Waste and cleaning services are experiencing an increasing challenge in their business operations due to the latest policy measures regarding grid congestion.
While various sectors are given priority for transport requests on the electricity grid, waste managers are excluded. The umbrella organization for waste and cleaning services, NVRD, expresses its dissatisfaction with this decision, as the waste management sector is not included in the priority framework of the Netherlands Authority for Consumers and Markets (ACM).
From October 1, 2024, grid operators will use the new prioritization framework when assessing transport requests on the energy grid. This framework, which was established in March last year, is intended to guide investments in the expansion of the power grid. It offers a means to prioritize projects with a major social impact in the investment plans of grid operators and in projects realized by the government. This measure must ensure that energy infrastructure projects that are crucial for the energy transition, such as the connection of offshore wind farms and the expansion of the grid to make industry and homes more sustainable, can be implemented at an accelerated pace.
When determining the order of investment, grid operators must take technical, economic and social factors into account, such as the safety and security of supply of the existing power grids. The prioritization framework serves as a supplement to the existing criteria and makes it possible priority to energy infrastructure projects that are important for making the Netherlands more sustainable. This framework was drawn up jointly by grid operators and regulator ACM.
Despite the social relevance of waste management, this sector remains outside the priority framework. Waste companies were still mentioned in the original draft decision, but they are no longer included in the final decision, which appeared in the Government Gazette on April 18 this year. This change has led to an appeal from the NVRD, which believes that waste management should remain an essential part of the prioritization framework.
The NVRD points out, among other things, the obligations that waste companies have with regard to making their fleets more sustainable. The introduction of zero-emission zones makes it impossible for older waste vehicles to reach certain urban areas. Investments in electric alternatives should therefore also be given priority in the event of grid congestion, says the NVRD.
However, the ACM has removed waste management, as well as public transport, from the final decision deleted due to European regulations. According to the ACM, the European energy law framework does not provide scope for prioritizing these sectors in the event of grid congestion. Furthermore, the ACM states that it is not clear to what extent parties in the public transport and waste sector actively contribute to sustainability. This does not mean that these sectors do not make any efforts in the field of sustainability, but a large number of sectors and parties are legally obliged to become more sustainable, which means that this criterion is not distinctive enough according to the ACM.
The ACM's decision has led to: outrage within the waste management industry, which is now forced to consider further legal action. The outcome of this case could have significant implications for how waste and cleansing services will need to adapt their operations in the future.
