A grid qualifies as a closed system (gesloten systeem) when the Netherlands Authority for Consumers and Markets (ACM) recognises it, and it will only do so if the grid meets every condition in Article 3.7 of the Energy Act. The main exception to keep in mind: a grid that supplies households, or that has a thousand or more connected parties, cannot be recognised and in principle belongs with a regular grid operator.
Since 1 January 2026 the rules are set out in the Dutch Energy Act (Energiewet). It replaced the old “closed distribution system” (gesloten distributiesysteem) and its exemption with a two-step route: first recognition as a closed system, then the appointment of an operator. The qualification decides whether you can manage the grid yourself or through an operator you nominate, and which obligations you have towards the parties connected to it. For the wider framework, see our overview article on private grids and closed distribution systems.
Table of contents
Is there a system at all?
Check this first. The criteria of Article 3.7 Energiewet only come into play once it is clear that there is a distribution system, and not an installation or a direct line.
Under Article 1.1 Energiewet, an electricity distribution system is a set of cables and connected equipment for transporting electricity at a voltage below 110 kV, for supply to end users or traders. A gas distribution system concerns local or regional transport of gas, not a gas production network.
The Energiewet treats the installation and the direct line as separate categories. An installation sits behind the transfer point of a grid connection and is used or managed by one connected party; it is not a grid. A direct line is a separately defined connection between a production installation and one or more end users, with its own rules towards the ACM. Which category applies depends on how the cables run, who uses them and who manages them.
Which conditions does Article 3.7 Energiewet set?
The conditions are cumulative: the ACM only recognises a closed system if all of them are met. The ACM assesses the conditions of Article 3.7, first paragraph, Energiewet on your application.
Is there already an operator, or is the system part of an infrastructure group?
Neither may be the case. Under Article 3.7(1)(a) and (b) Energiewet, no operator may already have been appointed for the system, and the applicant may not be part of an infrastructure group. This matters when you restructure an existing grid or acquire a site where an operator is already active.
Is the system on a geographically bounded site with real links?
It must be. Under Article 3.7(1)(d) Energiewet, the system has to lie within a geographically bounded industrial or commercial site, or a site with shared services, such as a chemical park, a port area, a business park or a greenhouse horticulture area.
The same provision requires technical, organisational or functional links within that site. A line on a map is therefore not enough: there must be a real connection between the system and the site on which it lies.
How many connected parties may there be?
Fewer than one thousand, under Article 3.7(1)(e) Energiewet, so 999 is the maximum. At large business parks and multi-tenant buildings the count needs attention, for example when smaller tenants sit behind a shared connection. The law does not spell out how to count in those cases; if in doubt, discuss the method with the ACM before you apply.
May a closed system supply households?
In principle, no. Article 3.7(1)(f) Energiewet keeps households on the public grid, with the consumer safeguards that come with it. A limited exception applies to incidental use by a small number of household end users who work for the owner of the system or have a similar relationship with the owner, such as someone living in a company dwelling on the site. This exception follows the European rules.
Are the processes integrated, or does the system mainly supply the owner?
One of these two must apply under Article 3.7(1)(c) Energiewet. The first option: the business or production processes of the connected parties are integrated with the system for specific technical or safety reasons, as is typical in a chemical cluster where installations of different companies are linked.
The second option: the system mainly distributes electricity or gas to its owner or operator, or to affiliated companies. General economic ties between the connected parties are not enough under the text of Article 3.7. You will need to show concretely either the technical integration or the fact that the system mainly supplies the owner.
What about safety, reliability and voltage level?
These are conditions too. Under Article 3.7(1)(g) and (h) Energiewet, the safety and reliability of the system must be sufficiently safeguarded, and for electricity the voltage level may not exceed 220 kV, with an exception for equipment directly behind a connection to the transmission system.
Is the system not built yet? Under Article 3.7(2) Energiewet you can already apply for recognition, provided you hold the permits, exemptions and consents needed to build it and the system will meet the other conditions.
How long does the ACM take to decide?
Six months, which can be extended once by up to six months. This decision period is laid down in the ministerial regulation under the Energiewet (Energieregeling) and is also stated by the ACM itself. Build this lead time into your planning if a transaction or project depends on recognition as a closed system.
Does recognition mean an operator has been appointed?
No. Recognition under Article 3.7 Energiewet and the appointment of an operator are two separate decisions. Once the system has been recognised, the ACM appoints, at the owner’s request, the operator the owner nominates, under Article 3.6 Energiewet.
For existing systems that held an exemption under the old rules, the Energiewet contains transitional provisions. In short, the owner of such a system is treated as holding a recognition and an appointment for the remaining term of the old exemption.
Which obligations follow from recognition?
Recognition brings obligations for the operator, separate from the recognition criteria. Under Article 3.105 Energiewet the operator must, on request, make an offer to build or change a connection, and to provide, manage and maintain the connection and transport electricity or gas. It may refuse if there is reasonably not enough transport capacity, but it must give proper reasons for that refusal.
