Rising Electricity Prices in Belgium: Impact on Consumers and Future Tariff Proposals

2023-07-28 13:14:00

Since the energy crisis of 2022, electricity prices have come down significantly. But according to the latest figures from Statbel, the price of electricity and natural gas increased by 4.8% and 9.2% respectively on average in July. These increases are mainly due to the end of the extension of the social rate on the one hand and the increase in excise duties on the other.

Other factors are expected to increase Walloons’ bills by 2024. Indeed, the costs related to transport (6% of the energy bill) and distribution (20% of the energy bill) will increase in coming years.

Elia wants to increase tariffs on its network

The Elia group, which manages high-voltage line infrastructure in Belgium, wants to increase its tariffs in order to encourage investment in its infrastructure. For the period 2024-2027, Elia is asking for an increase of around 80% in its network tariffs.

The company points to the “increasing demand for electricity” it faces and the “urgent need to invest in infrastructure” to meet it. “However, concerns regarding the possible consequences on the consumer’s bill have led to a reluctance to act. This hesitation is one of the main challenges we need to overcome, as this will ultimately create benefits for consumers (e.g. lower wholesale electricity prices)“, emphasizes Elia.

A response from the federal energy regulator (CREG) is expected in September, according to Elia’s financial director, Catherine Vandenborre. “Elia will make other adjustments if necessary and resubmit a tariff proposal. We expect the final tariff proposal to be approved in November“, adds the financial director interviewed by the Belga agency.

According to Het Laatste Nieuws, the transport part of our electricity bill would thus increase from 6 to 8%, which would imply an increase of 4 euros per month.

And among the GRDs?

Network operators might also increase their prices next year. Resa has already informed Sudinfo that an increase to compensate for inflation would be requested. It will be up to the Cwape to decide in November 2025: “ And our role is to evaluate the proposed prices, to estimate if they are justified, and to arbitrate or refuse them following examination. », informed the Walloon Energy Commission to our colleagues.

For its part, Orès does not plan to increase its prices in 2024 but the distributor will switch to the single price from January 1. This will mean an increase in the bill for some customers, and a decrease for others.

Customers of Orès Luxembourg, Namur and Verviers, who pay more than elsewhere, will see their bill drop slightly from January 1. On the other hand, the costs will increase for the customers of Orès Mouscron and Brabant Wallon.

New tariff methodology in 2025

In 2025, the new 2025-2029 tariff will come into force to correct the inflation of 2024 and allow the DSOs to plan investments for the energy transition. These new prices will only be known in July 2024 but according to the Cwapethese will “very likely increase”.

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#Electricity #Walloon #bill #increase

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