Benelux : December 16, 2009

It would appear that the French Government, via suppliers Edf and GDF Suez (Electrabel’s parent), is tightening its chokehold on the Belgian electricity market.  As a result, consumers should brace themselves for higher costs.

Following the lead of other European countries, the Belgian government has extended the phase out of its nuclear power plants.  Initially slated for shut down in 2015, the phase-out is now scheduled for 2022-2025.  While the extension could guarantee more reliable power supply in the years to come, it will also be a detriment to competition in the electricity market.  Electrabel needs to invest more into the upgrade and operation of existing nuclear facilities thus guaranteeing consumers will be paying more for their electricity.  As Electrabel has a stranglehold on the Belgian market, this decision to continue with domestic nuclear generation will certainly have them maintain their number one position for years to come.

Once the announcement to continue nuclear generation was made, the first causality was NUON who was recently sold to Vattenfall.  NUON announced plans to divest its operation in the Belgian electricity market.  The plans included selling off its yet to be opened energy management station as well as its entire customer portfolio totaling some 280,000 clients.

The gas market also offers little in the way of competition as access to the Belgian gas grids continues to be difficult.  The courts have condemned Belgium for not adhering to EU regulations with regard to its gas market, however, little has changed.  There are only a handful of gas suppliers in the Belgian market with access to the gas networks being described as a very long and difficult process. The real loser in this entire mess is the Belgian energy consumer.  With envy, they can look only a few miles away to Holland where transparency and competition thrive in their markets.  Perhaps one day the Belgian market will find competition and with it the financial benefits of an open and vibrant energy marketplace.