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Deregulating Network utilities in the netherlands 1998-2008

This text explores the deregulation of network utilities in the Netherlands from 1998 to 2008, discussing the changes in competition policy, the creation of a new competition watchdog, and the challenges and developments in the telecom, electricity, and railways sectors.

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Deregulating Network utilities in the netherlands 1998-2008

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  1. Deregulating Network utilities in the netherlands 1998-2008

  2. Starting Point: Before 1997-1998 • Competition Policy Law & Institutions that put the burden of proof on consumers • Network utilities • State run • State mandated monopoly • completely integrated: Production, network, distribution • No competition at all

  3. EU Directives • Mandated new competition law changed perspective: • Collusion, cartels, price fixing, exclusionary practices in principle outlawed unless consumers demonstrably do not loose • Burden of proof shifted to the perpetrator • Landslide change in Dutch Competition policy • Creation of new independent competition watchdog (NMA) • EU Directives on Telecom, Electricity • Substantial diversity in ONA requirements and regulation across sectors

  4. Principles Dutch Approach • What is necessary to get competition at both wholesale and consumer levels • “Decision tree” approach to Network Ownership • Privatisation debate

  5. Since then: Confusion • Telecom: • multiple downstream users but no separation upstream downstream imposed on KPN • Cable companies are allowed to close their network downstream to alternative suppliers although no competition in TV • Technological dependence regulatory model • Based on assumption one-service one network • TV ~ Cable • Fixed tel ~ KPN network • Mobile multiple networks • Internet over fixed line tel network and/or cable • New developments: all services over all network • Regulatory model outdated

  6. Electricity • Quick liberalisation production • Separation high voltage network from producers • Rapid & succesful iintroduction competition wholesale market • Delays in retail competition • Long lobbying campaign to forestall separation distribution networks from distribution companies • Current minister has finally decided to implement original plans and require complete separation on distribution level • No objections against vertical integration between produceers and distribution companies

  7. Railways • Complete separation imposed very early although monopoly maintained on downstream level • Major loss of coordination benefits, no increased competition

  8. Outstanding issues • Regulatory model and investment incentives • Universal service requirements and level playing field (Postals ervices!!) • Is there still need for special regulator • downstream electricity markets (retail) • telephony/TV/Internet Access? • Obstacles retail competition electricity? • Ownership structure network operator

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