Annual Report 2019

Annual report 2019

Commission for Electricity and Gas Regulation

Annual report 2019 Table of contents

1. Foreword ...... 5 3.1.4. Implementation of European regulations and cross-border issues ...... 30 3.1.4.1. Access to cross-border infrastructure ...... 30 2. Key legislative developments ...... 9 3.1.4.2. Correlation of the development plan for the transmission system with the development plan for the European network ...... 34 2.1. Key European legislative developments ...... 10 3.1.4.3. Implementation of European regulations CACM, FCA, EB, SO, ER and RfG ...... 34 2.2. Key national legislative developments ...... 11 3.2. Competition ...... 40 2.2.1. Capacity payment mechanism ...... 11 3.2.1. Monitoring of wholesale and retail prices ...... 40 2.2.2. Offshore wind energy ...... 12 3.2.1.1. Studies conducted by the CREG ...... 40 2.2.2.1. Introduction of a competitive tendering procedure ...... 12 3.2.1.2. Monitoring energy market prices for households and small 2.2.2.2. Payment system for farms connected to the MOG ...... 13 professional users ...... 42 2.2.3. Social tariffs for gas and electricity ...... 14 3.2.2. Monitoring of market transparency and openness ...... 44 2.2.3.1. Upper limit of social tariffs ...... 14 3.2.2.1. Electrical power demande ...... 44 2.2.3.2. Extension of social tariffs ...... 14 3.2.2.2. Market share of wholesale generation ...... 44 2.2.4. Monitoring by the CREG of energy intermediaries ...... 15 3.2.2.3. Energy exchange ...... 45 2.2.5. Amending the technical regulations ...... 15 3.2.2.4. REMIT ...... 49 3.2.2.5. Charter of best practices for electricity and gas price comparison 3. The electricity market ...... 17 websites ...... 49

3.1. Regulation ...... 18 3.3. Consumer protection ...... 49 3.1.1. Electricity generation ...... 18 3.1.1.1. Electricity generation licences ...... 18 3.4. Security of supply ...... 50 3.1.1.2. Electricity generation in the North Sea ...... 18 3.4.1. Monitoring the balance between supply and demand ...... 50 3.1.1.3. Commissioning of the Modular Offshore Grid ...... 21 3.4.2. Verifying the development plan for the transmission system ...... 51 3.1.1.4. Other verification and advisory tasks ...... 21 3.4.3. Operational security of the grid ...... 51 3.1.2. Electricity supply ...... 21 3.4.4. Investment in cross-border interconnections ...... 52 3.1.2.1. Supplying customers connected to the transmission system . . . . 21 3.4.5. Measures to cover peak demand and deal with shortfalls ...... 53 3.1.2.2. Price caps ...... 22 3.4.5.1. Strategic reserve ...... 53 3.1.2.3. Trends in and fundamentals of electricity prices ...... 23 3.4.5.2. Access to demand management ...... 53 3.1.3. Transmission and distribution ...... 23 3.4.5.3. Security of electricity supply for winter 2019-2020 ...... 54 3.1.3.1. Renewal of the designation, unbundling and certification of 3.4.5.4. Valorisation of the generation reserves necessary for the security of the transmission system operator ...... 23 the system ...... 54 3.1.3.2. Corporate governance ...... 24 3.1.3.3. Closed industrial networks and the traction power network . . . . .24 3.1.3.4. Technical operation ...... 24 3.1.3.5. System tariffs ...... 27

2 CREG Annual report 2019 4. The natural gas market ...... 55 5. The CREG ...... 73

4.1. Regulation ...... 56 5.1. The CREG's Board of Directors and staff ...... 74 4.1.1. Natural gas supply ...... 56 4.1.1.1. Federal natural gas supply licences ...... 56 5.2. Gas and Electricity Advisory Board ...... 76 4.1.1.2. Price caps ...... 57 4.1.1.3. Trends in and fundamentals of the natural gas price ...... 58 5.3. General policy plan and comparative report on the objectives and 4.1.2. Transmission and distribution ...... 58 achievements of CREG ...... 78 4.1.2.1. Unbundling and certification of the transmission system operator . . .58 4.1.2.2. Corporate governance ...... 58 5.4. Handling questions and complaints ...... 78 4.1.2.3. Technical operation ...... 59 4.1.2.4. System tariffs and LNG tariffs ...... 61 5.5. Presentations made by the CREG ...... 79 4.1.3. Cross-border issues and market integration ...... 63 4.1.3.1. Access to cross-border infrastructure ...... 63 5.6. The CREG and other bodies ...... 82 4.1.3.2. Correlation between the investment plan for the transmission 5.6.1. The CREG and the European Commission ...... 82 network and the development plan for the European network . . . . 63 5.6.2. The CREG within ACER ...... 83 4.1.3.3. Market integration ...... 63 5.6.3. The CREG within the CEER ...... 85 5.6.4. European Gas Regulatory Forum ...... 88 4.2. Competition ...... 65 5.6.5. The European Electricity Regulatory Forum ...... 89 4.2.1. Monitoring of wholesale and retail prices ...... 65 5.6.6. The Citizens' Energy Forum ...... 89 4.2.1.1. Studies conducted by the CREG ...... 65 5.6.7. The Energy Infrastructure Forum ...... 89 4.2.1.2. Monitoring energy market prices for households and small 5.6.8. The CREG and the other national regulators ...... 90 professional users ...... 65 5.6.9. The CREG and the FSMA ...... 90 4.2.2. Monitoring of market transparency and openness ...... 65 5.6.10. The CREG and Parliament ...... 90 5.6.11. The CREG and the regional regulators ...... 91 4.3. Consumer protection ...... 65 5.6.12. The CREG and the competition authorities ...... 91 5.6.13. The CREG and Belgian universities ...... 91 4.4. Security of supply ...... 65 4.4.1. Monitoring the balance between supply and demand ...... 65 5.7. The finances of the CREG ...... 92 4.4.2. Monitoring transmission system operator investment plans ...... 69 5.7.1. Federal contribution ...... 92 4.4.3. Forecasts on future demand, available reserves and additional capacity . . . . 70 5.7.2. Funds ...... 94 4.4.4. Covering peak offtake ...... 71 5.7.3. Accounts 2019 ...... 95 5.7.4. Auditor’s report on the annual accounts for the year ended 31 December 2019 . 100

5.8. List of acts drawn up by CREG in 2019 ...... 102

CREG Annual report 2019 3 LIST OF TABLES LIST OF FIGURES 1 Energy offtake by customers connected to the federal transmission system, 2007 to 1 New marine areas for the granting of domain concessions for the construction and operation of 2019 inclusive ...... 22 facilities for the generation and storage of energy from renewable sources ...... 19 2 Average unweighted imbalance tariff during the period 2007-2019 ...... 26 2 Change in installed capacity of offshore wind power per wind farm between April 2009 and 3 Trends in the tariff burden (not including connection, PSO tariffs, surcharges and VAT) December 2019 ...... 20 for users of the transmission system during the period 2013-2019 ...... 28 3 Net generation of offshore green electricity per wind farm between April 2009 and 4 Average export and import capacity and average net nomination per year ...... 31 December 2019 ...... 20 5 Annual revenues from the monthly and annual capacities offered for auction ...... 33 4 Average unweighted imbalance tariff and BELPEX DAM price during the period 2007-2019 ...... 27 6 Wholesale market shares in electricity generation capacity ...... 45 5 Monthly average of Belgium's net physical imports (> 0) and exports (< 0) in the CWE and 7 Wholesale market shares in power generated ...... 45 Channel region in 2019 ...... 30 8 Elia grid load (power and peak capacity) for the period 2007-2019 ...... 50 6 Monthly average of the net positions of the zones and daily cross-border exchanges in CWE, 9 Breakdown by plant type of installed capacity connected to the Elia grid as of 31 December 2019 . . 50 including long-term nominations, before and after the introduction of FBMC on 21 May 2015 . . . . . 31 10 Breakdown by primary energy type of electricity generated in 2019 by plants located on 7 Impact of the guaranteed availability of 20% of the thermal capacity of the critical branches on sites connected to the Elia grid ...... 51 trade between different bidding zones ...... 32 11 Companies active in 2019 on the Belgian market for transmitting natural gas - 8 Daily congestion income from market coupling ...... 34 Change compared with 2018 ...... 56 9 Monthly trends in the price of electricity in 2019 for a standard residential customer ...... 43 12 Breakdown of Belgian natural gas demand by user segment between 2009 and 2019 ...... 66 10 Monthly trends in the price of natural gas in 2019 for a standard residential customer ...... 43 13 Directorates and staff of the CREG as of 31 December 2019 ...... 75 11 Monthly trends in the price of electricity in 2019 for SMEs and the self-employed ...... 43 14 Members of the Gas and Electricity Advisory Board as of 31 December 2019 ...... 77 12 Monthly trends in the price of natural gas in 2019 for SMEs and the self-employed ...... 43 15 Overview of presentations made by members of the CREG in 2019 ...... 79 13 Average monthly load on the Elia grid from 2007 to 2019 ...... 44 16 Distribution among the funds managed by the CREG of the excess amounts collected from 14 Average monthly prices for the period 2007-2019 of the daily market for delivery of electricity the federal contribution for electricity from the distribution system operators ...... 93 in the countries of the CWE region ...... 47 17 Summary of the 2019 budget accounts in expenditure ...... 96 15 Average annual prices for the period 2007-2019 of the daily market for the supply of electricity 18 Summary of the 2019 budget accounts in revenue ...... 96 in the countries of the CWE region ...... 47 19 Income statement as at 31 December 2019 ...... 97 16 Average monthly strength of the Epex Spot Belgium market between 2007 and 2019 ...... 48 20 Balance sheet as of 31 December 2019 ...... 98 17 Energy traded and average price on the intraday exchange ...... 48 18 Comparison of wholesale prices for short-term and long-term contracts ...... 49 19 Changes between 2007 and 2019 in the maximum physical load for the interconnectors with France and the Netherlands ...... 51 20 Fluxys Belgium's tariff trends for natural gas transmission (entry/exit tariffs for H-gas) between 2014 and 2019 ...... 62 21 Net natural gas transactions between the ZTP* Belgian natural gas market (Belux) and the markets in the neighbouring countries during the period 2011-2019 ...... 64 22 Average annual natural gas price on the day-ahead and year-ahead markets ...... 64 23 Distribution of Belgian H-gas and L-gas demand by user segment in 2018 and 2019 ...... 66 24 Evolution of natural gas consumption per user segment during the 1990-2019 period (1990=100), corrected for climate variations ...... 67 25 Breakdown of incoming natural gas by entry zone in 2019 ...... 68 26 Composition of the average supply portfolio of suppliers operating in Belgium in 2019 ...... 68 27 Market shares of supply companies in the transmission network in 2019 ...... 68 28 Composition of the average supply portfolio for the Belgian natural gas market between 2000 and 2019 ...... 68 29 Forecast for demand for natural gas in Belgium until 2029 ...... 70 30 Breakdown of the peak offtake by user segment in 2019 ...... 71 31 Breakdown of the sources of natural gas to cover the peak offtake in 2019 ...... 71

4 CREG Annual report 2019 1. Foreword

1 Foreword

CREG Annual report 2019 5 1. Foreword

The year 2019 was characterised by a number of new deve Furthermore, the CREG kept abreast of developments re- its regulated and non-regulated activities . In this context, the lopments at European level and ongoing regulatory work at lating to Brexit, to anticipate the impact of the United King- CREG took a favourable decision, with conditions, on the cer- Belgian level . dom's exit conditions on the Belgian market, in particular in tification of Elia Transmission Belgium NV and issued a favour- the context of the IUK interconnection, the Nemo Link in- able opinion on its designation as electricity TSO . At European level, the CREG actively participated in the terconnection and the interconnection between the British various activities of the CEER and ACER . In this context, markets and the markets in the CWE region . In this context, The CREG pays close attention to defending the interests in addition to its usual responsibilities, the CREG closely the CREG chaired the "PINT Group", the aim of which was of Belgian consumers, regardless of the scale of these followed all discussions on the Clean Energy Package for All to supervise the Brexit process from the perspective of the interests, and, as part of its regular monitoring, has also Europeans, both before and after approval of this package . European national regulators . closely monitored changes in electricity and natural gas Various workshops were organised in the presence of prices and the impact of prices on household budgets and the European Commission to enable regulators to better The year 2019 was characterised by legislative changes at the competitiveness of companies, particularly electricity- understand, interpret or apply the future provisions of the national level, concerning the capacity payment mechanism, intensive companies . Where necessary, these examinations European package . The regional regulators were involved the establishment of a second zone for the operation of off- were followed by recommendations or, as may have been in this process . Still in connection with the Clean Energy shore wind turbines, the responsibilities under the MOG, the the case, proposals for corrective measures, without Package, the CREG also worked on updating European gas energy intermediaries, the social tariff for electricity and gas incurring additional costs for the federal government legislation via the ACER and CEER working groups ("mirroring (price caps and extension of applicability) and the amend- budget, without jeopardising the competitiveness of SMEs exercise") and is continuing its work in the context of the ment of the technical regulations . and while defending the purchasing power of households . decarbonisation package announced by the new European In this context, the CREG worked with the three regional Commission (Von der Leyen Commission) . The CREG will As regards the functioning of the markets and their contribu- regulators to launch a joint study on this topic, which should continue to closely follow future European developments in tion to security of supply, the CREG actively contributed with be completed in the course of 2020 and serve as a reference this area, in particular to enable efficient sector coupling and resources and people to all the necessary documents and for a possible energy standard . The competitive development adequate protection of gas consumers . requirements for the capacity payment mechanism . We refer of the wholesale and retail markets will remain one of the to this in detail in this annual report and the future activity top priorities of the CREG, in the general interest and in the At the European level, the CREG also took part in the prepa- report . interest of Belgian consumers . ration of the work of the CEER, with a view to the installation of the new European Commission . Among other things, the Among other things, the CREG had to examine the request In addition, the CREG aims to ensure that all consumers, CREG worked on the Green Deal, the Climate Act and the by Elia System Operator NV to designate its newly estab- depending on their specific needs, receive clear and sufficient "consumers" legislative package, and will continue this work lished subsidiary Elia Transmission Belgium NV as operator pedagogical information to enable them to be proactive and in 2020 as the measures announced will be detailed and im- of the electricity transmission system . This restructuring was make informed choices on the liberalised energy market, while plemented by the European institutions . the solution recommended by Elia System Operator NV in re- making the most of the opportunities offered by technological sponse to the CREG's remarks on cross-subsidies between innovations and the development of digital technology . In this

6 CREG Annual report 2019 1. Foreword

context, the CREG continued to inform consumers, among as a study afternoon with the members of this commission . other things by continuing work on dormant contracts and The latter initiative was an opportunity for the CREG to share enabling consumers to compare their current contract to its expertise, answer any questions and make its area of work offers on the retail market more effectively . In this respect, the better known . CREG Scan has clearly become a useful tool for consumers, which is essential for the use of the available comparison The CREG aims to continue preparing for the challenges of tools . The CREG intends to continue its work for consumers the energy transition, the social transition and the economic in 2020 and continue providing information regarding their bill . transition and for the implementation of the new European legislative packages, in a spirit of trust and constructive di- Thanks to the know-how of its highly qualified staff, the alogue with all stakeholders and competent bodies, both at CREG has made a significant contribution, upstream and national and European level, where the cooperation, contri- downstream, to work on these energy issues, which are butions and proactive role of the CREG will be significantly highly complex from both a technical and a legal perspective . enhanced . With a view to achieving dynamic regulation, the In the context of this process and pursuant to the powers CREG considered, among other things, the consequences of entrusted to it, the CREG has committed itself to promote, at the energy transition and the European initiatives in this area its level, an appropriate and balanced regulation that reflects on the way in which the regulator carries out its tasks and the reality on the ground as closely as possible and provides on the future areas of work/roles of the regulated operators . a solution to future challenges . This is reflected in all the deeds adopted by the CREG in 2019, which are described in In this context, the CREG will ensure, as it has in the past, that more detail in this activity report . In this context, the CREG its actions are part of an efficient and effective management wishes to emphasise the substantive legal work that has of the resources at its disposal, in the name of corporate so- been carried out internally, which specifically enables the cial responsibility towards consumers, without prejudice to qualitative preparation of decisions and opinions . This has led its independence and the smooth implementation of the le- to a decrease in the number of appeals against its decisions gal tasks entrusted to it, the scale of which will undoubtedly and to a significant increase in the number of cases brought continue to grow . before the courts in the last six years . I wish you pleasant reading . In 2019, the CREG was also regularly at the disposal of the Energy, Environment and Climate Commission of the Cham- Koen Locquet ber of Representatives . Various hearings were held in which Acting Chairman of the Board of Directors the internal expertise of the CREG was relied upon, as well March 2020

CREG Annual report 2019 7

2. Key legislative developments

Key legislative 2 developments

CREG Annual report 2019 9 2. Key legislative developments

2.1. Key European legislative developments means of generation and the independence of consumption investment and enable a direct contribution to achieving the will allow a more effective integration of green energy . This will Union's energy objectives by 2030, such as the target of in- In the context of the energy transition currently underway in however require an adaptation of the previously established creasing the share of energy from renewable sources in the Europe, the Clean Energy Package (CEP) lays down a new rules and existing roles, in order to give consumers the oppor- energy mix to 32% . For example, this will encourage Member regulatory framework in the field of energy and the objectives tunity to take a more active role . States to put in place national strategies for the gradual reduc- to be achieved by 2030 . tion of existing fossil fuel energy generation capacities . At the same time as strengthening consumers' rights to infor- The CEP consists of the following legislative texts: mation and protection against unfair commercial practices, the The transition to a sustainable, low-carbon energy system by CEP introduces new tools to enable consumers to participate increasing the share of energy from renewable sources in the - Directive 2018/844 of 30 May 2018 on the energy perfor- fully in the market . energy mix, and therefore of intermittent generation sources, mance of buildings1 also creates new challenges in terms of security of supply . In - Directive 2018/2001 of 11 December 2018 on the promotion Among the newly introduced tools, we can highlight (1) the this respect, the CEP retains the possibility for Member States of the use of energy from renewable sources2 introduction of a new legal framework for citizen energy com- to introduce public service obligations in order to ensure secu- - Directive 2018/2002 of 11 December 2018 on energy munities, allowing the grouping of multiple consumers (private rity of supply within their territory . However, the CEP stresses efficiency3 or professional) around a renewable energy source that they the subsidiary and temporary nature of the capacity mecha- - Regulation 2018/1999 of 11 December 2018 on the jointly manage and finance, (2) the widespread adoption of nisms, which should only be introduced as a last resort and governance of the Energy Union and Climate Action4 smart meters and (3) the obligation for Member States to put only when an adequacy problem has been clearly identified at - Regulation 2019/943 of 5 June 2019 on the internal market in place tools that make it possible to compare the offer of European or national level . for electricity5 different suppliers . - Directive 2019/944 of 5 June 2019 on common rules for the In addition, the CEP has granted new powers to the system internal market for electricity6 The introduction and valorisation of this flexibility should also operators . As regards distribution system operators (DSO), - Regulation 2019/941 of 5 June 2019 on risk-preparedness in go hand in hand with the entry into the market of new and while the CEP states as a general rule that the DSO is pro- the electricity sector7 innovative services which respond to the changing needs of hibited from owning the charging points for electric vehicles - Regulation 2019/942 of 5 June 2019 establishing a European consumers and offer them a wider range of choice . and energy storage facilities, it allows Member States to dero- Union Agency for the Cooperation of Energy Regulators8 gate from this rule under clearly defined conditions . As regards In addition, the CEP stresses the need for genuine decarbon- transmission system operators (TSOs), the CEP provides for The CEP meets the need to introduce a more flexible energy isation at the lowest possible cost to consumers . To this end, the possibility of delegating certain tasks to other TSOs . The market that makes more room for energy generated from re- market rules that promote energy efficiency and effectively inte- latter must themselves be recognised and comply with the newable sources . In this context, the decentralisation of the grate energy from renewable sources can stimulate long-term ownership unbundling model .

1 Directive (EU) 2018/844 of the European Parliament and of the Council of 30 May 2018 amending Directive 2010/31/EU on the energy performance of buildings and Directive 2012/27/EU on energy efficiency (OJEU, 19 June 2018). Member States must transpose the Directive into their national law by 10 March 2020 at the latest. 2 Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJEU, 21 December 2018). Member States must transpose the Directive into their national law by 30 June 2020 at the latest. 3 Directive (EU) 2018/2002 of the European Parliament and of the Council of 11 December 2018 amending Directive 2012/27/EU on energy efficiency (OJEU, 21 December 2018). Member States must transpose the Directive into their national law by 25 June 2020 at the latest. 4 Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/ EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJEU, 21 December 2018). This Regulation is binding in its entirety and directly applicable in all Member States. 5 Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (OJEU, 14 June 2019). This Regulation is binding in its entirety and directly applicable in all Member States. 6 Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (OJEU, 14 June 2019). All provisions of the Directive must be transposed into national law by 31 December 2020 at the latest. 7 Regulation (EU) 2019/941 of the European Parliament and of the Council of 5 June 2019 on risk-preparedness in the electricity sector and repealing Directive 2005/89/EC (OJEU, 14 June 2019). This Regulation is binding in its entirety and directly applicable in all Member States. 8 Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators (OJEU, 14 June 2019). This Regulation is binding in its entirety and directly applicable in all Member States.

10 CREG Annual report 2019 2. Key legislative developments

The CEP also attaches greater importance to cooperation at 2.2. Key national legislative developments The selection procedure starts with a pre-qualification proce- regional level, the exchange of information and the strengthen- dure, after which the pre-qualified capacity holders may partici- ing of dialogue between the various market players, with, for 2.2.1. Capacity payment mechanism pate in the auctions . The criteria and terms for eligibility for the example, the establishment of regional coordination centres pre-qualification procedure are laid down in a Royal Decree . where national regulatory authorities are invited to cooperate In order to ensure security of supply within Belgian territory to ensure compliance with the obligations imposed by the CEP, with a view to the shutdown of nuclear power stations in 2025, The law stipulates that each eligible capacity holder established including on cross-border issues . the Law of 22 April 201910 amended the Law of 29 April 1999 in the Belgian control area must submit a pre-qualification ap- on the organisation of the electricity market (hereinafter the plication, the other capacity holders may submit a similar appli- Finally, following on from the CEP, the Green Pact for Europe "Electricity Act") by creating the framework of a capacity pay- cation . Foreign capacity holders are also allowed to participate, adopted in December 20199 provided an ideal opportunity for ment mechanism . but under conditions laid down by the King after the CREG has the European Commission to propose a range of measures, as given its opinion . The criteria and terms for eligibility for the well as ambitious targets in the field of energy . This includes This mechanism is a support mechanism, on the scale of the pre-qualification procedure will be laid down in a Royal Decree . drastically reducing CO2 emissions by decarbonising various whole market, for each type of capacity (generation, storage, sectors, in order to make Europe the first climate-neutral conti- demand management) which can contribute to security of sup- Two auctions will be organised for each capacity delivery pe- nent by 2050 . The common objective of decarbonisation of the ply . It works through recurring auctions . riod . The first will be organised four years before the capacity electricity system also appears frequently in the CEP, thereby period and the second one a year before . creating various new challenges for all market players . The law of 22 April 2019 provides that the King, at the proposal of the system operator, drawn up after consultation of the In order to eliminate part of the difference between capaci- market players and after receiving the opinion of the CREG11, ties that require no or little investment (e .g . existing capaci- determines the method that allows the transmission system ties) and capacities that require significant investment, the law operator, on the one hand, to draw up a report calculating the offers the possibility to contract on a multi-annual basis, i .e . necessary capacity volume and the number of hours during contracts covering different delivery periods . This allows the which this capacity will be used for the purpose of adequacy capacity holders to spread the additional burden over several and, on the other hand, a report containing a proposal of pa- years and to be sufficiently certain that the investments made rameters necessary for the organisation of the auctions . can be recovered . These multi-annual contracts also have the advantage of reducing the risk of additional costs related to the The CREG is obliged to submit an opinion on these two reports implementation of the mechanism, borne by all end consum- to the Minister for Energy . ers within the territory .

The Minister for Energy will then instruct the system operator to organise the auctions for the relevant periods for the supply of capacity by 31 March each year at the latest .

9 The European Green Deal, Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, COM(2019) 640 final, 11 December 2019. 10 Law of 22 April 2019 amending the Law of 29 April 1999 on the organisation of the electricity market in order to establish a capacity payment mechanism (Belgian Official Gazette of 16 May 2019). 11 In this context, on 6 December 2019, the CREG issued its opinion (A)2030 "on the draft royal decree laying down the calculation methodology for capacity and the parameters for the auctions under the capacity payment mechanism".

CREG Annual report 2019 11 2. Key legislative developments

As part of the elaboration of the capacity payment mechanism, Readers are referred to point 3 .4 .5 .3 of this report . The call for tenders also includes the procedure for awarding the CREG must propose a royal decree setting out, on the one the permits, so that at the end of the procedure the selected hand, the criteria for the eligibility of investment costs with a 2.2.2. Offshore wind energy tenderer also has all the required permits (domain concession, view to classifying a capacity in one of the four capacity cate- environmental permit, permit for the installation of the subma- gories12 laid down by law (to which a maximum number of de- 2.2.2.1. Introduction of a competitive tendering procedure rine cable and agreement for connection to the grid) . livery periods is linked) and, on the other hand, the investment thresholds that distinguish the capacity categories13 . The Law of 12 May 201914 amended the Electricity Act with a This domain concession is granted for a maximum duration of view to introducing a new competitive tendering procedure for thirty years, including the construction, operation and decom- After the auctions, if the participant's bid has been retained, the the construction and operation of installations for the generation missioning phases of the installations . participant will be remunerated on a regular and certain basis by of electricity in marine areas under Belgian jurisdiction . a "contractual counterparty" (to be determined by the King) ac- The Act also specifies that the competitive bidding process, the cording to the available capacity that it can guarantee . However, As part of the notification of the green certificates mecha- conditions for granting domain concessions and the general the capacity supplier undertakes not to benefit from the system nism for offshore wind turbines to the European Commission conditions for the use of the lots will be determined by means if the electricity price on the wholesale market is higher than the in 2016, Belgium has undertaken to introduce such a com- of a Royal Decree approved following the opinion of the CREG17 . exercise price, i e. . a pre-determined value representing a level of petitive bidding mechanism for the award of future domain the market price considered to be high and therefore infrequent . concessions15 . Moreover, the Law of 12 May 2019 introduces a new Article 6/4 into the Electricity Act which stipulates that, for each do- The CREG must monitor the proper functioning of the capacity Although the previous mechanism provided for a competitive main concession, a ministerial decree adopted after obtaining payment mechanism and may request the electricity compa- bidding process, it did not cover the amount of aid and there- the opinion of the CREG and consulting the system operator nies to provide it with all the information it needs to exercise fore did not take into account the level of subsidy required . determines the location, size and number of lots that are the its supervisory powers . The King can lay down the terms of The law of 12 May 2019, which is more in line with European subject of the concession . This ministerial decree will include this supervision . obligations, in particular the European Commission guidelines the results of the studies related to the extension of the Mod- on State aid for environmental protection and energy16, makes ular Offshore Grid (hereinafter the 'MOG') . All this information Finally, the Law of 22 April 2019 stipulates that a Royal Decree, it possible to promote electricity generation in marine areas will be included in the specifications of the competitive bidding following an opinion from the CREG and the system operator, from renewable energy sources while reducing costs for the process . Moreover, this new Article 6/4 specifies that the draft lays down the method of financing the capacity payment end consumer . extension for the MOG will be subject to the opinion of the mechanism and the non-discriminatory arrangements for CREG and the approval of the competent Minister . passing on the amounts to be financed . This Royal Decree will The new Article 6/3 of the Electricity Act provides for the intro- also designate the aforementioned contractual counterparty duction of a competitive bidding process between the various Finally, a new Article 6/5 provides that the electricity generation and, where appropriate, the administrative and financial tenderers wishing to obtain a domain concession for the con- facilities that have been the subject of a domain concession, as controls to which this counterparty is subject . struction and operation of installations for the generation of provided for in Article 6/3, will be connected to the abovemen- offshore energy . tioned extension of the MOG . In this context, it is stipulated

12 The four capacity categories linked to capacity contracts cover respectively one, three, eight and fifteen periods for the supply of capacity. 13 Proposal for Royal Decree (C)1907 of 12 December 2019 laying down the investment thresholds and the criteria for the eligibility of investment costs with a view to classifying capacities in capacity categories. 14 Law of 12 May 2019 amending the Law of 29 April 1999 on the organisation of the electricity market with a view to introducing a competitive bidding process for the construction and operation of generation facilities in the marine areas under Belgian jurisdiction and ratifying the Royal Decree of 11 February 2019 amending the Royal Decree of 16 July 2002 on the establishment of mechanisms for the promotion of electricity generated from renewable energy sources (Belgian Official Gazette of 24 May 2019). 15 See point 97 of the European Commission decision on State aid to Rentel and Norther (SA.45867) and point 93 of the European Commission decision on State aid to Mermaid, Seastar and Northwester 2 (SA.51306). 16 Communication from the Commission - Guidelines on State aid for environmental protection and energy 2014-2020, C-200/01, OJEU of 28 June 2014. 17 It should be added that in December 2018, the CREG published a note (Z)1880 on the support mechanism for the construction of offshore wind farms after 2020. In this note, the CREG explained various aspects of the design of the future support mechanism and of the competitive bidding process. See Annual Report 2018, page 16.

12 CREG Annual report 2019 2. Key legislative developments that the King, on a proposal from the CREG and after consulta- concession are entitled to compensation equal to 90% of the support period21, the compensation per MWh that could not be tion with the system operator, sets the deadline by which each LCOE (or 100% of the LCOE if the delay is due to a deliberate injected into the grid is equal to 90% of the LCOE (or 100% of part of the MOG extension must be commissioned . error on the part of the system operator) for each MWh that the LCOE in the event of serious or deliberate fault on the part could not be injected into the grid . Moreover, if the delay in com- of the system operator) . On the other hand, no compensation Article 6/5 also establishes a payment system for the holders missioning lasts longer than twelve months from the planned is payable to holders of a domain concession for the electricity of a domain concession if all or part of the extension of the date of commissioning and if the holder can prove that there generation installations that have not been commissioned . MOG has not been commissioned by the date set or in the is an extraordinary disadvantage that jeopardises its financial Nor is any compensation payable if the unavailability of the event of total or partial unavailability of the MOG after its com- stability, the latter may submit an application for additional com- MOG occurs as a result of an error on the part of the holder missioning - by analogy with what currently exists in the event pensation to the CREG . On the other hand, the Royal Decree of a domain concession . In that case, the Royal Decree does of unavailability of the MOG (see below) . In principle, the costs stipulates that no compensation is payable to a holder of a do- provide that if the installations of the MOG are located within of this payment are passed on in the tariffs of the system oper- main concession if it has built the installation itself that makes the perimeter of the domain concession of the holder whose ator, except when they are due to a serious or deliberate fault up the MOG and if the delay in commissioning can be attributed fault has caused the damage, the compensation is only ruled on the part of the system operator . In the latter case, the costs to it . The concession holder is not entitled to compensation for out in the event of gross or intentional fault on the part of that of paying the holders of a domain concession are borne by the the electricity generation installations of the holder concerned holder; in the event of a simple fault, the compensation is due system operator . who has not completed their mechanical finishing20 . after the expiry of a period of unavailability of five days per year, either consecutively or not . We also invite the reader to read point 3 .1 .1 .2 of this report . If the delay in commissioning the installations constituting the MOG is due to the absolute and proven impossibility of com- Finally, the Royal Decree of 11 February 2019 provides for 2.2.2.2. Payment system for farms connected to the MOG pleting the construction of all or part of the MOG, the Min- several possible cases in which the compensation due does ister will determine, on a proposal from the CREG, no later not include the reimbursement of green certificates and is A Royal Decree of 11 February 2019, adopted on a proposal than sixty days after the unavailability has been established, limited to the reference price of the electricity . from the CREG18, amending the Royal Decree of 16 July 2002 the date on which the direct connections to the existing elec- on the establishment of mechanisms for the promotion of tricity transmission installations can be commissioned . In this All requests for compensation must be the subject of a decision electricity generated from renewable energy sources19 spec- respect, the compensation referred to above will be due from by the CREG . The procedure for submitting applications for ifies all cases leading to payment for the holders of a domain the first day after the planned date of commissioning of the compensation, their processing by the CREG and the method concession connected to the MOG . MOG until the probable date of commissioning of the direct of payment of any compensation are determined by the connection as determined by the Minister . Minister for Energy . In the event of a delay in the commissioning of the installations constituting the MOG in relation to the deadline for commis- In the event that the unavailability of the installations constituting sioning laid down in this Royal Decree, the holders of a domain the MOG occurs after their commissioning and during the

18 Proposal (C)1801 of 19 July 2018, see Annual Report 2018, page 17. 19 Royal Decree of 11 February 2019 amending the Royal Decree of 16 July 2002 on the establishment of mechanisms for the promotion of electricity generated from renewable energy sources (Belgian Official Gazette 21 February 2019). The opinion follows the CREG's proposals 1697 and 1801 of 9 November 2017 and 19 July 2018, which were described in detail in the previous annual reports. 20 The Royal Decree defines this concept as follows (translation): "state of completion of an installation for the generation of electricity including the instruments, the cabling and all electrical and mechanical components, under which the installation is physically complete and certified by an accredited certification body in accordance with the legal and regulatory provisions applicable in Belgium, all inspections necessary for its commissioning having been carried out, with the exception of inspections on points requiring the prior connection of the installations to the Modular Offshore Grid". 21 This support period begins on 1 January 2021 and ends on 31 December 2037, the date by which the Federal Government wants all the farms in question to be operational.

CREG Annual report 2019 13 2. Key legislative developments

2.2.3. Social tariffs for gas and electricity 2.2.3.2. Extension of social tariffs Given their disadvantage, certain categories of protected customers who are in a vulnerable situation are faced with 2.2.3.1. Upper limit of social tariffs In order to tackle energy poverty, the Law of 2 May 201926 higher gas and electricity bills . However, on average, the Director- amended the Law of 12 April 1965 on the transport of gaseous General requires a period of one year to be granted to persons Following the significant increase in the social tariffs for gas and and other products by pipeline (hereinafter the 'Gas Act') and with a disadvantage . As soon as the decision to grant assistance electricity calculated by the CREG using the methodology set the Electricity Act . is taken, the allowance for the person with a disadvantage is out in the Royal Decrees of 30 March 2007 laying down social granted retroactively . price caps for the supply of natural gas to protected residential The list of social categories benefiting from the application of customers on low incomes or in a vulnerable situation, the social tariffs for the supply of gas and electricity has been spec- Thanks to the above-mentioned Law of 24 February 2019, the Minister for the Economy submitted a draft Ministerial Decree ified and access to the social tariff for gas has been extended application of the social tariff for gas and electricity for persons amending the aforementioned Decrees of 30 March 2007 in to the collective gas boilers located in the social buildings of with a disadvantage will also have retroactive effect, in particu- order to introduce upper limits for tariffs, with entry into force public centres for social welfare, housing funds and social rent- lar from the effective date of the decision granting that person on 1 February 2019, to the CREG for an opinion22 . al offices . In this context, at the request of the Minister for the the status of "protected residential customer with a low in- Economy, the CREG issued an opinion on two draft ministerial come or in a vulnerable situation" . The Ministerial Decree of 28 March 2019 which gave effect to decrees taking account of these changes27 . it23 extended the social tariffs in force on 31 January 2019 until 31 July 2019 . In addition, a Law of 24 February 201928 amends the Programme Law of 27 April 2007 on the granting of the social tariff for gas A second Ministerial Decree of 29 July 201924, also submitted and electricity and the Royal Decree of 29 March 2012 laying to the CREG for its opinion25, extended the upper limit of the down the rules for determining the costs of the application of social tariffs for electricity by six months for the period from 1 the social tariffs by electricity companies and the intervention August 2019 to 31 January 2020 . rules for taking charge of them .

