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
Thursday, 28 January 2010
Tax on unused electricity production sites
Wednesday, minister Magnette responded to several questions relating to the tax (or levy) on the unused sites suitable for electricity production. This tax was established by the Act of 8 December 2006 and is levied on all plots of land on which a production installation with a capacity of 400 MW (gas fired), 250 MW (coal or biomass fired) or 250 MW (CHP) can be build. All existing unused sites are property of Electrabel. Aim of the Act was to incite Electrabel to sell these sites to competitors. Notwithstanding the fact that the amount of tax was 51,150,000 EUR (yearly) in 2006, 2007 and 2008, and 67,500,000 EUR/Year in 2009, Electrabel only sold one such site to E.ON. All others are still its property.
Electrabel unsuccessfully challenged the legality of the Act of 2006 before the Constitutional Court. It also challenged the amounts to be paid before the court of first instance in Brussels claiming that most of the sites do not fall under the conditions of the Act of 2006.
The minister declared that he is waiting for the judgment of the court before starting discussions with Electrabel on the compliance with the provisions of the Act.
Gas Code of Conduct
The publication of the new gas Code of Conduct proposed by the CREG in July 2009 and replacing the one of 12 June 2001, is delayed due to the consultation of the Regions. In response to a parliamentary question, minister Magnette stated that the consultation of the Regions is almost finished. The draft Code of Conduct will then be subject of approval by the federal governement, following advices of the Finance Inspection and of the Council of State. Magnette concluded that the text will be published within a foreseeable future.
Tuesday, 26 January 2010
Carbon trading and pottholes
E2LawBlog (published by Greenberg Traurig) refers to an article in The Guardian in which this UK newspaper writes that "Banks are pulling out of the carbon-offsetting market after Copenhagen failed to reach agreement on emissions targets".
The post on E2LawBlog
The article in The Guardian
Monday, 25 January 2010
New rules for transit of natural gas through Belgium
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