Lower tariffs for gas transport as a result of ACM method decision

Groningen | press release

Today, the Netherlands Authority for Consumers & Markets (ACM) published on its website the method and x-factor decision for the national gas transport network operator, Gasunie Transport Services (GTS). The method decision sets out the regulatory framework which determines the allowed revenues for GTS in the period 2017-2021. The x-factor decision gives the annual productivity growth factor that GTS must apply to its tariffs towards efficient operations.

As a result of the method decision, the GTS tariffs will be lowered. Over the next five years the annual revenues will gradually fall by a total amount of € 200 million. In addition, the method decision will result in a one-off depreciation of the GTS network of € 450 million.

The method decision was established after a process in which ACM, GTS and various representative bodies of energy producers and large corporate energy consumers discussed their views and positions. This has led to an agreement between all parties on the main elements of the method decision. As a result, all parties concerned agreed to forego their right to appeal on these elements. Thereby, the agreement offers clarity for GTS customers on the tariffs and for GTS on its allowed revenues. In addition to certainty, it offers all parties concerned the required scope to focus on the challenges of tomorrow’s energy supply.

On the basis of the method decision, GTS will shortly develop a tariff proposal. The new tariffs are expected to come into effect on 1 July 2017. Until then, the tariffs of 2016 will continue to apply. The tariff proposal for 2017 will take into account the revenues received by GTS in the first half of the year.

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