Developments Regarding Unbundling of Dutch Energy Companies

As previously mentioned in our statement of 6 December 2006, (i) the Upper House of the Dutch Parliament approved, on 21 November 2006, legislation titled "Further Rules Concerning Independent Network Management" (the "Legislation") providing for various amendments to the Dutch Electricity Act of 1998 and the Dutch Gas Act of 2000 and (ii) based on a motion adopted by the Upper House at such time, the provisions of the Legislation relating to the mandatory unbundling of the network and other activities of Dutch energy companies (the "Unbundling Provisions") were not to be given effect unless and until certain conditions were satisfied.

On 11 January 2007, a Royal Decree was published in the State Gazette (Staatsblad) containing the dates of entry into force of (i) various provisions of the Legislation and (ii) certain additional amendments to the Dutch Electricity Act and Dutch Gas Act that were adopted (but not made effective) in 2004.

On 13 July 2007, the Minister of Economic Affairs announced that, after and in view of various consultations with both Chambers of Parliament, the Unbundling Provisions will be made effective as at 1 July 2008, with provision for the 2.5 year implementation period contemplated by the relevant provisions of the Legislation. This will mean that the Unbundling Provisions will have to be complied with by not later than 1 January 2011. On 3 August 2007, a Royal Decree was published in the State Gazette (Staatsblad) confirming inter alia the 1 July 2008 effective date of the Unbundling Provisions.

Essent will be analyzing the Unbundling Provisions in the context of the implementing Royal Decree and other relevant matters.

Published: 08 August 2007