News item | 12-06-2023 | 11:15
Better protection of Dutch energy consumers, more flexible use of the electricity grid and better organization of secure data exchange between network operators, energy companies and customers: these are some of the most important goals of the new Energy Act. The new law lays the foundation for important changes in the energy system of the Netherlands that will help to combat climate change and become less dependent on fossil fuel imports. In addition, it offers consumers, social institutions and companies more opportunities to actively participate in the energy market.
Minister Jett: “The Netherlands is turning the knob: from the way we generate our energy to the way we heat our house. This not only requires a major renovation of our energy system, but also new legislation that fits in with that new energy system. This new law makes the necessary acceleration of the energy transition possible. I therefore hope that parliament can deal with the bill quickly.”
Energy transition: accelerating
The new Energy Act replaces and modernizes the current Gas Act and Electricity Act 1998 and determines the rules for changes in the electricity and gas market and the energy system. The new law clarifies and simplifies existing rules and removes unnecessary differences between rules for gas and electricity. This is important to accelerate the energy transition. In recent years, many stakeholders from the energy sector and beyond have actively contributed to this bill, which also includes the elaboration of a number of agreements from the Climate Agreement.
Energy goals: more rights, more options
The new Energy Act offers more rights and protection to households, the self-employed and small businesses, among others. For example, in the field of transparent conditions and better protection in the event of cancellation and billing of energy contracts. The law also tightens up the requirements that energy suppliers must meet. In addition, grid managers will be given more opportunities to tackle problems with the full electricity grid by being able to make smarter use of the existing space on the grid. The law also sets new rules for exchanging data, making it easier for households and companies to view or share their own data with a service provider such as a price comparison site or energy consumption manager. Finally, the law creates new opportunities for people and companies to become active in the energy market themselves, for example through energy communities that sell and supply the electricity produced by members.
Advice: Council of State
The Council of State has previously issued an opinion on the bill. Minister Jetten is grateful to the Council for the extensive advice on the basis of which the (explanatory notes to the) law have been improved and clarified. The various points of advice have largely been followed, but not all. In the letter to the House of Representatives, the minister explains why the government has not adopted all aspects of the advice. The Council has advised, among other things, to implement the Electricity Directive through a separate bill and to refrain from merging the Electricity Act and the Gas Act into one act at this time.
The most important consideration for the government in sticking to one law is the importance of not further delaying legislation necessary for the energy transition and, moreover, to be able to respond immediately to important current developments in the energy domain (such as high energy prices, bankruptcies of suppliers, grid congestion and judgments of the European Court of Justice). In addition, the current Electricity Act 1998 and Gas Act are outdated and in need of modernisation. The developments that influence the energy transition are changing at a rapid pace. There is also a lot of European regulation on the way. This makes it all the more important to have a solid basis for coherent energy legislation and regulations. This new Energy Act lays this solid foundation.