Dutch Energy Companies Can Separate Operations

The Dutch law requiring energy companies to split up supply and delivery systems can be justified and it does not violate EU law, the European Court in Luxemburg ruled Oct. 22. In its ruling, the court said “maintaining undistorted competition in order to protect consumers and ensuring security of energy supply constitute overriding reasons in the public interest,” reports Bloomberg News. The Dutch law was introduced in 2008. Eneco and Delta are the only Dutch energy companies still have to split off their grids. They were forced to split up or have their network operations taken by a different company to comply with the new law. European Court of Justice - Luxembourg /Flickr In February 2012, the Dutch Supreme Court asked the EU court whether the rules are in line with the 28-nation bloc’s law. Eneco feared a forced split would pose a threat to the company’s sustainability strategy. In Europe, the Netherlands is the only country that forces energy companies to split their supply and delivery network.