Reactions on the reactions on the CREG's decision on transit tariffs

In the competent commission of the Chamber of Representatives, the Minister of Energy stated today:

“This week, the CREG has set the transit tariffs. The spokesman of the CREG was pleased that the tariffs were reduced by 70 to 75%. Nonetheless, as politically responsible person before the representatives of the Nation, I would like to ask the CREG who will pay the transit tariffs. It will be the international transit shippers. To whom will the transit tariffs be paid? To the TSO. What will he do with the money? He will invest in the modernisation and development of the network. He could also decide to set beneficiary transport tariffs for the consumers. Today, thanks to the tariffs set by the CREG, it is cheaper for Gazprom to have its gas transited to Belgium than to have it transported within Belgium. I see no logic in this decision. I do not think that it serves the general interest. I confirm thus that I am not convinced that impartial regulators always work in the general interest. Sometimes, they work in function of doctrines or calculated objectives and it is quite happy that a political authority conserves a certain margin, to be able to restart the debate, like I will do on the transit tariffs in the following days."

Some comments:

• The “doctrine” is laid down in the Second Gas Directive and in the Gas Act, voted an accepted by the representatives of governments and members of parliaments;
• If the role of Zeebrugge is of extreme importance for the government (as set out in the governmental agreement of last April), than lower tariffs will certainly enhance this role;
• If there will be no cross subsidisation between transport and transit, because only the transit shippers pay the transit tariffs, than how would it be possible that transit revenues would support the enlargement or development of the transport network or how the revenues be used for lower transport tariffs;
• The CREG has stated before that the interconnection between the transit and transport network in Belgium, and the limitations on the use of the transit network are burdensome for the development of a liberalised gas market in Belgium;
• Following the CREG’s decision, all but four contracts will not only be subject to regulated tariffs, but also to the code of conduct and the technical regulations on the gas market. This would normally allow shippers to access more easily the transit network, and, given the interconnection, the transport system.

Who’s general interest is the minister talking of?

Reactions on the reactions on the CREG's decision on transit tariffs