We also invite the reader to read points 3 .1 .2 .2 and 4 .1 .1 .2 of this report .

22 Opinion (A)1906 of 14 February 2019 on a draft Ministerial Decree amending the Ministerial Decrees of 30 March 2007 laying down social price caps for the supply of natural gas to protected residential customers on low incomes or in a vulnerable situation and laying down social price caps for the supply of electricity to protected residential customers on low incomes or in a vulnerable situation. 23 Ministerial Decree of 28 March 2019 amending the Ministerial Decrees of 30 March 2007 laying down social price caps for the supply of natural gas to protected residential customers on low incomes or in a vulnerable situation and laying down social price caps for the supply of electricity to protected residential customers on low incomes or in a vulnerable situation (Belgian Official Gazette of 2 April 2019). 24 Ministerial Decree of 29 July 2019 amending the Ministerial Decree of 30 March 2007 laying down social price caps for the supply of electricity to protected residential customers on low incomes or in a vulnerable situation (Belgian Official Gazette of 31 July 2019). 25 Opinion A(1976) of 22 July 2019 on a draft Ministerial Decree amending the Ministerial Decrees of 30 March 2007 laying down social price caps for the supply of natural gas to protected residential customers on low incomes or in a vulnerable situation. 26 Law of 2 May 2019 amending the Law of 12 April 1965 on the transport of gaseous and other products by pipeline, the Law of 29 April 1999 on the organisation of the electricity market and the Programme Law of 27 April 2007 (Belgian Official Gazette of 23 May 2019). 27 Opinion (A)1991 of 12 September 2019 on the draft Ministerial Decree on maximum prices for the supply of natural gas and electricity to protected residential customers. 28 Law of 24 February 2019 amending the Programme Law of 27 April 2007 on the granting of the social tariff for gas and electricity and amending the Royal Decree of 29 March 2012 laying down the rules for determining the costs of the application of the social tariffs by electricity companies and the intervention rules for taking charge of them (Belgian Official Gazette of 15 March 2019).

14 CREG Annual report 2019 2. Key legislative developments

2.2.4. Monitoring by the CREG of energy 2.2.5. Amending the technical regulations In order to determine the technical requirements for the intermediaries connection, the new technical regulations make a distinction Since 27 April 2019, a new technical regulation on electricity32, between, on the one hand, existing installations that were The Law of 9 May 201929 amended the Electricity Act and the drawn up following the opinion of the CREG33, has come into already connected to the grid on the date of entry into force Gas Act in order to extend the CREG's control over intermedi- force . It repeals the previous technical regulation of 19 Decem- of the European regulations or whose owner has concluded aries with regard to group purchases of gas or electricity . ber 2002 and includes the implementation in Belgium of the a definitive and binding contract for the purchase of the main general requirements of the applicable European regulations: generation component no later than two years after the entry This change took place following a study by the CREG at into force of the aforementioned European regulations37 and, on the end of 201830 on the way in which group purchases are - on the connection of generation installations for electricity to the other hand, new installations . The technical requirements organised in the retail trade31 for electricity and natural gas . the grid (hereinafter 'European RfG Regulation'34); for the connection of the new installations of the new technical - on the connection of distribution systems and consumption regulation complement the requirements directly resulting The Law of 9 May 2019 thus inserted in the Electricity Act and installations (hereinafter 'European DCC Regulation'35); from the European regulations mentioned above . the Gas Act the definitions of the terms 'intermediary' and - on the connection to the grid of high-voltage direct current 'intermediary with regard to group purchases' and extended systems and power park modules connected to direct cur- The technical regulation also introduces a new classification for the CREG's powers, giving the CREG the power to request all rent (hereinafter the 'European HVDC regulation'36); electricity generation units and power park modules38, ranging necessary information to be able to monitor the organisers of from type A to type D, based on the thresholds laid down by group purchases of gas or electricity . European regulations .

We also invite the reader to read point 3 .1 .3 .4 of this report .

29 Law of 9 May 2019 amending the Law of 12 April 1965 on the transport of gaseous and other products by pipeline, and amending the Law of 29 April 1999 on the organisation of the electricity market, in order to extend the supervision of the CREG to energy intermediaries (Belgian Official Gazette of 14 June 2019). 30 Study (F)1827 of 18 October 2018 on group purchases within the retail market for electricity and natural gas. For more details on the study we refer the reader to page 38 of the Annual Report 2018. 31 In this study, the term 'retail market for electricity and natural gas' refers to supply to residential customers. 32 Royal Decree of 22 April 2019 establishing technical regulations for the management of the electricity transmission system and access thereto (Belgian Official Gazette of 29 April 2019). 33 Opinion (A)1816 of 28 September 2018, see Annual Report 2018, page 20. 34 Commission Regulation (EU) 2016/631 of 14 April 2016 establishing a network code on requirements for grid connection of generators. 35 Commission Regulation (EU) 2016/1388 of 17 August 2016 establishing a network code on demand connection. 36 Commission Regulation (EU) 2016/1447 of 26 August 2016 establishing a network code on requirements for grid connection of high voltage direct current systems and direct current-connected power park modules. 37 See Article 4.2(1)(a)(b) of the European network codes RfG, DCC and HVDC. 38 Article 35 of the Royal Decree of 22 April 2019 establishing technical regulations for the management of the electricity transmission system and access thereto.

CREG Annual report 2019 15

3. The electricity market

The electricity 3 market

CREG Annual report 2019 17 3. The electricity market

3.1. Regulation but it is subject to an obligation of prior notification to the renewable sources in new areas in the Belgian marine areas CREG and to the federal Minister for Energy or their delegate . for a total area of approximately 285 km² (see figure 1 below) . 3.1.1. Electricity generation In 2019, the CREG received thirteen such notifications for a total capacity of 70 .8 MWe . B . Green certificates, certificates of guarantee of origin and 3.1.1.1. Electricity generation licences guarantees of origin 3.1.1.2. Electricity generation in the North Sea The construction of installations for electricity generation is • Applications submitted to the CREG subject to the prior granting of an individual licence issued by A . Domain concessions for offshore wind energy the Federal Minister for Energy on the advice of the CREG . On 13 June 2019, the CREG approved Norther's application for In this context, the CREG issued three favourable opinions in During the course of 2019, at the request of the Directo- green certificates for the electricity generated by the first 12 201939 . rate-General for Energy, the CREG issued an opinion on re- wind turbines of its offshore wind farm44 . On 11 July 2019, the quests to modify the domain concessions for the construction CREG approved Norther's application for green certificates for A Ministerial Decree of 10 January 2019 grants Borealis Kallo and operation of installations for the generation of electricity the electricity generated by the subsequent 32 wind turbines NV, at its site in Kallo (Beveren), an individual licence for the from wind energy in marine areas41 . of its offshore wind farm45 . The wind turbines in question meet construction of a cogeneration plant with a capacity of 45 .6 the conditions for the awarding of green certificates for the MWe . In this context, the CREG had issued an opinion to the By Ministerial Decree of 27 June 2019 (Belgian Official Gazette net electricity generated from the date on which the respec- Minister on 23 August 2018 . of 16 July 2019), the term of the domain concession granted tive certificates of guarantee of origin for each wind turbine to Norther NV by Ministerial Decree of 5 October 2009, as are signed . A Ministerial Decree of 20 December 2019 grants ICO Wind- amended by Ministerial Decree of 18 September 2015, was park NV an individual licence for the construction of a wind extended . The CREG had given an opinion on this case on 15 The CREG then decided to set the correction factor for the farm with a capacity of 44 MWe in Zeebrugge (city of Brug- November 2018 . reference price of electricity at 11 .11% for Northwester 2 for es) . As mentioned in the footnote, the CREG had submitted an the period from 5 October 2019 to 4 October 2020, at 12 .27% opinion to the Minister in this context on 19 September 2019 . On 12 May 2019, the Electricity Act was amended42 (see also for Norther for the period from 14 December 2019 to 13 De- point 2 .2 .2 .1 of the current annual report) in particular with cember 2020, at 14 .16% for Mermaid for the period from 3 At the end of December 2019, the CREG had also issued a a view to introducing a competitive bidding process for the December 2019 to 2 December 2020, at 12 .68% for Seastar preliminary opinion on the transfer of ownership of a wind farm construction and operation of generation facilities in the Bel- for the same period and at 11 .16% for Rentel for the period from Luminus NV to Eolus NV40 . gian marine areas, and the new Marine Spatial Plan that en- from 3 October 2019 to 2 October 2020 . In this regard, the tered into force on 20 March 202043 provides for the granting CREG examined whether there was a difference between the On the other hand, the construction of new Belgian production of domain concessions for the construction and operation of price of electricity in the contract and an average nominal price installations with a net developable capacity of less than or installations for the generation and storage of energy from that is equal to 90% of the reference price for electricity . This equal to 25 MWe does not require prior ministerial approval, correction factor serves to determine the minimum price of

39 Opinion (A)1997 of 19 September 2019 concerning the granting of an individual licence for the construction of an installation for the generation of electricity (wind farm) in Zeebrugge by NV ICO Windpark; Opinion (A)2002 of 3 October 2019 concerning the granting of an individual licence for the construction of an installation for the generation of electricity of the type CCGT of 870 MWe in Manage by NV Bali Wind; Opinion (A)2018 of 7 November 2019 concerning the granting of an individual licence for the construction of an installation for the production of generation of the type CCGT of 490 MWe in Roux by NV Electrabel. 40 Opinion (A)2041 of 20 December 2019 on the need to renew an individual licence for the construction of a wind farm in Villers-le-Bouillet, Wanze and Verlaine as a result of the transfer of ownership from Luminus NV to Eolus NV. 41 Opinion (A)1930 of 25 April on the application for Northwester NV to modify the domain concession for the construction and operation of wind power generation installations in marine areas, which was granted by Ministerial Decree of 12 May 2015. 42 Law of 12 May 2019 amending the Law of 29 April 1999 on the organisation of the electricity market with a view to introducing a competitive bidding process for the construction and operation of generation facilities in the marine areas under Belgian jurisdiction and ratifying the Royal Decree of 11 February 2019 amending the Royal Decree of 16 July 2002 on the establishment of mechanisms for the promotion of electricity generated from renewable energy sources (Belgian Official Gazette of 24 May 2019). 43 Royal Decree of 22 May 2019 establishing the marine spatial plan for the period from 2020 to 2026 in the Belgian marine areas (Belgian Official Gazette of 2 July 2019). 44 Decision (B)1932 of 13 June 2019 on the application by Norther NV for the award of green certificates for the electricity generated by the wind turbines NRT_F01, NRT_F02, NRT_F03, NRT_F04, NRT_I01, NRT_I02, NRT_I03, NRT_I04, NRT_J01, NRT_J02, NRT_J03 and NRT_J04. 45 Decision (B)1938 of 11 July 2019 on Norther's application for green certificates for the electricity generated by the wind turbines NRT_A01, NRT_A02, NRT_A03, NRT_A04, NRT_B01, NRT_B02, NRT_B03, NRT_B04, NRT_C01, NRT_C02, NRT_C03, NRT_C04, NRT_D01, NRT_D02, NRT_D03, NRT_D04, NRT_E01, NRT_E02, NRT_E03, NRT_E04, NRT_G01, NRT_G02, NRT_G03, NRT_G04, NRT_H01, NRT_H02, NRT_H03, NRT_H04, NRT_K01, NRT_K02, NRT_K03 and NRT_K04.

18 CREG Annual report 2019 3. The electricity market

Figure 1: New marine areas for the granting of domain concessions for the construction and operation of facilities for the generation and the green certificates issued for the electricity generated by storage of energy from renewable sources (Source: CREG) the installations in the domain concessions46 .

Finally, on 12 September and 25 October 2019 respectively, the CREG approved the proposals for contracts for the purchase of green certificates between Elia and Northwester 2 on the one hand and Elia and SeaMade on the other47 . The obliga - tion to purchase green certificates for electricity generated by offshore wind energy is the object of a contract between the domain concession holder and the system operator .

NEW Noordhinder North

NEW Noordhinder South

46 Decision (B)1951 of 8 July 2019 on the determination of the correction factor for the 2nd period (05.10.2019 - 04.10.2020) determining the minimum price for the green certificates issued for the electricity generated by the installations in the Northwester 2 domain concession; Decision (B)1959 of 23 August 2019 on the determination of the correction Fairy factor for the 4th period (14. 12.2019 - 13.12.2020) determining the minimum price for the Bank green certificates issued for the electricity generated by the installations in the domain concession of Norther; Decision (B)1962 of 5 September determining the correction factor for NEW the 2nd period (03.12.2019 - 02.12. Decision (B)1963 of 5 September 2019 determining the correction factor for the 2nd period (03.12.2019 - 02.12.). Decision (B)1998 of 12 November 2019 laying down the correction factor for the 4th period (03.10.2019 - 02.10.2020) laying down the minimum price for the green certificates issued for the electricity generated by the installations in the Seastar domain concession; Decision (B)1998 of 12 November 2019 laying down the correction factor for the 4th period (03.10.2019 - 02.10.2020) laying down the minimum price for the green certificates issued for the electricity generated by the installations in the domain concession of Rentel. 47 Decision (B)1977 of 12 September 2019 on the request for approval of the proposed contract for the purchase of green certificates between Elia System Operator NV and Northwester 2 NV; Decision (B)2003 of 25 October 2019 on the request for approval of the proposed contract for the purchase of green certificates from the Mermaid offshore wind farm between Elia System Operator NV and SeaMade NV; Decision (B)2004 of 25 October 2019 on the request for approval of the proposed contract for the purchase of green certificates for the Seastar offshore wind farm between Elia System Operator NV and SeaMade NV.

CREG Annual report 2019 19 3. The electricity market

• Change in installed capacity in generated offshore wind Figure 2: Change in installed capacity of offshore wind power per wind farm between April 2009 and December 2019 (Source: CREG) and green energy 1800

The total installed capacity of offshore wind turbines increased 1600 by 369 6. MW in 2019 to 1,556 .4 MW . The change in installed capacity since 2009 is shown in Figure 2 . 1400 1200 This increase can be attributed to the completion of the Norther 1000 wind farm . 800 MW In 2019, all offshore wind farms combined injected 4,660 GWh 600 into the transmission system (compared to 3,305 GWh in 2018) . 400

200 Net electricity generation (prior to transformation) from all cer- 0 tified offshore wind farms reached 4,773 GWh in 2019, an increase of almost 40 .7% compared to net generation in 2018 Apr./09 Apr./10 Apr./11 Apr./12 Apr./13 Apr./14 Apr./15 Apr./16 Apr./17 Apr./18 Apr./19 Dec./09 Dec./10 Dec./11 Dec./12 Dec./13 Dec./14 Dec./15 Dec./16 Dec./17 Dec./18 Dec./19 Aug./09 Aug./10 Aog./11 Aug./12 Aug./13 Aug./14 Aug./15 Aug./16 Aug./17 Aug./18 Aug./19 (3,391 GWh) . This increase is almost entirely due to the commissioning of the Norther wind farm in the first half of 2019 C-Power Belwind Northwind Nobelwind Rentel Norther and the generation by the Rentel wind farm realised in 2018 . Figure 3: Net generation of offshore green electricity per wind farm between April 2009 and December 2019 (Source: CREG) Net monthly generation per domain concession holder is

shown in Figure 3 . The average load factor in 2019 (generation 700 divided by installed capacity) varies from the minimum of 15% in July to the maximum of 61% in December . 600

The CREG issues one green certificate per net MWh gener- 500 ated . The green certificates issued for the net generation of the six operational offshore wind farms in 2019 represent an 400 amount of €465,856,785 (compared to €350,247,917 in 2018) .

GWh 300 The unit cost of subsidising offshore activities via green certif-

icates fell to €97 .6/MWh in 2019 compared with €103 .3/MWh 200 in 2018 . 100

0 Apr./09 Apr./10 Apr./11 Apr./12 Apr./13 Apr./14 Apr./15 Apr./16 Apr./17 Apr./18 Apr./19 Dec./09 Dec./10 Dec./11 Dec./12 Dec./13 Dec./14 Dec./15 Dec./16 Dec./17 Dec./18 Dec./19 Aug./09 Aug./10 Aog./11 Aug./12 Aug./13 Aug./14 Aug./15 Aug./16 Aug./17 Aug./18 Aug./19

C-Power Belwind Northwind Nobelwind Rentel Norther

20 CREG Annual report 2019 3. The electricity market

C . Guarantees of Origin It has also reviewed the cable subsidy and the cable surcharge The amount of the distribution fee for the year 2019 was set by of Rentel 49. Royal Decree of 17 October 2019 at €161,201,396 .1451 . The CREG continued to manage the Guarantees of Origin database in 2019 . Via this database, producers of offshore Readers are referred to point 2 .2 of this report . 3.1.2. Electricity supply wind energy are issued Guarantees of Origin, which allow them to export to other European markets . To this end, the 3.1.1.4. Other verification and advisory tasks 3.1.2.1. Supplying customers connected to the CREG has remained an active member of the Association transmission system of Issuing Bodies (AIB), an association that manages the • Verification mission in the context of extending the hub through which most European databases are connected lifetime of the Tihange 1 power plant The following table shows the market share of Electrabel and to each other . At the technical level, the CREG made the other suppliers regarding net electricity supply52 to major in- switch to web service and the server was migrated . The On 27 June 2019, the CREG published its report (RA)1922 on dustrial customers connected to the federal transmission sys- technical audit by AIB was positive . An account was also the verification of the revenues and actual costs of the Tihange tem (voltage above 70 kV) . opened for Norther, the new wind farm that became opera- 1 nuclear power plant for the period from 1 January 2018 un- tional in 2019 . til 31 December 2018, in accordance with the Convention on Compared to 2018, the total volume of energy offtake in 2019 extending the lifetime of Tihange 1 of 12 March 2014 and the by end customers of the transmission system fell by 6 .4% 3.1.1.3. Commissioning of the Modular Offshore Grid amendment to the Convention on extending the lifetime of 31 (755 .0 GWh) . After rising again in 2017 and 2018, there was March 2017 . another significant fall in 2019, bringing the energy taken off On a proposal from the CREG48, the Royal Decree of 11 Feb- directly from the federal transmission system back below 11 ruary 2019 amending the Royal Decree of 16 July 2002 on the • Nuclear distribution fee TWh . establishment of mechanisms for the promotion of electricity generated from renewable energy sources (Belgian Official On 27 June 2019, the CREG issued an opinion on the profit According to an initial estimate, Electrabel's market share on Gazette of 21 February 2019) set the final date for the com- margin of the industrial production of electricity by the fission the transmission system will fall slightly in 2019 compared to missioning of the installations forming part of the Modular Off- of nuclear fuels by the nuclear power plants subject to the dis- 2018, to 58 .4% . Electrabel has therefore more than maintained shore Grid at 30 September 2019 . tribution fee (Doel 3, Doel 4, Tihange 2 and Tihange 3) for the the substantial increase in its 2018 market share . In 2019, Elec- year 2018,50 in accordance with the Law of 11 April 2003 on trabel's number of access points remained lower than that of Pursuant to Article 7, §3, 4th paragraph of the Electricity Act, provisions made for the decommissioning of nuclear power other suppliers, indicating that the average customer of Elec- the CREG has determined the value of the transfer of the plants and for the management of irradiated fissile material in trabel is larger than the average customer of other suppliers . installations from Rentel to Elia within the framework of the these plants . Modular Offshore Grid .

48 Proposal (C)1697 of Royal Decree of 9 November 2017 laying down the date by which each part of the Modular Offshore Grid must be commissioned and the system for compensating the relevant holders of an offshore domain concession in the event of unavailability of the Modular Offshore Grid; Proposal (C)1801 of Royal Decree amending the Royal Decree of 16 July 2002 concerning the establishment of mechanisms for the promotion of electricity generated from renewable energy sources. 49 Decision (B)1910 of 27 June 2019 on the determination of the transfer value of the installations that Rentel transfers to Elia in the framework of the Modular Offshore Grid and on the revision of the cable subsidy and the cable surcharge of Rentel. 50 Opinion (A)1923 of 27 June 2019 and (A)1923bis of 14 August 2019 on the profit margin of the industrial generation of electricity by fission of nuclear fuels by the power plants subject to the distribution fee (Doel 3, Doel 4, Tihange 2 and Tihange 3) for the year 2018. 51 Royal Decree of 17 October 2019 establishing the amount, for 2019, of the distribution fee referred to in Article 14, § 8, paragraph 16 of the Law of 11 April 2003 on provisions made for the decommissioning of nuclear power stations and for the management of irradiated fissile materials in these plants (Belgian Official Gazette of 4 November 2019). 52 These figures do not take account of the energy supplied directly by local generation, or consumers in the Grand Duchy of Luxembourg.

CREG Annual report 2019 21 3. The electricity market

Table 1: Energy offtake by customers connected to the federal transmission system, 2007 to 2019 inclusive (Sources: Elia, CREG) • For protected household customers on low incomes or in vulnerable situations Suppliers Electrabel NV Other suppliers Total 1/01/2019 38 53 86* Under current legislation, the CREG calculated and published Access points on 31/12/2019 37 54 86* the social tariffs applicable from 1 February 2019 to 31 July 2007 12,469 (87 .7%) 1,743 (12 .3%) 14,211 2019 (Belgian Official Gazette, 31 January 2019) and from 1 2008 11,470 (84 .0%) 2,183 (16 .0%) 13,654 August 2019 to 31 January 2020 (Belgian Official Gazette, 31 2009 10,807 (87 .6%) 1,526 (12 .4%) 12,333 July 2019) for the supply of electricity to protected household 2010 12,163 (88 .7%) 1,551 (11 .3%) 13,714 customers on low incomes or in vulnerable situations . 2011 11,693 (90 .2%) 1,265 (9 .8%) 12,958 2012 8,247 (67 .0%) 4,069 (33 .0%) 12,316 Energy offtake (GWh) 2013 7,484 (57 .6%) 5,519 (42 .4%) 13,004 According to the calculations, the social price cap for the sup- 2014 8,598 (62 .6%) 5,130 (37 .4%) 13,728 ply of electricity for the period from 1 February 2019 to 31 July 2015 6,465 (50 .6%) 6,318 (49 .4%) 12,783 2019 had to be: 2016 4,133 (37 .8%) 6,787 (62 .2%) 10,920 2017 4,947 (43 .7%) 6,362 (56 .3%) 11,309 - 17 .800 Euro cents/kWh (€ 0 .17800/kWh) for the single tariff; 2018 7,278 (62 .1%) 4,442 (37 .9%) 11,720 - 19 .007 Euro cents/kWh (€ 0 .19007/kWh) for the dual tariff 2019 6,462 (58.9%) 4,503 (41.1%) 10,965 (peak times); * Since multiple access points were supplied at the same time during 2019 by two suppliers, the total number of access points is generally lower than the total - 14 .172 Euro cents/kWh (€ 0 .14172/kWh) for the dual tariff number of access points of all suppliers . (off-peak times); - 10 .464 Euro cents/kWh (€ 0 .10464/kWh) for the night-only Federal licences for electricity supply to customers connected 3.1.2.2. Price caps tariff . directly to the transmission system are granted by the Minister for Energy at the proposal of the CREG for a period of five years . • For unprotected customers whose supply contract has However, in accordance with the Ministerial Decree of 28 March been terminated 2019 55 limiting the social electricity tariffs to the level of those ap- In 2019, the CREG sent seven proposals to the Minister for En- plicable in the second half of 2018 until 31 July 2019, the social ergy for the granting of licences for the supply of electricity by The price caps which the distribution system operators must price cap for the supply of electricity for the period from 1 Febru- GETEC Energie AG, GETEC Energie GmbH, Electrabel NV, Lu- apply to unprotected customers whose supply contract has ary 2019 to 31 July 2019 was: minus NV, Scholt Energy Control NV, Total Gas & Power Belgium been terminated (also termed 'dropped customers') are cal- NV and RWE supply & Trading GmbH 53. culated every six months by the distribution system operators - 14 579. Euro cents/kWh (€ 0 14579/kWh). for the single tariff; and verified by the CREG . They are calculated as follows: price - 15 .363 Euro cents/kWh (€ 0 .15363/kWh) for the dual tariff In 2019, the Minister for Energy granted an individual licence for the of energy + transmission + distribution + margin . (peak times); supply of electricity to Electrabel NV, Total Gas & Power Belgium - 11 .550 Euro cents/kWh (€ 0 .11550/kWh) for the dual tariff NV, Scholt Energy Control NV, Getec Energie GmbH and RWE Sup- The CREG is also responsible for monitoring the procedure for (off-peak times); ply & Trading GmbH 54. calculating the margin . - 8 .753 Euro cents/kWh (€ 0 08753/kWh). for the night-only tariff .

53 Proposals (E)1900, (E)1926, (E)1933, (E)1934, (E)1952, (E)1956 and (E)2007. 54 Ministerial Decrees of 10 July, 18 July, 21 August, 26 August, 5 November and 5 December 2019. 55 Ministerial Decree of 28 March 2019 amending the Ministerial Decrees of 30 March 2007 laying down social price caps for the supply of natural gas to protected residential customers on low incomes or in a vulnerable situation and laying down social price caps for the supply of electricity to protected residential customers on low incomes or in a vulnerable situation (Belgian Official Gazette of 2 April 2019).

22 CREG Annual report 2019 3. The electricity market

However, in accordance with the Ministerial Decree of 29 July electricity twice a year for the attention of suppliers and distribu- graphs published by the CREG in the framework of this note 201956 limiting the social electricity tariffs to the level of those tion system operators . provide an overview of the various components of the average applicable in the second half of 2018 until 31 January 2020, the annual energy bill in the five countries, both for residential cus- social price cap for the supply of electricity for the period from 3.1.2.3. Trends in and fundamentals of electricity prices tomers and for SMEs . 1 August 2019 to 31 January 2020 was also brought into line with the level of the previous two half-year periods and, as a In 2019, the CREG continued its monthly publication of a dash- The following are some of the trends observed for natural gas result, amounted to: board informing stakeholders of the important developments in 2019: in the factors influencing electricity prices . - 14 .579 Euro cents/kWh (€ 0 14579/kWh). for the single tariff; - At the start of 2019, the distribution and transmission tariffs - 15 .363 Euro cents/kWh (€ 0 15363/kWh). for the dual tariff In the wholesale market, the CREG primarily monitors the were adapted . (peak times); changes in a number of key parameters in the setting of the - In Belgium and the neighbouring countries, no new sur- - 11 .550 Euro cents/kWh (€ 0 .11550/kWh) for the dual tariff electricity and natural gas prices in the Belgian exchange charge was introduced in 2019; existing surcharges, howev- (off-peak times); and neighbouring exchanges (Germany, France and the er, were adjusted, as is the case every year . - 8 .753 Euro cents/kWh (€ 0 .08753/kWh) for the night-only Netherlands) . tariff . 3.1.3. Transmission and distribution For the retail market, the CREG shows, per region, the trends These tariffs are expressed without VAT, the federal contribu- of the all-in price of electricity and natural gas in Belgium, for: 3.1.3.1. Renewal of the designation, unbundling and tion, the connection fee (Wallonia) and the contribution to the certification of the transmission system operator energy fund (Flanders) . However, the transmission and distri- - Residential DC electricity customers (3,500 kWh/year, sin- bution system tariffs are included . gle-rate meter) The Ministerial Decree of 6 May 2019 renewing the appoint- - Residential T2 natural gas customers (23,260 kWh/year) ment of the system operator, Elia System Operator NV (Elia), Since March 2019, the price caps have been granted to - Social customers in accordance with Article 10 of the Law of 29 April 1999 on protected residential customers as from the entry into force of - Dropped customers the organisation of the electricity market, was published in the the decision that makes them protected residential customers . - SMEs electricity (50,000 kWh/year, single-rate meter) and Belgian Official Gazette on 16 May 2019 . As mentioned in the However, this period is limited to the two years preceding the - SMEs natural gas (100,000 kWh/year) 2018 annual report, the CREG had issued a favourable opinion date on which the supplier was informed of the entry into force to the federal Minister for Energy on 20 December 2018 . of the decision57 . The CREG also compares the average all-in price of electricity and natural gas charged in Belgium and the neighbouring At the end of June 2019, in the context of its internal restruc- The CREG also evaluated the amount necessary to finance the countries (Germany, France, the Netherlands and the United turing, the CREG received an official notification from Elia -re protected customers’ electricity fund, which is the basis of cal- Kingdom) to residential DC electricity customers, T2 natural questing, among other things: culation of the protected customer component of the federal gas customers and SMEs for electricity and natural gas . contribution (see point 5 .7 .2 . of this report) . - a decision on the certification of the new legal entity proposed Furthermore, every six months the CREG publishes a separate by Elia for the tasks of transmission system operator . In its To this end, and as part of protected customer reimbursements, note with the results of the international comparison of energy decision of 27 September 2019, the CREG indicated that the CREG publishes the 'reference energy' components for prices between Belgium and the neighbouring countries (Ger- the new legal entity complied with the principles governing many, France, the Netherlands and the United Kingdom) . The

56 Ministerial Decree of 29 July 2019 amending the Ministerial Decree of 30 March 2007 laying down social price caps for the supply of electricity to protected residential customers on low incomes or in a vulnerable situation (Belgian Official Gazette of 31 July 2019). 57 Law of 24 February 2019 amending the Programme Law of 27 April 2007 on the granting of the social tariff for gas and electricity and amending the Royal Decree of 29 March 2012 laying down the rules for determining the costs of the application of the social tariffs by electricity companies and the intervention rules for taking charge of them (Belgian Official Gazette of 15 March 2019).

CREG Annual report 2019 23 3. The electricity market

full ownership unbundling, subject to certain suspensive 3.1.3.2. Corporate governance 3.1.3.3. Closed industrial networks and the traction power conditions58; network - that it issue a unanimous opinion on the transfer of Elia As- The CREG took Cognisance of the 2018 activity report of the set NV under the new planned structure for transmission Corporate Governance Committee of Elia System Operator and On the proposal of the Directorate-General of Energy, and after system operator tasks . In its opinion of 12 September 2019, Elia Asset in the framework of the monitoring of the application receiving the opinion from the CREG and the system operator, the CREG established, on the basis of the dossier submit- of Articles 9 and 9ter of the Electricity Act and the evaluation of the Minister for Energy may confer the title of closed indus- ted, that the restructuring operation proposed by Elia met its effectiveness in relation to the objectives of independence trial network operator, for the part operated at a rated voltage the requirements of Article 9bis of the Electricity Act59; and impartiality of the transmission system operator . exceeding 70kV, to a natural person or legal person owning a - that it issue opinions on the independence of the network or having right of use thereof and who has request- independent directors of the new legal entity planned by Elia The CREG also took cognisance of the report of the compliance ed that title in accordance with the Electricity Act . Under the for the tasks of transmission system operator . In its opinions officer on compliance with the programme of commitments same procedure, the Minister may recognise the network as of 12 September 2019, the CREG established that the by Elia System Operator and Elia Asset employees in 2018 . a closed industrial network provided that the regions involved independent directors met the independence requirements The purpose of this programme of commitments is to prevent have an opportunity to issue an opinion within sixty days . In referred to in Article 2, 30°, of the Electricity Act, taking into any discrimination between system users and/or categories of 2019, the CREG did not receive any request for advice in this account the new Companies Code of 23 March 2019 60. system users . The CREG welcomes the attention Elia has paid context from the General-Directorate of Energy . to the "transparency" aspect in this report, while stressing that Still in the context of this internal restructuring at Elia, a new much remains to be done and that it will continue to consult 3.1.3.4. Technical operation company, Elia Transmission Belgium NV was set up on 31 July with Elia . The CREG has also noted that the commitment rules 2019 . On 25 November 2019, following a request for an opinion serve first and foremost to ensure that the system operator's A . New technical regulations from the Minister, the CREG issued a positive opinion on the staff comply with the principle of non-discrimination and that, question of appointing this new company as the transmission in this context, it is based on the principle (and also calls for The new technical regulations for electricity have been applica- system operator for electricity61 . attention to be paid to this to the extent necessary) by Elia, in ble since 27 April 2019 and include the Belgian interpretation particular when recruiting new staff . of the general requirements of the network codes RfG, DCC In accordance with its powers of monitoring compliance with and HVDC62 . unbundling requirements by the transmission system oper- Finally, in accordance with its powers of monitoring compli- ator, in 2019 the CREG also monitored various modifications ance with the Electricity Act, the CREG examined the modi- The new technical regulations were drawn up following advice published in connection with the mandates/functions/activities fications announced by Elia in connection with the mandates/ from the CREG . Prior to this, informal consultations were held exercised by several directors of Elia System Operator and Elia functions/activities exercised by the directors of Elia System between the CREG and the Directorate-General of Energy on Asset, in addition to their mandates as directors of Elia System Operator and Elia Asset (see also section 3 1. .3 .1) . It did not the draft of the new technical regulations . The original draft Operator and Elia Asset (see also point 3 .1 .3 .2 below) . identify any incompatibilities with the unbundling and inde- was based on a proposal submitted by Elia to the Directo- pendence requirements . rate-General of Energy .

The previous technical regulation of 19 December 2002 is su- perseded by the new technical regulation .

58 Decision (B)1994 of 27 September 2019 on the certification of the new legal entity proposed by Elia System Operator NV for the tasks of TSO. 59 Opinion (A)1995 of 12 September 2019 on the transfer of Elia Asset NV under the new planned structure for transmission system operator tasks. 60 Opinion (A)1969 to (A)1975 of 12 September 2019 on the independence of Ms Jane Murphy, Mr Luc De Temmerman, Mr Michel Allé, Mr Frank Donck, Mr Bernard Gustin, Ms Roberte Kesteman and Ms Saskia Van Uffelen, as independent directors on the Board of Directors of Elia Transmission Belgium NV. 61 Opinion (A)2015 of 25 October 2019 on the application for appointment of Elia Transmission Belgium NV as transmission system operator for electricity. 62 Royal Decree of 22 April 2019 establishing technical regulations for the management of the electricity transmission system and access thereto (Belgian Official Gazette of 29 April 2019).

24 CREG Annual report 2019 3. The electricity market

B . Balancing and ancillary services capacity required, for approval . The CREG approved Elia's However, it was clear that it is often difficult to purchase certain proposal on 6 December 201963 . services for the necessary volumes and at reasonable prices . In • Reserve capacity accordance with Article 12quinquies of the Electricity Act, Royal • Price bids and volumes for ancillary services Decrees imposing price and volume conditions needed to be Since the entry into force of the new technical regulations for enacted to ensure the provision of the 'black-start service' and electricity, the assessment and determination by the transmis- To ensure the safety, reliability and efficiency of the transmis- the voltage and reactive energy control services for a reasona- sion system operator Elia of the primary, secondary and ter- sion network, Elia needs to have access to a certain volume ble price . tiary reserve capacity that contributes to ensuring the security, of ancillary services at its disposal, on a permanent basis . The reliability and efficiency of the transmission system in the con- procedures in this respect are specified in the technical regula- Furthermore, in order to keep increases in the costs of ancillary trol area have been divided between two dossiers: tions of 22 April 2019 on the management of the transmission services at a reasonable level, the Electricity Act requires Elia to system and access to it . submit annual reports to the CREG on proposed prices for the - on the one hand, the determination by the transmission supply of ancillary services . The CREG then gives an indication system operator of the needs for balancing services other Under the impetus of the CREG, Elia has made significant of whether the proposed prices are manifestly unreasonable, than the stabilisation of the frequency for the frequency efforts in recent years to develop the ancillary services market, and will justify its opinion . control block; the evaluation method of these needs is notified in particular for reserve capacity, to reduce prices . For example, to the CREG for approval in the context of the approval of it organised weekly auctions (FCR64 and aFRR65) and monthly In 2019, the CREG received a report from Elia on its control ser- the methodologies and conditions included in the operational auctions (mFRR66), which allowed more economic operators to vice, voltage and reactive capacity . In its report on the control agreements of the LFC block; participate in the tendering procedures . Since 1 August 2016, service, voltage and reactive capacity67, it established that the Elia has also contracted part of the primary adjustment prices of all selected offers, for each of these services, were - on the other hand, the determination of the balancing capacity capacities via a regional auction platform that is also accessible manifestly unreasonable . Accordingly, the Minister for Energy to be reserved with suppliers of balancing services within the in Germany, Austria, the Netherlands, France and Switzerland . drew up draft Royal Decrees to impose price and volume con- imbalance area; the methodology for this will be submitted by ditions on the producers concerned and submitted them to the the TSO to the CREG for approval, together with the proposal In 2020, the design of the products and processes including the CREG for an opinion 68. referred to above . progressive switch to daily auctions for the spare capacity of the three services FCR, aFRR and mFRR (from February 2020 for On the basis of the assumptions regarding the availability The decisions of the CREG regarding the determination of the the mFRR, see decision 2000/2 mentioned under title 3 .1 .4 .3 and use of the ancillary services in 2020, the cost difference needs for balancing services are covered in part 3 .1 .4 .3 . below) will change significantly and the full contractualisation of resulting from the above-mentioned Royal Decrees primary control capacities will be done through the platform of promulgated on 20 December, following an opinion from the As regards the determination of the balancing capacity to be regional auctions . CREG, would not be significant due to the fact that the Royal reserved, on 20 November 2019 the CREG received a proposal Decrees did not follow the arguments set out by the CREG in from Elia for a methodology to determine the balancing its report (RA)2001 .

