The Energy Regulation and Markets Review - Stikeman Elliott

Netherlands
In addition, a model contract for the supply of electricity and gas to small-scale users
will be introduced as of 1 July 2012, which all licensed suppliers will be required to
offer in addition to any other type of contract. As of 1 April 2013 the provisions in the
Acts dealing with the ‘supplier model’ for small-scale users will enter into force. Under
this model the licensed supplier will be the primary point of contact for small-scale
users, invoicing for both distribution and supply (the network operator will invoice the
supplier).
Other than for small-scale users, the Acts do not regulate the sale of electricity or
gas. Depending on the type of contract, the Markets in Financial Instruments Directive
(MiFID) as implemented in the Dutch Act on Financial Supervision (‘the Wft’) may be
relevant. Certain types of contracts that qualify as derivatives may qualify as ‘financial
instruments’ under the Wft. If a party executes or receives and passes on orders for such
financial instruments on a regular basis, it could be construed as an ‘investment firm’ that
performs ‘investment services’ as meant in the Wft, for which activity a licence from the
Dutch Financial Markets Authority is required unless one of the Wft exemptions applies.
iv Market developments
With respect to electricity, the Netherlands has moved from an electricity importing
country to an electricity exporter. There are plans to take a total of over 14GW of
new production into operation before 2018, an increase of approximately 50 per cent
compared to the current Dutch production capacity. In the development of the northwest
European electricity market, the attractiveness of the Netherlands as a location is
increasingly emerging as a prominent factor in producers’ investment plans. Plans for a
second nuclear power plant in the Netherlands have, however, been put on hold and are
unlikely to be revived anytime soon.
With respect to gas, the Dutch policy has been to build on the Netherlands’
gas position to become a gas hub (‘gas roundabout’) for north-west Europe, inter alia
by facilitating onshore gas storage and improving cross-border transport capacity. In
addition, in 2011 the first LNG terminal in the Netherlands (Gate) came into operation.
Most gas users in the Netherlands, including all households, use low calorific gas. This
can be gas from the Groningen field or converted high calorific gas from the small
fields. The declining production from the small fields means that increasing quantities
of foreign gas are needed for the supply of low calorific gas. This will mean that the
composition of low calorific gas will change. The Minister has reached an agreement
with GTS that allows the composition of low calorific gas to remain unchanged for at
least the next 10 years to that end-users do not have to replace installations. In addition,
there are approximately 60 large-scale users that are connected to a separate network of
GTS for high calorific gas. They do have to take measures to adapt to the changing gas
composition for high calorific gas.
V
RENEWABLE ENERGY AND CONSERVATION
i Development of renewable energy
Current government policy is based on collaboration and harmonisation of renewable
energy incentives at a European level. For the short term the Dutch government is
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