Transfer of grid management

• How will the grid transfer take place? Will TenneT purchase the grids?
• If TenneT does not intend to purchase the grids for the time being, who will decide how much and when to invest?
• You mention a transitional phase. What will this entail?
• Where is the ‘break’ (‘grid entry point’) that marks the limit of the transmission grid managed by TenneT after the transition?
• I’ve heard that no agreements have been concluded as yet with the grid operators. Is TenneT really ready to take over these tasks?
• Suppose a major power failure occurs on January 2nd, like the recent incident at Bommelerwaard. What then?
• Can every individual grid operator decide which activities to transfer to TenneT?
• The grid operators have not been particularly keen to transfer management tasks. What is the reason for their reluctance?
• How will the transfer affect the employees of the grid operators?
• How many new staff members will join TenneT?
  
  
  

How will the grid transfer take place? Will TenneT purchase the grids?
The transfer does not concern ownership, but the management of all high voltage grids with a voltage level of 110 kV or higher. Under the Independent Grid Administration Act, these grids will be managed by TenneT from 1 January 2008 onwards. The regional grid operators will retain ownership of the grids. Although TenneT does intend to gain ownership of the grids at some point in the future, an efficient transfer of the grid management tasks is now our top priority.

If TenneT does not intend to purchase the grids for the time being, who will decide how much and when to invest?
As of 1 January 2008, TenneT will become responsible for grid maintenance and investment plans for new high voltage lines with a voltage level of 110 kV or higher. This means that we will evaluate the current plans of the regional grid operators and approve them if they meet our conditions. We trust that these plans have been drawn up carefully. Should TenneT have any doubts regarding certain investments, we will try to arrive at the best possible solution in consultation with the grid operator in question.

You mention a transitional phase. What will this entail?
The transfer of grid management tasks is a complex process that will be conducted in stages. The various activities and the staff members responsible for them will be incorporated gradually into our organisation in the coming years (where possible). The period from 1 January 2008 until the actual incorporation of the activity into the TenneT organisation is referred to as the ‘transitional phase’. We will make specific arrangements with the regional grid operators for this transitional period with regard to the tasks they will carry out for TenneT on a temporary basis. These tasks may include performing maintenance work or conducting operational management.

Where is the ‘break’ (‘grid entry point’) that marks the limit of the transmission grid managed by TenneT after the transition?
From 1 January 2008 onwards, TenneT will be responsible for all transmission grids with a voltage level of 110 kV or higher. The ‘break’ or grid entry point between the TenneT grid and the transmission grid managed by the regional grid operators will be located on the high voltage side of the transformers. This means that the regional grid operators remain responsible for managing these transformers. There is one exception, TenneT will be responsible for the 110 / 150 kV grids and the transformer that are currently managed TenneT in Voorburg. 

I’ve heard that no agreements have been concluded as yet with the grid operators. Is TenneT really ready to take over these tasks?
TenneT is ready to take over responsibility for managing the high voltage grids from the regional grid operators with effect from 1 January. We’ve reached agreements on this with the regional grid operators.

Suppose a major power failure occurs on January 2nd, like the recent incident at Bommelerwaard. What then?
Such an incident would concern a power failure in a grid section with a voltage level above 110 kV. This would mean that TenneT is responsible for resolving the failure as quickly as possible, so that electricity supplies to the affected area can resume. During the transitional period, TenneT will call in the former regional grid manager to carry out the necessary repair work as quickly as possible. Specific arrangements have been made for such a situation.

Can every individual grid operator decide which activities to transfer to TenneT?
No. The Independent Grid Administration Act clearly indicates which activities must be transferred to TenneT by the grid operators. In other words, this is not up to the grid operators. Only in the case of Eneco does the Act allow certain administrative tasks to be transferred partially, or not at all. The Act states that the transfer of activities to TenneT must not harm the interests of third parties. Eneco has certain financial commitments to American investors (through so called ‘cross border leases’) and has claimed that the transfer would harm the interests of these investors. It is up to Eneco to demonstrate that this is indeed the case.

The grid operators have not been particularly keen to transfer management tasks. What is the reason for their reluctance?
You would have to ask the grid operators themselves. However, we can understand that they find it difficult to hand over responsibility for activities for which they feel responsible. They have devoted a great deal of time and energy to developing and managing the grid infrastructure. Moreover, the grids are a source of revenue for them. We understand this and will ensure that the transfer is carried out in close collaboration with the grid operators.

How will the transfer affect the employees of the grid operators?
The transfer will mainly affect employees who work for Essent Netwerk’s high voltage department. TenneT will outsource the operational management tasks to Essent until October 2008. After that time, the staff members working at the high voltage departments of Essent Noord and Essent Zuid will be employed by TenneT. They will be incorporated into TenneT’s new regional organisation, to form the regions North and South. In addition, another group of Essent employees will be transferred in stages. These staff members work in asset management, operational management and various support functions. Several staff members of Continuon will join TenneT in early 2009. They will be responsible for the operational management of the 110 kV and 150 kV grid sections. All employees will be transferred to similar positions and will enjoy similar benefit packages. The transfer will not affect staff members at Eneco and Delta. 

How many new staff members will join TenneT?
As things look now, over 200 Essent and Continuon staff will join TenneT between January 2008 and the beginning of 2009. TenneT will also recruit an additional 200 new staff members to handle the organisation’s expansion in the coming years.