Dutch grid administrators:
Administrative cornerstone
in the market
PVE
dr. G.J. Zijlstra
Programm manager Platform
Energy Liberalization
CIRED 2003, Barcelona 15 May
Impact of deregulation on the Electricity distribution business
Dutch electricity supply
10 grid operators/administrators
7.5 mln. connected customers
TSO: TenneT
PVE
Dutch gas supply
12 grid operators/administrators
6.8 mln. connected customers
TSO: GasTransport Services
(GTS)
PVE
Liberalization of Electricity and Gas
market
1999
Very large
customers
> 10 mln. M3
> 2 MW
2002
Large customers
> 1 mln. m3
> 3x80 Amp
2004
Consumers and
small business
7.5 mln
Electricity
650
60.000
Gas
200
2.000
Green market:
1-7-2001 (1.5 mln.)
6.8 mln.
PVE
June 2000 start of Platform Energyliberalisation (PVE)
Platform
Government (Ministry of Economic Affairs)
TSO electricity (TenneT)
TSO gas (Gasunie)
Associations of Energy companies (EnergieNed and VOEG)
Representative organisations of customers (VNO, MKB, LTO)
Agreement
Market forum
Customer organisations
Suppliers organisations
Producers
organisations
Grid operators
Programm team
Working
committees
Organisation
Proposals
Consultation
Company programm managers
Implementation
PVE
Operating conditions for making the
“rules of the game”
 Electricity Law 1998: regulated T.P.A.; Gas Law 2000: negociated
T.P.A.
 Little focus with energy companies on market “rules of the
game”
- Mergers
- Separation grid operation from energy company
 Changing political priorities from “market solves all problems” to
“market generates problems”
A Platform Agreement is a gentleman’s agreement between
government, suppliers, grid operators and customers.
Provisions of the agreements are implemented in law
making, codes and contracts by the partners
PVE
Products of Platform
 Green electricitymarket
- green certificate system
- phasing of the market (open 1-7-2001)
- preliminary market procedures (administration)
 Retailmarket gas and elektricity
- retail model
- supplier switch procedure
- customer home moving procedure
- profiles and reconciliation systems
- supplier of last resort
 Wholesale market gas
- allocation of gas volumes
 Free meteringmarket (per 1-8-2002)
- Metering Code Elektricity
- Metering Code Gas
PVE
Principals for Platform
 The market operations should be effective, clear and low
costs (common standards and automation of procedures)
 Supplier is the main player for the customer in the energy
market
 No barriers to switch
 Respecting the difference between monopoly (grid
operators) and market (suppliers/metering companies)
 The commercial proces should not influence the security of
supply
 Simular procedures for the gas and elektricity market
 The grid operator is the administrative cornerstone
PVE
Roles in the market
Customer
?
- choses supplier
- choses metering company
- supplies metering services
- supplies metering data
- supplies energy
?
?
Metering company
Supplier
Grid operator
?
- supplies transports
- registers
- physical security of supply
PVE
Structure Dutch electricity market
P/I
I
National grid
I
Tc
Ec + PRc
PRc
TenneT
PR
Ec + PRc
I
I
Regional grid
RGO
RS
I
Tc +
Cc
Cc
PRc
Tc
Ec
I
I
Ec
= Connection contract
CUSTOMER
= PR contract
= transport contract
= energy contract
= information to determine
energysupplie and
unbalancing
Tennet
RGO
RS
P/I
PR
=
=
=
=
=
System operator/national grid
regional grid operator
retail supplier
production or import
Programma responsible party
PVE
Structure Dutch gas market
P/I
I
National grid
E
GTS
Tc
shipper
SA
E (Tc)
I
I
Regional grid
RGO
RS
I
Cc +
Tc
I
E (Tc)
Cc
SA
Tc
Ec
I
CUSTOMER
= Connection contract
= system agreement
= transport contract
= energy contract
= information to determine energy
supplie and unbalancing
(Tc) = including national transport costs
GTS
RGO
RS
P/I
=
=
=
=
system operator/national grid
regional grid operator
retail supplier
production or import
PVE
The grid connection is a crucial
transaction point
Registration
 Unique connection number
 Customer
 Supplier
 Programm responsible party or shipper
 Metering company
 Metering data
 Transport capacity
Regional grid administrator has a central registration role:
he “owns” the connection register
PVE
Supplier model retailmarket
Supplier is the main player for customer in the energymarket
PVE
Switching of supplier
1)
2)
3)
4)
Customer signs a contract with supplier
New supplier informs grid operator
Grid operator checks data and registers
Grid operator informs old and new supplier, PR/shipper
and metering company of the switch
 No charge for the customer
 Easy to initiate by the customer
 Short leadtime
Regional grid operator/administrator checks, registers
and informs
PVE
Profiles and reconciliation
 Profiles are necessary for the determination and allocation
of supplied volumes
 Reconciliation is important as a correction proces on the
volumes determined through profiles
Regional grid operator/administrator calculates the
supplied volumes and informs supplier (billing) and
system operator (balance control)
PVE
Supplier of last resort
 The failure of a supplier to fullfill the programm
responsibility or shipper contract triggers the proces
 Central role for the system operators
 Supplier choice for the customer
 Minimal societal and customer costs
Regional grid operator/administrator implements the
required administrative changes (connection register)
and informs the supplier of last resort
PVE
Implementation
 Translating procedures in IT-processes and IT-messages
 Implementing and changing IT-processes
* New systems for profiles, reconciliation,
and allocation
* New system for connectionsregister
* Changing systems to implement new procedures
 Design and implementation of IT-messages
* language: Edine - Edigas
* connections and servers
* testing
 Changing working procedures
 Changing organizational structures
 Updating datafiles
PVE
Simplified handling of metering data (gas)
Customer
Metering
company
Supplies
metervalues
Reads meter
and transmits
data
Recieves
metervalues,
caloric volume
and bill
Retail
supplier
Receives
metervalues
Recieves
caloric
volumes
Determines
bill
Grid operator
GTS
Recieves
metervalues
Supplies caloric
data per
grid area
Recieves
caloric data
Determines
caloric volumes
per shipper/
supplier
Shipper
Makes forecast
Receives caloric
volumes
Receives
unbalance
Receives caloric
volumes
per shipper
Receives
forecasts
per shipper
Determines
unbalance
per shipper
PVE
Lessons learned






Unnecessary differences in regulations for electricity and gas
lead to complex procedures and delay
Unclear lawmaking leads to confusion and delay
(meteringmarket and position of supplier)
A convergence of actions at the same time lead to uncertaincy
and mistakes (opening energymarket and meteringmarket and
adjusting of metering)
A lack of awareness for the central role of procedures in the
market leads to a lack of commitment and capacity reservation
The souvereign will of the people is difficult to match with the
requirements of procesmanagement
Stick to your principles, stick to your time schedule,
communicate and gain commitment
PVE