Chapter IV - Dutch Business Strategies Under Regime Transition

Abstract

This chapter analyzes the major developments in Dutch business strategies. Dutch generation companies are owned by distribution companies, and this ownership structure is one of the causes of debate on market power between generators and distributors. The Dutch route to adapt to the changing environment started in the mid-1980s with the debate on the scale of electricity supply and company performance. Distributors were driven by the race for market power—a race that was played in three mutual games: the game for scale, the game for scope, and the game on costs. Since then, the Dutch electricity market has changed significantly in structure and outlook. The number of companies has reduced drastically and generation and distribution has disintegrated. One of the problems the companies are facing is their legally driven positioning in the value chain, which may impede synergy in business development. This problem first appeared in 1989 when the Electricity Act of 1989 forced the then integrated companies to distinguish between generation and distribution