Legislation requiring energy companies to split off their grid operations – which will remain in state hands – contravenes EU rules, The Hague district court ruled on Tuesday.

The court was brought by power firms Essent (now owned by Germany’s RWE) and publically-owned, Delta and Eneco.
The Netherlands is the only country forcing energy firms to separate into a commercial production company and public supply arm. Energy firms argue this will make them more vulnerable in the wider European energy market and make it harder to get extra finance.
The state has already said it will appeal to the high court. According to the Telegraaf, the high court is likely to refer the case to the European court, meaning it is unlikely the legislation can come into effect on January 1 as planned.