Companies with flexible energy needs: take advantage of non-firm ATO!

Non-firm ATO, what is it?

An ATO, or Connection and Transport Agreement, is a contract between a customer and the grid operator, in which agreements are made about the connection the provision of transport by the grid operator.

A "firm ATO" refers to an agreement with a guaranteed and fixed transmission capacity, independent of the time or situation in the grid. That is now the norm. In principle, with current regulations, a grid operator cannot deviate from that.

In times of scarcity, it is desirable to offer more flexibility. For example, by offering connected parties not a fixed transport capacity, but only according to when there is space on the grid. For example, during night hours. A solid flexible contract is called a "non-firm ATO.

What is the state of affairs?

On Jan. 31, 2024, the ACM published a Code Decision in response to an earlier draft proposal by Netbeheer Nederland. This proposal introduces conditions in the Electricity Grid Code allowing grid operators in congestion areas to offer non-firm ATOs. This allows new or existing parties who can flexibly arrange their grid use to free up space on the grid for other parties. This helps reduce grid congestion and supports the energy transition. In return for accepting a non-firm ATO, where supply can be interrupted, these parties receive a discount on their grid tariff. This can be especially interesting for parties that are flexible in their electricity use.

For whom is a non-form ATO of interest?

Particularly for parties that can play around with the timing of electricity use and are thus flexible in their energy consumption, this development can be interesting. Think, for example, of companies that have production processes take place in the evening or have cars charged in the evening.