Market dynamics
Article 19 of 20 · Energy markets and market dynamicsRole of the ACM in the energy market: a guide for businesses
Direct answer
The ACM (Authority for Consumers and Markets) is the independent regulator of the Dutch energy market. The ACM sets the maximum tariffs of the grid operators, grants and monitors the licences of energy suppliers, draws up and enforces the market rules (energy codes). In this way the ACM protects customers against abuse of market power and safeguards fair competition.
- Clear definition
- Data-driven assessment
- Risks and opportunities visible
- Practical next steps
Role of the ACM in the energy market: scattered information versus Energy Intelligence
Electricity and gas reach you through a grid operator that you do not choose and that is the only one in its region. Without a counterweight, such a party could dictate the price. That is why there is independent supervision. Picture a business owner who distrusts a grid invoice or is in conflict over a connection. That owner needs a body that guards the rules and checks the tariffs. In the Netherlands that body is the ACM.
- The ACM sets the maximum transport and connection tariffs of the grid operators each year, because grid management is a monopoly and customers cannot switch.
- The ACM grants licences to energy suppliers, checks that they meet strict requirements and can withdraw a licence again.
- If you have a dispute with your grid operator, you can apply to the ACM for dispute settlement; offenders risk a fine.
Insight
Traditional approach
Information is scattered across portals, documents, invoices or separate spreadsheets.
Modern approach
Data, context and interpretation are brought together into a clear decision picture.
Decision-making
Traditional approach
Choices are made based on averages, assumptions or occasional analyses.
Modern approach
Scenarios, KPIs and current measurement data make the trade-off more concrete and repeatable.
Follow-up
Traditional approach
Actions often stay non-committal or disappear into separate reports.
Modern approach
Follow-up actions, monitoring and reporting are linked to the same energy data.
What does the ACM do in the energy market?
The ACM checks whether energy companies comply with the laws and rules for the energy market and steps in when they do not. It draws up part of those rules itself: the energy codes, additional market rules that apply to grid operators, suppliers and users of gas and electricity. The ACM also grants licences to energy suppliers and can withdraw them again. In addition, the ACM protects customers: it explains their main rights and helps households through the ConsuWijzer desk. Its supervision is independent, so that market parties and the government cannot influence it. That is the core: fair competition where it can exist, and protection where competition is absent.
- The ACM draws up the energy codes itself: the additional rules for the market.
- The ACM grants licences to suppliers and can withdraw them.
- The ACM protects customers and explains their rights, with a separate desk for consumers.
- For breaches, the ACM can impose high fines or otherwise intervene.
Why is independent tariff supervision needed?
A grid operator is a natural monopoly. In a given area there is only one grid, and it is not efficient to build a second one alongside it. So you cannot switch to another grid operator, as you can with a supplier. Without supervision, that monopolist could push up the tariffs. That is why the ACM sets the maximum transport and connection tariffs each year. It does so through method decisions, in which the ACM determines for several years how the tariffs are calculated, and through annual tariff decisions based on a proposal from the grid operator. The ACM bases the allowed revenues on reasonable and efficient costs. This way you pay no more than necessary, while the grid operator retains enough to maintain and reinforce the grid.
- Grid management is a natural monopoly: there is one grid and you cannot switch.
- The ACM sets the maximum transport and connection tariffs each year.
- Method decisions determine for several years how the tariffs are calculated.
- The allowed revenues are based on reasonable and efficient costs.
What does your business gain from the ACM?
The ACM offers you three kinds of assurance. First, tariff supervision: the grid operator may not charge more than the ACM has set, so your transport and connection costs are capped. Second, a complaint route: if you cannot reach a solution with your grid operator, you can apply to the ACM for grid dispute settlement. Third, protection of the market: because the ACM monitors licences and enforces the codes, the same rules apply to every player. Small business customers, such as the self-employed and micro-enterprises, also fall under extra protection, comparable to that of households. If you suspect a company is breaking the rules, you can report it to the ACM.
- Your transport and connection costs are capped by the tariffs set by the ACM.
- For a dispute with your grid operator, you apply to the ACM for dispute settlement.
- Small business customers receive extra protection, just like households.
- Suspected breaches can be submitted to the ACM as a tip or report.
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