63 Decision (B)2026 of 6 December 2019 on Elia's request for approval of the methodology to determine, for each of the balancing services, the balancing capacity to be reserved with the providers of balancing services within the imbalance area. 64 As regards the Frequency Containment Reserve. This is the EU's terminology for the primary reserve. 65 As regards the Automatic Frequency Restoration Reserve. This is the EU's terminology for the secondary reserve. 66 As regards the Manual Frequency Restoration Reserve. This is the EU's terminology for the tertiary reserve. 67 Report (RA)2001 of 3 October 2019 on the manifestly unreasonable nature, or otherwise, of the prices offered to Elia System Operator NV for the provision of the control service for voltage and reactive capacity in 2020. 68 Opinion (A)2031 to (A)2037 of 12 December 2019.

CREG Annual report 2019 25 3. The electricity market

In 2019, weekly auctions were held for primary and secondary of the bids for the activation of the upward tertiary reserve by the transmission system operators, while these activations control services and weekly reports had to be drawn up by at €13,500/ MWh . The Court ruled, inter alia, that the fixing amounted to respectively 3,050 and 2,950 MWh in 2017 and 0 Elia . The CREG noted that, at a constant volume, there was of this price ceiling was based on valid motives and was in and 500 MWh in 2018 (Source: Elia data) . a significant reduction in costs compared with 2018, both for accordance with the principle of proportionality, taking into the primary reserve (-25%) and for the secondary reserve account the CREG's discretionary power of assessment . The HHI index for the reserves bid for CIPU units was 3,538 in (-43%) . However, it should be reiterated that the costs of 2019, compared with 3,964 in 2018 and 3,896 in 2017 . The index 2018, although globally lower than in 2017, had suffered from On 10 December 2019, the CREG received a request from for the reserves bid for non-CIPU units was 3,031 compared to the November and December price increases, partly due to Elia for approval of a proposal to amend the market operating 2,739 in 2018 . For all bids covering all technologies together, the the adequacy problems at the end of 2018 . They also had an rules for the offsetting of 15 minute imbalances approved by HHI index was 2,875 compared to 3,156 in 2018 . Ten companies impact on the prices of the primary and secondary reserves in decision (B)1806 referred to above in order to bring them into submitted bids for CIPU units (two more than in 2018), 11 for January 2019, but to a lesser extent . line with the new technical regulations and the terms and con- non-CIPU units (stable in comparison with 2018) and 16 for all ditions for providers of balancing services for the mFRR sub- technologies combined (also stable) . As in 2018, the tertiary reserve was acquired in full (844 MW) mitted by Elia to the CREG for approval on 3 December 2019 through monthly auctions . The unit cost of tertiary control ca- and approved by the CREG on 20 December 2019 (see 3 .1 .4 .3 . • Price of offsetting individual imbalances pacity fell sharply compared to 2018 . However, 2018 is not a below) . In January 2020, the CREG will decide on the approval representative reference in view of the above-mentioned in- of this proposal . The imbalance tariff is based on the principle of a single mar- crease in prices for the months of November and December . ginal price which takes account of the imbalance of the Access In 2019, the CREG recorded very high prices until March . The • Volumes activated and concentration of bids Responsible Party and the direction of the imbalance in the prices of the second half of 2019 then dropped back to a nor- control area . mal level and were very close to the prices of the second half In 2019, activations to offset imbalances in the control area in- of 2017 . creased by 0 .7% compared to 2018, totalling 1,100 GWh . The Table 2 gives an overview of the trend in the average tariff proportion of secondary reserves in these activations reached (unweighted) for positive imbalances (injection > offtake) and • Balancing 46 .3% in 2019, compared with 46 .0% in 2018 and 46 .3% in for negative imbalances (injection < offtake) of the Access Re- 2017 . This slight increase is mainly due to the strong fall in the sponsible Parties for the period 2007-2019 . The transmission system operator is responsible for monitoring, tertiary reserve, which is more than offset by the increased maintaining and, if need be, re-establishing the balance activation of other resources, mainly those of the IGCC, which Figure 4 can be used to compare these average prices with the between supply and demand for electricity in the control area, amounted to 412 GWh in 2019 compared to 401 GWh in 2018 . trend in average prices on the BELPEX/EPEX SPOT day-ahead inter alia as a result of possible individual imbalances caused market over the same period . by the various Access Responsible Parties . Elia is required to In 2019, there was an upward activation of 300 MWh and a submit a proposal for the market operating rules for offsetting downwards activation of 0 MWh of reserves located abroad 15-minute imbalances to the CREG for approval .

On 3 March 2019, the Market Court rejected the action for Table 2: Average unweighted imbalance tariff during the period 2007-2019 (Source: Elia data) annulment lodged by Lampiris NV against CREG Decision (B)1806 of 20 September 2018 on the proposal by Elia System €/MWh 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Operator NV concerning the adjustment of the market Injection > offtake 22 .09 43 .24 19 .86 27 .76 29 .22 51 .84 47 .91 40 .33 43 .48 34 .91 42 .23 53 .37 39.15 operating rules for the offsetting of 15-minute imbalances . This Injection < offtake 48 .64 77 .92 44 .25 57 .24 62 .70 54 .05 49 .36 41 .07 44 .18 35 .73 43 .04 54 .18 40.02 decision approved, inter alia, the setting of the price ceiling

26 CREG Annual report 2019 3. The electricity market

Figure 4: Average unweighted imbalance tariff and BELPEX DAM price during the period 2007-2019 (Sources: Elia and BELPEX/EPEX 3.1.3.5. System tariffs SPOT data))

90 A . The transmission system

80 a) Tariff methodology for the regulatory period 2020-2023 70 As explained in the 2018 annual report, the CREG adopted the 60 final decision setting out the tariff methodology for the regula- 50 tory period 2020-2023 on 28 June 2018 69.

€/MWh 40 The tariff methodology 2020-2023 for the transmission of elec- 30 tricity envisages a number of incentives to improve the performance of the system operator . The CREG determines the 20 arrangements in this regard, in particular the method of calcu- 10 lating the indicators used and the way in which objectives are

0 set . This is done after consultation with the market players and 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 before submitting the tariff proposal .

Injection > Offtake Injection < Offtake Belpex DAM On 25 April 2019, the CREG took its decision on the arrangements for determining the incentives to improve the perfor- C . Time taken by the transmission system operator to carry out These attempts were successful in all cases on the 380 kV and mance of the transmission system operator for electricity during connections and repairs 220 kV systems, and in 75% of cases on the 150 kV network . the 2020-2023 regulatory period 70.

In 2019, the AIT (Average Interruption Time) on the federal In 19 cases, a connection to the federal transmission system On 21 November 2019, the CREG took a decision on the objec- transmission system was 4 minutes 47 seconds (compared was unavailable for more than 24 hours . These connections tives to be achieved by Elia System Operator NV in 2020 in the to 18 minutes 19 seconds in 2018) and the AID (Average Inter- were unavailable between 1 day and 4 hours and almost all context of the incentive to promote system balancing referred ruption Duration) was 28 minutes 53 seconds (compared to 2 year round (on 31 December 2019 the connection was still un- to in Article 27 of the tariff methodology . Overall, this is an ap- hours, 13 minutes and 4 seconds in 2018) . available; the cable damaged by third parties will be replaced proval decision, but a number of adjustments to Elia's proposal and moved) . are needed, mainly as a result of the comments made during There were 46 incidents on the transmission system in 2019 the public consultation 71. (59 in 2018) . As the transmission system is configured as a grid, Based on these indicators, the availability of the transmission such incidents do not usually result in customer supply interrup- system in 2019 was significantly better than in the previous On 23 December 2019, the CREG took a decision on Elia's tions . In 52% of cases, automatic reconnection is attempted . year . proposal for a research and development plan for the period

69 By judgement of 9 January 2019 (2018/AR/1328), the Market Court dismissed the appeal lodged by Elia System Operator NV against the tariff methodology 2020-2023 (more specifically against a criterion of reasonableness laid down in Article 30(h)(6)) relating to the financing of non-regulated activities. The Court clearly upholds the fact that the CREG does not add any new criterion and merely paraphrases the text of the law which already provides for cross-subsidies between regulated and non-regulated activities. The Court also ruled the following (free translation): "the disputed provision is sufficiently clear to be able to understand the object and its effects with a sufficient degree of certainty, while the tariff methodology is adequate, transparent and predictable". It also confirms that the "disputed provision does not provide for any cross-subsidisation in favour of the regulated activity", but that it "ensures, on the contrary, that cross-subsidisation is avoided and excluded". Finally, the Court confirms the following (free translation): "the purpose of the decision is to protect Elia's solvency and to avoid any negative impact on Elia in the context of its regulated activity due to imprudent investments in the context of its non-regulated activity". 70 Decision (B)658E/55 of 25 April 2019 on the arrangements for determining the incentives to improve the performance of the transmission system operator for electricity during the 2020-2023 regulatory period. 71 Decision (B)658E/63 of 21 November 2019 on the objectives to be achieved by Elia System Operator NV in 2020 in the context of the incentive to promote system balancing referred to in Article 27 of the tariff methodology.

CREG Annual report 2019 27 3. The electricity market

2020-2023 72. This decision concerns the incentive referred to However, in order to verify proportionality, non-discriminatory The trend in the tariff burden (not including connection, PSO in Article 26 §2 of the tariff methodology . Following the public application and compliance with the tariff evolution rules laid tariffs, surcharges and VAT) for users of the transmission sys- consultation in November 2019, the CREG selected only part of down, the tariffs relating to the implementation of public service tem is illustrated in the table below . the projects proposed by Elia for the application of the incentive . obligations and the surcharges are subject to an annual review . As provided for in the tariff methodology, Elia can submit a new ■ Transmission tariffs 2020-2023 proposal for a research and development plan to the CREG each In 2018, the CREG approved a proposal by Elia to modify the year during the regulatory period . value applicable to certain PSO tariffs and surcharges in 2019 On 10 May 2019, Elia submitted its tariff proposal for the (see annual report 2018, page 26) . regulatory period 2020-2023 to the CREG for approval . On b) Tariff trends 12 September 2019, the CREG took a draft decision and on In the context of the arrangements for the public service ob- 25 October Elia submitted an adjusted tariff proposal . ■ Transmission tariffs 2019 ligation to finance support measures for renewable energy in Wallonia, the CREG was asked to comment on an opinion con- On 7 November 2019, the CREG approved Elia's adapted tariff As detailed in the Annual Report 2015, on 3 December 2015 cerning a proposal by Elia not to temporise green certificates proposal for the regulatory period 2020-2023 73. Overall, com- the CREG approved Elia's tariff proposal for the regulatory pe- in 2019 . Elia's proposal and the CREG's response were formu- pared to current transmission system tariffs for 2019, the de- riod 2016-2019 . lated in accordance with Article 42/1, §2 of the Walloon Decree crease in tariffs is -2 .1% in 2020, -1 .9% in 2021, -1 .1% in 2022 of 12 April 2001 . and -1% in 2023 .

Table 3: Trends in the tariff burden (not including connection, PSO tariffs, surcharges and VAT) for users of the transmission system during the period 2013-2019 (Source: CREG)

SYSTEM COSTS (USE AND ANCILLARY SERVICES) Tariffs Tariffs Tariffs Tariffs Tariffs Tariffs Average 2016-2019 Standard customers 2013 2014-2015 2016 2017 2018 2019 tariffs compared to (in €/MWh) (1) (2) (3) (4) (5) (6) 2016-2019 2014-2015 (7) (8) = (7)/(2)% By CREG decision 658E/26 658E/26 658E/36 658E/36 658E/36 658E/36 of 16/05/2013 16/05/2013 3/12/2015 3/12/2015 3/12/2015 3/12/2015 STANDARD CUSTOMER ON 150-220-380 kV GRID (45 MVA; 30 MW/year; 35 MW/month; 155 GWh) SYSTEM USE n .a . n .a . 3 .5643 3 4807. 3 5120. 3 6228. 3 5450. CAPACITY RESERVES AND BLACK START n .a . n .a . 0 .9165 1 .1189 1 .3710 1 .5626 1 .2423 MARKET INTEGRATION n .a . n .a . 0 .3492 0 3604. 0 3870. 0 3946. 0 3728. TOTAL 4.8400 5.4200 4.8300 4.9600 5.2700 5.5800 5.1600 95% STANDARD CUSTOMER ON 70-36-30 kV GRID (12 MVA; 6 MW/year; 7 MW/month; 32 GWh) SYSTEM USE n .a . n .a . 6 .6343 6 5607. 6 5420. 6 7028. 6 6100. CAPACITY RESERVES AND BLACK START n .a . n .a . 0 .9165 1 .1189 1 .3710 1 .5626 1 .2423 MARKET INTEGRATION n .a . n .a . 0 .3492 0 3604. 0 3870. 0 3946. 0 3728. TOTAL 7.9000 9.0050 7.9000 8.0400 8.3000 8.6600 8.2250 91% STANDARD CUSTOMER TRANSFORMATION TO AVERAGE VOLTAGE (50 MVA; 20 MW/year; 17 MW/month; 90 GWh) SYSTEM USE n .a . n .a . 10 1343. 10 .0707 9 9620. 10 .0828 10 .0625 CAPACITY RESERVES AND BLACK START n .a . n .a . 0 .9165 1 .1189 1 .3710 1 .5626 1 .2423 MARKET INTEGRATION n .a . n .a . 0 .3492 0 3604. 0 3870. 0 3946. 0 3728. TOTAL 9.9900 11.4000 11.4000 11.5500 11.7200 12.0400 11.6775 102% Injection tariff - Capacity reserves and black start 0.9111 0.9111 0.9644 0.9644 0.9644 0.9644 0.9644 106%

72 Decision (B)658E/64 of 23 December 2019 on the research and development plan of Elia System Operator NV for the regulatory period 2020-2023 in the context of the incentive to promote innovation referred to in Article 26, §2 of the tariff methodology. 73 Decision 658E/62 of 7 November 2019 on the request for approval of the tariff proposal submitted by Elia System Operator NV for the regulatory period 2020-2023.

28 CREG Annual report 2019 3. The electricity market

Elia's adjusted tariffs proposal and the decision of the CREG premises on 2 October 2019 and will take a final decision on (€1 .57/MWh), with the tariff for public service obligations falling also related to the tariffs for PSOs and surcharges applicable this in the course of 2020 . by 19 .15% . In Wallonia, the increase is higher, at 73 .36% (€7 .60/ as from 2020 . Apart from the offshore surcharge (see below), MWh), of which 38 .73% is due to the increase in the tariff for the levels of PSO tariffs and surcharges remain broadly stable B . Distribution systems public service obligations . The share of the public service obli- compared to 2019 . gations tariff for a T2 type customer in 2018 was 3 .37% in Flan- In its annual study into price components (see also point ders, 2 .47% in Brussels and 17 .42% in Wallonia . • The offshore surcharge 3 .2 .1 .1 of this report, "Price components"), the CREG observed the following with regard to 2018 distribution tariffs: ■ Professional customer Pursuant to Article 14sexies of the Royal Decree of 16 July 2002 on the establishment of mechanisms to promote elec- ■ Household customer Electricity (LC1): in the period 2007- 2018, the distribution sys- tricity generated from renewable energy sources, a Ministerial tem tariff was on average (for the whole of Belgium) 22 .44% Decree of 15 December 2019 (Belgian Official Gazette of 19 Electricity (DC - dual hourly tariff): in the period 2007- 2018, the higher in 2018 for an LC1 type customer . This average is high December 2019), at the CREG's proposal74 , set the amount of distribution system tariff was on average (for the whole of Bel- because of the significant increase in Flemish distribution the offshore surcharge (or the 'tariff for public service obliga- gium) 86 .55% higher in 2018 for a DC 2v type customer . This system tariffs linked to the higher costs of public service ob- tions with a view to the financing of federal green certificates') average is high because of the significant increase in Flemish ligations . The net costs associated with these obligations are for 2020 at €9 0141/MWh,. which is an increase of 23 .69% distribution system tariffs linked to the higher costs of public recovered in the 'public service obligations' tariff in the distri- compared to the surcharge applied in 2019 . This increase is service obligations . The net costs associated with these obliga- bution system tariff . In Flanders, the distribution system tariff due to the full availability of the Norther wind farm (unlike in tions are recovered in the 'public service obligations' tariff in the rose on average by 29 .99% (€6 .72/MWh) . 96 .70% of this in- 2019) and the commissioning of the Northwester 2, Mermaid distribution system tariff . In Flanders, the distribution system crease is due to the increase in the tariff for public service ob- and Seastar wind farms . tariff rose on average by 163 .30% (€69 63/MWh). . 69 .40% of ligations . In Brussels, the increase is 3 .92% (€1 .33/MWh) and this increase is due to the increase in the tariff for public ser- in Wallonia it is higher, at 39 .93% (€10 .48/MWh) . In Wallonia, c) Balances vice obligations . The increase is less pronounced in Wallonia 3 .94% of this increase is due to the tariff for public service and Brussels: 46 .53% (€18 .77/MWh) in Brussels and 48 .46% obligations . The share of the public service obligations tariff in The tariff methodology for electricity transmission envisages (€21 .10/MWh) in Wallonia . In Brussels, 23 .23% of this increase 2018 was 22 .42% in Flanders, 5 .48% in Brussels and 1 .13% that the TSO, Elia, must submit an annual tariff report for the is due to the tariff for public service obligations and in Wallonia in Wallonia . previous year to the CREG for approval . The various adjustments it is 38 .23% . The share of the public service obligations tariff in made by Elia at the request of the CREG in its adjusted tariffs 2018 was 49 .59% in Flanders, 18 .25% in Brussels and 14 .37% Natural gas (T4): for a T4 type customer, the CREG observes an report of 24 June 2019 led to an increase in the system in Wallonia . average fixed increase of 39 .08% over the period 2007-2018 operator's debt in relation to the future tariffs of€9,010,755 . compared with 2007 . The distribution system tariff for a T4 type In its decision 658E/61, the CREG approved the adjusted tariff Natural gas (T2): for a T2 type customer, there is an average in- customer in Flanders increased on average by 19 .77% (€0 .48/ report 2018 submitted by Elia, with the exception of travel crease of 38 .50% compared to 2007 . The distribution system MWh) . In Brussels, the increase was 29 .76% (€0 .81/MWh) . In expenses and related staff costs . These will be the subject of tariff for a T2 type customer in Flanders increased on average by Wallonia, the increase was higher: 67 .46% (€1 .72/MWh) . an analysis and a later decision 75. As regards travel expenses 29 01%. (€2 89/MWh),. while the tariff for public service obliga- and staff costs, the CREG carried out an inspection at Elia's tions decreased by 0 .93% . In Brussels, the increase is 14 .25%

74 Proposal (C)2016 of 21 November 2019 on the calculation of the surcharge for offsetting the real net cost to the system operator resulting from the obligation to purchase and sell green certificates in 2020. 75 Decision 658E/61 of 18 July 2019 on the request for approval of the tariff report, including the balances submitted by Elia System Operator NV for the financial year 2018.

CREG Annual report 2019 29 3. The electricity market

3.1.4. Implementation of European regulations and Figure 5: Monthly average of Belgium's net physical imports (> 0) and exports (< 0) in the CWE and Channel region in 2019 (Sources: cross-border issues TSOs CWE, Elia; calculations: CREG)

3.1.4.1. Access to cross-border infrastructure 1500

The most striking change in the area of interconnection is ar- 1000

guably the commissioning of Nemo Link on 31 January 2019 . 500 Nemo Link connects Belgium with the United Kingdom (spe- 0 cifically the British Isles and its bidding zone "Great Britain") via

a submarine HVDC line between Zeebrugge and Richborough -500

and has a rated capacity of 1024 MW . Thanks to this connec- MW tion, Belgium can exchange electricity with the UK bidding -1000 zone within the Channel capacity calculation region . -1500

Based on the provisional figures, the available capacity -2000 averaged 874 MW for exports and 846 MW for imports, of -2500 which 86% was used commercially, mainly for exports . The January February March April May June July August September October November December availability of Nemo Link was 96% . CWE Channel Thanks in part to these exchanges with the United Kingdom, Belgium had net physical exports in 2019, which had not been In 2019, gross imports to Belgium amounted to 12 .7 TWh Table 4 shows the same information, expressed in annual the case since 2009 . While Belgium imported 3 .8 TWh net (compared with 21 .6 TWh in 2018) and gross exports amounted averages . In 2019, average net exports76 amounted to 182 MW . from the CWE region, it exported 5 .4 TWh net to the Channel to 14 .5 TWh (compared with 4 .3 TWh in 2018), i .e . a physical This contrasts sharply with the average net import of 2,029 capacity calculation region . net export of 1 .8 TWh (compared with a physical net import MW in 2018 due to the decommissioning of six nuclear power of 17 .3 TWh in 2018) . In 2009, Belgium's net physical exports plants in Belgium, combined with an increase in the capacity The following figure shows the monthly import and export were about the same (1 .8 TWh) . available for cross-border exchanges . average of Belgium in the CWE region and in the Channel region .

76 The CREG has agreed to use a negative value for imports and a positive value for exports. As such, a drop in average net imports must be understood as a rise in average net exports or a drop in the negative value of net exports in this table.

30 CREG Annual report 2019 3. The electricity market

Table 4: Average export and import capacity and average net nomination per year (MW) (Sources: Elia data, CREG calculations) Since the introduction of FBMC in May 2015, for each hour Year Average export capacity Average import capacity Net export when there was no price convergence, it is possible to verify 2007 2,317 -3,908 -711 on which line or critical branch critical outage (CBCO) the con- 2008 2,242 -3,882 -1,212 gestion occurred . This information is available via the website 2009 2,460 -3,877 316 of the Joint Allocation Office (JAO) and more specifically the 2010 2,558 -4,023 23 Implicit Allocation Utility tool . 2011 2,791 -4,250 -253 2012 2,971 -4,245 -1,050 Low capacity for trading between bidding zones (RAM) may be 2013 2,821 -3,933 -1,109 due to a decision to use the capacity of the system element for 2014 2,697 -3,562 -1,910 2015 2,545 -3,291 -2,379 other purposes, such as (1) commercial exchanges within the 2016 - - -732 zone, (2) loop flows resulting from commercial exchanges with- 2017 - - -736 in another bidding zone and/or (3) high safety margins applied 2018 - - -2,029 by the system operators . The method currently used to select 2019 - - 182 the critical network elements in the CWE FBMC methodology Average - - -892 allows low RAM internal lines to block cross-border trade . In principle, these internal lines should not restrict commercial

Exchanges in the context of CWE day-ahead market coupling Figure 6: Monthly average of the net positions of the zones and daily cross-border exchanges in CWE, including long-term nominations, averaged 3,952 MW in 2019 compared to 4,351 MW in 2018 . This before and after the introduction of FBMC on 21 May 2015 (Sources: TSOs CWE; calculations: CREG) decrease is shown in the figure below, which shows the evolution 6 000 of the monthly net positions of all bidding zones in the CWE ATC FBMC region, together with the average total capacity exchanged77 . 4 000 Despite lower exchanges in the CWE region, price convergence increased . In 2019 there was price convergence for 3,691 2 000 hours78, an increase of 28% compared to 2018 . The average 0

maximum price difference between Belgium and the other MW CWE countries halved from €11 .9/MWh in 2019 to €6 .4/MWh in 2018 . -2 000

The improved price convergence is partly determined by -4 000 a combination of factors on the production side, including the improved availability of the nuclear units in Belgium and -6 000 France, good hydroelectricity conditions in Austria and France and moderate wind generation in Germany . 2011/01 2011/04 2011/07 2011/10 2012/01 2012/04 2012/07 2012/10 2013/01 2013/04 2013/07 2013/10 2014/01 2014/04 2014/07 2014/10 2015/01 2015/04 2015/07 2015/10 2016/01 2016/04 2016/07 2016/10 2017/01 2017/04 2017/07 2017/10 2018/01 2018/04 2018/07 2018/10 2019/01 2019/04 2019/07 2019/10 NL DE/LU+AT FR BE TOTAL CWE For comparison purposes, the net positions of the bidding zones DE/LU and AT have been added together after the split of the bidding zone DE/AT/LU on 1 Octo- ber 2019 .

77 On 1 October 2019, the bidding zone DE/AT/LU was split into two: the bidding zone DE/LU on the one hand and the bidding zone AT on the other. To compare the capacities exchanged in the CWE region before and after this date, the net positions of the DE/LU and AT bidding zones recorded after 1 October 2019 have been added together. 78 Price convergence is defined as a price difference of less than €0.1/MWh between the Belgian, Dutch, French and German/Luxembourg bidding zones.

CREG Annual report 2019 31 3. The electricity market exchanges between zones (see in this respect ACER Recom- zones take up a large part of the available capacities . This internal lines, although they are only influenced slightly by the mendation of 14 November 2016 and Article 1 .7 of the Annex measure was introduced at the end of April 2018 and made it commercial exchanges between the zones (usually 4%), that to Regulation (EC) No 714/2009) . The current selection method possible to increase the volumes of exchanges from the CWE limited the exchanges in the CWE region, given the very limited provides that a line can be selected as a critical branch if the region, as shown in Figure 7 below . margins resulting in particular from the presence of very high impact of one of the commercial exchanges between the 4 flows as a result of the (priority) internal exchanges in the bidding (currently 5) bidding zones on that line exceeds 5% (for exam- The bars (left-hand scale) show, for the last four years, the zone . In 2018 and 2019, the situation changed significantly due ple: the exchange of 100 MW between two zones leads to a evolution of the number of hours in which a critical branch re- to the application of the 20% rule . It is now the cross-zonal lines flow of 5 MW on the system element) . stricted cross-border exchanges, whereby a distinction can be that restrict commercial exchanges the most .

This rule does not offer the possibility to ensure the non- Figure 7: Impact of the guaranteed availability of 20% of the thermal capacity of the critical branches on trade between different bidding discrimination of commercial exchanges between zones in zones (Sources: TSO CWE, CREG calculations) favour of internal exchanges in the zones, but it does enable system operators to shift internal congestion to the borders 1212000 000 60%60 (through the introduction of highly congested internal lines) . 52% That is the reason why, in their joint position paper in 2015, 1010000 000 50%50 the CWE regulators asked the CWE system operators to 47% 46% 43% review the selection method . When no proposal for review 44% 8 8000000 40%40 was forthcoming, the regulators repeated their request at the beginning of 2017 . The proposal that the CREG discussed 32% with the CWE regulators and Elia in March 2016, and which 6 6000000 30%30 it submitted to the CWE system operators, represents an 4000 20%20 important contribution in this respect . 4 000 16% 14%

One of the essential elements of the CREG's proposal is the 2 2000000 10%10 fact that minimum conditions should be imposed with regard to the available capacity on the system elements taken into 00 0%0 account in the flow-based market coupling of the CWE region . 2016 2017 2018 2019 This measure is necessary so that flow-based market coupling Active internal critical branches (hours) Active external constraints (hours) Average available capacity (RAM) of the critical branches between zones (%Fmax) actually helps increase the volume of cross-border exchanges Active cross-zonal critical branches (hours) Total number of active constraints (hours) Average available capacity (RAM) of the internal critical branches (%Fmax) and improve the convergence of prices between the bidding zones . made between internal critical branches between zones and In 2019, the total number of active restrictions was clearly low- the total number of restrictions . The segments on the right er than in previous years . The number of critical branches fell The study of the system operators in the CWE region that show the evolution of the average available capacity (in %, from 11,038 in 2017 to 7,611 in 2018 and 4,717 in 2019 . For the we received in 2018 did not enable us to apply a new rule right-hand scale) on the critical branches made available to the market and cross-border exchanges, this is a positive evolution for selecting the system elements to be taken into account . market, whereby again a distinction can be made between the that can be explained by several factors related to the market This is why it was decided for the CWE region to guarantee a internal critical branches between the zones and all of them . and the system . As regards the system, the transmission sys- minimum of 20% of the thermal capacity of a critical branch for tem operators of the CWE region have applied the 20% mini- commercial exchanges between bidding zones . This measure The Figure shows that the commercial exchanges in the CWE mum RAM rule to the critical branches since May 2018 . Since is particularly important for the internal critical branches, where region in 2016 and 2017 were mainly restricted by the critical October 2018, they no longer apply any external constraint . the flows resulting from internal exchanges into the bidding branches within the bidding zones . It was primarily these

32 CREG Annual report 2019 3. The electricity market

However, what emerges is a decrease in available capacity Table 5: Annual revenues from the monthly and annual capacities exchanges in the CWE region and the significant increase in ('RAM') on the active constraints on cross-zonal lines . In 2019, offered for auction (in million euro) (Sources: Elia data, price convergence . the RAM averaged only 44% compared to 52% in 2018 . CREG calculations) The exchanges on the Belgian-British border via NEMO Link The five most restrictive cross-zonal lines, namely those on the Year Annual Monthly Total also generate congestion income . Unlike the congestion in- Franco-German border, the Dutch-German border and even the auctions auctions come generated at the other Belgian borders, these are allo- Swiss-German border, had on average only between 25% and 2007 38 .9 16 .0 54 .9 cated as a priority to the investors of NEMO Link, i .e . Elia and 44% available capacity for the CWE exchanges . It is not yet clear 2008 27 .1 11 .6 38 .7 the National Grid . This allocation is made within the limits set what caused this fall . On the internal lines, on the other hand, 2009 30 .9 12 .3 43 .2 by the so-called cap and floor mechanism . Congestion income the CREG observed a sharp increase in RAM: 46% in 2019 com- 2010 25 .5 8 .1 33 .6 only benefits grid users if it is higher than the cap . In 2019, the pared to 32% in 2018 . 2011 10 .1 5 .2 15 3. congestion income generated on NEMO Link were between 2012 15 .6 8 .5 24 .1 the cap and the floor and therefore had no impact on Belgian By way of comparison, we refer here to the ambitious objec- 2013 36 .7 20 .7 57 .4 transmission tariffs . tives of making at least 70% of the thermal capacity of the lines 2014 42 .6 24 .1 66 .6 available to commercial exchanges, which are included in the 2015 65 .1 37 .0 102 1. Until 21 May 2015, the congestion income could be calculated new European legislative package, the Clean Energy Package, 2016 33 .4 30 .7 64 .1 per border and per direction . This is no longer the case . Since which entered into force on 1 January 2020 . 2017 42 .0 22 .7 64 6. the introduction of market coupling between the four bidding 2018 40 .2 61 .2 101 .4 zones of the CWE region, congestion income is determined 2019 60.2 15.0 75.21 The other striking element of 2019 was the implementation of based on the results of flow-based market coupling, and then the works to reinforce the Mercator-Horta line on 14 August allocated to a bidding zone border using a distribution formula . 2019 . Thanks to the reinforcement High Temperature Low Sag The evolution of the gross commercial congestion income At present, the income per border is divided equally between (HTLS), its nominal capacity doubled: from 2 x 1500 MW to generated by the market coupling in D-1, before offsetting the two neighbouring system operators (50/50) . 2 x 3000 MW . The previous restrictive connection is now a thing the long-term rights, is illustrated in figure 6 for the Belgian of the past . market in the period from 2007 to 2019 . The figure shows the Moreover, all European transmission system operators have total revenues of the daily market by border . In practice, this jointly proposed a new method to divide congestion income The following table shows the evolution of annual revenues amount is shared by the holders of long-term rights and the under Commission Regulation (EU) 2015/1222 of 24 July 2015 from import and export capacities purchased by market players transmission system operator . establishing a guideline on capacity allocation and conges- in the explicit auctions, valid for the following year or the follow- tion management . On 14 December 2017, at the request of ing month . The table shows that the market players paid a total In 2019, gross congestion income generated on the Belgian all regulatory authorities, the Agency for the Cooperation of of €60 2. million to purchase the annual and monthly capacities borders at D-1 amounted to €48 .9 million and was entirely for Energy Regulators (hereinafter 'ACER'), through its Decision offered in 2019, an amount significantly higher than in 2018 . The transmission system users . This amount is the lowest of the 07-2017, adapted and adopted the methodology proposed by revenues from the annual auctions in 2019 were significantly eight previous years and corresponds to a reduction of 62% the transmission system operators . The main changes from higher than the revenues from the monthly auctions . with the income generated in 2018 . The congestion income the original allocation methodology concern the distribution is generated at the two borders in the CWE region: €27 .7 mil- of congestion income from exchanges outside the capacity lion at the Belgian-Dutch border compared to €21 .2 million at calculation region and the distribution of costs related to the the Franco-Belgian border . This new record can be explained compensation of long-term transmission rights . by the combination of the slight decrease in cross-border

CREG Annual report 2019 33 3. The electricity market

Figure 8: Daily congestion income from market coupling 3.1.4.2. Correlation of the development plan for the ■ CACM regulation (Sources: Elia data, CREG calculations) transmission system with the development plan for the European network Changed methodology for the calculation of planned 140 exchanges resulting from the uniform day-ahead 131,3 128,1 In the context of its opinion on the draft federal development plan (see point 3 .4 .2 of this report), the CREG examined the correla- In February 2018, the CREG received a request from Elia for 120 tion between the development plan for the transmission system approval of a proposal for the calculation of the planned ex- 107,9 drawn up by Elia and the EU ten year network development plan changes resulting from the uniform market coupling . 100 97,1 2018 (TYNDP 2018) . Although the assumptions and scenarios in

85,2 the federal development plan are closely aligned with those of Following a previous request for amendment in September the TYNDP 2018, drawn up by ENTSO-E, the methodology of the 2018, the CREG decided to approve the proposal regarding the 80 development plan was not applied transparently . intraday market85 . 68,0 67,6 67,6

60 As the next TYNDP will only be available in 2020, the CREG did Changed calculation methodology for the planned not have to do this exercise in 2019 . exchanges resulting from the uniform intraday coupling 48,9 43,2 44,3 40 37,1 36,9 33,3 3.1.4.3. Implementation of European regulations CACM, In February 2018, the CREG received a request from Elia for FCA, EB, SO, ER and RfG approval of a proposal for the calculation of the planned exchanges resulting from the uniform market coupling . 20 The entry into force of various network codes has led to a number of additional tasks for various regulatory authorities, Following a previous request for amendment in September 0 including the CREG, and the need to strengthen European and 2018, the CREG decided to approve the proposal regarding the 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 regional cooperation . In the context of the implementation of intraday market 86. France → Belgium Belgium → France 79 80 81 82 83 Netherlands → Belgium Belgium → Netherlands the European regulations CACM , FCA , EB , SO , ER and Total CWE Flow-based (21/05/2015) RfG84, the CREG, together with other regulatory authorities, Nomination of EPEX SPOT SE as NEMO needed to make a decision on various proposals from the Euro- pean transmission system operators and European Nominated In June 2019, the CREG received a request for an opinion Electricity Market Operators ("NEMOs") . These proposals in- from the Minister for Energy regarding EPEX SPOT's appli- clude methodologies that are essential for establishing single cation to be a Nominated Electricity Market Operator . In its day-ahead, intraday and long-term market coupling in Europe . opinion87, the CREG examined to what extent EPEX SPOT met the designation criteria laid down in the European CACM Regulation .

