The Belgian Council of State, the highest administrative body, rejects two legislative proposals aiming at curbing the market share of Electrabel.
Recently, members of parliament submitted two proposals aiming at curtailing Electrabel's market share in the Belgian electricity production market.
The first proposal intended to cap the market share of any electricity undertaking in the production market at 45%. In case an undertaking would hold more than 45% market share, this undertaking was subject to a levy equal to the annual turnover of the share above 45%. The second proposal intended the same, but did not opt for a levy. Instead, the electricity undertakings could avoid such levy by decreasing its market share.
The Council of State rejected the proposals. It was of the opinion that both infringe the European rules on free movement of capital and the fundamental ownership rights.
Tuesday, 16 February 2010
Council of State opposes levies to decrease market share of Electrabel
Wednesday, 14 October 2009
Postponement of the nuclear phase out
On 13 October 2009 the Belgian federal government decided to postpone the nuclear phase out of the three eldest nuclear plants with 10 years. This would mean that in the soon to be adopted new regulatory framework all Belgian nuclear plants will close between 2022 and 2025.
As a favour in return, GDF Suez and Electrabel would have agreed to pay 170 M EUR per annum from 2010 until 2014. The other nuclear market participants (EDF Belgium, SPE and eventually E.ON) will have to pay the remaining 45 to 75 M EUR per annum (until 2014). GDF Suez will also invest in R&D on CCS and nuclear waste, in renewable energy and in energy efficiency.
At the same time, a 'Follow Up Committee' will be installed. This Committee will be composed out of representatives of the nuclear producers, the government and the social partners, and of representatives of the National Bank of Belgium. The main tasks of this Committee will be to yearly evaluate the production costs of nuclear energy and to evaluate the electricity market prices. It will also have to verify that the household prices of all suppliers will in no way be higher than the average of the prices in the neighbouring countries.
The decisions still must be transposed into formal legislation. Nevertheless, some ideas can raise concerns about the development of a liberalised energy market in Belgium and about the position of other market players (will they contemplate building new power plants? will they be able to raise their market share?). From a legal point of view, it remains to be seen whether this decision to postpone the nuclear phase out will stand the test of EU law and of Belgian constitutional law.
In any case, interesting regulatory and legal times lay ahead.
A free English translation of the relevant excerpt from the governmental declaration will be send to you at first request. Please e-mail me.
Wednesday, 1 July 2009
Energy Undertakings Cannot Hold More Than 24,99% of the Fluxys' shares
On the basis of an act, voted by Belgian parliament last week and amending the Gas Act, at the latest on 31 December 2009 all supply undertakings, electricity producers, electricity suppliers, intermediaries, and affiliated companies of the aforementioned companies cannot hold solely or jointly more than 24,99% of the shares of the natural gas transmission system operator (Fluxys).
Moreover, the bye-laws and statutes of the transmission system operator cannot grant special rights to the aforementioned undertakings.
Wednesday, 3 June 2009
CREG Examines EDF's Share In SPE
Following a question by federal representative Tinne Van der Straeten, the federal minister of energy, Mr Magnette, yesterday declared that the CREG, the federal energy regulator, is examining the take-over by EDF of Centrica's shares in Segebel, the majority shareholder of SPE. According to the minister, the CREG is looking at the consequences of the operation on the competition of the Belgian electricity production market. If the CREG would raise objections, it will propose the necessary measures to the Competition Council or the minister of energy.
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