2023-11-14 09:19:00
“For a residential customer consuming 3.5 MWh/year, the share of electricity transmission tariffs represents around 3% of the electricity bill in 2023, or around 40 euros excluding VAT per year.explains the electricity and gas regulatory commission (CREG).
The CREG has approved the tariff proposal from Elia, the electricity transmission network manager in Belgium, for the period 2024-2027, it announced on Tuesday. Electricity transmission rates will increase by an average of 77% to enable the implementation of an “ambitious” investment plan.
Elia manages the high voltage network in Belgium. Since these are regulated activities, the operator can pass on the costs of this management to household and business rates. However, it is up to the Creg to decide whether these costs are justified.
Many investments
Elia had submitted a tariff proposal, which has therefore just received the green light from the energy supervisory authority. It concerns electricity transmission tariffs for the period 2024-2027. During this period, the transport network manager will have his work cut out for him, since numerous investments will have to be made. The increasing electrification of society, which notably involves heat pumps or electric cars, requires a solid high-voltage network. Business electricity consumption alone will increase by half by 2030, Elia suggests.
The company will therefore invest billions of euros over the coming years, particularly in the new Ventilus and Boucle du Hainaut high-voltage lines. The cost of the future energy island off the North Sea, Princess Elisabeth Island, is only partially included in the new tariffs.
Concretely, Elia will invest 6.4 billion euros in the network during the period 2024-2027, an amount significantly higher than the 1.5 billion for the previous period (2020-2023). An investment plan described as “ambitious” but which will have an impact on the consumer’s final bill with electricity transmission rates increasing on average by 77%. The increase will be particularly felt from 2025.
“40€ excluding VAT per year”
“For a residential customer consuming 3.5 MWh/year, the share of electricity transmission tariffs represents around 3% of the electricity bill in 2023, or around 40 euros excluding VAT per year. The impact on its annual bill will be an increase of around 40 euros excluding VAT and only from 2025“, explains Creg, which points out that the approved tariffs are 10% lower than the proposal initially submitted by Elia to “ensure control of costs borne by the consumer”. For his part, the manager speaks of an impact on the bill of “two to three euros on average” per month for the entire period.
“These are significant investments, but they will pay for themselves in just a few years“, he says, adding that postponing these investments would result in much higher costs. Thus, the economic benefits of these investments are estimated between 750 million and 1.2 billion euros per year.
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