The Authority for Consumers and Markets (ACM) in the Netherlands has today published its regulatory decision setting the annual revenues of Dutch gas transmission system operator Gasunie Transport Services (GTS) for the next regulatory period (2017-2021). As a result of the decision, GTS’s revenues in 2017 will drop by approximately €100 million, with a further reduction of more than €100 million by 2021. Overall, revenues will fall from more than €1 billion to approximately €800 million over the regulatory period.
As part of the regulatory decision, ACM has, for the first time ever, assessed the cost efficiency of GTS and taken the findings into consideration when setting allowed revenues. Frontier (Europe), together with technical consultant Consentec, supported ACM with a study on GTS’s cost efficiency. Frontier compared the costs and outputs of GTS with that of gas transmission operators in Germany. The study revealed that GTS is less efficient than three German companies used to benchmark costs, producing around 21% less from a given set of inputs than the equivalent comparators.
Frontier (Europe) regularly works for regulators and companies on efficiency benchmarking studies and regulatory decisions.
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