79 Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management. 80 Commission Regulation (EU) 2015/1719 of 26 September 2016 establishing a guideline on forward capacity allocation. 81 Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing. 82 Commission Regulation (EU) 2017/1485 of 2 August 2017 establishing a guideline on electricity transmission system operation. 83 Commission Regulation (EU) 2017/2196 of 24 November 2017 establishing a network code on electricity emergency and restoration. 84 Commission Regulation (EU) 2016/631 of 14 April 2016 establishing a network code on requirements for grid connection of generators. 85 Decision (B)1903 of 14 February 2019 on the joint proposal by ELIA SYSTEM OPERATOR NV and all transmission system operators for a changed methodology for calculating the planned exchanges resulting from the uniform day-ahead coupling. 86 Decision (B)1904 of 21 February 2019 on the joint proposal by Elia System Operator NV and all transmission system operators for a methodology for calculating the planned exchanges resulting from the uniform intraday coupling. 87 Opinion (A)1985 of 5 September 2019 on the application by EPEX SPOT SE to be Nominated Electricity Market Operator (NEMO).

34 CREG Annual report 2019 3. The electricity market

Following the positive opinion of the CREG and the Ministerial Nomination rules for day-ahead exchanges on the bidding ■ FCA regulation Decree of 21 October 2019 (Belgian Official Gazette of 5 No- zone border Belgium-Great Britain in the case of shadow vember 2019), EPEX SPOT SE was designated as the "Nomi- auctions Harmonised allocation rules for the bidding zone border nated Electricity Market Operator (NEMO)" to carry out tasks Belgium-Great Britain relating to uniform day-ahead and intraday interconnections in In November 2018, the CREG received a request from Elia for accordance with the European CACM Regulation . approval of nomination rules for day-ahead exchanges on the In July 2018, the CREG received an application from Elia for bidding zone border Belgium-Great Britain . The CREG decided approval of an annex to the harmonised allocation rules for the Participation in the costs of the NEMOs to approve the proposal 90. bidding zone border Belgium-Great Britain . The CREG decided to approve the proposal 93. On 7 November 2019, in accordance with the European CACM Intraday allocation rules and day-ahead and intraday Regulation, the CREG approved Elia's adapted proposal on nomination rules for exchanges on the bidding zone Regional demands regarding harmonised allocation rules its contribution to the costs of NEMOs for the determination, border Belgium-Great Britain modification and implementation of the uniform day-ahead and In April 2018, the CREG received a request from Elia for ap- intraday coupling in 2019 . The contribution that will actually be In August 2019, the CREG received a request from Elia for approval of a change to the regional requirements regarding the due in application of this decision will be the subject of a report proval of a proposal for the intraday allocation of cross-border harmonised allocation rules for long-term rights . Following a and a specific decision in the course of 2020 88. capacity and the day-ahead and intraday nomination of energy previous request for amendment in September 2018, the exchanges on the bidding zone border Belgium-Great Britain . CREG decided to approve the proposed rules 94. Moreover, in its decision of 20 December 201989, the CREG de- The CREG decided to approve the proposal 91. termined Elia's contribution in 2018 to the costs borne by the Methodology for sharing the congestion income power exchanges (NEMOs) operating in Belgium for the de- Common methodology for redispatching in the Channel velopment, modification and application of uniform day-ahead region In June 2018, the CREG received an application from Elia for and intraday market coupling . This contribution is provided for approval of a methodology for sharing congestion income re- in Article 76 of the CACM Regulation and was calculated in In March 2018, the CREG received a request from Elia for sulting from the allocation of capacity in the longer term . Fol- accordance with the CREG Guidance of 22 November 2017 . approval of a proposal for coordinated redispatching and lowing a previous request for amendment, the CREG decided compensation trading and for a cost-sharing methodology for to approve the amended proposal 95. redispatching and compensation trading . This proposal was drafted together with all transmission system operators in the Nomination rules concerning electricity exchange Channel region . Following a previous request for amendment in schemes between bidding zones September 2018, the CREG decided to approve the amended proposal 92. In April 2019, the CREG received a request from Elia for approval of nomination rules for long-term rights on the bidding zone borders in the Channel region . Following consultation with the

88 Decision (B)1968 of 7 November 2019 regarding the amended proposal of Elia System Operator NV on its contribution to the costs of the NEMOs designated in Belgium for establishing, modifying and implementing uniform day-ahead and intraday coupling in 2019. 89 Decision (B)2019 of 20 December 2019 relating to the report on Elia's contribution in 2018 to the costs borne by NEMOs in connection with the determination, modification and application of the uniform day-ahead and intraday coupling of the markets. 90 Decision (B)1865 of 24 January 2019 on the request for approval by Elia System Operator NV of the nomination rules for exchanges in day-ahead on the bidding zone border Belgium-Great Britain in the event of shadow auctions. 91 Decision (B)1992 of 10 October 2019 on the request for approval by Elia System Operator NV of intraday allocation rules and day-ahead and intraday nomination rules for exchanges on the bidding zone border Belgium-Great Britain. 92 Decision (B)1894 of 24 January 2019 on the request for approval by Elia System Operator NV and all transmission system operators of the Channel capacity calculation region of an amended proposal for a common methodology for coordinated redispatching and compensation trading and the cost-sharing methodology for redispatching and compensation trading. 93 Decision (B)1864 of 24 January 2019 on the request for approval of Elia System Operator NV for a specific annex to the harmonised allocation rules for the bidding zone border Belgium-Great Britain. 94 Decision (B)1915 of 21 March 2019 on the joint proposal by Elia System Operator NV and all transmission system operators of the Core capacity calculation region to modify the regional demands regarding harmonised allocation rules. 95 Decision (B)1931 of 6 June 2019 on the request for approval of the proposal of Elia System Operator NV for a methodology for sharing the congestion income.

CREG Annual report 2019 35 3. The electricity market

other regulatory authorities concerned, the CREG decided to On 14 May 2019, the CREG received a letter from Elia with the On 3 December 2019, the CREG received by letter from approve the proposal 96. amended proposal for terms and conditions applicable to the Elia the amended proposal for the terms and conditions of contract of balance responsible party . The amended proposal the balancing services provider for the mFRR service . The Regional demands regarding harmonised allocation rules contains elements which are in line with the aforementioned amended proposal contains the elements which are in line decision of the CREG . On 27 May 2019, the CREG approved with the decision of the CREG referred to above . In July 2019, the CREG received a request for approval from the amended proposal . However, it asked Elia a number of Elia for a proposal to amend the regional requirements for the questions which need to be taken into account in the next ver- On 20 December 2019, the CREG approved the amended pro- harmonised auction rules . This proposal was developed by all sion of the document 100. posal . Nevertheless, it addressed a number of questions to Elia transmission system operators of the Core region and submit- regarding the implementation of the general terms and condi- ted for approval . Following consultation with the other regula- On 11 October 2019, the CREG received a letter from Elia tions to be observed in the next version of the document 103. tory authorities within the Core region, the CREG decided to with a view to approving a proposal to amend the conditions approve the proposal 97. applicable to the contract of balance responsible party, ■ SO regulation approved by decision of the CREG of 27 May 2019 as referred ■ EB Regulation to above, with a view to including the procedure for managing Important organisational requirements, tasks and storms at sea . Following discussions with the CREG, Elia sent responsibilities for data exchange Dimensioning rules for FCR reserves an amended version of its proposal of 11 October 2019 to the CREG on 3 December 2019 .The CREG approved this amended In October 2018, the CREG received a request from Elia and In September 2018, the CREG received a request for approval proposal on 20 December 2019 101. all European transmission system operators for approval of the from Elia and the transmission system operators of continen- amended KORRR proposal (KORRR stands for Key Organisa- tal Europe for common methodologies, conditions and values Terms and conditions applicable to the balancing service tional Requirements, Roles and Responsibilities) . contained in the operational agreements of synchronous zones provider with regard to the FCR (Frequency Containment Reserve) This proposal lays down tasks, requirements and responsibilities dimensioning rules . In consultation with the other regulato- On 18 June 2018, the CREG received a letter from Elia request- for data exchange between transmission system operators, ry authorities concerned, the CREG decided to approve the ing approval of the proposal for the terms and conditions of distribution system operators and significant network users proposal 98. the Balance Responsible Party (for the FCR, the AFRR and the which ensure the observability of the electricity system . This mFRR respectively) . ensures operational safety, frequency quality and efficient use Conditions applicable to the balance responsible party of the interconnected electricity system . The KORRR proposal On 3 October 2019, the CREG decided to request Elia amend applies to structural data as well as to programming and On 18 June 2018, the CREG received a letter from Elia with the its part of this proposal concerning manual frequency restora- forecasting data and real-time data . proposal for terms and conditions applicable to the contract of tion reserves (mFRR) 102. balance responsible party, for approval . On 28 March 2019, the CREG decided to request Elia amend its proposal 99.

96 Decision (B)1954 of 20 June 2019 on the proposal by Elia System Operator NV and all transmission system operators of the Channel capacity calculation region to modify the nomination rules concerning the systems for electricity exchange between bidding zones. 97 Decision (B)2011 of 17 October 2019 on the joint proposal by Elia System Operator NV and all transmission system operators of the Core capacity calculation region to modify the regional demands regarding harmonised allocation rules. 98 Decision (B)1916 of 2 April on the request for approval of the proposal by Elia System Operator NV for methodologies, conditions and values contained in the operational agreements of synchronous zones in accordance with Article 118 relating to FCR dimensioning rules. 99 Decision (B)1913 of 28 March 2019 concerning the application for approval of an amended proposal for the terms and conditions of the Balance Responsible Party or "BRP". 100 Decision (B)1913/2 of 27 May 2019 concerning the application for approval of an amended proposal for the terms and conditions of the Balance Responsible Party or "BRP". 101 Decision (B)2013 of 20 December 2019 on the application for approval of an amendment to the terms and conditions for the Balance Responsible Party (T&C BRP) regarding the integration of the procedure to manage storms at sea. 102 Decision (B)2000 of 3 October 2019 concerning the request for approval of a proposal for terms and conditions of the Balancing Service Provider (BSP) for the mFRR. 103 Decision (B)2000/2 of 20 December 2019 concerning the request for approval of a proposal for terms and conditions of the Balancing Service Provider (BSP) for the mFRR.

36 CREG Annual report 2019 3. The electricity market

In consultation with the other regulatory authorities con- Methodologies and conditions included in the operational Currently there is only one restoration service on a contractual cerned, the CREG decided to approve the amended KORRR agreements for LFC blocks basis and this is the black start service . On 18 June 2019, the proposal 104. CREG took a decision rejecting Elia's proposal to act as a con- On 14 September 2018, the CREG received a proposal from Elia tractual restoration service provider, received on 19 December Limit values for the exchange and sharing of RR between for methodologies and conditions included in the operational 2018 . Elia must submit an adapted proposal for approval, after synchronous zones agreements for LFC blocks, for approval . On 14 March 2019, public consultation of the market, which takes into account the CREG decided to request Elia amend its proposal 107. On 14 the comments made by the CREG in the above-mentioned In September 2018, the CREG received a request for approval May 2019, the CREG received from Elia the amended proposal decision 110. from Elia and the transmission system operators of Continen- of methodologies and conditions included in the operational tal Europe for common methodologies, conditions and values agreements for LFC blocks . The amended proposal contains Role of contractual defence service providers contained in the operational agreements of synchronous zones elements which are in line with the aforementioned decision of regarding the limit values for the exchange and sharing of RR the CREG . On 27 May 2019, the CREG approved the amended The European ER Regulation provides, among other things, (Replacement Reserve) and FRR (Frequency Restoration Re- proposal . However, it asked Elia a number of questions which need that the transmission system operator must lay down condi- serve) between synchronous zones . In consultation with the to be taken into account in the next versions of the document 108. tions for acting as a restoration service provider on a contrac- other regulatory authorities concerned, the CREG decided to tual basis . approve the two proposals 105. On 20 November 2019, the CREG received a letter from Elia containing a proposal to amend the methodologies and con- However, restoration services on a contractual basis are cur- Costs and benefits for the availability of FCR-supplying ditions included in the operational agreements for LFC blocks, rently non-existent . In this context, the CREG has sent a letter units in an emergency situation for approval, which the CREG had approved by the aforemen- to Elia in which it states that it agrees with Elia's view that it tioned decision on 27 May 2019 . The CREG approved the pro- is not useful to develop these conditions at the present time, In November 2018, the CREG received a request for approval posed amendments on 6 December 2019 . However, it made a but notes that this must be done in anticipation if the need for from Elia and the transmission system operators of Continental number of comments and asked Elia to act on them 109. contract-based defence services should arise in practice . Europe for the assumptions and methodology for a cost-benefit analysis in order to assess the time period during which FCR ■ ER regulation Rules for suspending and restoring market activities (Frequency Containment Reserve) supplying units or groups with limited energy reserves must remain available during an Role of contractual restoration service providers The European ER Regulation provides, among other things, emergency situation . In consultation with the other regulatory for Elia to draw up rules for suspending and restoring market authorities concerned, the CREG decided to approve the The European ER Regulation provides, among other things, activities and specific rules for balancing and offsetting proposal 106. that the transmission system operator must lay down condi- of balancing energy in the event of suspension of market tions for acting as a defence service provider on a contractual activities . basis .

104 Decision (B)1890 of 21 January 2019 on the amended joint proposal of Elia System Operator NV and all transmission system operators for important organisational requirements, tasks and responsibilities relating to data exchange. 105 Decision (B)1917 of 2 April 2019 on the request for approval of the proposal by Elia System Operator NV for methodologies, conditions and values contained in the operational agreements of synchronous zones in accordance with Article 118 relating to limit values for the exchange of RR between synchronous zones and limit values for the sharing of RR between synchronous zones and Decision (B)1918 of 2 April 2019 on the request for approval of the proposal by Elia System Operator NV for methodologies, conditions and values contained in the operational agreements of synchronous zones in accordance with Article 118 with regard to limit values for the exchange of FRR between synchronous zones. 106 Decision (B)1929 of 17 April 2019 on the request for approval of the proposal by Elia System Operator NV for the assumptions and methodology for a cost-benefit analysis in order to assess the time period during which FCR supplying units or groups with limited energy reserves must remain available during an emergency situation. 107 Decision (B)1912 of 4 March on the request by Elia System Operator NV to approve the methodologies and conditions included in the operational agreements for LFC blocks referred to in Article 119. 108 Decision (B)1912/2 of 27 May 2019 on the request by Elia System Operator NV to approve the amended proposal for the methodologies and conditions included in the operational agreements for LFC blocks referred to in Article 119. 109 Decision (B)2025 of 6 December 2019 on the request by ELIA SYSTEM OPERATOR NV to approve the proposal to amend the operational agreement for LFC block Elia. 110 Decision (B)1928 of 18 June 2019 of the CREG on the proposal by Elia System Operator NV of the conditions for acting as a restoration service provider on a contractual basis.

CREG Annual report 2019 37 3. The electricity market

On 19 September 2019, the CREG took a decision rejecting By Ministerial Decree of 19 December 2019, the proposal for a Consequently, new power generation units in the capacity Elia's proposal, which it had received on 19 December 2018 . system defence plan and the proposal for a system restoration category below 25 MW connected to the transmission system Consequently, Elia must submit an adapted proposal for ap- plan were approved, subject to certain specific comments . The at a voltage level higher than or equal to 110 kV within a period proval, after public consultation of the market, which takes into system operator is required to submit a revised system de- of five years following the submission of the request (9 July account the comments made by the CREG in the above-men- fence plan and a revised restoration plan to the Minister for ap- 2019) only have to comply with the provisions of the European tioned decision 111. proval within two years of the entry into force of this Decree . network code RfG (and their national implementation in application of Article 7 of this code) as if they were connected to System defence plan and restoration plan ■ RfG regulation the transmission system at a voltage level lower than 110 kV 114.

On 9 October 2019, the CREG received a request for an opin- Request for derogation from certain technical connection ■ Access rules not related to network codes ion from the Minister for Energy regarding the revised drafts requirements of the European network code RfG of the system defence plan and the restoration plan, includ- Alternative day-ahead allocation and nomination rules ing associated draft lists of significant grid users (SGUs) and In July 2019, Elia submitted a request to the CREG for dero- for the bidding zone border Belgium-Great Britain in the high-priority significant grid users (HPSGUs) . These drafts, gation from certain technical connection requirements set out event of a hard Brexit drawn up by Elia, were submitted to the Minister for Energy for in the European network code RfG for power generation units approval in accordance with the ER Regulation and the Royal with a maximum installed capacity of less than 25 MW and a In February 2019, the CREG received a request from Elia for Decree of 22 April 2019 establishing technical regulations for voltage at the connection point higher than or equal to 110 kV . approval of alternative rules for the allocation and nomination the management of the electricity transmission system and of day-ahead interconnection capacity at the bidding zone bor- access thereto . Pending the decision on the merits of this request, the CREG der between Belgium and Great Britain . decided in August 2019, also at Elia's request, that the units for In his request for an opinion, the Minister also asked the which a derogation was requested no longer had to meet the These explicit auctioning rules serve as an alternative to the CREG to express an opinion on the relevance of the specific requirements of the European network code RfG for which a situation where the United Kingdom leaves the European ministerial decree "Disconnection Plan" in the new legal context derogation was requested, until the CREG had taken its deci- Union without a withdrawal agreement and therefore no created by two new European regulations (the aforementioned sion on the merits of Elia's request for a derogation 113. longer forms part of the internal energy market (so-called "hard Regulation (EU) 2017/2196 and Regulation (EU) 2019/941 on Brexit") . risk preparedness in the electricity sector) . The CREG was also At the start of December 2019, the CREG took its decision on asked for its opinion on the option of providing a first review of the merits and approved Elia's request for derogation from the The CREG decided to approve this proposal subject to a num- the plans within two years of their approval . European network code RfG . ber of conditions linked to Brexit 115.

The CREG issued two opinions on 14 November 2019 112.

111 Decision (B)1941 of 19 September 2019 on the proposal of Elia System Operator NV for the rules for suspending and restoring market activities and specific rules for balancing and offsetting of balancing energy in the event of suspension of market activities. 112 Opinion (A)2022 of 14 November 2019 on the system defence plan proposal of Elia System Operator NV including the lists of significant grid users and high-priority significant grid users and the associated measures/conditions; Opinion (A)2023 of 14 November 2019 on the restoration plan proposal of Elia System Operator NV including the lists of significant grid users and high-priority significant grid users and the associated measures/conditions. 113 Decision (B)1978 of 23 August 2019 on the request by Elia System Operator NV to suspend the obligation for power generation units with a maximum installed capacity of less than 25 MW and a voltage at the connection point higher than or equal to 110 kV to meet certain requirements of the European network code RfG, pending the CREG's decision on the merits of the request for derogation submitted on 9 July 2019. 114 Decision (B)2028 of 6 December 2019 on the request from Elia System Operator NV of 9 July 2019 derogating from the obligation for power generation units with a maximum installed capacity of less than 25 MW and a voltage at the connection point higher than or equal to 110 kV to comply with certain requirements of the European network code RfG. 115 Decision (B)1911 of 14 March 2019 on the request for approval of Elia System Operator NV for day-ahead allocation and nomination rules for the bidding zone border Belgium-Great Britain in the event that the United Kingdom leaves the European internal energy market.

38 CREG Annual report 2019 3. The electricity market

Alternative intraday and long-term allocation and In April 2019, the CREG received a new request from Elia for CREG decided, following public consultation of stakeholders, nomination rules for exchanges on the bidding zone approval of a proposal to modify flow-based market coupling to approve Elia's proposal .120 border Belgium-Great Britain in the event of a hard Brexit in the CWE region . The purpose of these modifications is to abolish France's import restriction and to implement the Minimum available capacity for cross-zonal trade In August 2019, the CREG received a request from Elia for ap- "Multiple NEMO Arrangements" . The CREG decided, following proval of a proposal for the long-term and intraday allocation of public consultation of stakeholders, to approve the proposal .118 In October 2019, the CREG received a request for approval cross-border capacity and the nomination of energy exchanges from Elia for a derogation from the obligation in Article 16(8) of on the bidding zone border Belgium-Great Britain . These rules Operating rules for access to the intraday electricity Regulation (EU) 2019/943 to make at least 70% of the trans- will enter into force if the United Kingdom leaves the Euro- market in the context of congestion management mission capacity available to cross-zonal trade . The CREG pean Union without a withdrawal agreement (so-called "hard decided, after consulting the other regulatory authorities and Brexit") . In February 2019, CREG received a request for approval from Belgian stakeholders, to approve Elia's request 121. Elia System Operator NV for a proposal of operating rules for The CREG decided to approve this proposal subject to a num- access to the intraday market . This was a proposal for a one- Remedial measures to address market distortions ber of conditions linked to Brexit 116. year test period in the context of compensation trading on the Nemo Link interconnector . The CREG decided to approve the In order to achieve the ambitious target of offering 70% of the ca- Flow-based market coupling proposal 119. pacity of the transmission network to the market, the Clean Ener- gy Package (CEP) provides for the use of redispatching . However, In December 2018, the CREG received a request from Elia for Methodology for calculating capacity in intraday according when redispatching is used to alleviate structural congestion, it approval of a modification to flow-based market coupling in to the increase/decrease process in the CWE region leads to market distortions (zonal prices and volumes exchanged the CWE region . In its decision of 7 February 2019, the CREG between bidding zones in the context of market coupling) . approved the application of a French import restriction during In May 2019, CREG received a request from Elia for approval the winter period 2018-2019 .The purpose of this import restric- of changes to the coordinated methodology for calculating In study 1987, the CREG sets out the conditions for setting up tion was to address the predicted system security risks on the intraday capacity according to the increase/decrease process a coordinated redispatching mechanism that reduces the dis- Swiss electricity grid 117. in the CWE region, in order to be able to apply this calculation tortions observed and is also compatible with the objectives of method together with the other transmission system operators the CEP, in particular the need for prices to reflect actual supply on the bidding zone border between Germany and Austria . The and demand 122.

116 Decision (B)1993 of 3 October 2019 on the request for approval by Elia System Operator NV of alternative intraday and long-term allocation and nomination rules for exchanges on the bidding zone border Belgium-Great Britain in the event that the United Kingdom leaves the European internal energy market 117 Decision (B)1891 of 7 February 2019 on the request for approval of Elia System Operator NV's proposal to adapt day-ahead market coupling in the Central West Europe region following the application of a French import restriction during the winter period 2018-2019 in the event of forecast system security risks on the Swiss electricity grid 118 Decision (B)1937 of 20 June 2019 on the request for approval of the proposal of Elia System Operator NV to adapt flow-based day-ahead market coupling in the CWE region 119 Decision (B)1905 of 4 April 2019 on the request for approval of Elia System Operator NV's proposal for operating rules for access to the intraday electricity market in the context of congestion management 120 Decision (B)1924 of 6 June 2019 on the request for approval of Elia System Operator NV's proposal to adapt the methodology for calculating capacity in intraday according to the increase/decrease process in the CWE region. 121 Decision (B)2014 of 6 December 2019 on the request for approval of Elia System Operator NV for a derogation from Article 16(8) of Regulation (EU) 2019/943 with regard to a minimum available capacity for cross-zonal trade 122 Study (F)1987 of 10 October 2019 on the best prognosis of remedial measures to counter market disruption

CREG Annual report 2019 39 3. The electricity market

3.2. Competition For passenger cars and vans, the cost of petroleum fuels is • Monitoring energy market prices for households and about 70% higher than that of CNG, taking into account a lower small professional users 3.2.1. Monitoring of wholesale and retail prices price at the pump and lower consumption for CNG . Moreover, the fuel price of CNG is relatively similar to that of electricity . In its annual follow-up study, the CREG examines the main 3.2.1.1. Studies conducted by the CREG developments on the retail market (see section 3 2. .1 .2 of the For CNG and LNG trucks, the current business case is posi- current report) . • The share of the electricity and natural gas bill in the tive, provided that sufficient mileage is covered and that the budget of Belgian households regional support measures (purchase premiums) are taken into • Reaction of the electricity market following the account . unavailability of several nuclear reactors in Belgium in In a study dated 14 November 2019, the CREG analysed the the period from October 2018 to February 2019 share of the electricity and natural gas bill in the budget of Unlike LPG vehicles, with which they are sometimes con- Belgian households . It noted that this proportion is particularly fused, CNG and LNG vehicles are primarily produced in a fac- At the end of 2018, the Belgian electricity market was affected high for single persons, single-parent families and those on the tory . Moreover, the growth in the number of CNG and LNG by a significant event, namely the unexpected unavailability of lowest incomes . People who heat their homes with electricity stations in Belgium and in Europe makes it easier to use these various nuclear reactors, between 14 October and 12 Novem- (and who do not have solar panels) also spend a considerable alternative engine types, which are still relatively unknown . ber 2018, when only one nuclear reactor was operational . part of their budget on their electricity bill 123. • Energy standard In a study dated 20 June 2019, the CREG takes stock of the • Competitive position of natural gas used as CNG and situation ex-post: how did the electricity market react? What LNG fuel The CREG and the three Belgian energy regulators BRUGEL, was the impact on the energy mix, on the price of electricity on CWaPE and the VREG, working together within the Forum of the wholesale market and on prices paid by consumers? What The CREG study on the competitive position of natural gas Belgian Energy Regulators or FORBEG, have decided to draw measures were taken to ensure the balance between supply used as a fuel: compressed natural gas (CNG) and liquefied up a study which provides a reference for discussions on a and demand on the electricity market? What were the risks to natural gas (LNG) for different types of vehicles124 makes it possible "energy standard" . Belgium's security of supply?125 possible to establish from an ecological and economic point of view that these fuels are an interesting alternative . Through this study, which will be carried out by a consultant • Price components appointed via a public contract, the regulators will examine the evolution of electricity and natural gas bills every year . Prices of In the context of its competence regarding the end price for the different components of the bill will be compared between electricity and natural gas, on 21 March 2019 the CREG pre- the three Belgian regions and the neighbouring countries for sented the results of the annual update of its study on the families and companies in different sectors . The results of the components of electricity and natural gas prices . first study are expected by May 2020 .

123 Study (F)2012 of 14 November 2019 on the share of the electricity and natural gas bill in the budget of Belgian households in 2018. 124 Study (F)1919 of 28 March 2019 on the competitiveness of natural gas used as CNG (compressed natural gas) and LNG (liquefied natural gas) fuel for different types of vehicles. 125 Study (F)1950 of 20 June 2019 on the analysis of the reaction of the electricity market following the unavailability of several nuclear reactors in Belgium in the period from October 2018 to February 2019.

40 CREG Annual report 2019 3. The electricity market

Since 2007, the CREG has followed the evolution of electrici- • Functioning of and price trends on the wholesale • Electricity supply of large industrial customers in ty and gas prices charged to the end customer . In addition to markets in 2018 Belgium the evolution of the pure energy price that follows the market, there are also the annual evolutions of the distribution and On 5 September 2019, the CREG published its final study of At its own initiative, the CREG conducted a study into electricity transmission system tariffs and the charges . the annual monitoring of the functioning and price trends on supply to large industrial customers in Belgium in 2018 with the the Belgian wholesale electricity market . Specifically, this re- aim of improving the transparency of the supply of electricity For electricity, the average price for residential customers in- port analyses the evolution of the Elia grid load in 2018, the to large industrial customers 129. The study analyses electricity creased by 61 .59% between 2007 and 2018 . In concrete terms, evolution of prices on the electricity markets in Belgium and in supply contracts and the purchasing behaviour of large Belgian this means an average increase of €519 .10/period in Flanders, the countries of the CWE region, as well as the use and cost industrial customers . It shows that industrial customers €195 42/period. in Brussels and €320 .50/period in Wallonia . For of reserves (aFRR and mFRR) . A chapter of the study is also primarily enter into short-term contracts (1 or 2 years), but business customers in Belgium, the average price likewise in- devoted to gas-fired power stations in Belgium and shows that that the renewal of certain contracts is also successful with creased, by 23 .99% . Compared to 2017, we see an increase of their profitability increased in 2018 127. certain suppliers . In 2018, the billed energy price was generally 3 .33% for a domestic customer in Belgium . This increase con- higher than in 2017 . Since 2016, Engie's market share has sists on the one hand of an average decrease of €51 .41/period • European comparison of prices for large industrial remained stable and it is mainly EDF Luminus and Eneco that in Flanders and on the other hand of an increase of €78 .41/ customers have captured Axpo's market share . The annual electricity period in Brussels and €60 .62/period in Wallonia . For business consumption of large industrial customers increased in 2018 customers in Belgium, the average price likewise increased, For the fourth consecutive year, the consultant PwC carried due to an increase in the offtake from the metal industry . by 14 .10% . out an annual monitoring study of energy prices on behalf of the CREG, for six profiles of industrial consumers (four for This study is based, in particular, on two studies into energy For natural gas, the average price charged to residential cus- electricity and two for natural gas) . price-setting mechanisms to determine the energy prices in tomers increased by 26 .54% between 2007 and 2018 . This force in 2018 in the electricity supply contracts of the major equates to an average increase of €221 .62/period in Flanders, The study analyses prices for electricity and natural gas be- industrial customers Electrabel and EDF Luminusl130 . In this €222 .49/period in Brussels and €442 .86/period in Wallonia . For tween Belgium and four other countries - Germany, the Neth- study, the CREG compiled a detailed inventory of the mecha- business customers in Belgium, the average price likewise in- erlands, France and the United Kingdom - as well as within the nisms for setting the different energy price components based creased, by 17 .60% . Compared to 2017, we see an increase of different regions 128. on which major Belgian industrial customers were billed . These 10 .64% for a domestic customer in Belgium . This is an average studies aimed to identify the main factors that influenced, and increase of €135 .70/period in Flanders, €140 .14/period in Brus- will still influence in the future, the energy prices charged to sels and €130 92/period. in Wallonia . For business customers major Belgian industrial customers . in Belgium, the average price likewise increased, by 17 .61% .126

126 Study (F)1914 of 21 March 2019 on electricity and natural gas price components. 127 Study (F)1958 of 5 September 2019 on the functioning of and price trends on the Belgian wholesale electricity market – monitoring report 2018. In its note (Z)1889 of 24 January 2019, which was also published, the CREG outlined a first overview of the noteworthy developments on the Belgian wholesale markets for electricity and natural gas in 2018. 128 "A European comparison of electricity and gas prices for large industrial consumers – Final report 2019 update", 25 April 2019. 129 Study (F)1983 of 20 December 2019 on the electricity supply of large industrial customers in Belgium in 2018. 130 Study (F)1980 of 28 November 2019 on the mechanisms applicable in 2018 for the setting of the energy price in electricity supply contracts for large industrial customers of Electrabel NV; Study (F)1981 of 28 November 2019 on the mechanisms applicable in 2018 for the setting of the energy price in electricity supply contracts for large industrial customers of EDF Luminus NV.

CREG Annual report 2019 41 3. The electricity market

3.2.1.2. Monitoring energy market prices for households cold weather, the limited gas supply, the rise in CO2 prices The CREG also continuously compares the energy component and small professional users and the increased demand at international level led to a rise for the supply of electricity and natural gas to residential and in gas prices . SME end customers with the average energy component of • Observations for 2019 neighbouring countries . • Databases of energy prices The annual monitoring of prices on the electricity and gas mar- In the context of its general monitoring duties, in 2012 the kets for households and small professional users analyses the Since 2012, the CREG has established, for each supplier operat- CREG also established a permanent database of energy prices main developments on the retail market during the past year . In ing in Belgium, for any variable type of contract and for any new in the neighbouring countries (Germany, France, the Nether- particular, the monitoring examines the evolution of the active standard contract, by consultation with them, a database to re- lands) and in the United Kingdom . suppliers, their market shares, the various products proposed, cord the methodology for calculation of variable energy prices, the initiatives and instruments taken/developed by the CREG including indexation formulas and the parameters that they use . As such, in addition to the energy component, the CREG has to provide clear information to consumers and, finally, the evo- To this end, and in order to keep the database up-to-date, the monitored the all-in prices (total bill) in Belgium and in the lution of prices on the electricity and natural gas markets . CREG makes use of publicly available data (suppliers’ websites) neighbouring countries on a monthly basis, since 2012 . and the data that suppliers are obliged to submit to the CREG Main findings of the CREG for 2019131: every month . The results obtained by the CREG are, furthermore, checked by country by comparing them with the results obtained using - At the end of September 2018, the extension of the una- In addition to the variable components, the database also includes the price simulators of neighbouring countries . vailability of two nuclear power plants led to a price peak on all the products that have a fixed energy component . the wholesale electricity market . The price level remained In an effort to improve both the content and clarity of its com- high in October 2018, in particular because of the uncertain- All the elements included in the price formula of the energy munication, the CREG publishes infographics that provide ty regarding security of supply during the winter . Especially component (subscription, indexation parameters and related a clear overview of the number of active suppliers and their during the fourth quarter of 2018 and, to a lesser extent, at coefficients, renewable energy and combined heat and power product offering, as well as the potential savings 133. the start of the first quarter of 2019, this situation led to a contributions) are included separately in the database . The energy significant increase in electricity prices for consumers . After component of the annual energy bill is then calculated for certain Finally, the analysis of the energy component and the perma- that, prices evolved at a similar level to previous years, with- standard customers132 using relevant annual consumption levels . nent comparison of prices between Belgium and the neigh- out high peaks in 2019 . bouring countries are illustrated in the following figures . The results are compared by sampling with those from the - As regards natural gas, 2019 was primarily characterised by a suppliers’ calculation modules and the existing price compari- fall in market prices, mainly due to a glut of LNG at the global son modules . level . This contrasts with the evolution in 2018, when the

131 Study (F)1996 of 17 October 2019 into the annual monitoring of prices on the electricity and natural gas markets for households and small professional users. 132 Electricity residential customer: 3,500 kWh/year, single meter and electricity SME: 50,000 kWh/year, single meter natural gas residential customer: 23,260 kWh/year and natural gas SME: 100,000 kWh/year. 133 The infographics can be consulted on the following page of our website: https://www.creg.be/nl/consumenten/prijzen-en-tarieven/infografieken.

