Rail Regulation g in the Netherlands Madrid, 21 October 2011

Coen Timmerman

Netherlands Competition Authority

Contents 1 Introduction 1. 2. Organization 3. Financing 4 Office 4. Offi off Transport T Regulation R l i 5. Experiences p and recipe p for future

Introduction (

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Office of Transport Regulation as independent regulator since 2005 within NMa Recommendations and recipe for “CRF” based on our experiences Desire to cooperate on the corridor to remove market barriers, and ultimately to increase market share of rail between the Netherlands and Spain

Recommendations (

Be visible and stay independent! ¾

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Start to consult all Railway undertakings and their organizations Pay extra attention to new entrants Participate pro pro-actively actively in meetings and conferences Have a clear website and window for market signals

Exchange experiences with other regulators ¾

Participate in corridors and working groups

Organization NMa (1) Chris Fonteijn Chairman of the Board Future: In 2013, Authority for Consumers and Markets, ACM [merger of NMa with Post and Telecom Authority (OPTA) and C Consumer Authority A th it (CA)]

Organization NMa (2) (

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Board of the NMa is a so-called so called Autonomous Administrative Authority Appointed A i db by the h Mi Minister i off E Economic i Affairs, Aff i Agriculture and Innovation

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Independent government organization

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Employs p y 400 highly g yq qualified staff members

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NMa enforces compliance with the Dutch Competition Act and with a number of specific laws for the energy and transport industries

Organization NMa (3) (

Competition Department

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Legal Department

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Office of the Chief Economist ¾ Anti-cartel Anti cartel enforcement ¾ Prohibition of abuse of a dominant position ¾ Concentration control

Organization NMa (4) (

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Office of Energy and Transport Regulation ¾ Energy regulation ¾ Transport regulation OTR regulates the rail market, aviation market, public transport markets, and the pilotage p g industry y

Financial assets NMa (

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Financed by Ministry of Economic affairs, affairs Agriculture and Innovation Budget for personnel and operational management (material budget) 2008

2009

2010

Total budget (mln Euro)

44 9 44,9

49 4 49,4

45 9 45,9

Outcome (mln Euro)

378

259

284

399 (13)

438 (13)

433 (13)

51%/49%

51%/49%

52%/48%

37

37

38

Statistics

Total employees (OTR) Proportion men/women Average age Source: annual report p NMa 2010

Office of Transport Regulation (

Mission: making transport markets work (conflicts with ministry)

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12 staff members

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Competences p based on Railway y Act (2005) (art. 30 2001/14/EC)

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Board able to enforce decisions (penalty payments, fines)

Main tasks: monitor competition in railmarket Æ

Start ex-officio investigations

Æ

Handle complaints

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Informal views

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Ad i Advisory opinions i i to Ministry Mi i off Transport T

Dutch Railway market Rail Passenger Transport (7): NS (incumbent), HSA, Syntus, Arriva, Veolia,, Connexxion,, DB Regio g Rail Freight Transport (17): DB Schenker, Captrain, CTL, HUSA, HGK, HSL, TX, RTS, RRF, ERS, Ruhrtalbahn Crossrail, Ruhrtalbahn, Crossrail NMBS NMBS,, Bentheimer Eisenbahn, CRS rail, LOCON,, KombiRail

Triangle Dutch Railway Act Railway Undertakings F i ht Freight Inframanager

Access agreements Non-discriminatory Access

Ministry of Transport and Environment (safety)

Ministry of Transport and Environment

Railway Undertakings passengers

Ministry of Transport and Environment (concession)

Overview cases 2005-2011 Overview cases OTR

2005

2006

2007

2008

C Complaints l i t

0

3

1

7

3

0

0

Ex-officio

0

5

1

4

1

3

2

Informal opinion

0

1

0

0

1

1

1

5

2

9

5

Advisory opinions Total

1

0

2

10

2

2009 2010

2

13

7

201 1

Ex officio cases (

(

(

Network statement 2006 and 2008 (not correct, complete and effective) Capacity allocation 2007 (discriminatory allocation exceeding term for capacity allocation, analysis and late requests for maintenance) Absence of performance regime

Complaints (

Refusal to negotiate about infrastructure charge

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Reserve capacity for maintenance

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Discriminatory performance regime

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Incomplete information in network statement

Informal opinions (

Operational control centre Rail

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Broker organization for national tickets

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Buyers cooperative for energy

New: (

Market scan passenger transport

Advisory opinions (

Implementation 2007/58/EC

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Implementation priority Rules

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Implementation Regulation 913/2010

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Prepare p for confrontation with ministry y since policy goals do not match market processes and oversight!

Experiences NMa ( (

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IMs/RUs sensitive to bad publicity Small regulator can have big effect on the market with i h the h proper competences ((charge h fines/case fi / law) l ) Visibility of RB is very important (website, easy access)

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Consult all railway y undertakings g (annual meeting) g

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Participate in meetings and conferences (visibility)

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Work together in corridors with RBs to learn

NMa recipe to make transport markets work (

Organize national rail market monitor

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Start looking after compliance of: ¾

Content C t t network t k statement t t t ADIF Non-discriminatory capacity allocation procedure and results of ADIF

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Check level or structure of infrastructure fees ADIF

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Cooperate and exchange experiences with other RBs Exchange experiences with other competition authorities h i i and d regulators l (safety, ( f competition, ii etc..))

Thank you for your attention! Questions? can be sent to: [email protected] @

Rail market Monitor (

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Objectives ¾ gain knowledge of the market ¾ competences OTR well known to the market ¾ determine priorities in oversight Experiences ¾ positive response and co-operation ¾ reduction of gap between RB and RU ¾ Quick solutions to small problems ¾ 6th monitor in 2012