Belgian electricity, gas regulator CREG says price hike in 2008 'unavoidable' |
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Sun, 14 Oct 2007 20:53
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BRUSSELS (Thomson Financial) - Belgian electricity and gas regulator CREG says consumers will face a significant rise in prices for gas and electricity as of January 1, 2008.The 'unavoidable' price hike is a result of higher distribution tariffs, the payment for use of the electricity distribution grid, part of which is passed on to consumers.The distribution tariff accounts for 15 pct of the annual electricity bill and 25 pct of annual gas charges for ordinary household customers.The watchdog says it has analysed the tariff proposals of electricity and gas distributors in Flanders, Wallonia and Brussels, and concludes that electricity bills for average households in Flanders and Wallonia will rise by some 20-30 eur a year.A rise in gas prices will lead to additional costs of 65-75 eur a year for households in both regions.Consumers in Brussels will be hit less hard, CREG says, as gas prices will remain unchanged in the capital region, and electricity prices are set to rise by an annual 16 eur.In the past, CREG could contest certain costs figured into the new tariff proposals if it considered them unreasonable.But a Brussels court recently ruled that the watchdog is not authorised to reject a distributor's costs.As a result, CREG has called on the government to introduce legal provisions which would enable the appropriate authorities to thoroughly examine tariff proposals, and renounce them if they are deemed unreasonable.antonia.vandevelde@thomson.comava/salCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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