Utrecht University and Tilburg University criticise and make recommendations about the new Heat Act in the Netherlands

The Dutch "Wet collectieve warmtevoorziening" (Warmtewet 2) was open to consultation until 3 August. This Act should help to advance the disconnection of homes in the Netherlands from natural gas and switch to alternative sustainable heat sources. The main goal of the bill is to promote sustainability and to fulfill the promises in the Dutch Climate Agreement. The Ministry of Economic Affairs and Climate Policy invited all parties involved to submit their views. Sanne Akerboom (Utrecht University), Annelies Huygen (TNO/Utrecht University/) and Saskia Lavrijssen (Tilburg University) handed in a position to the Ministry, in which they both critisise parts of the new bill and make recommendations.
The bill regulates a number of important elements for collective heat supplies, including: (the roll-out of) collective heat systems, designation and obligations of a heat company, tariff regulation, sustainability and small collective heat systems.
Akerboom, Huygen and Lavrijssen have highlighted four elements of the goals set for the heat transition, and share lessons from abroad. They based parts of their analyses on the practice in other countries in Europe, where there is much more experience with district heating networks than in the Netherlands.
The four elements in the position paper are:
- Sustainability and innovation
- Planned roll-out of collective heating systems
- Participation of residents
- Tariff rules and incentives for efficiency
Innovative business models and room for small projects
On innovation for example they advise: "Make sure that innovative business models also have opportunities. Allow plenty of room for small projects that can grow organically. Do not stipulate that heat companies must be vertically integrated and lay down - in line with Directive EU 2018/2001, article 24, paragraph 4 - that third parties, such as suppliers, have a right of access to the collective heat system. On participation of residents and the roll-out and power of municipalities, they write: "Before a municipality gives a definitive designation to a heating company, it should be investigated whether consumers want a connection. Expand the options for residents to choose the "opt-out".
Furthermore the Act should stimulate bottom-up initiatives, since the European Union designates such initiatives as important development in the energy transition, to promote acceptance and consumer empowerment.
Prof. dr. Annelies Huygen is Professor by Special Appointment in the Organisation of energy markets at Utrecht University. This is chair is funded by TNO.
Dr. Sanne Akerboom is a researcher, Copernicus Institute for Sustainable Development and Center for Water, Oceans and Sustainability Law, both at Utrecht University
Prof. dr Saskia Lavrijsen is Professor of regulation and governance of network industries at Tilburg University.