Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber

You are using software which is blocking our advertisements (adblocker).

As we provide the news for free, we are relying on revenues from our banners. So please disable your adblocker and reload the page to continue using this site.
Thanks!

Click here for a guide on disabling your adblocker.

Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber
The Hague has no idea whether it works

NL: Harsh criticism of energy saving obligation

The Dutch Court of Audit has harshly criticized the Energy Saving Obligation and the supervision/oversight of the duty by the Ministry of Climate and Green Growth. Some 3,300 greenhouse horticulture companies have also been subject to the duty since July 2023, in addition to ETS participants.

In the Netherlands, companies and institutions with an energy-saving obligation in all likelihood save less energy than the central government wants. This obligation has existed for 30 years and has been amended several times, but after 30 years it is still not clear how much companies (can) save on energy consumption. In an analysis, the Court of Audit looks at the years 2008-2023.

With the growth in the number of companies covered by the duty, The Hague is mainly making things difficult for itself, one might conclude from the critical report. A conclusion could also be drawn during a presentation to market gardeners about the duty last summer. In any case, it would be a "big administrative job".

Yield unknown
In the report, the Court of Audit notes, among other things, that supervision has become even more difficult since July 2023 with the expansion of the companies covered by the duty. "What the potential yield of bringing greenhouse horticulture and the whole of businesses subject to the energy saving obligation is unknown," we quote from the report.

Of the new target groups to be covered by the energy-saving obligation from July 2023 - greenhouse horticulture and businesses subject to a license obligation - the minister does not know how much energy savings can be achieved and how much a comprehensive supervision regime will cost. This insight does exist for the target group that already fell under the obligation before 1 July 2023 and for the ETS sector.

The Court of Audit notes that the Minister of Climate and Green Growth relies heavily on TNO and PBL reports, without conducting his own analyses. "The minister often shares the 2020 and 2030 yields estimated by TNO and PBL with parliament without his own analysis. Or states that compliance with the energy-saving obligation can deliver this energy reduction. Although the minister does not formally have targets, she thereby raises expectations about the yield of the savings obligation."

Minister's response
A response from the ministry is also included in the report.

The Minister of Climate and Green Growth responded administratively to the conclusions and recommendations. She acknowledged that the understanding of the yields of the energy savings obligation in recent years was limited. And also that it is unclear what the monitoring has achieved. However, by instituting an information obligation for companies, improvement is visible. She wants to update the duty in 2027.

The minister does not recognize the report's conclusion that the energy-saving obligation is a 'one-size-fits-all' policy. She points out that a different build-up of energy prices is taken into account for greenhouse horticulture and that highly energy-intensive companies are not bound by the Approved Measures Lists. A split has also been made between the responsibility of tenants and landlords for implementing energy-saving measures.