The operator’s tariffs must be based on a calculation method published in advance, and they must be cost-reflective, transparent and non-discriminatory. After a complaint, the ACM can require the operator to adjust the method or the tariff.
A closed system is also not automatically exempt from congestion management. The Energiewet applies the congestion management obligations correspondingly to the operator of a closed system. The electricity system code (Systeemcode elektriciteit 2026) and the Information Code Electricity and Gas (Informatiecode elektriciteit en gas) add rules on capacity shortfalls, market processes and electronic messaging; whether a specific rule applies in full has to be assessed case by case.
Can the ACM withdraw a recognition?
Yes. Under Article 3.2 of the Energy Decree (Energiebesluit), the ACM can withdraw the recognition if the conditions of Article 3.7 Energiewet are no longer met, if the system is not actually managed by the appointed operator, if the operator breaches certain obligations, or if the application contained incorrect or incomplete information.
A grid that meets the criteria today may not meet them tomorrow. Growth to 1,000 or more connected parties, a change in how the site is used, the sale of business units or the departure of the main user can all bring the grid outside Article 3.7. Every relevant change therefore has to be checked against the conditions again.
How does the European framework fit in?
The Dutch criteria largely follow Article 38 of Directive (EU) 2019/944 for electricity and Article 28 of Directive 2009/73/EC for gas. Both refer to a geographically bounded industrial or commercial site or a site with shared services, exclude household customers apart from incidental use, and require integration for specific technical or safety reasons or mainly supply to the owner, operator or affiliated companies.
The directives do not set a number of connected parties: the limit of fewer than one thousand is a Dutch condition in Article 3.7 Energiewet. For gas, Article 32 of Directive 2009/73/EC also requires third-party access based on published tariffs that are applied objectively.
What should you check as owner or operator of the grid?
As owner you carry the burden of showing that all conditions of Article 3.7 Energiewet are met. Check at least the following before you apply to the ACM:
- Whether the cables form a distribution system below 110 kV, or an installation or direct line instead.
- The exact number of connected parties, including tenants behind shared connections, against the limit of 999.
- Whether any household end users are connected, and whether they fall within the narrow exception.
- Documents showing technical integration of processes or that the system mainly supplies you or affiliated companies.
- Whether an old exemption applies and when its remaining term ends.
- Your tariff calculation method, which must be published in advance.
What should you check as a party connected to a closed system?
As a connected company you have rights towards the operator under Article 3.105 Energiewet. Check at least the following:
- Whether the ACM has actually recognised the system and appointed the operator under Article 3.6 Energiewet.
- Whether the operator’s tariffs follow a published, cost-reflective calculation method.
- Whether a refusal of a connection or of transport capacity is properly reasoned.
- Whether you can file a complaint with the ACM about the tariff or the calculation method.
- What happens to your supply if the recognition is withdrawn or the site changes hands.
What can we do for you with a closed system?
Our energy law team assists owners, operators and connected companies with:
- We test your grid against each condition of Article 3.7 Energiewet and record the analysis in a written memo.
- We prepare the application for recognition and the request to appoint your operator under Article 3.6 Energiewet.
- We review whether an old exemption still covers your grid and until when.
- We check the effect of a sale, restructuring or new tenants on the recognition.
- We draft or review the connection and transport agreements and the tariff method.
- We prepare a complaint to the ACM about tariffs or a refused connection.
Summary
- The ACM recognises a closed system only if all conditions of Article 3.7 Energiewet are met.
- Key conditions: a bounded site with real links, fewer than 1,000 connected parties, no households (apart from a narrow exception) and integrated processes or mainly supply to the owner.
- For electricity, the voltage level may not exceed 220 kV; safety and reliability must be safeguarded.
- The ACM decides within six months, with one possible extension of six months; recognition and appointment of an operator are separate steps.
- Recognition can be withdrawn under Article 3.2 Energiebesluit, so check the conditions again after every relevant change on the site.
Frequently asked questions
What is the difference between a closed system and the public grid?
A closed system is a private grid on a bounded industrial or commercial site, recognised by the ACM under Article 3.7 Energiewet. In principle no households are connected, and the owner nominates the operator. The public grid is managed by a regular grid operator and is open to every user, households included.
How many connected parties may a closed system have at most?
Fewer than one thousand, so 999 at most. The law does not explain how to count in cases such as tenants behind a shared connection. If in doubt, discuss the method with the ACM before you apply.
How long does the ACM recognition procedure take?
The ACM decides on an application for recognition within six months. It can extend this period once, by up to six months. Take this into account when you plan a transaction or project.
What happens to an existing exemption under the old rules?
The Energiewet contains transitional provisions for systems with an exemption under the old rules. The owner is treated as holding a recognition and an appointment for the remaining term of the exemption, so no new application is needed during that period.
Is a closed system exempt from congestion management?
No, not automatically. The Energiewet applies the congestion management obligations correspondingly to the operator of a closed system. Whether a specific obligation applies in full has to be assessed case by case.
