Stek victorious for distribution system operators in changing tariff regulation
Stek has successfully represented the electricity and gas distribution system operators, via their representative organisation Netbeheer Nederland, in appeal before the Administrative High Court for Trade and Industry (CBb) on the tariff regulation for the regulatory period 2022-2026. The method for this tariff regulation is contained in so-called method decisions electricity and gas of the Dutch regulatory authority for energy, the Authority for Consumers and Markets (ACM).
The appeal of Netbeheer Nederland primarily relates to the tariff regulation for the operation of the electricity grids, where large investments are necessary as a result of the energy transition. By interim judgments of 4 July 2023 CBb has quashed the method decisions and ordered ACM to take new method decisions within six months. In the new method decision electricity the ACM must make a significant change in the way it estimates the productivity development of the distribution system operators. CBb has sided with Netbeheer Nederland that the current modus operandi of ACM does not correctly take into account the effects of the investments that the distribution system operators must make to facilitate the energy transition (see judgement ECLI:NL:CBB:2023:321, paragraphs 18.4 and 18.5).
Jan Erik Janssen: “The electricity distribution system operators are faced with enormous challenges but this interim judgement is a meaningful step forward in the energy transition in the Netherlands. We are grateful for the intensive multi-year and pleasant co-operation with the regulatory people at Netbeheer Nederland and distribution system operators and hope that the new method decisions do not require further legal steps.”
Click here for the news release and the interim judgements of CBb (in Dutch).