42 CREG Annual report 2019 3. The electricity market

Figure 9: Monthly trends in the price of electricity in 2019 for a standard residential customer Figure 11: Monthly trends in the price of electricity in 2019 for SMEs and the self-employed (standard (standard customer = 3,500 kWh/year) (energy component) (Source: CREG) customer = 50,000 kWh/year) (energy component) (Source: CREG)

120 120

100 100

80 80

60 60 €/MWh €/MWh

40 40

20 20

0 0 1/12/18 1/01/19 1/02/19 1/03/19 1/04/19 1/05/19 1/06/19 1/07/19 1/08/19 1/09/19 1/10/19 1/11/19 1/12/19 1/12/18 1/01/19 1/02/19 1/03/19 1/04/19 1/05/19 1/06/19 1/07/19 1/08/19 1/09/19 1/10/19 1/11/19 1/12/19 BE DE, FR, NL BE DE, FR, NL

Figure 10: Monthly trends in the price of natural gas in 2019 for a standard residential customer Figure 12: Monthly trends in the price of natural gas in 2019 for SMEs and the self-employed (standard customer = 23,260 kWh/year) (energy component) (Source: CREG) (standard customer = 100,000 kWh/year) (energy component) (Source: CREG)

40 40

30 30

20 20 €/MWh €/MWh

10 10

BE DE, FR, NL BE DE, FR, NL

CREG Annual report 2019 43 3. The electricity market

3.2.2. Monitoring of market transparency and Figure 13: Average monthly load on the Elia grid from 2007 to 2019 . (Sources: Elia data, CREG calculations) openness MWh/hour 11 500 3.2.2.1. Electrical power demand 11 500

According to the data supplied to the CREG, the load134 on the 11 000 Elia grid135, without pump consumption by the pumping stations - in other words net offtake plus grid losses - was esti- 10 500 mated at 74,226 GWh in 2019, compared with 76,652 GWh in 9 904 2018, i .e . a decrease of 3 .2% from one year to the next . The 10 000 9 889 peak 15-minute load in 2019 was estimated at 12,568 MW, 9 692 compared with 12,440 MW in 2018 (Source: Elia, for 2018: pro- 9 500 visional data, February 2019) . 9 446 9 227 9 317 9 226 9 152 9 000 Figure 13 shows, per year, the average monthly load on the 8 818 Elia grid: for the years 2007 to 2019 . Following a steep reduc- 8 659 8 683 8 500 tion in the load from October 2008 following the economic 8 619 8 334 8 042 crisis, which also continued into 2009, the load recovered in 8 256 8 000 8 145 8 223 early 2010 . The recovery did not last, however, as the decline 8 050 8 018 in load returned the following year to reach its lowest average 7 934 8 065 7 766 7 710 levels in 2014, 2015, 2016, 2017 and 2018 . Compared to 2007, 7 500 7 633 the average load was 16 2%. lower in 2019 . These figures have not been weighted for meteorological factors . 7 000 1 2 3 4 5 6 7 8 9 10 11 12

Local power generation by sites connected to the Elia grid is 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 not fully taken into account in these figures . Synergrid has estimated local generation at 10 .9 TWh in 2019 (10 .6 TWh in 2018), 3.2.2.2. Market share of wholesale generation The HHI, a widely used concentration index, rose slightly in i .e . a 2 .8% rise compared with 2018 . 2019 . With a value of 5090, it remains very high . By way of Table 6 provides an estimate, in both absolute value (in GW) comparison, a market is considered to be highly concentrated and in relative value, of the Belgian market shares in electricity if the HHI is equal to or higher than 2000 . generation capacity at the end of each year .

Electrabel still has a substantial market share (69%) of total generation . The second largest player is EDF Luminus, with a market share of 16% in terms of generation capacity .

134 The Elia grid load is based on the injections of electrical power into Elia’s grid. It includes net generation from (local) plants injecting a voltage of at least 30 kV and the net balance of imports and exports. Power generating installations connected to distribution systems at a voltage under 30 kV are only included if their net injection into the Elia grid is measured. The power needed to pump water into storage tanks in pumping stations connected to the Elia grid is subtracted. Not all injections by decentralised power generating plants which inject energy to distribution systems at a voltage under 30 kV are included in the Elia grid load. The share of this segment in generation has risen sharply in recent years. As such, Elia has decided to supplement its publication with a forecast of the total load in Belgium (Source: Elia). 135 The Elia grid includes grids at a voltage of at least 30 kV in Belgium as well as the Sotel/Twinerg system in the south of the Grand Duchy of Luxembourg.

44 CREG Annual report 2019 3. The electricity market

Table 6: Wholesale market shares in electricity generation capacity (Sources: Elia data, CREG calculations)

Generation capacity (GW) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Electrabel 12 .1 11 .4 11 .0 10 .7 9 .9 9 .9 10 .2 10 .2 10 .1 10 .6 10 .8 76% 72% 70% 66% 65% 68% 71% 73% 72% 69% 69% EDF-Luminus (1) 2 2. 2 .4 2 .4 2 .3 2 .2 1 .8 1 .7 1 .9 2 .0 2 .6 2 .6 14% 15% 15% 14% 15% 12% 12% 14% 14% 17% 16% E .ON 1 .2 1 .5 1 .5 1 .5 1 .5 1 .1 0 .6 0 .0 0 .0 0 .0 0 .0 8% 9% 9% 9% 10% 7% 4% 0% 0% 0% 0% T-Power 0 0. 0 .0 0 .4 0 .4 0 .4 0 .4 0 .4 0 .4 0 .4 0 .4 0 .4 0% 0% 3% 3% 3% 3% 3% 3% 3% 3% 3% Other (<3%) 0 5. 0 .6 0 .5 1 .2 1 .3 1 .5 1 .6 1 .5 1 .5 1 .8 1 .8 3% 3% 3% 7% 9% 10% 11% 11% 11% 12% 12% Total 16.0 15.8 15.8 16.0 15.3 14.6 14.5 14.0 14.1 15.4 15.6 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

(1) The shares of SPE and EDF Luminus have been combined since 2010, following the takeover of SPE by EDF . HHI 5,970 5,540 5,170 4,720 4,460 4,760 5,160 5,510 5,420 5,040 5,090

Table 7: Wholesale market shares in power generated (Sources: Elia data, CREG calculations)

Power generated (TWh) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Electrabel 70 .3 62 .7 58 .9 50 .7 49 .9 40 .7 37 .2 55 .0 54 .4 40 .1 54 .6 82% 72% 73% 71% 71% 68% 67% 79% 77% 69% 72% EDF-Luminus (1) 12 .2 12 .2 9 .3 8 .5 8 .6 7 6. 6 .6 6 .5 7 8. 9 .7 12 .1 14% 14% 12% 12% 12% 13% 12% 9% 11% 17% 16% E .ON 0 5. 8 .8 8 .5 7 8. 6 .9 6 .3 4 .6 0 .9 0 .0 0 .0 0 .0 1% 10% 11% 11% 10% 11% 8% 1% 0% 0% 0% T-Power 0 0. 0 .0 1 .0 0 .5 0 .4 1 .4 2 .2 2 .6 2 .5 2 .4 2 .7 0% 0% 1% 1% 1% 2% 4% 4% 4% 4% 4% Other (<3%) 2 6. 3 .0 2 .8 4 .4 4 .9 4 .0 5 .1 4 .9 5 .5 5 .6 6 .4 3% 3% 4% 6% 7% 7% 9% 7% 8% 10% 8% Total 85.5 86.6 80.5 71.9 70.7 59.9 55.8 69.9 70.2 57.8 75.8 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

HHI 6,868 5,439 5,599 5,242 5,223 4,893 4,679 6,303 6,152 5,130 5,450 (1) The shares of SPE and EDF Luminus have been combined since 2010, following the takeover of SPE by EDF .

Table 7 provides the same estimate, but in terms of the energy 3.2.2.3. Energy exchange cross-border capacity to facilitate cross-border trade between actually generated . Overall, the units connected to the Elia grid bidding zones . generated 75 .8 TWh in 2019, significantly more than in 2018, In 2019, price convergence in the CWE region improved sig- which was characterised by the unavailability of certain nuclear nificantly compared to previous years . In 2019, the average daily price in Belgium was €39 .3/MWh, power plants, but also higher than in previous years . which is lower than the €39 .5/MWh observed in France and Several factors may explain this, including the high availabili- the €41 .2/MWh observed in the Netherlands . By way of com- The dominant position of Electrabel fell slightly to 72% in 2019 ty of nuclear power plants in Belgium and France and, more parison, in 2018 the price on the Belgian daily market was still (compared to 69% in 2018) . In 2019, the HHI fell to 5450, con- importantly, the measures taken in the course of 2018, in- €55 .3/MWh . The average price on the German daily market firming that the market is still extremely concentrated . cluding the introduction of a minimum threshold for available in 2019 was also lower than in 2018, but still the lowest in

CREG Annual report 2019 45 3. The electricity market

the CWE region at €37 .7/MWh . However, the fall in prices on This decrease is explained by the high availability of nuclear and solar energy injections . The EPEX SPOT M7 system set the daily market was strongest in Belgium, both in absolute power plants and the resulting decrease in imports . up in October 2016 and the implementation of the XBID pro- and relative terms . International factors, such as CO2 and ject in June 2018 facilitated trading on the Belgian intraday gas prices, are driving prices in Belgium and its neighbouring The sensitivity of the electricity price on the daily market to market by linking the Belgian market to the German, French, countries higher . additional offtake volumes (market depth) is an important Austrian, Swiss and other European markets . The total traded factor . The greater the sensitivity, the more easily the price can volume on the intraday market rose to 2,881 GWh in 2019, In 2019, the proportion of hours in which there was price con- be manipulated . If an additional 500 MW were purchased, the compared to 2,012 GWh in 2018 . The average intraday price vergence increased slightly in the entire CWE region (with a average monthly relative increase in 2019 would be around fell by 28% to €40 .7/MWh in 2019 . margin of €1/MWh) to 48 .4%, compared to 37 .4% in 2018 . €1/MWh, the lowest level ever observed . If an additional 500 The CREG notes that prices converge with France 60 .3% of MW were sold, the average monthly relative fall in 2019 would The price on the wholesale market for short and long-term the time and with the Netherlands 57 .9% of the time . Price be around €1 .2/MWh . For the first time since the beginning contracts fell in 2019 . The contracts for the following year had convergence with Germany again rose sharply to 52 .7% . of the observations, sensitivity remains relatively constant an average price of €51 .0/MWh, the same as in 2018 . In 2019, Thanks to this increase, Belgium had no price convergence throughout the year . the average daily market price was lower than the average with any of its neighbouring countries for 31 .4% of the time . price of the year-ahead contract with delivery in 2019 (i .e . This figure represents a decrease from the 41 .8% recorded The intraday market provides market participants with the trade during 2018) . The average price on the daily market in in 2018 . possibility to manage their unexpected changes in expected 2019 was €39 .3/MWh compared to €51 .0/MWh for contracts injection or offtake after the closure of the day-ahead market traded in 2018 for the following year . The total volume traded on the EPEX SPOT daily market via a public market . These unexpected changes include, for was 18 .4 TWh, compared with 25 .9 TWh in 2018, roughly instance, the unexpected unavailability of a generating plant, equivalent to 24 .8% of the total offtake from the Elia grid . but also changes resulting from updated forecasts of wind

46 CREG Annual report 2019 3. The electricity market

Figure 14: Average monthly prices for the period 2007-2019 of the daily market for delivery of electricity in the countries of the CWE region (Sources: Epex Spot Belgium, EPEX Spot, CREG calculations)

€/MWh 40 37.3 36.4 36.3 30 31.9

0 01/2012 03/2012 05/2012 07/2012 09/2012 11/2012 01/2013 03/2013 05/2013 07/2013 09/2013 11/2013 01/2014 03/2014 05/2014 07/2014 09/2014 11/2014 01/2015 03/2015 05/2015 07/2015 09/2015 11/2015 01/2016 03/2016 05/2016 07/2016 09/2016 11/2016 01/2017 03/2017 05/2017 07/2017 09/2017 11/2017 01/2018 03/2018 05/2018 07/2018 09/2018 11/2018 01/2019 03/2019 05/2019 07/2019 09/2019 11/2019

BE NL FR DE

Figure 15: Average annual prices for the period 2007-2019 of the daily market for the supply of electricity in the countries of the CWE region (Sources: Belpex, EPEX Spot, CREG calculations)

60 55.3 €/MWh 52.5 50 50.2 45.0 44.7 44.6 41.1 40 39.5 39.3 39.5 37.6 34.2 30

20 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 BE NL FR DE

CREG Annual report 2019 47 3. The electricity market

Figure 16: Average monthly strength of the Epex Spot Belgium market between 2007 and 2019 (Sources: Epex Spot Belgium, CREG calculations)

45 41,43 40

25 22,30 20

€/MWh 13,77 15 12,52 11,09 10,35 10 9,49 7,95 6,61 6,01 5 4,48 1,62 1,34 1,29 0 -1,70 -1,30 -5 -2,47 -4,82 -4,28 -4,69 -4,69 -4,05 -8,60 -8,55 -6,50 -9,03 -6,00 -10 -6,80 01/2007 03/2007 05/2007 07/2007 09/2007 11/2007 01/2008 03/2008 05/2008 07/2008 09/2008 11/2008 01/2009 03/2009 05/2009 07/2009 09/2009 11/2009 01/2010 03/2010 05/2010 07/2010 09/2010 11/2010 01/2011 03/2011 05/2011 07/2011 09/2011 11/2011 01/2012 03/2012 05/2012 07/2012 09/2012 11/2012 01/2013 03/2013 05/2013 07/2013 09/2013 11/2013 01/2014 03/2014 05/2014 07/2014 09/2014 11/2014 01/2015 03/2015 05/2015 07/2015 09/2015 11/2015 01/2016 03/2016 05/2016 07/2016 09/2016 11/2016 01/2017 03/2017 05/2017 07/2017 09/2017 11/2017 01/2018 03/2018 05/2018 07/2018 09/2018 11/2018 01/2019 03/2019 05/2019 07/2019 09/2019 11/2019

500 MW additional purchased 500 MW additional sold

Figure 17: Energy traded and average price on the intraday exchange (Source: Epex Spot Belgium, CREG calculations)

100 500000

90 450000

80 400000

70 350000

60 300000

50 250000 GWh €/MWh 40 200000

30 150000

20 100000

10 50000

0 I I I I I I I I I I I 0 1/01/2009 1/01/2010 1/01/2011 1/01/2012 1/01/2013 1/01/2014 1/01/2015 1/01/2016 1/01/2017 1/01/2018 1/01/2019 Belpex Intraday Volume EPEX SPOT Belgium Intraday Volume EPEX SPOT Belgium (Belpex) Intraday Price

48 CREG Annual report 2019 3. The electricity market

Figure 18: Comparison of wholesale prices for short-term and long-term contracts (Sources: Epex Spot Belgium, Epex Spot, ICE Endex, This accreditation entitles the service provider to use the la- CREG calculations) bel of the CREG charter for its price comparison website for

90 a period of two years . During this period, it must scrupulously comply with the provisions of the charter and comply with the 80 CREG's inspections .

70 68,85 61,37 3.3. Consumer protection 60 55,27 50 44,58 50,9 The CREG continued to stress the consumer protection aspect 43,92 51,01 49,6 of its work in 2019 . €/MWh 40 45,8 39,4 41,43 30 37,27 • CREG Scan

20 Launched in February 2017, the CREG Scan is intended for indi- 10 viduals, SMEs and the self-employed, with a maximum annual consumption of 50,000 kWh for electricity and 100,000 kWh 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 for natural gas . With this launch, the CREG wanted to offer D + 1 M + 1 Q + 1 Y + 1 consumers a unique and useful tool with which they could compare dormant contracts with current market offerings, 3.2.2.4. REMIT Regulation . The CREG also drafted six notes on six different in 6 clicks . Something that is not possible on the other price cases in 2019 . One of these cases was closed, the other five comparison websites, as only the current offering can be seen Regulation (EU) No 1227/2011 of the European Parliament and were still pending . Furthermore, at the end of 2019, the CREG there . of the Council of 25 October 2011 on wholesale energy market began analysing three new cases that were submitted . integrity and transparency (hereinafter: REMIT) establishes The CREG Scan now includes almost 100% of the contracts, a set of rules to deter and sanction manipulation and insider 3.2.2.5. Charter of best practices for electricity and gas as group purchases (330,000 households) and cooperative trading on wholesale energy markets . price comparison websites contracts (70,000 households) are also included . Moreover, since this year the user can differentiate between fixed and In this context, the market players need to register on a plat- On 18 September 2019, the CREG announced that it had variable price contracts, which makes comparison easier . form and keep their registration details up to date . In 2019, awarded its first new quality label to the price comparison the CREG validated several changes to the registration, among website "Energie-Vergelijker .be" of Wikipower bvba . After ex- In 2019, the CREG Scan compared a total of 13,200 products other things as a result of the uncertainty surrounding the amining the accreditation file and the checks based on the and is complementary to the other price comparison websites withdrawal of the United Kingdom from the EU . It also helped charter and logical and arithmetical testing of the results of the that take into account the 664 active products on the market . market players with their registration or other questions about price comparison, the CREG established that the price com- REMIT . parison website complied with all the provisions of the char- More and more Belgians are finding their way to the CREG ter 136. Energie-Vergelijker .be is thus the first price comparison Scan, but the figures show that there is still a long way to In 2019, the CREG conducted various investigations and ad website for electricity and natural gas prices to be awarded the go before every family and SME will enjoy the most advan- hoc analyses on questions from market players, or on their new CREG quality label . tageous prices . For this reason, in October 2019 the CREG own initiative, about possible infringements of the REMIT

136 Decision(B)1967 of 23 August 2019 on the accreditation of the online price comparison website "Comparateur-Energie.be / Energie-Vergelijker.be / EnergyPrice.be of Wikipower bvba".

CREG Annual report 2019 49 3. The electricity market

launched an awareness-raising campaign on social media for extending the principles of the charter to group purchases (see During the course of 2019, the installed generation capacity the CREG Scan . paragraph 3 .2 .2 .5 of this report) . connected to the Elia grid in Belgium increased compared with 2018, from 15,396 MW to 15,636 MW . This increase by 239 • Consumer information 3.4. Security of supply MW was the result of various developments in 2019 . Firstly, the commissioning of the Norther wind farm contributed to In 2019, the CREG continued to inform consumers, in particu- 3.4.1. Monitoring the balance between supply and an increased installed capacity of offshore wind turbines . Fur- lar about prices and price trends, among other things via: demand thermore, the unavailability of certain nuclear power stations at the end of 2018 prompted some actors to take temporary - the annual study into the evolution of the components of • Demand137 measures, such as the installation of diesel generators or the electricity and natural gas prices (see points 3 .1 .3 .5 .B and recommissioning of units that had been definitively decom- 3 .2 .1 .1 of this report); The load on the Elia grid was 74 .23 TWh in 2019, compared missioned . For winter 2019-2020, no volume of strategic re- - monitoring energy market prices for households and small with 76 .65 TWh in 2018, equating to a fall of 3 .2% between serve was contracted . professional users (see point 3 .2 .1 .2 of this report); 2018 and 2019 . - the study into electricity supply to major industrial Table 9: Breakdown by plant type of installed capacity connected customers in Belgium in 2018, with the aim of improving the Table 8: Elia grid load (power and peak capacity) for the period to the Elia grid as of 31 December 2019 (Source: Elia) transparency of the supply of electricity to major industrial 2007-2019 (Source: Elia, 2016: provisional data) customers (see point 3 .2 .1 .1 . of this report); Installed capacity Power plant type - infographics and monthly dashboards for electricity and Energy Peak capacity MW % natural gas (see point 3 .2 .1 .2 of this report); (GWh) (MW) Nuclear plants 5,931 37 .9 - the monthly publication of quoted gas prices TTF101, TTF103 2007 86,619 14,033 CCGT and gas turbines 4,532 29 .0 and ZTP101; 2008 87,760 13,431 Conventional power plants 315 2 .0 - the processing of enquiries and complaints (see point 5 .4 of 2009 81,575 13,513 this report) . 2010 86,501 13,845 Cogeneration 865 5 .5 2011 83,350 13,201 Incinerators 247 1 .6 Readers are also referred to the work carried out by the CREG 2012 81,717 13,369 Diesel engines 5 0 .0 in the context of working groups handling aspects relating to 2013 80,534 13,446 Turbojets 177 1 .1 consumer protection in the field of energy (see point 5 .6 of 2014 77,161 12,736 Hydro (excluding pumping power this report) . 78 0 .5 2015 77,184 12,634 plants) 2016 77,295 12,734 • Monitoring by the CREG of energy intermediaries Pumping power plants 1,308 8 .4 2017 77,414 12,867 Onshore wind farms 239 1 .5 2018 76,652 12,440 A Law of 9 May 2019 extends the control exercised by the Offshore wind farms 1,556 10 .0 2019 74,226 12,568 CREG on the Belgian energy market to intermediaries in Biomass 382 2 .4 group purchases (see section 2 .2 .4 of this report) . In addition Total 15 636 100.0 to adding their price to the CREG scan (see paragraph 3 .3 of • Installed capacity and generated energy this report), the CREG is implementing this new power by

137 The demand under consideration here is the Elia grid load, calculated as the balance of net power generation injected into the Elia grid, imports and exports, minus the energy pumped by pumping power plants. It is therefore the sum of net offtake plus network losses.

50 CREG Annual report 2019 3. The electricity market

Table 10: Breakdown by primary energy type of electricity In 2019, based on the development plan 2015-2025 for the elec- 2018 . This peak was recorded on 25 December 2019 at 4 .00 generated in 2019 by plants located on sites connected to tricity transmission system, the CREG continued to monitor the am when Belgium and France were the only exporting areas the Elia grid implementation of the planned investments in the system infra- of the CWE region . Belgium exported 561 MW and France Power generated structure in 2019 . 4,999 MW, primarily to the Netherlands which exported Primary energy GWh % 4,253 MW at that time . Nuclear1 41,418 54 .6 3.4.3. Operational security of the grid The maximum power peak of 3,671 MW on the Dutch border Natural gas1 20,345 26 .8 The graph below illustrates the changes in the maximum physical towards Belgium (import) took place on 3 February 2019, the Coal1 0 0 .0 load for the interconnections with France and the Netherlands . day on which all CWE areas together exported 11,667 MW 1 Fuel 2 0 .0 This physical load is a combination of flows resulting from to Germany/Luxembourg . At the time, Belgium exported Other self-generated power con- 1,679 2 .2 commercial imports to and exports from Belgium and of flows 2,973 MW . sumed locally ³ resulting from transit through the Belgian network . Hydro (including pumping power The maximum power peak of 2,992 MW on the French bor- 995 1 .3 plants) 1 The flows on the Belgian borders have remained below the der towards France (export) took place on 10 December 2019, Other1 11,361 15 .0 maximum internal values, except on the Dutch border towards when France imported 2,555 MW and Austria 4,006 MW from Total2 75,800 100.0 the Netherlands . In 2019, the maximum power peak at this Belgium (1,257 MW), the Netherlands (1,637 MW) and Germa- border (export) was 3,427 MW compared to 2,516 MW in ny/Luxembourg (3,677 MW) . 1 Source: Elia, provisional data 2 Source: Synergrid, provisional data 3 Source: CREG calculations (values not supplied by Elia) Figure 19: Changes between 2007 and 2019 in the maximum physical load for the interconnectors with France and the Netherlands (Source: CREG, based on Elia data)

3.4.2. Verifying the development plan for the 4000 transmission system 3000

On 26 April 2019, the Minister for Energy approved the final ver- 2000 sion of the 2020-2030 federal development plan for the electricity 1000 transmission system (Belgian Official Gazette of 20 May 2019) . 0 MW In this plan, Elia, the transmission system operator for electricity, -1000 identifies the transmission capacity needs of the Belgian high-voltage grid for the period 2020-2030 and describes the -2000 investment programme that will meet those needs . Elia proposes -3000 a total of €5 billion in investments over a period of 10 years . -4000

This plan was drawn up by Elia in conjunction with the Directo- -5000 rate-General for Energy and the Federal Planning Bureau . In July 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2018, the CREG issued an opinion on this subject (see annual charge max. BE ➝ FR 2,055 2,095 2,714 3,030 2,470 2,678 2,963 2,154 2,199 3,218 3,209 2,921 2,992 report 2018, page 52) . charge max. BE ➝ NL 2,553 2,663 2,208 2,724 2,567 2,510 2,825 2,235 1,898 3,341 3,026 2,515 3,427 charge max. FR ➝ BE -3,597 -3,333 -1,917 -2,637 -3,171 -3,301 -3,643 -3,461 -3,795 -3,962 -3,275 -4,196 -3,687 charge max. NL ➝ BE -3,260 -3,477 -2,740 -2,989 -2,711 -2,922 -3,050 -3,312 -4,005 -3,982 -3,799 -3,755 -3,671

CREG Annual report 2019 51 3. The electricity market

The power peak on the French border towards Belgium (im- reception capacity for centralised generation (especially phase solution is being examined by three parties: Elia, TenneT and port) was recorded on 27 December 2019 with a maximum III) is also being taken into account . Amprion . This project is currently being studied . of 3,687 MW, compared to 4,167 MW in 2018 . At that time, France and Austria exported a total of 6,992 MW, including Brabo II, i .e . the renewal and upgrading of the existing 150 The commissioning of this project is planned for 2030 . 2,257 MW to Belgium, 2,143 MW to the Netherlands and kV high-voltage line between Zandvliet and Liefkenshoek 2,592 MW to Germany-Luxembourg . (Beveren) to 380 kV, has been started and should be completed ■ Planned strengthening of the southern border by 2021 . According to the current planning, as from 2023 Elia 3.4.4. Investment in cross-border interconnections should renew and upgrade the existing 150 kV high-voltage Avelin-Horta project line between Liefkenshoek and the Mercator high-voltage The high-voltage grid needs to permanently evolve to meet the substation (Brabo III) to 380 kV . This project aims, firstly, to strengthen the existing 380 kV in- needs of consumers and the market, and to guarantee security terconnection between Avelin/Mastaing (France) and Avelgem of supply . Strengthening interconnections at European level is Zandvliet-Rilland project (Belgium) by replacing the current conductors of the above- one of the major challenges for achieving these objectives . ground alternating current connection between Avelin/Mas- This project aims to strengthen the existing 380 kV Zandvliet- taing and Avelgem with high-performance conductors and to ■ Planned strengthening of the northern border Rilland interconnector by replacing the conductors of the replace the current conductors of the above-ground alternating above-ground alternating current connection between current connection between Avelgem and Horta (Zomergem) Brabo project Zandvliet (Belgium) and Rilland (the Netherlands) with high- with high-performance conductors . performance conductors, installing two additional phase On a national and international level, the Brabo project reinforces shifters and restructuring the Zandvliet substation . The commissioning of this project is planned for 2021 . the north-south axis of Belgium and the interconnected European network . This makes it possible to improve the This strengthening of the interconnection capacity at the Lonny-Achêne-Gramme project operation of the market on an international scale and reduce northern border (in combination with the Brabo project) will dependence on the Belgian generation capacity . The project is reduce the risk that this border becomes a restricting factor for This project involves strengthening the existing 380 kV inter- being implemented in various phases . the increasingly larger and variable trade flows between the connection between Achêne/Gramme (Belgium) and Lonny markets within the CWE area . (France) . It will be implemented in various phases . In October 2016, Elia completed the first phase (Brabo I) by installing additional phase shifters in Zandvliet and upgrading The commissioning of this project is planned for 2022 . The first phase of this upgrade is necessary to allow a bet- the Doel-Zandvliet high-voltage line to 380 kV . ter distribution of the expected flows at the southern border Van Eyck-Maasbracht project by 2025 . The reference solution consists of installing a phase Brabo II and Brabo III include the construction of an additional shifter on the Belgian side . above-ground 380 kV two-circuit connection between the The Van Eyck-Maasbracht project currently being studied in- Zandvliet and Mercator (Kruibeke) stations on the north-south volves strengthening the existing 380 kV Van Eyck-Maasbracht The second phase is an additional upgrade . The reference axis of Antwerp in order to ensure the intended increase in interconnection . The reference solution consists of replacing solution consists of replacing the existing conductors of the interconnection capacity at the northern border following the the existing conductors of the above-ground alternating cur- above-ground 380 kV alternating current connection between completion of the first phase of Brabo . rent connection between Van Eyck (Belgium) and Maasbracht Achêne/Gramme (Belgium) and Lonny (France) with high-per- (the Netherlands) with high-performance conductors, install- formance conductors, installing a second phase shifter and re- The need to safeguard the rise in industrial consumption in ing two additional phase shifters and restructuring the Van structuring the Achêne and Gramme substations . the Antwerp port area (especially phase II) and to create a Eyck substation . Other variants are also being examined . The

52 CREG Annual report 2019 3. The electricity market

This project is currently being studied . The commissioning of A second project, the Nautilus project, is in a study phase 3.4.5. Measures to cover peak demand and deal with this project is planned for 2030 . and consists of analysing whether a second interconnection shortfalls between Belgium and the United Kingdom is possible . The Aubange-Moulaine project standard solution is a 1,000 to 1,400 MW direct current 3.4.5.1. Strategic reserve (HVDC) submarine cable connection . This project aims to strengthen the existing 220 kV connection On 15 January 2019, the Minister for Energy tasked the trans- between Aubange (Belgium) and Moulaine (France) by In view of the preliminary results of the study and the fact that mission system operator (Elia) with setting up a strategic re- installing two phase shifters at the Aubange substation . developing infrastructure on this scale would take around ten serve for a volume of 0 MW for a period of one year from years, commissioning is currently scheduled for 2028 at the 1 November 2019138 . On 30 August 2019, before the legal The upgrade at the southern border complements the upgrade earliest . deadline for the review of the volume, the Minister announced at Avelin-Avelgem, and reduces the risk that this interconnec- that no strategic reserve needed to be created for the winter tion becomes a restricting factor for the exchange of flows be- ■ Planned interconnection between Belgium and Germany 2019-2020 . tween markets . The ALEGrO project involves the construction of a 1,000 MW As required by law, Elia submitted the operating rules for the The commissioning of this project is planned for 2021 . direct current (HVDC) underground cable about 90 km long . strategic reserve for the winter period 2019-2020 to the CREG This interconnection connects the substations at Lixhe (Bel- for approval . The CREG organised a public consultation on ■ Planned interconnections between Belgium and the United gium) and Oberzier (Germany) and will be the first direct con- the proposal for operating rules and on its draft decision . It Kingdom nection between Belgium and Germany with a capacity of approved Elia's proposal subject to a number of changes . The around 1,000 MW . This project is in the implementation phase . approved operating rules entered into force on 1 November The NEMO project involves the construction of a 1,000 MW 2019 139. direct current submarine cable about 140 km long . This project The commissioning of this project is planned for 2020 . will connect Richborough in the UK to the 'Gezelle' substation, The tariff of the public service obligation 'strategic reserve' which is part of the Stevin project in Bruges . The BE-DE II project is the second interconnection between amounted to €0 net per MWh taken off in 2019 . Belgium and Germany after ALEGrO . Construction started in mid-2016 . The technical delivery of the In its decision of 7 November 2019140, the CREG approved new connection started in mid-December 2018 and the inter- Like the first project, this future interconnection between the Elia's amended proposal to adapt this tariff . The same tariff (€0/ connection started its commercial operation on 31 January two countries will be the result of a partnership between Elia MWh) will apply from 1 January 2020 . 2019 . and Amprion . Elia and Amprion are currently conducting a bilateral feasibility study . Additional studies will be carried out on 3.4.5.2. Access to demand management Thanks to Nemo Link, customers will be able to buy capacity the calendar, location, route and capacity . up to 1000 MW in both directions, GB-BE or BE-GB, via explicit On 3 October 2019, the CREG received a proposal from Elia and/or implicit auctions . for approval regarding the rules for the organisation of energy transmission . The main objective of this proposal is to improve the valorisation of the flexibility of end customers who signed a pass-through contract .

138 Ministerial Decree of 15 January 2019 instructing the system operator to provide an additional strategic reserve from 1 November 2019 (Belgian Official Gazette, 21 January 2019). 139 Decision (B)1885 of 14 February 2019 on the proposal of Elia System Operator NV on the operating rules for the strategic reserve applicable from 1 November 2019. 140 Decision 658E/62 of 7 November 2019 on the request for approval of the tariff proposal submitted by Elia System Operator NV for the regulatory period 2020-2023.

CREG Annual report 2019 53 3. The electricity market

The consultation of the competent regional authorities and the In addition, the transmission system operator, Elia, organised 3.4.5.4. Valorisation of the generation reserves necessary consultation of Elia on a draft decision of the CREG, as well as a public consultation on the data relating to the study on the for the security of the system the decision of the CREG on the approval of this proposal, will adequacy and flexibility needs of the Belgian electricity system be taken in 2020 . for the period 2020-2030 . In its note, the CREG formulates a Note (Z)1986 on the implementation of a scarcity pricing number of comments on Elia's proposal 145. mechanism in Belgium147 is a follow-up to the first two studies 3.4.5.3. Security of electricity supply for winter 2019-2020 commissioned by the CREG in 2016 and 2017 on the same Finally, on 28 June 2019, Elia published its study into security subject . These first two studies demonstrated the feasibility As part of the drafting of secondary legislation on the capacity of supply and flexibility 2020-2030 . In its study 1957, the CREG of a scarcity pricing mechanism for Belgium, as provided for payment mechanism (now called capacity remuneration formulated several proposals for improvement . According to in the Clean Energy Package . In particular, the studies showed mechanism CRM), the CREG finalised its proposal for a Royal the CREG, some of the assumptions made in the Elia study that the units providing reserves were profitable in periods of Decree relating to the setting of investment thresholds and may lead to an overestimation of the capacity needs evaluated scarcity, and that the scarcity price signal was almost zero if criteria 141. It also issued its opinions on the draft Royal Decree by Elia . capacity was abundant . laying down the conditions under which holders of direct and indirect foreign capacity can participate in the pre-qualification In view of the impact of the cost price of a CRM on consumer This note is part of the most recent study carried out by the procedure142, submitted by the Directorate General for Energy bills, the CREG believes that it is important to determine ca- consultant (CORE of the Université Catholique de Louvain) on of the FPS Economy, and on the draft Royal Decree laying pacity needs as optimally and accurately as possible, taking the design of a mechanism for valorising scarcity in Belgium . down the methodology for calculating capacity and certain into account security of supply and avoiding overestimating This study proposes 3 "adders": one for balancing energy and parameters for the auctions143, submitted by Elia (see also the necessary volume . two for the valorisation of reserves at the time of balancing . In section 2 .2 .1 . of this report) . October 2019, Elia began publishing on its website the three As such, the CREG proposes requesting an additional analysis "adders" on D+1 of the mechanism proposed in this note . In addition, the CREG sent a note to the Minister explaining from Elia, in which it would include the proposals listed in its the principles and method used to determine the parameters study . relating to the volume to be purchased in a capacity payment mechanism . The CREG drafted this note following a public Moreover, in order to respond as effectively as possible to the consultation on a draft note drawn up at the end of 2019 in challenges of security of supply, the CREG considers it desira- anticipation of the competence to make proposals granted to ble to keep the option of a strategic reserve open in addition to it under the Electricity Regulation (EU) 2019/943 144. the option of a CRM at market level 146.

141 Proposal for Royal Decree (C)1907 of 12 December 2019 laying down the investment thresholds and the criteria for the eligibility of investment costs with a view to classifying capacities in capacity categories. 142 Opinion (A)2038 of 12 December 2019 on the draft Royal Decree laying down the conditions under which holders of direct and indirect foreign capacity can participate in the capacity payment mechanism. 143 Opinion (A)2030 of 6 December 2019 on the draft Royal Decree laying down the calculation methodology for capacity and the parameters for the auctions under the capacity payment mechanism. 144 Note (Z)2024 of 20 December 2019 on the parameters for determining the amount of capacity purchased under the capacity mechanism. 145 Note (Z)1901 of 7 February 2019 in response to the public consultation organised by Elia on the dates for the study on adequacy and flexibility needs of the Belgian system. 146 Study (F)1957 of 11 July 2019 on the analysis of the Elia study "Adequacy and flexibility study for Belgium 2020 - 2030". 147 Note (Z)1986 of 12 September 2019 on the implementation of a scarcity pricing mechanism in Belgium.

