Energie-Nederland signs sector agreement for gas transport rates

Today, Energie-Nederland signed an important sector agreement with the ACM on the distribution of gas transport tariffs. This is the result of a negotiation between Energie-Nederland and all parties involved, such as other trade organizations, Gasunie Transport Services (GTS) and the Netherlands Authority for Consumers and Markets (ACM). Energie-Nederland is satisfied with the result. The agreement provides certainty to market parties and at the same time it contributes to the security of gas supply.

The European Network Code for Harmonized Transmission Tariff Structures for Gas (NC-TAR) states that every five years a division is determined as to which users of the national GTS network must pay which tariff. A division is made between the rates gas producers and importers (entry), customers and exporters (exit) and gas storage facilities (entry/exit) must pay in the period 2025-2029. Since GTS has a turnover of approximately 1 billion euros per year, it is important to have clarity about who must pay which rate from 2025. The parties involved in addition to Energie-Nederland are VEMW, Element NL (formerly NOGEPA), LNG Shippers Association, EFET and Gas Storage Netherlands Association.

Negotiations have taken place between the various users over the past six months, with the sector deal concluded today as the end result. This agreement creates a supported distribution of the burden. This is better than a situation in which ACM makes a decision independently, because possible lawsuits could lead to adjustments later. The result is very much in line with Energie-Nederland’s negotiating position. In this way, the existing division between gas input and offtake is maintained. And under strict conditions, the injection of LNG can receive a discount on transport rates, so that at times of scarcity it becomes cheaper to inject gas into the Dutch gas network.

In addition to the distribution of gas transport rates, an agreement has also been made with GTS regarding several ongoing lawsuits. GTS gives users a discount on rates totaling 107 million euros. On the other hand, Energie-Nederland and several other industry organizations have settled three outstanding lawsuits. GTS has also promised that additional income from 2022 will certainly return to the market in the short term in the form of lower transport rates.

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