The Committee for Climate and Green Growth is currently preparing for the consideration of the Collective Heat Act (Wcw). Therefore, on Thursday, October 17, the committee held a round table discussion with various market players and organizations to hear their views on the legislative proposal. Energy Netherlands submitted a Position Paper in which we share our vision on the organization of heat companies in the Netherlands. Summary To facilitate the acceleration of the heat transition, Energy Netherlands believes it is important that the following five points of attention receive priority:
- Ensure the affordability of heat; this is crucial for support.
- Ensure the affordability of heat; this is crucial for support.
- Mandatory public majority ownership is contrary to EU law, delays the transition, and may make it more expensive.
- Reduce the administrative burdens for municipalities, companies, and the Netherlands Authority for Consumers and Markets (ACM).
- Sustainability by heat company instead of by heat plot improves affordability.
Households at the Center
The primary principle for Energy Netherlands is that households are at the center. The focus should be on ensuring affordable, reliable, and sustainable heat supplies. A mandatory public majority ownership could jeopardize this goal by disrupting market dynamics and increasing the likelihood of higher costs for the end user.
Different Parties Are Needed
In the context of the energy transition, a well-functioning district heating network is crucial for sustainably heating homes and businesses. Various parties, both public and private, are needed to promote innovation, investment, and efficiency. A mandatory public majority ownership could hinder this collaboration and lead to less flexibility and a slower transition to sustainable heat supplies.
Public and Private Companies Are Members of Energy Netherlands
We are not inherently against public majority ownership. What concerns us is the mandatory nature of this requirement. According to Energy Netherlands, this is an obstacle to developing an efficient and future-proof heating system.
Freedom of Choice
Energy Netherlands believes that governments should have the freedom to decide how they want to structure their heat companies. This could mean that public majority ownership is preferred, but it should not be imposed as a requirement. We advocate for a model that allows for public-private collaboration, ensuring enough room for customization and innovation at the local level. Therefore, we propose a public equity stake of at least twenty percent. This way, municipalities have more freedom to choose the distribution that works best for them. Any higher stake is then practically possible as well.
Read the full Position Paper here
Read our complete Position Paper for a comprehensive overview of our positions and the impact on the heat market.