54 CREG Annual report 2019 4. The natural gas market

The natural gas 4 market

CREG Annual report 2019 55 4. The natural gas market

4.1. Regulation

4.1.1. Natural gas supply

4.1.1.1. Federal natural gas supply licences Table 11: Companies active in 2019 on the Belgian market for transmitting natural gas - Change compared with 2018 (Source: CREG)

The supply of natural gas to customers (distribution companies VOLUME TRANSPORTED IN BELGIUM (IN TWH)* 2018 2019 Δ2019/2018

or end customers whose gas offtake at each supply point per- TWh % TWh % (%)** (%-point)*** MARKET SHARE IN BELGIUM (IN %) manently amounts to a minimum of one million m³ per year) ANTARGAZ FINAGAZ 1.44 0.77 3.84 1.99 267 1.22 established in Belgium is subject to the prior granting of an indi- ARCELORMITTAL ENERGY SCA 4.87 2.60 3.26 1.69 -33 -0.91 vidual licence issued by the Minister for Energy (except when it AXPO SOLUTIONS AG 0.12 0.06 1.38 0.72 1 154 0.66 is carried out by a distribution company on its own distribution BELGIAN ECO ENERGY NV 0.11 0.06 1.29 0.67 1 168 0.61 system) . DIRECT ENERGIE 2.84 1.52 6.23 3.23 219 1.71 EDF LUMINUS 20.16 10.78 24.80 12.86 23 2.08 ENECO ENERGY TRADE BV 9.63 5.15 10.27 5.33 7 0.18 The application dossiers for federal natural gas supply licences ENERGY GLOBAL HANDEL BV 0.34 0.18 5.22 2.71 1 536 2.53 are sent to the CREG, which examines the criteria and then ENGIE 61.18 32.70 50.43 26.16 -18 -6.54 sends its opinion to the Minister for Energy . ENI S .P .A . 21.09 11.27 17.05 8.84 -19 -2.43 ENOVOS LUXEMBOURG NV 1.74 0.93 1.59 0.82 -9 -0.11 EQUINOR ASA 5.77 3.08 5.09 2.64 -12 -0.44 In 2019, the CREG issued fourteen opinions with regard to ap- ESSENT SALES PORTFOLIO MANAGEMENT BV 4.09 2.18 3.57 1.85 -13 -0.33 plications for supply licences for natural gas from Total Gas & EUROPEAN ENERGY POOLING 3.35 1.79 4.11 2.13 23 0.34 Power Belgium nv, Ineos Services Belgium nv, Lampiris nv, Ge- GAS NATURAL EUROPE SAS 6.64 3.55 6.73 3.49 -2 -0.06 tec Énergie GmbH, Eni SpA, OMV Gas Marketing & Trading Bel- GETEC ENERGIE GMBH 0.25 0.14 1.22 0.63 487 0.49 gium bvba, Equinor ASA, B .T .G . - Belgische Technische Gassen LAMPIRIS SA 0.001 0.00 0.65 0.34 65 460 0.34 NATGAS AKTIENGESELLSCHAFT 1.29 0.69 2.39 1.24 85 0.55 bvba, Scholt Energy Control nv, Vattenfall Energy Trading Neth- NOVATEK GAS & POWER GMBH 1.02 0.53 erlands nv, Uniper Global Commodities SE, Electrabel nv, AXPO PROGRESS ENERGY SERVICES 0.98 0.52 1.89 0.98 93 0.46 148 Benelux nv and Wintershall Dea GmbH . RWE SUPPLY & TRADING GMBH 6.38 3.41 7.29 3.78 14 0.37 SOC . EUROP . DE GESTION DE L’ENERGIE S .A . 1.76 0.94 3.71 1.92 2 11 0.98 In 2019, the Minister for Energy granted an individual licence for TOTAL GAS & POWER LTD 14.56 7.78 15.23 7.90 5 0.12 UNIPER GLOBAL COMMODITIES SE 0.50 0.27 1.26 0.66 253 0.39 the supply of electricity to fifteen companies, namely European VATTENFALL ENERGY TRADING NETHERLANDS NV 6.45 3.44 5.57 2.89 -14 -0.55 Energy Pooling bvba, Total Gas & Power Belgium nv, Ineos Ser- WINGAS GMBH 11.57 6.18 7.69 3.99 -34 -2.19 vices Belgium nv, Eni SpA, OMV Gas Marketing & Trading Bel- FINAL TOTAL 187 100 193 100 3 gium bvba, B .T .G . - Belgische Technische Gassen bvba, Equinor * These figures only concern supplies to customers connected to the natural gas transmission system and to the offtake points on the distribution systems . ASA, Scholt Energy Control nv, Axpo Benelux nv, Vattenfall Ener- For separate statistics on supplies to customers connected to the natural gas transmission and distribution systems, please consult the joint publication of gy Trading Netherlands nv, Uniper Global Commodities SE, Elec- the four energy regulators on the CREG website (www .creg .be) . ** Relative change in 2019 compared with 2018 (2018 is the baseline) . trabel nv, Lampiris nv, GETEC Energie GmbH and Wintershall *** Absolute change in market share . Dea GmbH 149.

148 Opinions (A)1892, (A)1893, (A)1920, (A)1925, (A)1935, (A)1936, (A)1940, (A)1942, (A)1943, (A)1960, (A)1961, (A)1965, (A)1966, and (A)2027. 149 Ministerial decisions of 15 February, 22 February, 1 March, 18 June, 27 June, 4 July, 9 July, 21 August, 21 October, 5 November and 16 December 2019.

56 CREG Annual report 2019 4. The natural gas market

In 2019, total natural gas consumption150 amounted to 193 market share decrease from 3 .4% to 2 9%. (-0 6%). . Energy According to the calculations, the social price cap for the sup- TWh, representing an increase of 3% compared with con- Global Handel BV has a market share of 2 7%. . Equinor ASA's ply of natural gas was to be 3 .380 euro cent/kWh (€0 .03380/ sumption in 2018 (187 TWh) . The CREG notes a slight in- market share falls (-0 .4%) to 2 .6% and Europe Energy Pool- kWh) for the period from 1 February 2019 to 31 July 2019 and crease in consumption by end consumers connected to the ing has a market share of 2 1%. . 2 .368 euro cent/kWh (€0 .02368/kWh) for the period from 1 distribution systems (+ 0 .4%) and a strong increase in con- August 2019 to 31 January . sumption by industrial customers (+ 7 .2%) and consumption The other active network users each have a market share less for electricity generation (possibly in combination with heat than 2% . However, in accordance with the Ministerial Decree of 28 production) (+ 4 .1%) . March 2019 limiting the social natural gas tariffs to the level On 31 December 2019, 33 grid users were in possession of of those applicable in the second half of 2018 until 31 July In 2019, just one new additional company began to supply a federal supply permit for natural gas . During the course of 2019, the social price cap for the supply of natural gas for the the wholesale market in natural gas . If we take into account 2019, 26 of them carried out supply activities on the natu- period from 1 February 2019 to 31 July 2019 was 2 .636 euro the merging of transmission operations within a business of ral gas transmission system for Belgian end consumers . By cent/kWh (€0 .02636/kWh) . the same group, 26 companies were active on the Belgian way of comparison, at the end of 2007, just six system users transmission market for natural gas in 2019 . were operating on the Fluxys Belgium transmission system This price is without VAT, federal contribution, and connection for supplies to Belgian end customers . costs (Wallonia) . However, the transmission and distribution The top 3 companies active on the transmission system have system tariffs are included . a combined market share of 48%, i .e . 7% less than in 2018 . 4.1.1.2. Price caps Engie is still in first place but loses a market share of 26 2%. In addition, two additional measures were taken for protected (compared to 32 .7% in 2018) . Eni S .p .A . holds on to second • For unprotected customers whose supply contract has natural gas customers . place but has once again seen its market share fall by 2 .5% been terminated to 8 .8% . EDF Luminus' share, on the other hand, rises by Since March 2019, the price caps have been granted to 2 1%. to 12 .9% . Readers are referred to section 3 .1 .2 2. of this report, which protected residential customers as from the entry into also applies to natural gas . force of the decision that makes them protected residential Total Gas & Power Ltd, whose market share increases by customers . However, this period is limited to the two years 0 1%. (to 7 .9%) is fourth in the table while Eneco Energy Trade • For protected household customers on low incomes or preceding the date on which the supplier was informed of the BV has a market share of 4% . in vulnerable situations entry into force of the decision151 .

Only these six market players have a market share of more Under current legislation, the CREG calculated and published Another specific measure for natural gas concerns the exten- than 5% . the social tariffs applicable from 1 February 2019 to 31 July sion of the social tariff for supplies to social buildings equipped 2019 (Belgian Official Gazette, 31 January 2019) and from with collective boilers . Previously, the building in question Wingas GmbH loses 2 .2% market share, taking 4% . RWE 1 August 2019 to 31 January 2020 (Belgian Official Gazette, strictly had to be managed by a social housing company . From Supply & Trading GmbH rises by 3 .8% . Gas Natural Europe 31 July 2019) for the supply of natural gas to protected 1 January 2020, this possibility will be extended to social rental is stable at 3 5%. . Direct Energy shows a strong increase household customers on low incomes or in vulnerable offices, housing funds and public social welfare centres, where to 3 .2% . Vattenfall Energy Trading Netherlands NV sees its situations . housing is rented as part of a social policy 152. .

150 The assessment is based on figures related to shipping activities on the transmission system as communicated by the transmission system operator. 151 Law of 24 February 2019 amending the Programme Law of 27 April 2007 on the granting of the social tariff for gas and electricity and amending the Royal Decree of 29 March 2012 laying down the rules for determining the costs of the application of the social tariffs by electricity companies and the intervention rules for taking charge of them (Belgian Official Gazette of 15 March 2019). 152 Law of 2 May 2019 amending the Law of 12 April 1965 on the transport of gaseous and other products by pipeline, the Law of 29 April 1999 on the organisation of the electricity market and the Programme Law of 27 April 2007 (Belgian Official Gazette of 23 May 2019).

CREG Annual report 2019 57 4. The natural gas market

The CREG also evaluated the amount necessary to finance that the changes made in 2019 to the shareholdings in the sub- The CREG also examined the report of the compliance officer the protected customers’ natural gas fund, which is the basis sidiaries of the parent company Fluxys comply with the provi- on compliance with the programme of commitments by Fluxys of calculation of the protected customer component of the sions of the Gas Act of 12 April 1965 . Belgium and Fluxys LNG employees in 2019 . The purpose of federal contribution (see point 5 .7 .2 . of this report) . this programme of commitments is to prevent any discrimina- In 2019, there were no changes either in the shareholdings or tion between system users and/or categories of system users . To this end, and as part of protected customer reimburse- in the shareholder structure of Fluxys Belgium . ments, the CREG publishes the 'reference energy' compo- B . Balansys nents for natural gas twice a year for suppliers and distribution 4.1.2.2. Corporate governance system operators . On 16 October 2019, ACER approved the compliance pro- A . Fluxys Belgium and Fluxys LNG gramme of Balansys NV by decision 12/2019 . With this deci- 4.1.1.3. Trends in and fundamentals of the natural gas sion, ACER has made it clear that Balansys NV and the TSOs price Through its unanimous opinions of 13 June 2019153, the remain jointly and simultaneously liable and responsible for the CREG found that the persons appointed by Fluxys Belgium proper performance of the tasks delegated to Balansys with The following are some of the trends observed for natural gas and Fluxys LNG met the criteria of independent director with regard to both grid users and the regulatory authorities, in this in 2019: regard to their mandate on the board of directors of these case ILR and the CREG . two companies . In addition, the analysis of the documents - At the start of 2019, the distribution and transmission tariffs and information received showed that these appointments On 7 November 2019, the CREG decided to approve Balansys were adapted . are compatible with Fluxys Belgium's and Fluxys LNG's NV's request for the appointment of Ms Valérie Vandegaart as - In Belgium and the neighbouring countries, no new sur- compliance with the ownership unbundling rules . compliance officer of Balansys and the conditions of the man- charge was introduced in 2019; existing surcharges, howev- date or terms of employment, including the duration of the er, were adjusted, as is the case every year . From 1 January 2020, Christian Leclercq joins the manage- compliance officer's mandate 154. ment committee of Fluxys Belgium as Chief Financial Officer Readers are also referred to section 3 .1 .2 .3 of this report . (CFO) . At Fluxys Belgium and parent company Fluxys, he suc- ceeds Paul Tummers, who left the company on 1 July 2019 . 4.1.2. Transmission and distribution In the context of the monitoring of the application of Article 8/3 4.1.2.1. Unbundling and certification of the transmission of the Gas Act and the assessment of its effectiveness with system operator regards to the requirements of independence and impartiality of operators, the CREG examined the activity reports of the In accordance with its powers of monitoring compliance with corporate governance committees of Fluxys Belgium and unbundling requirements by the TSO, the CREG concluded Fluxys LNG for the year 2019 .

153 Opinion (A)1944 on the independence of Ms Laurence Bovy as independent director of Fluxys Belgium NV, Opinion (A)1945 on the independence of Ms Sandra Gobert as independent director of Fluxys Belgium NV, Opinion (A)1946 on the independence of Ms Sandra Wauters as independent director of Fluxys Belgium NV, Opinion (A)1947 on the independence of Ms Valentine Delwart as independent director of Fluxys Belgium NV, Opinion (A)1948 on the independence of Mr Christoph von dem Bussche as independent director of Fluxys LNG, Opinion (A)1949 on the independence of Mr Stephan Kamphues as independent director of Fluxys LNG NV. 154 Decision (B)1988 of 7 November 2019 on the application for the appointment of Ms Valérie Vandegaart as a compliance officer of Balansys NV and adoption of the conditions of the mandate or the conditions of employment, including the duration of the mandate of the compliance officer.

58 CREG Annual report 2019 4. The natural gas market

C . Interconnector (UK) In particular, this monitoring system makes it possible to deter- E . Code of Conduct mine quality criteria in terms of: On 21 May 2019, Interconnector (UK) approved a new share- • Fluxys Belgium holders' agreement aimed at simplifying the management of - frequency of service interruptions and/or reductions; Interconnector (UK) as Interconnector (UK) is now an integral - average duration of service interruptions and/or reductions; In 2018, Fluxys Belgium organised market consultations on part of the Fluxys group (76% of the shares are held by Fluxys - causes and remedies for these service interruptions and/or amendments to the standard natural gas transmission contract and 24% by SNAM) . reductions; and Annexes 1 and 4 . - the portfolio of natural gas transmission services offered . 4.1.2.3. Technical operation The main adjustment concerns the role and obligations of There were no service interruptions or reductions in 2019 . the end customer and Fluxys Belgium in the event that the A . Natural gas transmission licences standard transmission contract concluded between the D . Time taken by the transmission system operator to carry out shipper of the end customer and Fluxys Belgium is suspended . The construction and operation of installations for natural gas connections and repairs In such cases, Fluxys Belgium will ask the end customer to transmission is subject to the prior granting of a permit issued contact a new shipper . In the meantime, Fluxys Belgium itself by the Federal Minister for Energy, on the advice of various In accordance with the Gas Act, the CREG is responsible for will take on the role of shipper and bill the end customer . The authorities, including the CREG . monitoring the time taken by the natural gas transmission sys- end customer pays Fluxys Belgium the fee for the capacity tem operator to carry out connections and repairs . at the offtake point as set out in the regulated tariffs, and In 2019, the CREG issued six favourable opinions in this the related federal contributions and charges . He or she also respect 155. In 2019, five new connections were created for end customers pays the fee for the natural gas purchased, valued at the price and two for public distribution . The construction of these seven published on the Fluxys Belgium website . Furthermore, during B . The balancing model new connections took 0 months (no work by Fluxys Belgium this maximum period of 10 days, the offtake points of the because the connection took place after the connection point) defaulting shipper will be removed from the market-driven The trends relating to the market-based balancing model, in ef- and 95 months respectively for end customers and between 26 balancing system . Fluxys Belgium will temporarily take over fect from 1 October 2012 and summarised in the 2013 Annual and 223 months for public distribution . the balancing obligations . Report (pages 55-56), were still applicable in 2019 . In 2019, there were 10 repairs as a result of accidents or On 31 January 2019, the CREG approved the proposed amend- C . Regulations governing system security and reliability, and incidents and 16 repairs during maintenance periods . Nine ments, taking into account the remark in margin note 38 of its standards and requirements for quality of service and supply out of ten unplanned repairs were carried out in one day, after decision 156. consultation with - and without impact on - shippers or end To comply with Article 133 of the Code of Conduct, the natural customers . The sixteen repairs under scheduled maintenance In 2019, after consulting the market players, the CREG ap- gas transmission system operator applies a monitoring system periods were carried out to avoid any impact on service delivery . proved Fluxys Belgium's application to amend the regulatory that tracks the quality and reliability of its transmission system All scheduled operations were for a limited time (usually one day documents for natural gas transmission (transmission con- operations and the natural gas transmission services provided . or a few days) and were carried out in conjunction with the end tract, transmission programme and access regulations) 157. consumer and/or shippers concerned . The changes include the simplification of the service reserva- tion process, the addition of a transmission service allowing biomethane to be injected into the transmission system, the

155 Opinions (A)1888, (A)1897, (A)1898, (A)1899, (A)1902 and (A)1939. 156 Decision (B)1895 of 31 January 2019 on the request of Fluxys Belgium NV for approval of the amended Standard Connection Contract and Annexes 1 and 4. 157 Decision (B)1921 of 11 April 2019 on the approval request by Fluxys Belgium NV of the amended Standard Contract for Natural Gas Transmission, Access Rules for Natural Gas Transmission and the Natural Gas Transmission Programme.

CREG Annual report 2019 59 4. The natural gas market

introduction of an over-nomination process, the simplification the way for Fluxys LNG to conclude new long-term contracts F . Measures to safeguard security of supply of natural gas of substitution services, the reintroduction of the virtual inter- for the terminal up to 2044 160. connection point at the Belgian-Dutch border and the addition The Gas Coordination Group of the European Commission of a new clause in the transmission contract aimed at limiting • Interconnector (UK) coordinates the application of Regulation (EU) No 2017/1938 the financial exposure of Fluxys Belgium as manager of the of the European Parliament and of the Council of 25 October grid balancing . Interconnector (UK) made a proposal to the CREG to increase 2017 concerning measures to safeguard security of gas sup- the offering of permanent capacity via the implicit auction ply and repealing Regulation (EU) No 994/2010, published on The approved amendments came into force immediately after method . 28 October 2017 . The CREG represents Belgium in this group, Fluxys Belgium demonstrated to CREG that it had taken into alongside the designated competent authority, namely the Di- account the comments and requested adjustments . The CREG approved this proposal, which came about after rectorate-General for Energy . a market consultation by IUK . The market players welcomed On 4 July 2019, after consulting the market players, the CREG IUK's efforts to develop and expand its range of flexible This revised Regulation closely follows the previous Regula- approved Fluxys Belgium's application to amend the regulato- services . They see added value in extending the provision of tion (EU) no . 994/2010 but provides for much more explicit, ry documents for natural gas transmission (transmission con- transport services via implicit allocation (besides the explicit regional cooperation to manage emergencies . In addition, a tract, transmission programme and access regulations) 158. offering via Prisma) . legal framework is provided to develop a solidarity mechanism between the European member states as regards continuous The proposed amendments concern the simplification of the In its decision, the CREG explicitly asks IUK to maximise the supply for protected customers . L/H capacity conversion service, the simplification of the in- offering of permanent capacity . In addition, IUK must investi- voicing process and a number of technical changes . gate how interruptible capacity can be converted to conditional In 2019, the CREG worked together with the Directorate- capacity . The CREG expected this information before 1 June General for Energy to develop the requested plans and The approved amendments came into force immediately after 2019 161. IUK complied with this request . mechanisms for Belgium . Risk analyses at regional and national Fluxys Belgium demonstrated to the CREG that it had taken level were drawn up for scenarios in which gas supply and into account the comments and requested adjustments . Interconnector (UK) also submitted an amended standard infrastructure are disrupted . This relates to scenarios both for natural gas transmission contract (IAA and IAC) to the CREG for the supply of L-gas and H-gas . These analyses are important for By decision of 3 October 2019, the CREG approved the amend- approval . The proposal came about after a public consultation drawing up the Preventive Action Plan and the Emergency Plan ments proposed by Fluxys Belgium to Annex 6 and the new of the market . The market players in the public consultation to which the CREG contributed in 2019 and which must be Annex 11 to the standard connection contract 159. submitted their comments and questions on the documents submitted to the European Commission . The development of submitted by IUK for consultation . a solidarity mechanism between Member States in the event • Fluxys LNG of a crisis, as required by Article 13 of the new Regulation, was With its decision of 12 September 2019, the CREG approved one of the main topics of discussion in the various European By decision of 28 June 2019, the CREG approved the tariff the proposal to amend IUK's standard natural gas transmission workshops . However, these discussions in 2019 have not yet proposal and the LNG Service Agreement proposal for the contract . The consultation report is appended to the decision resulted in concrete cross-border agreements to implement booking of slots to unload LNG ships and for additional storage of the CREG 162. the solidarity mechanism as soon as the need arises . services at the LNG terminal in Zeebrugge . This approval paves

158 Decision (B)1955 of 27 June 2019 on the approval request by Fluxys Belgium NV of the amended Standard Contract for Natural Gas Transmission, Access Rules for Natural Gas Transmission and the Natural Gas Transmission Programme. 159 Decision (B)1979 of 3 October 2019 on the request of Fluxys Belgium NV for approval of the amended Standard Connection Contract and Annexes 6 and 11. 160 Decision (B)1953 of 28 June 2019 on the application for approval of the Standard LNG Contract - LNG Service Agreement (LSA) of Fluxys LNG NV. 161 Decision (B)1908 of 28 February 2019 on the proposal of Interconnector (UK) Limited to amend the Access Agreement with IUK, the Access Rules of IUK and the Access Programme. 162 Decision (B)1982 of 12 September 2019 on the proposal of Interconnector (UK) Limited to amend the Access Agreement with IUK, the Access Rules of IUK and the Access Programme.

60 CREG Annual report 2019 4. The natural gas market

The CREG also assists the Directorate-General for Energy in the mechanism is closely monitored and the CREG believes it to ■ Interconnector (UK) application of the European Regulation concerning measures to be an effective and important mechanism that also contributes safeguard security of supply in Belgium . In this context, the CREG to ensuring the continuity of natural gas supplies for all In December 2018, Interconnector (UK) submitted its revised primarily focuses on the optimisation of market functioning and end users . The Belgian balancing zone for H-gas has been remuneration methodology to the CREG and to the British possible market instruments that aim to safeguard security of expanded since 1 October 2015 through the merger with the regulator Ofgem for approval . The proposal followed a public supply . Residual risks require appropriate intervention on the part Luxembourg natural gas market . Ever since this date, the consultation, after which the European Energy Regulator ACER of the authorities, which can be integrated within the operation same balancing rules apply to both markets that have merged made its comments . of the market without disruptive consequences . In 2019, the into a single balancing area with just one trading platform (the CREG advocated linking the operationalisation of the solidarity existing Zeebrugge Trading Platform ZTP) and a single entry/ The CREG decided to approve IUK's remuneration methodology, mechanism to the existing market organisation without creating exit area . Market-based balancing in the single Belux zone is as Ofgem had already done . The CREG did, however, ask IUK new entities or responsibilities . organised by Fluxys Belgium pending the allocation of this to respond to two formal comments from ACER . It agreed that responsibility, presumably in 2020, to the separate company IUK could do this at a subsequent review of the remuneration The CREG assisted the Directorate-General for Energy in draw- (Balansys) created by Fluxys Belgium and the Luxembourg methodology . ing up the annual report on the security of supply of natural transmission system operator, CREOS (see point 4 .1 .3 .3 of gas163 . This report is partly realised in cooperation with the Fed- this report) . The CREG's decision is a reasoned decision, in accordance eral Planning Bureau . The report was transmitted to the Euro- with the provisions of the European network code on harmo- pean Commission . This report is partly realised in cooperation 4.1.2.4. System tariffs and LNG tariffs nised transmission tariff structures, which has been notified to with the Federal Planning Bureau . The report was transmitted the European Commission and ACER 165. to the European Commission . A . Transmission system, storage and LNG Moreover, following public consultation, in July 2019 The CEER has a network of experts who act on behalf of the a) Tariff methodology Interconnector (UK) submitted its revised remuneration European energy regulators to provide assistance to the Eu- methodology to the CREG and to the British regulator Ofgem ropean Commission regarding security of supply, and to give ■ Transmission, storage and LNG for approval . IUK hereby complied with two formal comments opinions and advice . The CREG chairs this network in coopera- made by ACER . The CREG decided to approve the remuneration tion with the Austrian energy regulator (E-Control) . As indicated in the 2018 annual report, in June 2018 the CREG methodology 166. approved the final decision laying down the methodology for As part of its remit to monitor and check the application of determining transmission, storage and LNG tariffs for the pe- As a reminder, at the end of 2017, the CREG adopted a decree the Code of Conduct (see also point 4 .1 .2 .3 .E of this report), riod 2020 - 2023 . establishing the tariff methodology for the connection and the CREG monitored balancing on the transmission system use of an interconnection and approved the compensation for H-gas and L-gas . In 2019, the CREG did not identify any On 25 April 2019, the CREG adopted a decision on the final ar- methodology relating to the Access Agreement with problems that posed a threat to preserving the balance of rangements for determining the incentives for Fluxys Belgium Interconnector (UK) and the Access Code of Interconnector the system . The current system balancing model puts a NV for the period 2020-2023 . With this decision, it approved (UK) (see annual report 2017, page 57) . heavy responsibility on system users, and the natural gas in particular the method of calculating the indicators used and transmission system operator now has only to provide the way in which objectives are set . This decision was taken residual balancing, if necessary . The market-based balancing following a public consultation on its draft decision 164.

163 https://economie.fgov.be/nl/publicaties/bevoorradingszekerheid-van 164 Decision (B)656G/39 of 25 April 2019 on the final arrangements for determining the incentives for Fluxys Belgium NV for the period 2020-2023. 165 Decision (B)1442/5 of 28 March 2019 relating to the tariff methodology relating to the access contract concluded with Interconnector (UK) and the Interconnector (UK) access rules. 166 Decision (B)1442/6 of 12 September 2019 relating to the tariff methodology relating to the access contract concluded with Interconnector (UK) and the Interconnector (UK) access rules.

CREG Annual report 2019 61 4. The natural gas market

b) Tariff trends period 2020-2023 . The new tariffs have fallen compared to the ■ Balancing tariffs 2020 previous regulatory period, for the fifth time in a row . For an ■ Transmission tariffs 2019 average Belgian customer, the tariffs for 2020-2023 will be ap- Following a market survey from 19 August to 6 September proximately 5% lower than the indexed tariffs for 2019 167. 2019, Fluxys Belgium and Balansys submitted a proposal to the In May 2017, the CREG approved the natural gas transmission CREG to approve the balancing tariffs . The CREG accepted this tariffs for 2018 and the indexation formula used to calculate the ■ Storage tariffs 2020-2023 proposal . As such, the daily and intraday unbalancing charges 2019 tariffs . The tariffs for 2018 were 7 .5% lower than in 2017 are maintained at the level of 2018, and a neutrality charge is (including indexation) . These tariffs for 2018 were multiplied at On 20 December 2019, the CREG also approved the tariffs for brought back to €-0 .004/MWh . These tariffs apply from 1 Janu- the end of December 2018 by the consumer price index in the period 2020-2023 for natural gas storage services in Loen- ary 2020 to 31 December 2020 169. order to obtain the 2019 tariffs . hout . The tariffs for 2020 show a drop of 17 .9% compared to the indexed tariffs of 2019 . They will then be indexed for the ■ LNG terminal tariffs ■ Transmission tariffs 2020-2023 years 2021-2023 168. On 27 June 2019, the CREG approved the tariff proposal and On 7 May 2019, the CREG approved Fluxys Belgium's tariff the LNG Service Agreement proposal for the booking of slots proposal for natural gas transmission tariffs for the regulatory to unload LNG ships and for additional storage services at the LNG terminal in Zeebrugge . This approval paves the way for Figure 20: Fluxys Belgium's tariff trends for natural gas transmission (entry/exit tariffs for H-gas) between 2014 and 2019 (Source: CREG) Fluxys LNG to conclude new long-term contracts up to 2044 .170

The new tariffs for the period 2020-2044 show a decrease of around 30% for 2020 . In the coming years these tariffs will be 2.00 partially indexed .

1.95 c) Balances

1.90 In its decisions of 11 July 2019, the CREG approved the adjusted tariff reports, including the balances submitted by 1.85 Fluxys Belgium NV and Fluxys LNG NV for operating year

€/kWh/h/year 2018171 . In this regard, the CREG verified the total income and 1.80 operating balances of the two companies . These balances are the result of the differences between the tariff estimates and 1.75 the figures and quantities actually established 171.

1.70 2014 2015 2016 2017 2018 2019

167 Decision (B)656G/40 of 7 May 2019 on Fluxys Belgium NV's adjusted tariff proposal on transmission tariffs for the years 2020-2023, as well as on the discounts, multipliers and seasonal factors applicable to Fluxys Belgium NV's natural gas transmission tariffs for the period 2020-2023. 168 Decision (B)656G/43 of 20 December 2019 on Fluxys Belgium NV's adjusted tariffs proposal on tariffs for storage services for the years 2020-2023. 169 Decision (B)656G/42 of 25 October 2019 on the neutrality charge for balancing and the value of small adjustments. 170 Decision (B)657G/17 of 27 June 2019 on the updated tariff proposal of FLUXYS LNG NV for the use of the Zeebrugge LNG methane gas terminal. 171 Decision (B)656G/41 of 11 July 2019 on the adjusted tariff report including the balances submitted by Fluxys Belgium NV with respect to financial year 2018 and Decision (B)657G/16 of 11 July 2019 on the tariff report including the balances submitted by Fluxys LNG NV for operating year 2018.

62 CREG Annual report 2019 4. The natural gas market

B . Distribution systems Since 2013, the list of European PCI projects has been updat- 4.1.3.3. Market integration ed every two years and checked by the respective European Readers are referred to point 3 .1 .3 .5 .B of this report . regional working groups . The CREG follows these activities Belgium and the surrounding countries represent 59% of the within the working group for the region GasWest . In 2019, the European natural gas market . Belgium is located at the centre 4.1.3. Cross-border issues and market integration project proposals of the promoters were evaluated in the Eu- of important natural gas corridors in North-West Europe and ropean regional working groups with a view to establishing a is characterised by intensive cross-border trade in natural gas . 4.1.3.1. Access to cross-border infrastructure new list of PCIs . Subsequently, on 31 October 2019, the Euro- The Dutch TTF is the main border market for trade in natural gas pean Commission published the 4th PCI list172, with 32 natural (H-gas and L-gas) for the Belgian market . In 2019, net natural Under the new European TEN-E Regulation No 347/2013, which gas projects . One of these PCI natural gas projects is a project gas transactions from TTF to ZTP decreased significantly to was published on 25 April 2013, project promoters may, during submitted by Fluxys Belgium for the conversion of natural gas 69 .5 TWh (111 .5 TWh in 2018) . The British NBP continues to a biennial selection process, submit investment projects to the from H-gas to L-gas . show a positive net balance for natural gas transactions to ZTP European Commission with a view to securing Project of Com- (43 .9 TWh in 2019) . Natural gas transactions with both German mon Interest status (hereinafter: PCI) . Only projects spanning In addition to the CREG's involvement in the selection process natural gas markets change direction fast between exit to at least one national border within the European Union can be and the monitoring of PCIs, the CREG takes part in regular con- Germany and entry into Belgium . With the northern German considered . PCI status enables a project to benefit from fast- sultations with other energy regulators and ACER in order to GASPOOL, net natural gas transactions to ZTP amounted to er and more suitable licence-granting procedures and revised contribute to the correct implementation of the TEN-E Regula- 17 .43 TWh in 2019, while net natural gas transactions from ZTP regulatory conditions . tion (Regulation No 347/2013) . Among other things, the CREG to southern German NCG amounted to 9 .2 TWh in 2019 . France calls for a review of the legal framework where necessary with is highly dependent on natural gas transactions between ZTP In addition, a cost/benefit analysis is made of the PCI projects a view to the gradual inclusion of alternative gas projects and and PEG (151 .8 TWh in 2019) . for the different countries to which these projects apply . This projects for the integration of gas and electricity with a view is done with a view to possible cross-border compensation to a sustainable energy supply . Furthermore, the CREG closely The price curves in Figure 22 show the annual average day- of costs if projects would not be carried out . There can be follows the assessment of costs and benefits for Belgium pos- ahead (DAM) price of natural gas for the Belgian natural gas no subsidies from the European Commission to help finance sibly included in the PCI projects abroad and a possible cost market ZTP (since 1 October 2015 ZTP also comprises the the necessary work other than as a last resort, i .e . if the compensation resulting from these foreign projects . Until now, Luxembourg natural gas market), the Dutch TTF and both market is unable to finance the cost of the investment and Belgium has not been in receipt of any possible cross-border German markets GASPOOL and NCG . These price curves if significant positive externalities are nonetheless linked to cost compensation for the completion of PCI projects . converge, which indicates that smooth cross-border trade in the project, such as market integration, competition, secu- natural gas is possible between these markets . The annual rity of supplies and sustainability . The integration of climate 4.1.3.2. Correlation between the investment plan for the average year-ahead price of natural gas (Y+1) is also shown . objectives and in particular the reduction of CO2 emissions transmission network and the development plan Given the price convergence and correlation on the short- is an increasingly important element in the definition of pri- for the European network term market, the long-term price in the Netherlands and ority energy projects . Germany can also be used as a reference price for the Belgian- Readers are referred to point 4 .4 .2 of this report . Luxembourg market .

172 https://ec.europa.eu/energy/sites/ener/files/c_2019_7772_1_annex.pdf

CREG Annual report 2019 63 4. The natural gas market

The average price of natural gas on the short-term market fell Figure 21: Net natural gas transactions between the ZTP* Belgian natural gas market (Belux) and the markets in the neighbouring significantly to €13 .7/MWh in 2019 (€23 .0/MWh in 2018) and countries during the period 2011-2019 (in TWh/year, H-gas and L-gas) (Sources: CREG, gasdata .fluxys .com data) on the long-term market to €18 .6/MWh (€20 .8/MWh in 2018) . 220 Average natural gas prices on the short-term market in Bel- 200 180 gium showed a difference of 5% between NCG and ZTP . 160 140 120 100 80 60 40 20 0 -20 TWh/year to ZTP -40 -60 -80 -100 -120 -140 -160 -180 -200 -220 TTF Gaspool NCG PEG Nord NBP Total 2011 2012 2013 2014 2015 2016 2017 2018 2019

* Since 1 October 2015 ZTP also encompasses the Luxembourg natural gas market . .

Figure 22: Average annual natural gas price on the day-ahead and year-ahead markets (Sources: CREG, data taken from icis .com, ice .com, eex com. and powernext .com)

20 €/MWh 15

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0 ZTP DAM TTF DAM NCG DAM Gaspool DAM TTF Y+1 NCG Y+1 Gaspool Y+1

64 CREG Annual report 2019 4. The natural gas market

4.2. Competition into . In 2018, supply contracts of 2 years are the most com- • Charter of best practices for electricity and gas price mon, entered into in 38% of cases, followed by contracts of 1 comparison websites 4.2.1. Monitoring of wholesale and retail prices year, entered into in 31% of cases . Readers are referred to point 3 .2 .2 .5 of this report . 4.2.1.1. Studies conducted by the CREG The contracts with variable prices based on quoted gas prices account for more than 78% of customers . Around 21% of 4.3. Consumer protection • Prices on the Belgian market in 2018 customers have a fixed price contract and approximately 1% have a fixed price contract indexed to quoted oil prices . The Readers are referred to point 3 .3 of this report . The study on the prices in force on the Belgian natural gas mar- CREG observes more widespread use of quoted natural gas ket in 2018 analyses market shares, price setting, price levels, prices, both upstream (supply contracts) and downstream 4.4. Security of supply price breakdown and billing in the different segments (import, (sales contracts) . resale, supply of residential customers, industrial customers 4.4.1. Monitoring the balance between supply and and power plants) of the Belgian natural gas market in 2018 . Given the HHI index which continued to fall in 2018 to its low- demand est level in the study period (2007-2018), the market for indus- The Belgian natural gas market is very open for competition: trial customers directly connected to the Fluxys Belgium grid A . Natural gas demand there are 38 natural gas companies on the market . is a dynamic market with competition . In view of the decrease in the number of contracts that were the subject of supplier In 2019, total natural gas consumption amounted to 192 .78 In particular, the study covers the falling gross sales margins changes in 2018 (although the volumes involved were higher), TWh, representing an increase of 3 .0% compared with con- on the different market sectors and on the types of indexing . this market segment must be monitored further 174. sumption in 2018 (187 .10 TWh) . This increase in demand primarily came from industry (+7 .2%) and natural gas-fired power In all segments, quoted gas prices were the main price vector . • Other studies plants (+4 .1%) . Oil prices are only used in 1% of industrial contracts . For residential customers and SMEs, 2018 was the third year in which Readers are referred to point 3 .2 .1 .1 of this report . The growth in demand from large-scale consumers is striking, billing of the transmission component was separate from the all the more so as an average natural gas price of €13 7/MWh. energy component 173. 4.2.1.2. Monitoring energy market prices for households was recorded on the wholesale market in 2019, more than and small professional users 40% lower than in 2018 (€23 .0/MWh) . The choice of gas for • Natural gas supply to large industrial customers small consumers is reflected in the figures . Temperatures in Readers are referred to point 3 .2 .1 .2 of this report . 2019 were similar to those in 2018 . In 2019, the CREG conducted a new study into natural gas supply to large industrial customers in Belgium in 2018 . These cus- 4.2.2. Monitoring of market transparency and tomers, which are connected directly to the Fluxys Belgium openness transmission system, accounted for 24 .6% of consumption by Belgian end consumers in 2018 . • The REMIT Regulation

Analysis of the supply contracts shows that short-term con- Readers are referred to point 3 .2 .2 .4 of this report . tracts (with a duration of 1 or 2 years) are primarily entered

173 Study (F)2020 of 14 November 2019 on the prices used on the Belgian natural gas market in 2018. 174 Study (F)1927 of 18 July 2019 on the supply of natural gas to large industrial customers in Belgium.

