whether the methodology resulting from this process complies with the network code.

To address these concerns, ACER recommends ACM to:

• Compare the proposed RPM with the capacity weighted distance methodology, that reflects the current network characteristics and utilisation, and consider these findings when justifying the RPM.

• Publish a representation of the networks' structure, including the relevant infrastructure changes compared to the previous motivated decision.

• Enhance future tariffs predictability by incorporating forecasts of contracted capacity for 2025–2029, along with the methodology and assumptions used for their calculation.

• Include a cost allocation assessment comparing different scenarios (with or without the storage and LNG discounts) for the relevant regulatory period.

• Further justify the reasoning for the proposed discount at LNG entry points, clearly distinguishing the role of the discount as a means to increase security of supply.

What are the next steps?

By 14 July 2024, ACM shall adopt a motivated decision on the new gas tariff methodology to be applied to the Dutch transmission network, taking into account ACER’s recommendations.

Access the report.

Access all ACER reports on national tariff consultation documents.