Energy regulation
The energy industry is a special industry in Europe. There are segments in the industry where there is no competition. In the Netherlands, since 2004, you are able to choose what company you buy your electricity or gas from, so what supplier supplies your energy. But you are not able to choose what company transports the energy to your home, so what network operator takes care of your energy transport. The NMa regulates the network operators. This is to make sure that you still pay a reasonable price, and that transport is well organized. In addition, we regulate the suppliers. That way, we promote a competitive environment, while protecting consumers.
The companies that we regulate
The companies that we regulate are the so-called regulated parties. These include the electricity and gas network operators, and the electricity and gas suppliers.
The role of the Office of Energy Regulation with regard to suppliers
With regard to energy supply, the NMa stimulates competition as much as possible. The NMa assesses whether procedures run smoothly. We monitor if you get your invoices from your energy supplier on time, as well as whether those invoices are correct and understandable. In addition, the NMa checks whether the complaint-handling procedures of energy companies are in order. And we check whether it is not too complicated for consumers to switch energy suppliers, and whether the tariff and conditions to do so are reasonable. All of these requirements are attached to a so-called supply license. A company is only allowed to supply energy if the NMa has granted the company such a license.
The role of the Office of Energy Regulation with regard to network operators
The companies that operate the electricity cables and gas pipes (the network operators) have no competitors. It would be much too expensive to construct two or more networks next to one another. Network operators have a so-called natural monopoly. The NMa regulates the network operators to ensure that transport quality is good, and that consumers pay a reasonable price.
We set the tariffs that network operators are allowed to charge for transporting electricity and gas, and for connecting businesses and consumers to the network. The tariffs must have such a level that it is possible for the network operator to make a reasonable return, yet is still stimulated to operate more efficiently still. In addition, we see to it that suppliers invest enough in network quality, so that energy supply in the Netherlands continues to be safeguarded. The NMa advises the Minister of Economic Affairs, Agriculture and Innovation on policies in this industry.
Obligation of providing information to the Office of Energy Regulation
Network operators are required to submit once every two years so-called quality and capacity documents (QCDs) to the NMa. In these QCDs, network operators are required, among other things, to report on their performance regarding the quality and capacity of their networks. In addition, they are required to state what actions they will take to maintain their networks’ quality and capacity. Furthermore, the NMa sends out information requests about annual quality levels and characteristics of the networks, which includes information about their networks’ age and composition type. We also request financial data, such as about the network operators’ debt and equity, and cost data. We use that information to determine how efficiently they are operating.
Disputes
Consumers or businesses may have complaints about their network operators, for example, about the information provided by the network operators, or about the connection tariffs. In such cases, the NMa may be able to mediate.
