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Liberalization in the Netherlands
The liberalization of the natural gas market by the European Union brought a new challenge for the member states: a gradual conversion of European guidelines into national law. The goal is to create an open, competitive and more efficient European market. For the Netherlands this meant breaking up the familiar Gasunie monopoly. The natural gas network now resides under infrastructure company Gasunie (Gas Transport Services) and independent supply company GasTerra is now in charge of all commercial activities. Furthermore, since 2002, the major industries have been free to choose other suppliers e.g. Distrigas. Trade fairs are organized where the interested parties can conclude gas contracts anonymously via the exchange (APX, Zeebrugge, TTF). The TTF (Title Transfer Facility) is the trade platform for GTS (Gas Transport Services B.V., a 100% daughter of gas infrastructure company Gasunie).
Principles
The liberalization of the European natural gas market signified a revolutionary change intended to create free competition. Liberalization has proceeded gradually starting with the directive of 22 June 1998. As the initial situation was different in every EU member state, they all followed a different path to the liberalized gas market. In the case of the Netherlands, ending the Gasunie monopoly was a decisive breakthrough. Furthermore, there is also the emergence of other gas trading companies such as Distrigas, other (inter)national energy producing and distribution companies as well as financial players in Holland.
Why reform?
The liberalization of the gas market is part of a comprehensive approach designed to encourage free competition on energy production and sales market to allow the emergence of a more efficient single European market. It requires the legal separation of the gas production, transmission, distribution and sales businesses. On the liberalized market, customers can freely choose the energy supplier they want: this implies the presence of multiple suppliers using the same transmission and distribution networks.
In the Netherlands

Ever since the discovery of the natural gas field at Slochteren, Groningen, the state-owned monopoly Gasunie has administered the supply of gas. Even on a European level, Gasunie was a major player covering some 20% of European demand. For a long time the upcoming liberalization met with fierce opposition, but eventually the company, the Dutch government and oil companies Shell and Exxon decided to divide the company into two separate entities. Liberalization should guarantee improved quality, service and relatively lower costs for the customer. This means that, in order to keep their customers, suppliers will have to make an extra effort.

Since 1 January 2002, all large-scale consumers have been free to choose their own gas supplier. Energy regulator DTe feels the bargaining position of these large-scale consumers is sufficiently strong, which is why DTe no longer regulates tariffs in this market segment. They regard a change of supplier as a rational and professional purchase process. A customer becomes a large-scale consumer when his consumption surpasses 170,000 m³.

Since 1 July 2004, small consumers are also free to choose a supplier. Every customer consuming less than 170,000 m³ falls under the 'small consumer' category. Energy regulator DTe sees to it that energy suppliers respect the rules, thereby protecting the consumer. Small consumers are often very hesitant when it comes to switching suppliers.


By 1 July 2004, the Dutch gas market was fully liberalized.