Elia confirms higher return on capital, raising prospect of increased electricity bills
Belgian high-voltage grid operator Elia Transmission Belgium (ETB) is set to receive a higher return on its capital investments, the company confirmed in its quarterly results on Wednesday. The development raises the prospect of higher electricity bills for households and businesses.
Elia reached a draft agreement with the Belgian energy regulator CREG on a tariff methodology for the 2028–2031 period, covering the return the operator receives on capital invested in the grid. Earlier this year, Elia Group CEO Bernard Gustin had already warned that the company's return was well below the European average and that a higher yield was needed to attract investors.
The draft agreement addresses that concern. Based on the new methodology, the average total return on equity after taxes for the 2028–2031 period would rise to approximately 8.1 per cent, compared to around 7.2 per cent today. The new methodology is expected to feed through into the tariffs paid by households and businesses for their electricity.
A final decision on the tariff methodology will be taken by 30 June at the latest. How much tariffs will ultimately amount to from 2028 onwards remains unclear; consultations on that are set to begin in 2027.
1.7 billion euro investment
Elia also reconfirmed its full-year 2026 financial guidance. The operator expects to invest approximately 1.7 billion euros in Belgium this year. Two major infrastructure projects are currently under way: Ventilus and Boucle du Hainaut, two high-voltage lines intended to relieve saturation of the electricity grid.
Both projects have encountered significant opposition from local authorities and residents. Ventilus recently received a building permit, though appeal procedures are still ongoing, with commissioning expected in 2030 under current planning. For Boucle du Hainaut, an environmental impact report has been submitted, with commissioning currently foreseen for 2032–2033, subject to future political decisions.
Separately, Elia announced that Christophe Peeters will become its new chairman, following a general shareholders' meeting on Tuesday evening. Peeters, who also serves as alderman for Finance, Urban Planning, Heritage and Administrative Simplification in Ghent, was co-opted as a director last year after former chairman Geert Versnick died unexpectedly.
© BELGA PHOTO DIRK WAEM
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