Dutch TSO Tariffs Rise to Offset Drop in Volume

Dutch markets regulator ACM is proposing gas transportation tariffs that are on average 17% higher next year to reflect the lower volume of gas that Gas Transport Services (GTS) will be shipping, said the major energy and utilities body VEMW March 8. ACM is expected to publish a final decision in May.

The increase is also a reward for GTS for exceeding the benchmark for efficiency set by a basket of rival transmission system operators, and also recognises that as the Netherlands reduces its gas use, GTS will have less volume on which to recover its costs and brings forward the recovery time. The closure of the Groningen field and the reduction of gas from the small offshore fields also impact its earnings.

As its turnover is regulated, GTS has to be compensated or penalised for any under or over recovery of its costs. "These rates are based on the permitted turnover according to the new Method Decision 2022-2026 and the distribution of those costs over the booked transport capacities," VEMW said. 

For end users with a connection to the national gas transport network, the increase at the exit point is more than 12% and the all-in tariff will be €2.571/MWh/hr/yr, compared with this year's €2.2902.

Costs cover entry and exit transmission capacity, the connection service, quality conversion and network balancing. The permitted turnover of GTS will increase by 9% from €861mn ($1bn) this year to €929mn next year. GTS expects a moderated tariff increase for the exit points of about 4%/year for the period 2023-2026, said VEMW.