FAQs
- 1. Who is affected by the liberalization of the gas market?
- 2. What did liberalization really change?
- 3. How is total energy price calculated in a liberalized market?
- 4. Who does what in the liberalized energy market?
- 5. Who do you have to sign a contract with?
- 6. What powers does the DTe have?
- 7. I would like to have multiple sites supplied by a single supplier. Is this possible?
1. Who is affected by the liberalization of the gas market?
Since 1 July 2004, both large-scale and small consumers are completely free to choose their own gas supplier.
Top2. What did liberalization really change?
Several suppliers are now active on the market (traders and producers) who use the same transmission and distribution networks.
You sign a contract with the supplier of your choice. An energy regulator (DTe) guards that freedom of choice and its aim is to remove factors that have a restrictive effect on the market. In short, the gas market has become much more complex, but also offers more opportunities to conclude advantageous gas contracts. Contact Distrigas and sit down with our experts to explore your possibilities: contact.netherlands@distrigas.eu or call +32 (0) 2-557 30 01
Top3. How is total energy price calculated in a liberalized market?
Several components influence the total energy price:
The commodity price. This is the price of the fuel itself expressed in cubic metres per time unit. This price mainly depends on the price of oil. In other words, increasing oil prices are sufficient reason to bump up the gas price as well. A recent development are the so-called gas-to-gas prices, where the price is based solely on the cost of production and the scarcity of the fuel in question. Negotiations only pertain to this particular price component.
The transmission tariff is billed to your supplier by the transmission system operator (the Gasunie's Gas Transport Services) and these fees are then transparently charged to you by your supplier (e.g. Distrigas). Every year, the DTe determines the maximum tariffs for transmission, both for the local gas system operator and the regional distribution networks. For the local transmission system operator, the Council also proposes tariffs for peak delivery and storage for flexibility services.
Top4. Who does what in the liberalized energy market?
- Extraction: in Slochteren and a number of smaller gas fields by the NAM (Dutch Petroleum Company).
- Suppliers: In the past GasTerra (previously Gasunie) has always been the leading supplier, but the market share of new providers such as Distrigas is growing.
- Transmission and distribution companies: The Gasunie's Gas Transport Services and the regional distribution network companies for Essent, Nuon, Eneco and others.
- Traders and brokers: Commercial parties acting as mediators between supply and demand. Brokers do so without first purchasing the gas themselves.
- Spot markets: virtual meeting points between supply and demand. The spot market is the neutral link in a broad range of supply contracts.
- Regulatory authorities and regulators: In the Netherlands, the Ministries of Economic Affairs and VROM (Ministry of Housing, Spatial Planning and the Enviroment), but also the EU, determine the rules for the gas market. The NMa (Dutch competition authority) and the DTe ensure the unhindered functioning of them.
5. Who do you have to sign a contract with?
Supply contracts are almost always concluded with your supplier. The supplier then arranges with the various gas transmission network operators to have the purchased amount of natural gas delivered to your termination point. The supplier does this by purchasing network capacity during the agreed delivery periods. The cost of transmission and distribution is charged to you.
Top6. What powers does the DTe have?
The task of the DTe is to make sure that the energy markets operate with maximum efficiency. The DTe is responsible for:
- providing unimpeded network access,
- guaranteeing sufficient availability of essential market information (transparency) and
- providing consumer protection against the possible abuse by the providers of their (inherent) dominant position.
The regulator tries to achieve these goals by helping to create circumstances that will enable the market to operate efficiently and by making sure consumer interests are sufficiently respected.
Top7. I would like to have multiple sites supplied by a single supplier. Is this possible?
Yes, this is an important aspect of Distrigas' customer-oriented service.
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