Natural gas transmission tariffs are set to drop for the third time in five years on 1 January 2018, which will have a positive impact on gas bills for individuals, SMEs as well as large companies. This decrease is triggered by the interim tariff revision mechanism provided for in CREG's tariff decision.
Tariff decision included revision mechanism
In late October 2015, CREG's Board of Directors approved Fluxys Belgium's tariff proposal for the 2016-2019 regulatory period. The approved proposal also provided for a mechanism for interim revision of tariffs in the event of significant deviations from the hypotheses used.
7.5% tariff reduction in sight
The proposed tariff reduction is a result of Fluxys Belgium's sustained efforts to boost efficiency and the decrease in interest rates. Based on these factors, Fluxys Belgium and CREG agreed to launch the procedure to lower natural gas transmission tariffs in 2018 and 2019.
Tariff reduction will not affect Fluxys Belgium's results
The tariff reduction and non-indexation on 1 January 2018 will cut the transmission tariff by around 7.5%, corresponding to a total of €51 million for 2018 and 2019. This follows a previous tariff reduction, which took effect on 1 January 2015.
The reduction in tariffs for transmission services on 1 January 2018 will not affect Fluxys Belgium's results, as these are largely determined by the regulated rate of return.
Final decision expected by summer
Fluxys Belgium is holding a market consultation on its amended tariff proposal between 23 March and 6 April 2017. CREG is expected to be able to approve the proposal before the summer, which would allow the tariff reduction to take effect on 1 January 2018.
Press contacts
| CREG | FLUXYS BELGIUM |
| Annemarie De Vreese +32 479 98 95 28 annemarie.devreese@creg.be | Laurent Remy +32 2 282 74 50 laurent.remy@fluxys.com |
About CREG
CREG is the federal regulator for the Belgian electricity and natural gas markets. In addition to its government advisory role, CREG is also, among other tasks, entrusted with the supervision of transparency and competition issues in the electricity and natural gas markets, ensuring that market conditions are aimed at the common interest and that they fulfil the needs of the general energy policy, and also with ensuring that essential consumer interests are met.
About Fluxys Belgium
Fluxys Belgium is the independent operator of the natural gas transmission and storage infrastructure in Belgium. Through its subsidiary Fluxys LNG, the company also operates the Zeebrugge liquefied natural gas (LNG) terminal. Fluxys Belgium is a subsidiary of Fluxys, an independent gas infrastructure group based in Belgium and active on the European market.