Can a distribution system operator prohibit the installation of solar panels that are intended to produce electricity that is consumed behind the meter or must the system operator grant permission? The ACM answered this question in a recent ruling.
Parties who have a dispute with the system operator on how the system operator exercises its duties and powers under the Electricity Act 1998 ("Electricity Act") can submit such a dispute to the Authority for Consumers and Markets ("ACM"). In this blog post, we discuss such a ruling by the ACM.
The case of Primera vs Liander
This case revolves around the following. Coöperatie Primera B.A. ("Primera") has a large grid connection at its office building in Waardenburg and it wants to install solar panels on that office. The electricity generated is for Primera's own consumption.
On 17 June 2021, Primera informed Liander N.V. ("Liander"), the distribution system operator, about the proposed installation of solar panels. In doing so, it specified a generation and feed-in capacity of 45 kW. On 2 July 2021, Liander informed that the system could not handle that additional electricity. Ten days later, Primera indicated that it will only generate for its own consumption and will not feed electricity into the system. It asked Liander whether its PV-installation can be commissioned. Liander responded on 13 July 2021 with the message that both generation and feed-in are not possible on the connection in question and that the PV-installation cannot be commissioned. A very long time later, on 22 November 2022, Liander sends an explanation to Primera stating that any installation on Liander's system is potentially dangerous.
Again some time later, on 16 June 2023, Primera took the position that Liander cannot prohibit the installation of solar panels at all. Primera also proposed a technical solution and asked Liander to confirm that it can commission its solar panels. On 11 August 2023, Liander stated that it does not see any technical solutions and cannot confirm that Primera is allowed to commission the solar panels.
Positions of the parties
Primera argues that Liander is wrong not to give permission to install the solar panels with the purpose of electricity production and consumption behind the meter. Among other things, it refers to Art. 26a (which stipulates that the general terms and conditions of system operators must be reasonable), Art. 23 (the obligation to connect) and Art. 24 of the Electricity Act (the obligation to transport).
Liander argues, insofar as relevant here, that it has no authority at all to prohibit the installation of solar panels for the intended purpose, nor that it has done so. According to Liander, it has only pointed out to Primera that the latter has an own responsibility to ensure that the short-circuit capacity is not exceeded. Liander argues that it also has no legal obligation to approve or disapprove everything that goes on behind a connected party's connection.
The ACM's assessment
Insofar as relevant here, the ACM rules that there is no statutory provision under which Liander could or should prohibit a connected party from installing solar panels with the purpose of producing and consuming electricity behind the meter. The ACM also finds that there is no statutory provision in the Electricity Act on the basis of which Liander should grant permission to Primera to install solar panels for the intended purpose. Primera's complaint that Liander wrongly failed to grant permission is therefore declared unfounded.
The ACM also ruled that Liander's general terms and conditions are not unreasonable, as these terms and conditions correspond in substance to Art. 2.15 of the Electricity grid code, which stipulates that an electrical installation and the appliances connected to it must not cause any impermissible nuisance through the system operator's network. The complaints under Arts. 23 and 24 of the Electricity Act are also declared unfounded.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.