IERN International Energy Regulation Network

Prior to liberalisation of the electricity market in 2003 almost all electricity production was in the hands of Compagnie de Production et de Transmission d’Electricité (CPTE).

Since then there are basically two companies active on the upstream electricity production market: Electrabel, a private company producing about 85% of the electricity, and SPE, a public company standing for 8% of electricity production. Whereas in 2005 Suez got more than 99% of the shares of Electrabel, SPE is a joint venture between Gaz-de-France and Centrica (50%) and Belgian municipalities (50%).

As far as the wholesale market is concerned, there were four companies active as suppliers to companies that are directly connected to the Elia-grid: Electrabel (representing about 84% of the market), RWE, SPE and EDF Belgium.. These supplier need to have a licence issued by the federal authorities.

Elia appointed as transmission system operator by Royal Decree from 18th September 2002, for a 20-years period. Since 2005 the shareholder structure of Elia is as follows: 40% free float, 30% municipalities, 27.45% Electrabel and 2.55% SPE.

Electrabel possesses shares in about 80% of the DSOs. These DSOs are legally unbundled. The other DSOs are directly controlled by the municipalities.

In volume, about 87,4% of the electricity market liberalised by the end of 2006. Only the household costumers of the Walloon and Brussels region were not yet eligible.

As such, there are numerous companies that supply electricity. By the end of 2005 there were several suppliers active on the Belgian market: ALE-Trading, Anode, City Power, Ecoper, EDF, Electriciteitsbedrijf Merksplas, EnecoEnergiehandelsbedrijf, Eon Belgium, Essent Belgium, Lampiris, Trianel Energie. However, market shares of supplied energy was as follows: Electrabel Customer Solutions: 32.3%; Electrabel: 33.6%; Luminus: 7.4%; SPE: 4.7%; Nuon Belgium: 2.8%; EDF Belgium: 1.6%;

Those suppliers need to have a licence issued by the regional authorities.

There are about 20 companies that holds a licence at federal level for the transport of natural gas on the grid.

However, only three companies are active on the Belgian wholesale market: Distrigas (accounting for 85.4% of the market); Gaz-de-France (10.4%) and Wingas (4.2%).

So far, no company has been officially appointed as natural gas TSO. A law passed on 1st June 2005 provides for a procedure to appoint the TSO. Basically, the law provides for three types of TSOs: the operator of the gas pipelines, the operator of the LNG terminal and the operator of the storage.

In 2001 Distrigas split up and created a gas transport company called Fluxys, which has the following shareholder structure: Suez (57.25%), municipalities (31.25%), free float (11.5%). The Belgian State holds one Golden Share in Fluxys.

About 80% of the DSOs are participated by Electrabel. These DSOs are legally unbundled. The other DSOs are directly controlled by the municipalities.

In 2006, 90% (in volume) of the gas market was liberalised. Only the household costumers of the Walloon and Brussels region were not yet eligible.

Mayor market players in 2005 were Distrigas (49.4% of the market); Electrabel Customer Solutions (23.8%), Gaz de France (5.6%), Wingas (4.2%), Luminus (3.7%) and Nuon Belgium (1.6%).

Those suppliers need to have a licence issued by the regional authorities.

Electricity Act (Law 29 April 1999 on the organisation of the electricity market)

Gas Act (Law of 12 April 1965 on the transport of gas and other products via pipelines)