Energy legislation
The energy industry is subject to specific energy laws. In addition to EU Directives and Regulations, Dutch laws apply too: the Dutch Electricity Act 1998, the Dutch Gas Act, the Dutch Independent Grid Administration Act, and, in the near future, the Heat Act. Furthermore, secondary legislation also applies.
Dutch Electricity Act 1998
The Dutch Electricity Act 1998 is a cornerstone of the free-market system in the energy industry. As a result of this act, various providers and suppliers became able to offer power. Consumers can now choose their provider themselves. The energy industry is divided into two parts: one is the networks that are managed by network operators, while the other is the energy companies that provide power.
Dutch Gas Act
The Dutch Gas Act dates back to 2000. The Dutch Gas Act made it possible that multiple suppliers of natural gas are active on the market. The act has been gradually introduced in several phases. The act was amended in 2004 because of European directives, as the European Directive 2003/55/EC was incorporated. The act continues to evolve, as amendments to the Dutch Gas Act came into effect on April 1, 2011, which are aimed at strengthening the functioning of the gas market, and at improving security of supply.
Dutch Independent Grid Administration Act
The Dutch Independent Grid Administration Act states that network operators cannot engage in any other activities (commercial or non-commercial) other than electricity and gas network management. Network management has been separated from electricity and gas production and supply to make sure that the networks and management thereof are of high quality.
Heat Act
The Heat Act will offer protection to small-scale consumers that are connected to a heat network. First, this is because the government must ensure availability of essential necessities to households, and heat is one of them. Second, these heat consumers are completely dependent on their heat supplier. They are unable to switch heat suppliers, nor to switch to natural gas. The Heat Act will make sure that consumers do not pay too high a price for their heat, and that heat suppliers offer high quality.
The Heat Act will regulate the price of heat supply. Once the Heat Act comes into force, the NMa will annually set the maximum price that heat consumers will pay. This price is equal to the price that consumers would have paid if they had individual central heating (gas-fired). Thanks to this price cap, heat consumers will never pay more than gas consumers.
At this time, the Heat Act and its secondary legislation have not come into force yet. The amendments to the original bill have been submitted to the Dutch Council of State, which has been asked for advice. As soon as the final regulations have been set, a notice thereof will be put up on this website.
See also
