Belgium introduces energy standard to ease electricity costs for industry
The Chamber of Representatives has approved the introduction of an energy standard, a mechanism designed to reduce the electricity bill burden on energy-intensive companies.
Belgian companies with high electricity consumption currently pay significantly more than their counterparts in neighbouring countries, putting them at a competitive disadvantage. The energy standard seeks to address this while also drawing industry into the energy transition.
The system consists of a structural reduction in electricity transmission tariffs and temporary support through the European Clean Industrial State Aid Framework. Taken together, eligible companies could receive a targeted discount of up to 50 per cent on the energy component of their electricity bill. In exchange, they will be required to invest in projects focused on decarbonisation, energy efficiency and demand flexibility.
The measure comes with a budget of nearly 1 billion euros for the current legislative term. Which companies will benefit has not yet been determined. Eligible companies and sectors will be identified on the basis of their consumption profile.
Swift action
"An energy standard has been under discussion for 15 years," Energy minister Mathieu Bihet said on Thursday. "This government is taking its responsibility by finally introducing an ambitious and legally robust mechanism to protect the competitiveness of our businesses."
Business organisations VBO and Voka reacted positively, but stressed that speed of implementation is essential. VBO chief executive Pieter Timmermans called on "the government and the regions, each within their respective remits, to maintain an ambitious pace on this issue".
Voka recommends that priority be given to companies with an annual consumption of up to 25 gigawatt hours, as they face the highest excise duty burden. It also urged that any remaining budget within the energy standard be transferred to the regions as quickly as possible via burden-sharing, and that the tariff methodology be revised without delay.
© BELGA PHOTO DIRK WAEM
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