At the end of 2024, the Dutch Senate adopted the new Energy Act. This act merges the Electricity Act 1998 with the Gas Act and replaces them. The new act will enter into force on 1 January 2026. What will all this mean? Below, I will give you the important changes in a nutshell.
Background of law amendment
The modernisation of energy regulations has been a long-cherished wish. The obsolete Electricity Act stems from a time when electricity was mainly generated in large stations powered by fossil fuels. The energy transition has increased the demand for electricity enormously and generation is now increasingly done from decentralized, sustainable and renewable sources of energy. What is more, grid congestion renders regulations insufficiently compatible with reality, and EU regulations have been adopted that needed to be implemented. In short: it was time to renew the rules. The outcome is the new Energy Act.
Objectives of the Energy Act
The legislator’s primary objective with the Energy Act is to lay a solid foundation for the energy transition and for a safe, reliable and affordable energy supply.
The legislator has incorporated three themes into the act: (1) reinforcing the position of consumers, (2) future-oriented system management, and (3) data exchange.
Reinforcing position of consumers
The act contains new standards aimed at reinforcing the position of consumers. These include rules on transparent conditions and prices, the right to a timely final settlement and the option of concluding a contract based on a dynamic electricity price. Moreover, provisions have been included that protect against bad-faith suppliers. For example, the obligation for suppliers to submit a Certificate of Good Conduct periodically, and improved supervision options for the Authority for Consumers and Markets (ACM).
Future-oriented system management
The Energy Act will use the term ‘system management’ rather than grid management from now on. This is intended to distinguish clearly, when it comes to electricity, between the national grid (the grid above 110 kV) – to become a transmission system for electricity – and the regional grid (the grid below 110 kV) – to become a distribution system for electricity.
System managers are no longer obliged to realise connections immediately if no transport capacity is available. Due to grid congestion, this is an obligation impossible to comply with in practice by (the current) grid managers. Moreover, the European Court of Justice (ECLI:EU:C:2020:984, European Commission/Belgium) ruled that the substance to be given to the connection terms falls within the exclusive competence of the regulatory authority, the ACM. The law still had to be adjusted accordingly.
Besides, system managers have to be more transparent about current and expected transportation capacity and the terms within which system managers can realise a connection and supply transport. This is meant to provide customers with more certainty.
Data exchange
In the area of data and digitisation, the Energy Act introduces an entirely new framework. The establishment of an entity for data exchange by the system mangers lies at the heart of this framework. This entity will be responsible for the management and exchange of energy data between various parties. Consumers will also be given the chance to view their own data and, if desired, the option to share these data with third parties. In this approach, energy data will become available more broadly and can serve as a better basis for the energy transition.
Besides, the extension of smart metering infrastructure allows for a more accurate monitoring of energy consumption and generation. This creates a better response to fluctuations of renewable sources of energy, such as wind and solar energy. Supply and demand in the electricity grid can be attuned better and there is more room for renewable energy.
Other changes: the energy community, rate regulation, and larger role for RDI
Another big change the Act entails is the statutory embedding of new market initiatives, such as the energy community. This encourages citizens and companies to generate energy together without the intervention of traditional energy suppliers. The objective of the energy community is to relieve the electricity grid, but it also contributes towards lower costs and more autonomy for the customers and a greater deployment of renewable energy.
Besides, the Act contains new rules for rate regulation. The relevant prescriptions from the Electricity Act 1998 and the Gas Act have been combined into one framework. On that occasion many provisions were deleted, because important portions of the rate regulation fall within the exclusive competence of the ACM. To that end, the ACM will take a method decision. The Act does contain the provisions for the procedure for adopting an effective rate regulation system.
The last change discussed in this article is the role of the Dutch Authority for Digital Infrastructure (“RDI”). The Act gives the RDI a bigger role with regard to enforcement and supervision of metering devices, cyber risks, data security and identification methods.
Entry into force
In the decree implementing the Energy Act, it is expected to enter into effect on 1 January 2026. Several acts will be amended before that date already. The Electricity Act 1998 was amended on 22 February 2025 so that grid managers are only still obliged to realise a connection within a reasonable term. What is regarded as a reasonable connection term falls under the responsibility of the ACM and no longer under the statutory framework. The volume correction, which had already been abandoned earlier, has also been repealed.
On 1 July 2025, a provision in the Environment and Planning Act will enter into force that obligates companies and other legal entities to provide data on the energy consumption of consumers, if such data are necessary for the performance and enforcement of sustainability objectives.
Conclusion
The Energy Act introduces a welcome renewal of energy regulations. Everyone hopes that the Energy Act will bring the power grids some relief. In any case, the Energy Act gives suppliers, system managers and customers more tools for using the public grids in a flexible and customized way.
