The ninth Deloitte study commissioned by the federation of energy consumers (Febeliec) shows that large consumers pay even more for their electricity than in neighboring countries.
It is an annual meeting. The Febeliec, the federation of energy consumers in Belgium, orders a study each year from the consultant Deloitte in order to compare the prices of electricity that its members must pay in Belgium compared to neighboring countries. And once again, the finding is clear. Electricity is more expensive for large consumers than in neighboring countries. In 2020 in Belgium, prices were 7 to 27% higher than the average for the Netherlands, Germany and France. Last year, the difference hovered between 8 and 29%.
“Despite our repeated requests to the relevant ministers, we must note that the situation has not improved.”
And the Febeliec is losing patience. “Despite our repeated requests to the competent ministers, we must note that the situation has not improved”, regrets Luc Sterckx, the president of the federation. “Febeliec remains perplexed by this lack of action and we fear for the competitiveness of our industry.“, he continues.
On average, the MWh consumed in Flanders actually costs 4 euros more for a company consuming 1,000 GWh per year and 8 euros more for 100 GWh. In Wallonia, the additional cost is 5 to 16 euros. Thus, for an industrialist consuming 100 GWh per year, this corresponds to an additional 0.7 million euros in Flanders and 1.6 million in Wallonia.
Taxes
Behind this notable difference, Deloitte identifies higher taxes and network fees in Belgium than elsewhere. Despite price convergence on the wholesale markets, Belgian electricity has therefore remained more expensive. “Electricity prices have increased compared to 2020. This is explained by an increase in network costs of around 1% in both regions, but above all by an increase in taxes of 8% in Flanders and 2 % in Wallonia “, we read in the study.
The report also points out that large neighboring consumers benefit from certain discounts on their bills, unlike their Belgian counterparts.
CRM
Note that, according to the federation, the situation is unlikely to improve after 2025. “We fear that the financing of the CRM (the mechanism of remuneration of the capacity which aims to guarantee the security of supply of electricity at the exit of nuclear power, editor’s note) further aggravates the competitive burden of industrial consumers“, points out Luc Sterckx.
“Extending the life of 2 GW of nuclear capacity is today the most rational decision to guarantee security of supply.”
“In addition, it is unlikely that the CRM will be operational in time for the first auction scheduled for October 2021. Extending the life of 2 GW of nuclear capacity is today the most rational decision to ensure the safety of the nuclear industry. ‘supply,’ he concludes.