Monitoring of costs by the CREG (II)

The chamber of representatives adopted an act granting new powers to the CREG.

The CREG will monitor the compliance of every energy undertaking, supplying electricity or natural gas to off takers situated in Belgium, with the competition regulation and with the fair trade practices. These undertakings, individually or upon concertation with other undertakings, will refrain from all non-competitive behavior or unfair trade practices that could have an impact on the good functioning of the energy market in Belgium. If the CREG would establish an infringement to the competition regulations or the fair trade practices, it will send a report with its findings and with a proposal for remedies to the minister. The CREG will also inform the Competition Council of the content of its report (including the confidential preparatory documents).

With regard to unfair trade practices, based upon the proposal by the CREG, the federal executive can adopt the urgent measures the CREG could take. More generally, the CREG can formulate advices and propose all measures necessary to safeguard the good functioning of and the transparency on the energy market.

The undertakings must adopt an objective accountable ratio of the prices to the costs of the undertaking. The CREG will judge the ratio based upon a comparison of the costs and the prices of the undertaking with the costs and prices of comparable undertakings, if possible also internationally. In the event that an undertaking is a related undertaking, an abuse of dominant position is suspected if it proposed discriminatory prices and/or conditions to non related undertakings.If the CREG determines that there is no objective accountable ratio of the prices to the costs, it will send a report to the minister with its findings and the measures it proposes. The CREG will also inform the Competition Council of the content of its report (including the confidential preparatory documents). Based upon the proposal by the CREG, the federal executive can adopt the urgent measures the CREG could take.

The CREG can request from the undertakings all reports and information it judges necessary to be received within thirty days of its request. If the undertaking does not procure the information within these term, the CREG can visit the undertakings to review the necessary information and documents and can copy these documents.

Monitoring of costs by the CREG (II)