CREG Annual report 2019 65 4. The natural gas market

However, demand for natural gas on the distribution systems Figure 23: Distribution of Belgian H-gas and L-gas demand by user segment in 2018 and 2019 (Source: CREG) appears to have risen slightly (+0 .4%) . In these conditions, the share of the natural gas offtake on the distribution systems was 48 .4% (compared to 49 .6% in 2018) . 100

0 Total H L Total H L Total H L Electricity generation Industrial customers Distribution systems 2018 TWh 2019 TWh

Table 12: Breakdown of Belgian natural gas demand by user segment between 2009 and 2019 (in TWh) (Source: CREG)

User segment 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019/2018 Distribution 87 .6 101 .2 82 .5 91 .9 97 .9 79 .6 88 .1 93 .0 91 .9 92 .8 93.2 +0.4% Industry (direct customers) 39 .2 46 .9 47 .0 45 .5 42 .8 41 .1 43 .1 41 .8 43 .4 46 .1 49.4 +7.2% Electricity generation (centralised facilities) 67 .3 67 .1 53 .9 48 .1 42 .5 39 .7 44 .6 44 .7 46 .3 48 .2 50.2 +4.1% Total 194 .2 215 .3 183 .4 185 .6 183 .2 160 .4 175 .8 179 .4 181 .5 187 .1 192.8 +3.0%

66 CREG Annual report 2019 4. The natural gas market

Figure 24: Evolution of natural gas consumption per user segment during the 1990-2019 period (1990=100), corrected for climate variations (Source: CREG)

460 440 420 400 380 360 340 320 300 280 260 240 220 200 180 160 140 120 100 80

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 residential & equivalent 100 99 105 109 116 116 113 122 129 134 143 137 146 145 155 158 162 169 164 166 157 173 164 163 179 173 167 178 184 184 industry 100 92 100 103 111 124 132 131 138 149 155 145 152 141 137 140 139 139 132 109 130 130 126 119 114 120 116 122 128 137 electricity generation 100 118 122 127 133 161 171 180 240 295 271 255 278 348 338 357 353 386 372 458 457 367 328 289 270 303 304 315 328 341 Total 100 99 105 109 116 125 129 134 148 162 165 156 166 171 172 177 178 186 179 182 186 182 170 161 164 168 165 173 180 186

B . Natural gas supply for Belgian natural gas consumers and, in 2019, had a share of Long-term contracts signed with natural gas producers remain 48 .3% . important in the portfolios of the major suppliers on the Belgian Natural gas suppliers can choose from a range of entry points on market, but an increasing number of suppliers are taking sup- the natural gas transmission system to both carry out national The supply portfolios of the individual natural gas suppliers re- plies from the wholesale market (hubs) . and international natural gas transactions and to supply their sulted, overall, in a differentiated supply depending on the type Belgian customers with H-gas . Customers who use L-gas are of contract . The share of long-term contracts concluded directly In 2019, a total of 26 supply companies were operating on the supplied directly from the Netherlands or indirectly, against with natural gas producers with a remaining duration of more Belgian market . Electrabel (Engie) with 26% (33% in 2018) and the flow, via the Blaregnies interconnection point with France . than 5 years represents 42 .4% (39 .7% in 2018) . The total sup- EDF Luminus 13% (11% in 2018) together accounted for 39% LNG imports, mainly from Qatar via the Zeebrugge terminal, ply provided through supply contracts concluded directly with of natural gas supplies to large consumers directly connected accounted for a 17 .2% share of the average import portfolio in natural gas producers was at 47 .3% (47 .0% in 2018) . Net supply to the transmission and distribution systems . The third largest 2019 for the Belgian market . Zeebrugge is the main supply point on the wholesale market stabilised at 52 .7% (53 .0% in 2018) . supplier is Eni S .p .a . with a share of 9% in 2019 (11% in 2018) .

CREG Annual report 2019 67 4. The natural gas market

In 2019, Total Gas & Power (8%) and Eneco Energy Trade (5%) Figure 25: Breakdown of incoming natural gas by entry zone in Figure 26: Composition of the average supply portfolio of suppliers joined the group of supply companies with a market share of 2019 (Source: CREG) operating in Belgium in 2019 (Source: CREG) more than 5% . The remaining 21 supply companies (togeth- East er accounting for a market share of 39%) each held a market North-east (Eynatten) ('s Gravenvoeren, Dilsen) 4.1% share of less than 5%, and 8 of these supply companies did 5.7% not even reach 1% . Market concentration fell in 2019 compared to 2018 . Other contracts < 1 year Contracts with producers > 5 years North (L-Gas) 42.6% West (Zeebrugge) 42.4% 21.1% 48.3%

North (Zelzate, Zandvliet) 3.6%

Contracts with LNG terminal Other contracts > 1 year producers < 5 years 17.2% 10.1% 4.9%

* The Blaregnies entry points are used against the flow of the actual flows ('reverse flow'), making use of the predominant transit flows at these points . Figure 27: Market shares of supply companies in the transmission network in 2019 (Source: CREG) Figure 28: Composition of the average supply portfolio for the Belgian natural gas market between 2000 and 2019 (shares in %) Other 5%* Wingas GmbH 4% (Source: CREG)

Antargaz Finagaz 2% Vattenfall Energy Trading 100 Netherlands NV 3% ArcelorMittal 90 Total Gas & Power Ltd 8% Energy S.C.A. 2%

Soc. Europ. de Gestion de Direct Energie 3% 80 l’Energie S.A. 2% 70 RWE Supply & Trading GmbH - UK Desk 4% EDF Luminus 13% 60 natGAS Aktiengesellschaft 1% 50 Gas Natural Europe 3% European Energy Pooling 2% Eneco Energy Trade 40 Essent Sales Portfolio B.V. 5% Management B.V. 2% 30 Energy Global Handel Equinor ASA 3% B.V. 3% 20 Eni S.p.A. 9% Engie 26% 10

* Supply companies active on the transmission network, each with a market 0 share of less than 1%: Axpo Solutions AG, Belgian Eco Energy NV, Enovos Luxembourg SA, GETEC Energie GmbH, Lampiris SA, Novatek Gas & Power 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 GmbH, Progress Energy Services, Uniper Global Commodities SE . Short-term supply (spot) and contracts of less than one year Contracts of at least one year concluded with other suppliers Contracts concluded with producers that expire in five years Contracts concluded with producers that still have over five years to run

68 CREG Annual report 2019 4. The natural gas market

4.4.2. Monitoring transmission system operator this plan in parallel with the ENTSO-G's 10-year network The expansion of the Zeebrugge LNG terminal was completed investment plans development plan (TYNDP 2018) and the TSOs of the North- in December 2019 to respond to the development of the West European region's regional investment plan (GRIP 2017), LNG market on a small scale and to new flows . Following The natural gas transmission system, operated by Fluxys Bel- and found no issues . commissioning of a new pier, at the start of 2017, for LNG ships gium, has developed in such a way that it has become an im- with a capacity of 1,000 to 210,000 m³ of LNG, the facilities portant intersection for transmission pipelines in North-West The most important system transition currently being rolled out for loading trucks and LNG containers were also doubled, Europe, reporting a record level in terms of coupling with is the conversion of the separate L-gas transmission system increasing the maximum capacity of the terminal from 4,000 to neighbouring transmission systems . Import capacity increased with the aim of evolving towards a Belgian natural gas market 8,000 shipments per year on 1 January 2019 . This infrastructure to more than ten million cubic metres of natural gas per hour supplied exclusively with H-gas . This conversion is necessary is perfectly in line with the development of the use of LNG as (100 GWh/hour) with natural gas flowing in both directions and because no new long-term contracts will be concluded with a fuel for maritime or road transport or for supplying areas that no congestion problems . This maturity explains why no imme- the Netherlands for the supply of L-gas, given the way in are not connected to the pipeline network . The commissioning diate significant investments in extensions are planned . The which the Netherlands is managing the remaining stocks of of the fifth tank with a capacity of 180,000 m³ LNG will increase need to replace some elements of some facilities will however L-gas . Furthermore, the Dutch government has taken drastic the maximum storage capacity of the terminal from 386 to increase . measures to limit the extraction of L-gas in Groningenveld 566,000 m³ LNG . This is necessary to receive icebreaker LNG because of the risk of earthquakes in the region . The most vessels from the Sabetta peninsula (north-east of Siberia Yamal There are some unfavourable developments in Europe that recent decisions in the Netherlands even envisage that the LNG) if the eastern route that connects Sabetta directly to Asia make decisions to invest further in extensions less clear- extraction of L-gas from Groningenveld will be halted during is blocked by ice . The LNG terminal now offers the possibility to cut . Demand for natural gas is generally stagnating or even normal winters as soon as the planned quality conversion in unload icebreaker-LNG ships, and load them immediately (ship- shrinking, and is also showing increased volatility . Short-term the Dutch Zuidbroek becomes operational in 2022 . This means to-ship transshipment) or later (ship-storage-ship transshipment) transmission capacity orders continue to increase without, that from then on only pseudo L-gas will be supplied that is on regular LNG ships in order to transport the LNG further to the however, showing any commitments in long-term transmission obtained by diluting H-gas with nitrogen . This alternative L-gas end markets . contracts with the natural gas transmission system operator . production requires interventions in the Netherlands but does Furthermore, there is uncertainty about the use of natural gas- not in itself affect the supply of natural gas to the remaining Limited annual growth on the distribution systems and the ex- fired plants for future electricity generation . L-gas market . pected development for industrial customers and power stations have given rise to some local reinforcement . Moreover, Under the influence of Europe's ambitious energy and climate Together with the CREG, Fluxys Belgium has worked out an carrying out this investment continues to depend on adequate targets, the deployment of green gas such as biomethane and efficient arrangement so that suppliers can switch smoothly payment for the capacity by end users . the conversion of electricity (in particular solar and wind energy) to H-gas, so that they can continue to supply customers who into hydrogen (and possibly subsequently into synthetic have already made the switch . During the conversion period, Finally, the European investment context has been shifting for methane) will help determine the future of the natural gas the necessary transport capacity for L-gas supplies to France several years, with, firstly, changes in demand-side behaviour . infrastructure . In any case, the natural gas infrastructure has will continue to be provided . The aim is to follow the imple- Secondly, European regulations are focusing more on building assets to make an important contribution to a cost-efficient mentation of the indicative L/H conversion plan as proposed by trans-European gas corridors (see point 4 .1 .3 .1 of this report), energy transition, partly because the storage of large volumes Synergrid175 with a view to a full exit from L-gas in the summer not only helping with the need for physical supply, but also of electrical energy remains a difficult link to bridge . of 2029 . This L/H conversion plan is based on the maximum with a view to encouraging market integration, competition, reuse of existing infrastructures to avoid investments that are security of supply and sustainability . The aim is also to establish In 2019, Fluxys Belgium drafted a ten-year plan concerning the only needed for the switchover period . The gradual adjustment a sectoral link between electricity and natural gas . Cost issues development of the system (2020-2029), in accordance with to a market supplied exclusively by H-gas is included in the remain of crucial importance to the CREG, and it is obvious Article 15/1, paragraph 5 of the Gas Act . The CREG evaluated draft 10-year network development plan . that more attention will be paid to alternative solutions to avoid

175 Federation of system operators for electricity and natural gas in Belgium.

CREG Annual report 2019 69 4. The natural gas market

wasted investment and safeguard the competitiveness of ten-year plan for the development of the Fluxys Belgium system attraction and distribution of natural gas flows are favourable natural gas . Cross-border investment decisions are increasingly (see section 4 .4 .2 of the current report) . A picture is painted of a and this can be further enhanced by the gradual transition subject to new factors beyond the national interest . gradual convergence towards an integrated H-gas market within a to a single integrated H-gas market in 2029 . Maintaining the stagnating natural gas demand, outside trend changes or shocks liquidity of the market in Belgium is essential both for Belgium's The energy transition and making the existing natural gas that are currently not in sight . security of supply and that of other markets in north-western transmission infrastructure suitable for alternative gases is Europe . currently the biggest challenge at both Belgian and European • Supply level . Fluxys Belgium and the CREG are jointly analysing the As for L-gas suppliers, there are currently 18 suppliers (like in possibilities of making optimal use of the existing natural gas The number of importers of H-gas for the Belgian market is 2018), (which are also active on the Belgian H-gas market) and infrastructure for the energy transition . currently 26 (23 in 2018) . Among all importers there is a high depend exclusively on the Hilvarenbeek/Poppel interconnec- degree of diversification, both in terms of supply sources and in tion point for supplies from the Netherlands . The trends on the 4.4.3. Forecasts on future demand, available reserves terms of supply routes . Under the impetus of the organisation Belgian L-gas market are defined to a great extent by the grad- and additional capacity of the market at European level, we are seeing an increasing ual switch of customers from L-gas to H-gas . number of short-term transactions in the natural gas market • Demand in particular, as well as a higher intensity of trading, greater volatility and greater international arbitrage and price coupling The figure below shows the outlook for total natural gas demand between European markets . In Belgium the conditions for the in Belgium according to the CREG reference scenario used to follow up the necessary investments made on the Fluxys Belgium system . This total natural gas demand is determined by adding Figure 29: Forecast for demand for natural gas in Belgium until 2029 (GWh, normalised t°, H+L) (Source: CREG) together the expected consumption of the residential sector, the tertiary sector, the industry and electricity generation . In this case, 250 000 it involves the normalised trend that takes account of temperature . These forecasts are inevitably extremely hypothetical, given all 200 000 the current uncertainties . These predictions may be modified in the short term should the market conditions alter . 150 000 Above all, there is a great deal of sensitivity regarding the use of existing power plants and the construction of new natural GWh 100 000 gas-fired power plants, the competitive position of natural gas in the energy mix (especially for large consumers), the economic outlook and the role of natural gas as well as the introduction of 50 000 alternative gases (e .g . biomethane, power-to-gas) in the transition to a low-carbon economy . The forecasts include an estimate 0 of the growth in H-gas demand to replace the L-gas demand, according to the L/H conversion plan included in the indicative 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 H + L H L

70 CREG Annual report 2019 4. The natural gas market

4.4.4. Covering peak offtake Figure 30: Breakdown of the peak offtake by user segment in 2019 Figure 31: Breakdown of the sources of natural gas to cover the (Source: CREG) peak offtake in 2019 (Source: CREG) The peak offtake day for natural gas in 2019 was recorded on Tuesday 22 January . At that time, Belgian natural gas Tuesday 22 January 2019 Tuesday 22 January 2019 consumption was 1,053 GWh (1,030 GWh in 2018), which is 1,053 GWh 1,053 GWh twice the average daily consumption . Distribution systems Electricity generation 22% Norway accounted for 62% of peak day offtake, 22% was used in NL H-gas 28% generating electricity, and the remaining 16% was used by 34% industry .

This peak daily consumption was covered by a range of natural gas sources . The net natural gas supply from the Netherlands Industry 16% covered 57% of peak demand (34% H-gas and 23% L-gas) . Distribution Germany systems 8% Around 28% came directly from the Norwegian gas fields in 62% the North Sea and reached Zeebrugge via the Zeepipe . Natural LNG 2% gas flows entering the Belgian market via Germany covered Loenhout NL L-gas storage 8% of peak demand . In addition, 6% of this peak demand 23% 6% came from the underground storage in Loenhout and 2% from the LNG terminal in Zeebrugge .

CREG Annual report 2019 71

5. The CREG

5 The CREG

CREG Annual report 2019 73 5. The CREG

5.1. The CREG's Board of Directors and staff be renewed once . They deliberate as a board in accordance position of Administrative Director, has also ensured the po- with the usual rules on deliberating meetings . sition of Acting Chairman of the Board of Directors . The two The Board of Directors is responsible for the operational other directors are Mr Laurent Jacquet, who is in charge of management of the CREG and undertakes everything that is Since 1 September 2013, Mrs Marie-Pierre Fauconnier acted price and accounts monitoring, and Mr Andreas Tirez, who is in necessary or useful for the fulfilment of the assignments en- as Chair of the Board of Directors, a role which included re- charge of the technical operation of the electricity and natural trusted to it by the Electricity Act and Gas Act . sponsibility for managing the CREG . gas markets .

The Chair and the three Directors who make up the Board of Since 1 November 2018, following the resignation of Mrs Directors are appointed by Royal Decree after consideration by Fauconnier and in accordance with the rules of procedure of the Council of Ministers for a six-year term of office, which can the Board of Directors, Mr Koen Locquet, in addition to the

74 CREG Annual report 2019 5. The CREG

Table 13: Directorates and staff of the CREG as of 31 December 2019

CHAIR OF THE BOARD OF DIRECTORS DIRECTORATE FOR GENERAL AFFAIRS LOCQUET Koen Acting Chairman of the Board of Directors LOCQUET Koen Director DEVACHT Christiane Assistant to the Director SELLESLAGH Arlette Assistant to the Director FIERS Jan Secretary of the Board of Directors Gas and Electricity Advisory Board VAN HAUWERMEIREN Geert European Strategic Head Advisor DE LEEUW Han LENOBLE Sophie Senior Advisor HERREZEEL Marianne Advisors COZIGOU Liana Advisor General Administration BAUWENS Evi DIRECTORATE FOR THE TECHNICAL OPERATION OF THE MARKETS SAMYN Emilie VAN ZANDYCKE Benjamin Translators TIREZ Andreas Director LOI Sofia Administration and logistics coordinator GOOVAERTS Wendy Assistant to the Director JUNCO Daniel Logistics Staff Member VAN KELECOM Inge Multi-Purpose Secretary CEUPPENS Chris CUIJPERS Christian HAMELRIJCKX Maryse DE WAELE Bart WYNS Evelyne Multi-Purpose Office Staff GHEURY Jacques MARIEN Alain HR Department MEES Emmeric SMEDTS Hilde Senior Legal Advisor VAN ISTERDAEL Ivo Chief Advisors QUERTINMONT Carole Advisor CLAUWAERT Geert VAN MAELE Nele HR Officer PONCELET Yves Senior Advisors IT Department FILS Jean-François LEURS Tim DAELEMAN Kurt Systems and Networks Manager MAENHOUDT Marijn GORTS-HORLAY Pierre-Emmanuel IT Assistant SCHOUTTEET Nico VERHELST Clara Advisors Finance SCIMAR Paul Head of Finance DIRECTORATE FOR PRICE AND ACCOUNTS MONITORING LECOCQ Nathalie Accountant JACQUET Laurent Director CROMBEZ Thomas Accounting and Administrative Assistant FELIX Kim Assistant to the Director PINZAN Laurent Administrative Staff Member CORNELIS Natalie Research, Documentation and Archives DEBRIGODE Patricia BOUCQUEY Pascal Chief Advisor JOOS Benedikt Chief Advisors CHICHAH Chorok ALLONSIUS Johan DETAND Maria-Isabella BARZEELE Elke GODDERIS Philip DUBOIS Frédéric HEREMANS Barbara HERNOT Kurt ROOBROUCK Myriam LIBERT Brice STEELANDT Laurence MAES Tom ZEGERS Laetitia Senior Advisors PIECK An SOFIAS Anastasio Senior Advisors AISSA Nadia Advisor COBUT Christine HENGESCH Luc Archivist WILMART Gilles Advisors

CREG Annual report 2019 75 5. The CREG

5.2. Gas and Electricity Advisory Board The Advisory Board held five plenary meetings in 2019 .

The Gas and Electricity Advisory Board provides advice and The Chairman is Mr Mathieu Verjans and the Vice-Chairman Mr acts as a discussion forum, created by the CREG and the Fed- Peter Claes . eral Minister for Energy . Participation by a representative of the federal Minister for En- Its role is: ergy has enabled the Advisory Board to focus its work on the most urgent aspects and to be kept informed periodically of - to set guidelines for the application of the Electricity and Gas the Government's concerns regarding gas and electricity . The Acts and their implementing decrees, on its own initiative or questions asked by members to the Minister's representative at the Minister's request; made it possible to inform the Minister of the concerns of the - to draft opinions on any issue submitted to it by the CREG's Advisory Board . Board of Directors; - to act as a forum for discussing energy policy objectives and The Advisory Board issued two opinions in 2019, namely strategies . opinion CC190301-071 on studies 1858, 1815 and 1827 of the CREG176, and opinion CC190819-072 on the procedures for adequacy assessments and instruments .177

176 This opinion concerns the studies by the CREG in 2018 on the annual monitoring of prices on the electricity and gas market for households and small professional consumers, on the supply of cooperatives on the Belgian electricity market and on group purchases on the electricity and natural gas retail market respectively. 177 The opinions of the Advisory Board are available on the CREG website www.creg.be.

76 CREG Annual report 2019 5. The CREG

Table 14: Members of the Gas and Electricity Advisory Board as of 31 December 2019 (Source: Belgian Official Gazette) MEMBERS DEPUTY MEMBERS Federal Government VANEYCKEN Sven JUSTAERT Arnout ROOBROUCK Nele WAEYAERT Nicolas CHAHID Ridouane JOURDAIN Sigrid ANNANE Jihane NIKOLIC Diana DORREKENS François NICOLAS Stéphane DASGUPTA Jivan DEMEYERE Frank Regional Governments BIESEMAN Wilfried TANGHE Martine AUTRIQUE Henri BOHET Maurice JACQUET Annabelle DECROP Jehan Representative employees' organisations sitting on the National Labour Council VERJANS Mathieu NICAISE Didier VERHUE Maureen VAN WIJNGAERDEN Jan VAN DAELE Daniel VAN MOL Christiaan DE CROCK Bart SKA Marie-Hélène JONCKHEERE Caroline Representative employees' organisations sitting on the Council for Consumption DE WEL Bert QUINTARD Christophe STORME Sébastien SPIESSENS Eric Organisations for the promotion and protection of the general interests of small-scale users ADRIAENSSENS Claude RENSON Marie-Christine DOCHY Stéphane MOERS Jan Representative organisations of the industry and the banking and insurance sector sitting on the Central Economic Council VANCRONENBURG Geert VANDERMARLIERE Frank BROUWERS Els CALOZET Michel VAN der MAREN Olivier AERTS Kristin Representative organisations of the crafts, small and medium-sized trading companies and small-scale industry sitting on the Central DE BUYSER Capucine DEPLAE Arnaud Economic Council VANDEN ABEELE Piet VAN GORP Michel Large electricity consumers CLAES Peter EELENS Claire Large natural gas consumers BRAET Luc de MUNCK Laurent Electricity producers that are members of the Belgian Federation of Electricity and Gas Companies (FEBEG) VAN DEN BOSCH Marc DE GROOF Christiaan SCHOONACKER Frank de VILLENFAGNE Aude Electricity producers using renewable energy sources LAUMONT Noémie BODE Bart Electricity producers using cogeneration plants BOYDENS Jean-Pierre MARENNE Yves Industries that generate electricity for their own needs BÉCRET Jean-Pierre ZADORA Peter Distribution system operators - INTERMIXT GRIFNÉE Fernand DECLERCQ Christine HUJOEL Luc DEBATISSE Jennifer DE BRUYCKER Luc VERSCHELDE Martin

- INTER-REGIES DE BLOCK Gert HOUGARDY Carine Transmission System Operator for Electricity DAMILOT Julien MERTENS Steven Transmission System Operator for Natural Gas GOSSUIN Luc DESCHUYTENEER Thierry Holders of a supply licence for natural gas that are members of FEBEG VANDEN BORRE Tom DE BUCK Hilde VAN NUNEN Carlos DEDECKER Gunnar Environmental associations VAN DYCK Sara TURF Jan VANDE PUTTE Jan DE SCHOUTHEETE Cécile Holders of a supply licence for electricity that are members of FEBEG HEYVAERT Griet GODTS Annemie WYVERKENS Herman VAN BOXELAER Kathleen Market operator for the exchange of energy blocks proposed by BELPEX MATTHYS-DONNADIEU James PIERREUX Nicolas

CREG Annual report 2019 77 5. The CREG

5.3. General policy plan and comparative A comparative report179 was also drafted on the objectives It also continued to cooperate with the Federal Energy report on the objectives and achievements formulated in the 2017 policy plan and their achievement in Mediation Service, the three regional energy regulators of CREG 2018 . This report, together with the CREG's Annual Report (BRUGEL, CWaPE and VREG) and the FPS Economy, SMEs, 2018, was submitted to the Minister for Energy, the President the Self-employed and Energy (Directorate-General for In accordance with the Electricity Act, on 25 October 2019 the of the Chamber of Representatives and the full members of Economic Inspection and Directorate-General for Energy) . This CREG drew up its policy plan for the year 2020178 . The policy the Parliamentary Economic Commission on 29 April 2019 . cooperation is the result of an agreement signed in 2011 in plan sets out the objectives which the CREG will be pursuing In its policy plan for the year 2018, the CREG had identified which the services involved agreed on the procedure for the in 2020 with due observance of its legal duties and in the con- 14 themes whose various objectives were to be achieved handling of complaints and questions that do not fall under text of the strategic guidelines defined by the federal Parlia- by means of various deliverables . The comparative report the competence of the service that receives the complaint or ment and the federal Government in the area of energy . Each shows, for each action, the degree of completion achieved and question . specific objective is described in detail, as are the resulting provides a reason in the case of partial or non-completion . It is activities for the year 2020, with a list of deliverables and an provided as an annex to the CREG's Annual Report . In addition, in March 2019, the CREG submitted to the Federal indicative implementation date . Energy Mediation Service its statistics on the complaints 5.4. Handling questions and complaints it received in 2018, in the context of its annual reporting The policy plan accompanies the CREG's draft budget for the obligations to the European Commission . Of the 625 queries year 2020 . Both were forwarded to the chairman of the Cham- The CREG continued to handle the questions and complaints and complaints received by the CREG in 2018, 59 were ber of Representatives and the chairman of the Energy, Envi- raised by consumers, businesses in the sector, lawyers, con- complaints (here the CREG regards any form of dissatisfaction ronment and Climate Commission, and were presented at a sultants, researchers, students, administrations, federal and as a complaint) which the CREG handled itself . hearing of the CREG before that commission on 20 November regional mediation services or international authorities on a 2019 . voluntary basis in 2019 .

178 General policy note (Z)1999 for the year 2020. 179 Comparative report (Z)1909 of 25 April 2019 of the objectives formulated in the CREG's general policy note and the accomplishments of the year 2018.

78 CREG Annual report 2019 5. The CREG

5.5. Presentations made by the CREG

Table 15: Overview of presentations made by members of the CREG in 2019

ORGANISING BODY EVENT TITLE OF THE PRESENTATION DATE Energy Regulatory Office Prague Technical Meeting ERU Zonal design, capacity calculation methods, re-dispatching and the market coupling algorithm 9/01 – CREG Commission européenne, en TAIEX Workshop on Energy Markets Establishment options for the Gas market in Azerbaijan 14-15/01 collaboration avec le ministère Concept, Design and Operation The National Regulatory Authority: The Guardian of the Energy Market: European Best Practice de l’Énergie de la République d’Azerbaijan Seat – D’Ieteren Salon de l’Auto – journée presse Étude 1736 sur la rentabilité du gaz naturel comme carburant pour les voitures (CNG ou Compressed Natural Gas) 18/01 CEER 4th Annual Energy Cross-border Trading and Overcome capacity limitations caused by internal bottlenecks in Germany 19/01 Balancing Market forum FEBEG Brainstorm session concerning the Brainstorm session concerning the electricity invoice 22/01 electricity invoice Conseil consultatif du gaz et de Groupe de travail composants des prix Het aanbod van coöperatieve vennootschappen op de Belgische elektriciteitsmarkt Studie (F)1815 / L'offre des 28/01 l’électricité sociétés coopératives sur le marché belge de l'électricité Étude (F)1815 Groepsaankopen binnen de kleinhandelsmarkt voor elektriciteit en aardgas Studie (F)1827 / Achats groupés sur le marché de détail de l’électricité et du gaz naturel Étude (F)1827 Jaarlijkse monitoring van de kleinhandelsmarkt Studie (F)1858 / Monitoring annuel du marché de détail Étude (F)1858 FEBELIEC 5th Energy Forum The need for and the cost of a CRM 29/01 Securing gas supplies in a transition to a decarbonized economy SRBE Journée d'étude: Le stockage d'énergie Récentes initiatives réglementaires prises au niveau fédéral pour favoriser le développement du stockage 31/01 - Pierre angulaire de la transition d’électricité énergétique ? Actualités du solaire photovoltaïque Actualités du solaire photovoltaïque et du Récentes initiatives réglementaires prises au niveau fédéral pour favoriser le développement du stockage 7/02 et du stockage énergétique en stockage énergétique en Wallonie et en d’électricité Wallonie et en RBC RBC Conseil consultatif du gaz et de Groupe de travail fonctionnement du Flash monitoring 2018 - CREG Note 1889 8/02 l’électricité marché électricité et gaz Étude 1871 sur la fourniture d'électricité des grands clients industriels en Belgique en 2017 Price spike on 21 November 2018 CEP: Articles 12, 13 & 14 Analyse van de impact van de beschikbaarheid van Doel 1, Doel 2 en Tihange 1, op de langetermijnmarktprijzen EUROPOWER Stage V Seminar Potential Role of Local Emergency Power Generator Sets in Safeguarding Network Adequacy 12/02 KULeuven Guest lecture Functioning of flow-based market coupling in CWE & role of TSOs 26/02 CEER Specialised Training on Wholesale and Impact of TSOs on market outcome: an analysis of flow-based market coupling in CWE 28/02 Retail Market Monitoring RAERESA RAERESA Study Tour/Training CREG's structure and operation 1/03 Monitoring activities CWE FBMC CWE FBMC NRAs’ 2015 CPP requests: evaluation and next steps 5/03

CREG Annual report 2019 79 5. The CREG

ORGANISING BODY EVENT TITLE OF THE PRESENTATION DATE Delegation of the European Union to High Level Vietnamese Study Tour Creg's structure, mandates and operation 11/03 Vietnam Chambre des représentants Commission Économie Wetsvoorstel tot instelling van een capaciteitsvergoedingsmechanisme / Proposition de loi visant à mettre en 12/03 place un mécanisme de rémunération de la capacité CEER CEER specialised training on legal and TSOs / NEMOs Regulatory Challenges 13/03 regulatory challenges for NRAs Comité de suivi CRM TF CRM Investment Thresholds and Eligibility Criteria 15/03 Fluxys Fluxys Forum Étude sur la compétitivité du gaz naturel comme carburant (CNG et LNG) pour différents types de véhicules 18/03 CEER / ACER Future Policy Task Force Reflections on the development of a CRM in Belgium 21/03 Flash monitoring 2018 – CREG Note no .1889 Scarcity pricing mechanism Strategic reserve ACER Market Surveillance Program Surveillance of TSOs – a market participant just like any other? 27/03 Parlement de Wallonie Audition Projet de décret - Mobilisation des créances CV 4/04 UMONS Points marquants du marché de l’électricité Energy Markets 5/04 en Belgique CEER CEER Specialised Training on Network Network tariffs: in practice 5/04 Tariffs for Transmission and Distribution ACER Regional Group meetings van de EC PCI-assessment van de Belgische kandidaatprojecten voor de 4e lijst - 2019 13/04 Conseil Central de l'Économie Commission Énergie Voorstel van indicator voor elektriciteitsschaarste in België 24/04 Comité de suivi CRM TF CRM Investment Thresholds and Eligibility Criteria 26/04 Conseil consultatif du gaz et de Groupe de travail Security of Supply Réaction CREG à la consultation publique organisée par Elia au sujet des données de l’étude sur les besoins 30/04 l’électricité d’adéquation et de flexibilité du système belge – note n° 1901 Logistics in Wallonia Comité d'experts Étude sur la compétitivité du gaz naturel comme carburant (CNG et LNG) pour différents types de véhicules 30/04 Fluxys Séminaire Fluxys - CREG Electricity Market Design Package: mirroring exercise for gas 9/05 Guarantees of Origin Étude sur la compétitivité du gaz naturel comme carburant (CNG et LNG) pour différents types de véhicules Making Fluxys Belgium Infrastructure Fit for the Future IDETA 4ème anniversaire de la première station Étude sur la compétitivité du gaz naturel comme carburant (CNG et LNG) pour différents types de véhicules 15/05 CNG en Wallonie – conférence de presse en présence du Ministre monsieur Crucke ENTSO-E TSO-NRAs Workshop CEP implementation - 70% rule 17/05 SPF Économie – CREG Workshop on gas market BeLux Gasmarket 20/05 CEER Specialised Training on Implementation of Introduction to Network Codes and Guidelines 22/05 Electricity Network Codes and Guidelines Transport & logistiek Vlaanderen LNG ook voor u De concurrentiepositie van aardgas gebruikt als CNG en LNG voor verschillende voertuigtypes 23/05 École des Mines de Paris Formation Badge pour les régulateurs Les tarifs sociaux – cas de la Belgique 4/06 africains ULB The Energy Transition for Climate Change: Energy Storage: New Rules and Reglementary Frame Changes in Belgium 4/06 The Role of Standard

