Netherlands:
Negative X-Factor Is Allowed Under Certain Circumstances
16 April 2014
De Brauw Blackstone Westbroek N.V.
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The Authority for Consumers and Markets (ACM) annually sets the
tariffs that grid managers may charge. This is to prevent grid
managers from abusing their monopoly by applying high rates or
working ineffectively. Every 3 to 5 years an efficiency target is
set, the so-called "x-factor", for each grid manager. The
Trade and Industry Tribunal (CBb) recently decided that this x-factor may also be
negative as a result of which the tariffs will increase. This could
be the case, for example, if the efficient costs rise due to
investments made by the grid manager. The decisions of the CBb
avoid the situation that grid managers would not be able to earn
back these investments through their tariffs.
The content of this article is intended to provide a general
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about your specific circumstances.
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