Transit and the European Commission

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The Commission opens infringement proceedings against Belgium concerning its gas transit system

The European Commission decided today to commence infringement proceedings against Belgium as the Belgian Law of 10 March 2009 which lays down exemptions for natural gas transit contracts infringes Community law establishing an internal market in natural gas. Since 2004 under Community law the concept of transit has ceased to exist and all transmission of natural gas is now subject to the setting of tariffs to be determined by the independent regulatory authority of each Member State.

Non-discriminatory third-party access to the natural gas transmission network has become a central aspect of the opening up of the markets to competition. Community law no longer makes any distinction between transmission of gas involving transit of natural gas and the transmission of gas intended for national customers.

Article 2 of the Belgian Law of 10 March 2009 introduces exemptions from the general rules on access to the network for the transit of natural gas and provides for negotiated tariffs which apply for a period fixed by contract. In addition, the law makes it possible to set a fair profit margin for transit which is clearly higher than that applicable to other transmission activities and makes a distinction between existing and future installations.

The Law of 10 March 2009 discriminates between network users carrying on similar activities, a practice which is incompatible with Community law.

Community law concerning the internal market in natural gas provides for third-party access to the natural gas transmission market in order to enable new suppliers to enter the market in a transparent and non-discriminatory manner on the basis of tariffs negotiated between the gas transmission network operator and the regulator and published in advance. Since the markets were fully opened up to competition on 1 July 2007, alternative providers can thus offer to supply potential customers.

In the first phase of the partial opening up of the markets, Community law allowed access to be negotiated between network operators and suppliers, but this has not been possible since 2004. Since then, exceptions to regulated access have been strictly controlled under Community legislation.

Transit and the European Commission

CREG seeks the annulment of the 2009 Natural Gas Transit Act

The CREG announced today that it has requested the Constitutional Court to annul the Act of 10 March 2009 (that, as you might recall, modified the tarifary system for new transit activities and that also excluded all pre 2004 transit contracts from the scope of the Second Gas Directive).

The Constitutional Court normally renders its judgement within a year from the lodging of the appeal.

CREG seeks the annulment of the 2009 Natural Gas Transit Act

All concerned parties lodged an appeal against the 250M EUR nuclear tax

The federal minister of energy declared today that Electrabel, SPE, EDF and Synatom, have lodged an appeal with the Constitutional Court to annul the act imposing a tax on nuclear producers. This tax, voted in 2008, has a total value of 250 M EUR.

All concerned parties lodged an appeal against the 250M EUR nuclear tax

New Flemish government and direct lines, closed distribution systems and private networks

Following the citiworks/Flughafen Halle-Leipzig judgement of the EC Court of Justice (Case C-439/06) and the compromise on the new directives for electricity and natural gas, allowing exemptions for closed distribution systems, the new Flemish Government in the coalition agreement agreed to "pay special attention" to these kinds of private initiatives.

New Flemish government and direct lines, closed distribution systems and private networks

Flemish energy regulator consults the market on proposal for new technical code

The VREG, the Flemish regulator for electricity and natural gas had opened a public consultation on draft amendments to the Flemish electricity and natural gas technical codes.

The proposal aims at:
- Leaving out all reference to direct lines and direct pipelines, and private networks (or closed distribution systems) as these are not yet legally regulated in the Flemish region;
- Submitting all contracts and regulations of the distribution system operators to the review of the VREG;
- Giving sufficient attention to decentralised production;
- Inserting a conciliation procedure.

Flemish energy regulator consults the market on proposal for new technical code

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.

Energy Undertakings Cannot Hold More Than 24,99% of the Fluxys' shares

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.

CREG Examines EDF's Share In SPE