The Dutch energy regulator, Autoriteit Consument & Market (ACM), has today published the results of its consultation on cost efficiency for the gas transmission system operator (TSO) Gasunie Transport Services (GTS). The results cover the regulatory period 2017-2021. Frontier (Europe), together with the technical consultant Consentec, prepared a report for ACM on the cost efficiency of GTS.
The coming regulatory period will be the first in which ACM will account for GTS’s cost efficiency when setting the revenue cap. Frontier’s report uses data from a sample of German gas TSOs, along with data from GTS, to make an assessment of cost efficiency. The analysis is based on a previous benchmarking study for the German energy regulator (Bundesnetzagentur), also undertaken by Frontier. The report concludes that GTS’s cost efficiency is in the range of 75% to 91%, depending on the particular specification chosen for the analysis.
Frontier regularly advises regulators and regulated companies on cost benchmarking and regulation.
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