80 CREG Annual report 2019 5. The CREG

ORGANISING BODY EVENT TITLE OF THE PRESENTATION DATE Conseil consultatif du gaz et de Groupe de travail composants des prix Étude (F)1914 sur les composantes des prix de l’électricité et du gaz naturel / Studie (F)1914 betreffende de 5/06 l’électricité componenten van de elektriciteits- en aardgasprijzen SRBE The European Clean Energy Package Development and implementation of NCs / GLs 12/06 Délégation tunisienne Rencontre à la demande d’une délégation Organisation et rôle de la CREG 14/06 tunisienne CREG – ABC Overleg Belgische Mededingingsautoriteit REMIT 24/06 - CREG CEER CEER 2019 Unbundling Report Workshop Clean Energy Package Outlook 3/07 Chambre des représentants Commission Énergie Analyse réalisée par la CREG de l’étude d’Elia « Adequacy and flexibility study for Belgium 2020 - 2030 » / Analyse 15/07 door de CREG van de Elia studie ‘Adequacy and flexibility study for Belgium 2020 - 2030’ SPF Économie Clean Energy Package An overview of the (regional) implementation of Network Codes and Guidelines 20/08 Commission européenne Clean Energy Package Re-dispatching implementation in line with the Clean Energy Package (CEP) 21/08 Conseil consultatif du gaz et de Groupes de travail fonctionnement du Étude 1950 sur l’analyse de la réaction du marché de l’électricité suite à l’indisponibilité de plusieurs 3/09 l’électricité marché électricité et Security of Supply réacteurs nucléaires en Belgique durant l’hiver 2018-2019 / Studie 1950 over de analyse van de reactie van de elektriciteitsmarkt ten gevolge van de onbeschikbaarheid van meerdere kernreactoren in de winter 2018-2019 Conseil consultatif du gaz et de Groupes de travail fonctionnement du Étude 1957 : Analyse réalisée par la CREG de l’étude d’Elia « Adequacy and flexibility study for Belgium 2020 9/09 l’électricité marché électricité et Security of Supply - 2030 » Pentalateral Forum Support Group 1 meeting Re-dispatching and price formation 16/09 Chambre des représentants Commission Énergie : Comité de suivi État d'avancement des arrêtés royaux seuils et critères d'investissements & paramtètres de détermination du 18/09 CRM volume de capacité à contracter / Stand van zalen van de koninklijke besluiten investeringsdrempels en -criteria & parameters voor de bepaling van het te contacteren capaciteitsvolume Chambre des représentants Commission Énergie État d’avancement des arrêtés royaux seuils et critères d’investissement & paramètres de détermination du 18/09 volume de capacité à contracter / Stand van zaken van de koninklijke besluiten investeringsdrempels en -criteria & parameters voor de bepaling van het te contracteren capaciteitsvolume Commission européenne Meeting DG COMP/DG ENERGY Analysis by the CREG of the Elia study ‘Adequacy and flexibility study for Belgium 2020 – 2030’ 18/09 CWE NRA Expert meeting Re-dispatching and price formation 19/09 Conseil consultatif du gaz et de Groupe de travail fonctionnement du Studie 1927 over de aardgaslevering aan grote industriële klanten in België 25/09 l’électricité marché gaz ELIA Task Force CRM The parametres determining the amount of capacity procured in the capacity mechanism 26/09 Tractebel Visit of Brazilian Delegation Market boundaries and implementation 3/10 KULeuven Seminarie Master Hernieuwbare Énergie Organisatie van elektriciteitsmarkten en marktkoppeling in een Europese context 4/10 Energy Storage World Forum 12th Edition Evolution Of Regulations Enabling To Capture All The Value From Storage Technology in Belgium 7/10 FEBELIEC Workshop Demand Response Demand response: New opportunities in the Clean Energy Package 8/10 CREG Briefing presse Meer dan 360 .000 Belgische gezinnen betalen 600 euro te veel voor hun gas en elektriciteit / Plus de 360 000. 24/10 ménages belges payent 600 € de trop pour leur gaz et leur électricité SPF Économie Comité de suivi CRM The parameters determining the amount of capacity procured in the capacity mechanism 25/10 Fluxys Fluxys International Shippers' meeting 2019 The Bridge beyond 2025 25/10 Conseil consultatif du gaz et de Groupe de travail fonctionnement du Note 1986 on the implementation of a scarcity pricing mechanism in Belgium 6/11 l’électricité marché électricité Study 1958 Study on the functioning and price evolution of the Belgian wholesale electricity market Chambre des représentants Commission Énergie Stand van zaken & design CRM - KB investeringsdrempels en -criteria & Voorstel parameters voor de bepaling 13/11 van het te contracteren capaciteitsvolume / État d’avancement & Design du CRM - AR seuils et critères d’investissement & Proposition de paramètres de détermination du volume de capacité à contracter

CREG Annual report 2019 81 5. The CREG

ORGANISING BODY EVENT TITLE OF THE PRESENTATION DATE ACM Bilateral meeting CREG – ACM Implementation of a scarcity pricing mechanism in Belgium 15/11 Best Forecast of Remedial Actions to Mitigate Market Distortions CREG Journée d’étude pour les parlementaires Wholesale Electricity and Gas Markets in Belgium 18/11 Principales missions de la CREG et dossiers d’actualité en matière de prix / Belangrijkste taken van de CREG en actuele dossiers op het vlak van de prijzen Structuur en opdrachten van de CREG / Structure et missions de la CREG Chambre des représentants Commission Énergie Budget et note de politique générale de la CREG pour l'année 2020 / Begroting en algemene beleidsnota van de 20/11 CREG voor 2020 UWE – Cellule Mobilité Workshop CNG Étude sur la compétitivité du gaz naturel comme carburant (CNG) pour différents types de véhicules 21/11 ACER Bilateral meeting CREG – ACER Implementation of a scarcity pricing mechanism in Belgium 25/11 Best Forecast of Remedial Actions to Mitigate Market Distortions Conseil consultatif du gaz et de Groupe de travail fonctionnement du Study 1987 on the best forecast of remedial actions to mitigate market distortion 11/12 l’électricité marché électricité Implementatie van de Electricity Balancing Guideline (EBGL) Goedkeuringsaanvraag van Elia voor een derogatie van artikel 16, achtste lid van Verordening (EU) 2019/943 met betrekking tot een minimale beschikbare capaciteit voor zoneoverschrijdende handel Analyse van de clearing tijdens de decoupling op 7/6/2019 – stand van zaken Chambre des représentants Commission Énergie Stand van zaken & ontwerp CRM - Taken toegekend aan de CREG / État d’avancement & design du CRM - 18/12 Missions attribuées à la CREG

5.6. The CREG and other bodies The issues with a link to the electricity sector are part of the Regulation requires Member States to put in place appropriate further elaboration of the legislative package "clean energy for all instruments to prevent, prepare and manage potential crisis 5.6.1. The CREG and the European Commission Europeans" 180. Although four of the eight legislative documents situations in a spirit of solidarity and transparency . In this respect, of this package were already published in 2018, the remaining the CREG provides the knowledge it has acquired in the relevant In 2019, the CREG participated directly or indirectly in the work documents were published on 14 June 2019 (see section 2 .1 . ACER task forces (see also point 5 .6 2. below) . of the European Commission . It did this, among other things, of this report) . by participating in workshops to support studies launched by As referred to in point 2 .1 . of this report, the Electricity Regula- the European Commission . The issues discussed related to Of these last four legislative documents, the Risk Preparedness tion (EU) 2019/943 and the Electricity Directive (EU) 2019/944 support for innovative storage in the context of security of Regulation (EU) 2019/941 and the ACER Regulation (EU) 2019/942 create more flexibility to include an increasing share of renew- supply in the electricity sector, the adaptation of the regulatory entered into force immediately, triggering the necessary able energy in the grid . Moreover, the European Commission framework for LNG terminals in the EU, the impact of biome- discussions on the elaboration of the new rules already in has already announced new initiatives to increase the European thane and hydrogen potential on trans-European infrastructure 2019 . The CREG acts as advisor to the federal government in Union's climate ambition for 2030 . and the introduction of sector coupling for the deployment of various meetings with regard to determining Belgium's risk new renewable and low carbon gas technologies . preparedness . The focus is on adapting the plans to better Within this framework, the CREG already participated in 2019 anticipate and respond to crisis situations within the electricity in activities chaired by the European Commission . In this way, market, including through cross-border cooperation . Indeed, the it followed the work of the High Level Group on North Seas

180 https://ec.europa.eu/energy/en/topics/energy-strategy-and-energy-union/clean-energy-all-europeans.

82 CREG Annual report 2019 5. The CREG

Energy Cooperation (NSEC) of the European Commission . More In addition, the 2018 National Report from Belgium181 was - a controlled and transparent energy market in which specifically, in cooperation with the FPS Economy, it actively par- submitted to the European Commission and ACER by the consumers pay a price which is guaranteed to be fair and ticipated in the North Seas Energy Cooperation Support Group 2 CREG . This was drafted in close collaboration with the regional reflect costs, and in which abuse is prevented . and the NorthSeas Energy Cooperation UK-BE-NL Cluster . As a regulators (BRUGEL, CWaPE and VREG) and the Federal Energy result of the work of this support group, the NSEC study "Hybrid Mediation Service, and includes the measures taken and the ACER developed activities for each of these objectives in 2019, projects - How to reduce costs and space of offshore devel- results obtained within the framework of the legal missions of according to the challenges presented by the energy market . opment", carried out by consultant Roland Berger on behalf of these authorities . the European Commission, was published on 24 May 2019 . In The publication of the legislative package "clean energy for all this context, the phases of the PROMOTioN project were also Finally, if it has been informed, the CREG responds to question- Europeans"182 on 14 June 2019 has not weakened its role, on followed up, with input from the CREG, among other things by naires within the framework of the harmonisation and integra- the contrary . In addition to its role as coordinator between the answering a questionnaire relating to CBA consultation of the tion of the European gas and electricity markets . various national energy regulators, it was given additional powers various regulators . At the last NSEC meeting in 2019, it was de- in those areas where fragmented national decisions might lead cided to continue cooperation in the form of restructured work- In 2019, this concerned the following issues: 'IAS survey on to problems for the internal energy market . This includes the ing groups, in which the CREG will continue to participate . the implementation of the Regulation on Wholesale Energy supervision of European and future regional entities ('Regional Market Integrity and Transparency (REMIT) in the Agency for Coordination Centres') . National regulators, who decide on The CREG fulfilled its advisory role by assisting the authorities the Cooperation of Energy Regulators (ACER)', 'Project ENER/ these issues within ACER by a 2/3 majority vote, remain fully during the various meetings chaired by the European Commis- B2/2019-375 - Regulatory framework for LNG terminals' and involved in the process . However, it is the national regulator sion: meetings to check and approve the European network 'Study on energy communities' . of the country in which the supranational entity is located that codes, meetings of the Gas Coordination Group on security must enforce any sanctions . Since several of these entities are of supply and the development of gas infrastructure in the in- 5.6.2. The CREG within ACER located in Brussels, the CREG has already launched additional terests of Europe and meetings of the Electricity Coordination research to assess the impact of these new rules in cooperation Group on security of supply for electricity, the development of ACER (the Agency for the Cooperation of Energy Regulators) with the European Commission . electricity interconnections and cyber security . was created by the third energy package in order to encourage the completion of the internal energy market, both for electricity Another additional task for ACER is to develop common In its role as a CEER member, the CREG has also, as in pre- and for natural gas . methodologies at European level to identify crisis scenarios vious years, provided assistance in numerous consultations and assess short-term seasonal matching between electricity and reports for the benefit of the European Commission . The The three objectives that it formulated based on the drawn-up generation and consumption in order to maintain grid stability CREG also took part in the exchange days between the Europe- legislation concern: and avoid shortfalls . This confirms its increasing role as a an Commission and certain CEER working groups, such as the supporting entity for Member States for a stable and well- CRM WG, on the implementation and transposition of a number - a more competitive integrated market offering more choice functioning European internal electricity market . of provisions of the Clean Energy Package for all Europeans . to consumers; - an efficient energy infrastructure in which the free circulation For the rest, 2019 was dominated by internal restructuring, in- In a similar vein to these activities, the CREG also actively par- of energy beyond borders and the transmission of new ener- cluding the appointment of a new director, to better meet the ticipated in the forums chaired by the European Commission, gy sources are guaranteed, thereby improving security of sup- challenges of the future and optimise efficiency between ACER's including the European Gas Regulatory Forum, the European ply for the companies of the European Union and consumers; various boards and working groups . Electricity Regulatory Forum, the Citizens' Energy Forum and the Energy Infrastructure Forum (see points 5 .6 .4 to 5 .6 .7 below) .

181 2019 Belgian national report to the European Commission and ACER, 18 July 2019. The report is available on CEER's website via the link https://www.ceer.eu/documents/104400/6693346/C19_NR_Belgium_NL.pdf/8448fef0-8e42-4dc7-eefd-3ff960ea8466. 182 https://ec.europa.eu/energy/en/topics/energy-strategy-and-energy-union/clean-energy-all-europeans.

CREG Annual report 2019 83 5. The CREG

■ Gas Working Group ■ Electricity Working Group particular in the modalities of implementation of the 70% rule for trade between areas . The CREG is closely involved in ACER's Gas Working Group The EWG of ACER is made up of the following task forces (TF): (GWG) . It acts as Vice-Chair . ■ Market Integrity and Transparency Working Group - the CACM TF, which is responsible for the introduction of the In 2019, the various GWG task forces continued to monitor the network code CACM (Capacity Allocation and Congestion Additional monitoring tasks were undertaken within ACER's third natural gas market and worked on two reports, namely the 6th Management); objective, namely through the implementation of the REMIT Annual Report on Contractual Congestion at Interconnection - the FP TF, which is responsible for developing the Future Policy Regulation184 . Under this Regulation, data has been collected Points and the ACER Report on the conditionalities stipulated in (FP) of the electricity market; since 2015 . The MIT WG is working on the implementation of contracts for standard capacity products for firm capacity . - the FCA TF, which is responsible for implementing the network REMIT . code FCA (Forward Capacity Allocation) as regards long-term Much of the task forces' work was based on the questions transmission capacity allocation; In 2019, the activities of the working group focused on market raised by stakeholders on the FUNC transparency platform, set - the BAL TF (BALancing), which is responsible for matters relat- supervision and monitoring of the behaviour of market players, up to clarify questions about European network codes . ing to the balancing of the control area; the publication of inside information and the analysis of the - the INF TF, which is responsible for matters related to the de- specific characteristics of the energy market in relation to the Particular attention was also paid to the new ACER regulations velopment of the network and the 10-year plan of ENTSO-E financial market, taking into account the advent of new financial that give a greater role to the ACER working groups by now (European Network of Transmission System Operators for regulations . asking them to provide the ACER Director with their expert Electricity); advice on specific issues . - the SOGC TF (System Operation and Grid Connection), which As regards market supervision and monitoring of the behaviour is responsible for questions relating to system operation and of economic operators, a guidance note was prepared and In 2019, the GWG also closely followed the adoption of the Clean grid connection . discussed within the working group; this note provides more Energy Package as part of an evolution towards a carbon-free detailed information on the specific practices representing natural gas system . For example, it approved the consolidated The CREG is also in charge of the task forces CACM, FCA and market manipulation in accordance with Article 5 of REMIT . report on the progress made in electricity and gas in the projects the work streams of the FP TF . This note, entitled 'Layering and Spoofing', was published on classified as PCI (Projects of Common Interest) as well as the 22 March 2019 and aims to share ideas on the general analytical 2018 version of ACER's monitoring report on the wholesale and In 2019, ACER's EWG concentrated its own activities on the framework to be used to determine whether specific behaviour retail markets . Subsequently, the GWG ensured the follow-up of implementation of the European CACM, FCA, SO and BAL reg- may constitute an infringement of REMIT . It will be updated as the public consultation on the tariff methodology by the different ulations which required a large number of coordinated decisions necessary to take account of the evolution of the negotiation Member States . And finally, the GWG worked on the public at European or regional level183 . These coordinated decisions strategies . consultation on decarbonisation of the energy sector . For the require considerable work and follow a very formal process gas sector, this decarbonisation implies a change of legislation, described in the European regulations . These decisions are ex- The ACER Guidance was also updated on 16 July 2019 with the improved planning and an upgrade of infrastructure . This work plained in section 3 .1 .4 .3 of this report . aim of clarifying the manipulative behaviour of capacity retention . was completed in cooperation with the CEER . This note specifies the expectation of regulators with regard to The ACER EWG also played a coordinating role in the prepa- physical capacity retention as economic capacity retention . ration of ACER's annual monitoring report and in the preparation of the implementation of the Clean Energy Package and in

183 As regulator for Elia, the CREG is part of the regional associations of Core and Channel regulators. 184 Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency.

84 CREG Annual report 2019 5. The CREG

The ACER Guidance and at the same time the Manual of Pro- The LEN also issued an opinion on ACER's decision 12/2019 on 5.6.3. The CREG within the CEER cedure have been updated to provide more clarity on how to the compliance programme of Balansys NV (see also section effectively disclose inside information . In addition, a public con- 4 .1 .2 .2 . of this report) . In its role as a founding member of CEER (Council of European sultation was organised by ACER on 16 September with the Energy Regulators), the CREG also takes an active part in the aim of defining which information can be considered as inside ■ Questionnaires discussions, deliberations and decisions of the CEER's General information . Assembly, which met eight times in 2019 . Since 22 March 2019, The CREG actively contributed to the creation of the ACER the position of Vice-Chairman of the CEER has been held by Mr In terms of analysis of the specific nature of the energy market questionnaires and responded to them within the framework Koen Locquet, Acting Chairman of the CREG Board of Directors . in relation to the financial market, various questions have been of the harmonisation and integration of the European gas and raised in connection with the entry into force of new financial electricity markets . The CREG actively took part in the working group meetings regulations (MiFID II) . of the CEER (and workstreams set up within these different - Ten Year Network Development Plan comparison working groups) as a Chair, Co-Chair, or member . During the meetings with ACER, national regulatory authorities - RfG implementation monitoring questionnaire (AEWG) exchange their experiences on the alleged cases of market - Short survey on integrated network planning ■ Electricity Working Group abuse they face in their respective countries . At the Belgian - Inter-Transmission System Operator Compensation level, several cross-border cases were discussed in the working Mechanism The Electricity Working Group (EWG) of the CEER focuses on groups led by ACER, in order to ensure coordination between - Transmission tariff practices in Europe matters related to the European electricity systems, security of the various national regulatory authorities involved . supply and sustainable development . All these questionnaires were used as a basis to write reports, ■ Legal Experts Network status reviews, position papers and other documents issued by The EWG consists of three workstreams: one Renewable work ACER . They not only give a detailed description of the differences stream (WS) dealing inter alia with renewable energy issues, The Legal Experts Network (LEN) set up on 6 December 2017 and similarities between the Member States, but also provide one Future Policy work stream (FP WS) responsible for drafting within ACER is a network made up of legal experts from ACER information on the degree of application of European legislation future electricity market rules and one Incentives Regulation and and from the national regulatory authorities (hereinafter: the in each Member State . The European Commission, for its part, Efficiency Benchmarking work stream (IRB TF) responsible for NRAs), including the CREG . uses these documents as the basis for the creation of legal collecting and exchanging essential information between NRAs initiatives . in order to implement tariff and efficient monitoring of transmis- The aim of the LEN is to provide expert support and advice on sion system operators . technical-legal issues to ACER, the BoR and the ACER working groups . The CREG jointly manages the FP WS . In 2019, the CREG worked on, among other things, the design of the electricity In May 2019, the LEN was asked what is meant by 'entity' and markets . 'entities' as provided for in Articles 19, 20, 21, 22 of Commis- sion Regulation 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing (EBGL) . There are two options, i e. . either the European Platform would be managed by the TSOs' legal entities or by an entity/legal person set up by the TSOs .

CREG Annual report 2019 85 5. The CREG

■ Gas Working Group challenges posed by the decarbonisation of the gas sector ■ Regulatory Benchmarking Workstream and the use of new renewable gases; The European Energy Regulators' Gas Working Group (GWG) is - the preparation and follow-up of the EU initiatives on a new The Regulatory Benchmarking Workstream (RBM WS) met dedicated to dealing with questions linked to the European gas legislative package for gas . seven times in 2019 . Its main objective is to examine the existing transmission systems and the European Union's gas market . national partnerships between regulators from different sectors . The CREG acts as Vice-Chair . Within the Incentives Regulation and Efficiency Benchmarking To this end, a questionnaire was drawn up covering various workstream (IRB WS), the CREG contributes to the annual draft- functional aspects in order to collect all relevant information The GWG works on the various issues in close collaboration ing of the Regulatory Frameworks Report (formerly the Invest- and serve as a basis for the consolidated processing of the with ENTSO-G, GSE and GLE, as well as with the other market ment Conditions Report), which gives a comprehensive picture responses . players, and the other working groups of ACER and CEER . of the investment conditions of the transmission system operators in Europe on the one hand, and the activities as part of the ■ Consumers and Retail Markets Working Group In 2019, the CEER GWG focused its attention on the following TSO Efficiency Benchmark on the other . Building on the prepara- actions: tions made in 2018 to launch the next TSO Efficiency Benchmark The Customers and Retail Markets WG (CRM WG), of which the cycle for gas, in 2019 the CREG decided to participate in this CREG is an active member, focuses on the place of consumers - the adoption of the study "How to Foster LNG Markets in exercise . The CEER is in charge of this project (ACM, the Dutch and the protection of their interests in the context of the Europe" which examined the different ways of promoting regulator, takes care of operations on behalf of the CEER), for liberalised market on the one hand and the operation of the retail the development of the LNG market in Europe . The analysis which the contract with the consultant was concluded in 2019 . market on the other in order to develop optimum competition in proposes, among other things, to increase the flexibility and the interests of consumers . liquidity of LNG, to remove the strict contractual clauses ■ Market Integrity and Transparency Working Group or to simplify the conditions of TPA (Third Party Access) by The CRM WG pays particular attention to the new dimensions of proposing new services to promote the use of the terminals The Market Integrity and Transparency Working Group (MIT WG) the consumer in the energy market, in particular the active role and to examine the means of promoting the price signal; handles matters relating to transparency and the surveillance the consumer has to play in competitive and integrated energy - the preparation of the public consultation on the note "Regulatory of energy exchanges, as well as the correlation between the markets . In this context, the CRM WG closely monitors consumer Challenges for a Sustainable Gas Sector" . The objectives of this legislation of the wholesale energy market and that of the protection, arming vulnerable consumers, preventing possible consultation are to identify the regulatory challenges for an relevant financial market . As such, the MIT WG is tasked with shortcomings of certain technological or commercial novelties efficient transition of the gas sector to a low carbon energy tracking all the measures concerning the operation of the and ensuring that consumers are given sufficient means to act in demand scenario and the criteria that national authorities could energy markets and the supervision of energy exchanges in accordance with the principles of the new European legislative apply to enable and facilitate this transition . The conclusions general . This specifically includes the legislative proposals and packages (e .g . instruments for price comparison, right to act, were published in a joint document with ACER . the questions linked to energy exchanges . information on bills, sufficient understanding of the market) and to make informed choices in the energy market . The CEER GWG also launched the following initiatives in 2019: In 2019, the MIT WG focused in particular on: The CRM WG consists of four workstreams (WS) and the Part- - the drafting of an overview of the regulation of innovations in - the implementation of the REMIT legislation at the national nership for the Enforcement of European Rights (PEER) . the gas sector; level; - the drafting of a report on the gas infrastructure and energy - updating and clarifying the interpretation of the definitions The Customer Empowerment Workstream (CEM WS) handles transition, with an analysis of the investment needs; and terms used in REMIT; and aspects related to the retail market, such as billing to end con- - the follow-up to the Madrid Forum of June and October - the interaction between financial legislation and REMIT sumers, handling their complaints, procedures for settling ex- 2019: the CEER intends to play a leading role in analysing the legislation . tra-judicial disputes, price comparison tools, and the protection of vulnerable energy consumers .

86 CREG Annual report 2019 5. The CREG

The Innovation and Retail Markets Workstream (IRM WS) con- and the Dublin "Citizens' Forum" organised by the European tasks, at their request . In addition, the LAC also handles specific siders questions relating to the proper functioning of the retail Commission . legal questions raised by national regulators with regard to the market, including the introduction of smart meters, dynamic implementation of provisions of European legislation . energy pricing and the design of the electricity and gas retail ■ The Distribution Systems Working Group markets . It focuses on how to empower consumers thanks to For example, in 2019 ad hoc legal questions raised by the CEER more competition between market players, and how to give The Distribution Systems Working Group (DS WG) deals with working groups on REMIT were dealt with . them more choice through robust market procedures and tai- potential developments and changes in the energy distribution lored services . Its objective is to empower energy consumers sector, the consequences for the regulatory framework, and The LAC also dealt with punctual questions from national regu- while ensuring an adequate level of protection . matters related to the current and future activities of the distri- lators, including the issue of "Large-Scale and Distributed Ener- bution system operators, namely the quality of electricity and gy Storage Systems" . In 2019, the RAPEX project (developed in The Monitoring Customer Empowerment Workstream (MCE natural gas supply, cyber security, smart networks and flexibility collaboration with the CRM working group and resulting from WS) primarily works on the chapter on consumer protection and in the operation of the distribution systems . an earlier concrete question submitted by a national regulator) the automation of the ACER-CEER annual monitoring report . was also launched . In 2019, the DS WG completed and published the following two The Monitoring Retail Markets Workstream (MRM WS) prepares documents: In 2019, the LAC also carried out a legal analysis of specific provi- the CEER report on retail market monitoring (with CEER work- sions from (different versions of) a number of texts that are part ing alone) and manages CEER's database of national indicators . - "Regulatory Aspects of Self-Consumption and Energy Commu- of the new Clean Energy Package, thus contributing to the other nities" which analyses the regulatory implications of new prac- working groups of the CEER and its General Assembly, includ- The CRM WG is also responsible for the PEER initiative (for the tices such as self-consumption, citizens' energy communities ing on the new concept of the "Energy Communities" . Enforcement of European Rights) within the CEER . This is an and renewable energy communities . initiative of the European energy regulators to strengthen the The work of the LAC in 2019 primarily related to: application of the rights of European consumers through bet- - "New Services and DSO Involvement" which sets out the ter cooperation between the authorities in the European Union . CEER's position on the new services of distribution system - the report "Implementation of TSO and DSO Unbundling PEER brings together the bodies that want to protect and/or operators and their implications . Provisions: Update and Clean Energy Package Outlook" support European consumers in a wide range of sectors . These published on 14 June 2019, which provides a state of play on may include data protection authorities, consumer associations, ■ Legal Affairs Committee the implementation of the unbundling rules for Transmission mediation services, competition authorities and sectoral regu- System Operators (TSOs) and Distribution System Operators lators (e .g . energy, telecommunications, finance, etc ). . One of The CREG plays an active role in the Legal Affairs Committee (DSOs) from the Third Energy Package, with a focus on new the objectives is the exchange of good practices that make it (LAC) set up within the CEER in 2018 as a successor to the developments since 2015, and an overview of the new and possible to adapt or propose suitable solutions or solutions that Legal Task Force (LTF) . In 2019, the chairmanship of this body amended unbundling provisions from the Clean Energy are more in line with our respective sectoral needs . In 2019, (which depends on and reports to the CEER General Assembly) Package . For more information, the reader is referred to page for example, the PEER study day focused on the sale of linked was also taken up by the Director General Affairs of the CREG . 90 of the 2018 Annual Report . products and the risks associated with this practice, as well as the solutions implemented by the competent authorities . The LAC gives opinions on the legal and institutional aspects of - the organisation of a public workshop on the latest the implementation of the third energy package, as well as on developments in unbundling ("CEER Unbundling report 2019: In 2019, the CRM WG participated in a number of workshops and the various legislative texts of the new Clean Energy Package . Key findings and CEP outlook") at which the above-mentioned conferences such as the CEER-ECRB-MEDREG185 Workshop It also provides specific legal support to other working groups, report was presented and the anticipated challenges in the on Consumer Issues, the CEER Annual Customer Conference task forces and Workstream of the CEER in carrying out their implementation of the new CEP unbundling related provisions

185 Energy Community Regulatory Board.

CREG Annual report 2019 87 5. The CREG

were raised by some stakeholders . The CREG took on the - Request of CERA (Cyprus) on last resort supplier 5.6.4. European Gas Regulatory Forum chairmanship and some presentations at this workshop . - Request for information on supplier DSO interaction - Benchmarking report on power losses The European Gas Regulatory Forum, also known as the Madrid - the follow-up and organisation of the two-day legal training - EWG DS WG: NRA input for smart EN network tariff and Forum, serves as a platform for consultation on the develop- course entitled "Specialised Legal Training on Legal and - taxation mapping ment of the internal natural gas market in Europe . The Member Regulatory Challenges for National Regulatory Authorities with - RBM WS survey on general metrics States, the European regulators (including the CREG) and all a focus on the Clean Energy Package" organised by the CEER - NRA survey on P2G (power to gas) other European market stakeholders take part in it, under the in March 2019 . The CREG again played an active role in the - NRA training needs for 2020 presidency of the European Commission . In 2019 the forum organisation of this training . - Consumer protection and empowerment volume took place for the 32nd and 33rd time on 5 and 6 June, 23 and - Wholesale and retail regulatory issues gas 2019 24 October respectively . ■ International Relations Group - Wholesale and retail regulatory issues electricity 2019 - REMIT: questionnaire regarding target organisation and RE- The fact that two forums were organised was due to the prepa- The International Relations Group (IRG) is the group within the MIT implementation at national level ration of a new European legislative gas package (similar to the CEER responsible for forging and maintaining links with its - Project ENER/82/2019-375: regulatory framework for LNG Clean Energy Package for electricity) . Both forums were domi- counterparts in third-party countries and with international in- terminals nated by the contribution of (natural) gas(es) to the low-carbon stitutions in the energy regulation sector . The primary objective - DS WG questionnaire on stranded assets objectives, which were made even more stringent by the new of creating the international network is to exchange good regu- - Questionnaire on the criteria for the valuation of losses at na- European Commission . The role of gas was examined according latory practices throughout the world, with a view to optimising tional level and the value of losses to both the principle of sector coupling and sector integration . the provision of specific opinions on the matter to governments . - CEER 2020 Work Program and Resource poll - Survey on Regulatory practices on volume mismatch input- The forums were primarily informative in nature, highlighting the As a member of this group, the CREG received a delegation output in the distribution network state of play of ongoing discussions on Carbon Capture Usage of energy regulators from a number of South and East African - Questionnaire for the 7th benchmarking report on quality of or Storage, Power-to-Gas/Gas-to-Power (P2G/G2P), Renewa- countries (RAERESA) on 1 March 2019, following the strategy electricity and gas supply bles, H2, GHG emissions, gas quality and Guarantees of Origin . developed within the IRG in 2017 . This is part of a programme in - Additional human resources for the CEP implementation The regulators' contribution to the discussion was fleshed out in which the European regulators, with the support of the Europe- (E-Control) the Bridge Beyond 2025 Conclusions Paper186, with recommen- an Commission, help African colleagues to build up experience - Questionnaire GWG: wholesale gas market study dations for adapting European legislation for the gas sector and and cross-border regulatory cooperation . A similar exchange of forward-looking regulation in order to support the low-carbon experience, but on the basis of bilateral contacts, took place All these questionnaires were used as a basis to write reports, energy sector, promote the competitive internal energy market with the Tunisian and Vietnamese authorities . status reviews, position papers and other documents from the and seize opportunities of an integrated approach . CEER, ACER and the European Commission . They not only give ■ Questionnaires a detailed description of the differences and similarities between While the European gas market model has generally good sta- the Member States, but also provide information on the degree tistics, some local markets would benefit from more competi- The CREG actively contributed to the creation of the CEER of application of European legislation in each Member State . The tion, additional protection of consumer rights or revision of the questionnaires and responded to them within the framework European Commission, for its part, uses these documents as current system of regulation . For a sustainable future, shifts in of the harmonisation and integration of the European gas and the basis for the creation of legal initiatives . tasks and responsibilities should be discussed, given that natu- electricity markets . ral monopolies compete with other services .

186 https://www.ceer.eu/documents/104400/-/-/f1846269-a27b-b3db-5edc-697b9156d3c4.

88 CREG Annual report 2019 5. The CREG

Dynamic regulation of low-carbon gases and new technologies procedures at DG ENER and DG COMP can work together in Successful innovations and ambitious targets need to be drawn are necessary to avoid barriers and obstacles preventing the parallel and in harmony . up in order for citizens to enjoy the benefits of the energy transi- further development of the global energy market . The need to tion . The new Clean Energy Package, published in June, and the adapt the technical rules in this respect will be further studied . As an additional challenge for the future, in addition to the sector New Deal, published in December, provide the tools and frame- coupling and integration and the ongoing digitisation and cyber work to bring this about . This will therefore require the neces- 5.6.5. The European Electricity Regulatory Forum security, the further TSO-DSO cooperation was one of the main sary focus in the coming years in order to effectively transpose points put forward as a point for attention . This cooperation is these European rules into national legislation . The European Electricity Regulatory Forum, also known as the fundamental to active system management and concerns (1) Florence Forum, serves as a platform for consultation on the the development of data hubs and data exchange platforms, (2) 5.6.7. The Energy Infrastructure Forum development of the internal electricity market in Europe . The the efficient use of flexibility for congestion management and (3) Member States, the European regulators (including the CREG) facilitating and developing demand management . The fifth edition of the Energy Infrastructure Forum took place and all other European market stakeholders take part in it, under on 23 and 24 May 2019 in Copenhagen . the presidency of the European Commission . The 34th meeting 5.6.6. The Citizens' Energy Forum of the Forum took place on 17 and 18 June 2019 . Under the chairmanship of the European Commission, this At the 11th Citizens' Energy Forum, which for the second time recently launched Forum brings together the main market players The forum took place at a time when the discussions on the was held in Dublin, the European Commission placed active and around the theme of 'infrastructure' . The members of the regional Clean Energy Package (CEP) were concluded and the texts had involved consumers at the heart of a competitive, efficient and groups are present, which were set up for several privileged been published . The discussions therefore focused on the fur- fair retail market . This forum offers consumer organisations and corridors which are essential for European Union supply (Member ther implementation of the new provisions and the additional local market players the opportunity to discuss issues within States, system operators, regulators and project promoters), challenges that appear to face the integrated electricity market working groups with representatives of various Member States, together with representatives of several European institutions in the near future . regulators (including the CREG) and key European stakeholders . (the European Parliament, the Committee of the Regions and the Economic and Social Committee) and European organisations With regard to the implementation of the CEP package, the This forum, held on 12 and 13 September 2019, was dedicat- (NGOs, ENTSO-E, ENTSO-G, ACER, INEA and the EIB) . main focus was on the provisions which will shortly enter into ed to a fair and inclusive energy transition for every citizen . The force and which can be found, inter alia, in the Electricity Regu- focus of the forum was on the role of consumers in the clean This year, the Forum went a little deeper into sector coupling lation and the renewable energy sources Directive . For example, energy transition, and the importance of keeping them informed and the role of energy infrastructure in the European long-term there was a detailed presentation of the rules on the definition and up-to-date on the issue . vision for a climate-neutral economy . There was a strong em- of bidding zones and cross-zonal capacity allocation, to allow phasis on regulatory support for innovation, security of supply Member States to make the choice of either tackling structural A climate of confidence is necessary for citizens to embrace the and stakeholder involvement, and on new ways of cooperation congestion by January 2020 . The objective is to achieve at least opportunities offered by the energy transition . Moreover, no-one for transmission and distribution system operators in the energy 70% availability of capacity at all borders . should be left behind . Energy poverty is a focus point for which system of the future . the right measures need to be implemented . A presentation with relevance for Belgium was given on the im- However, the proposed technology-neutral approach also means plementation of the recently drafted European framework for As an energy regulator, the CREG already gives due attention that we need to look beyond gas and/or electricity . Energy the elaboration of capacity remuneration mechanisms (CRM) . to innovative incentives through tariffs, to support biogas, alter- markets need to function optimally, which requires better The fundamental and systematic approach was noteworthy, native forms of energy, decentralised production, etc ., but the cooperation between sectors, starting with joint scenarios whereby it was clearly stated that, without adequacy prob- universal design needs more attention for all citizens . This is only and infrastructure planning . Nevertheless, the efficiency of lems, there is no room for any remuneration mechanism . The getting more complex . Spreading costs across market players the markets, which provide guidance and competitive signals, European Commission schematically illustrated how the current and over time is a continual challenge for the future . should not be put at risk by excessive infrastructure costs .

CREG Annual report 2019 89 5. The CREG

The current regulatory framework should not stand in the way the internal energy market in the event of a 'no deal' scenario consultation with the other regulators involved, decided on of innovative solutions, or should at least ensure that innova- was announced as a priority . various alternative allocation rules (in the longer and shorter tive options are taken into account . A broader view of the social term) in the event that the United Kingdom leaves the internal benefits can be an advantage here . Regulators should therefore Further close contacts were maintained with the British regu- energy market in the context of Brexit . These have not yet ensure that any new tasks and activities of system operators, lator Ofgem and the German BNetzA . In both cases, national entered into force . which are less capacity-based but more service-oriented, do not adaptations in both countries necessitated additional consulta- distort the market . tions in order to highlight the impact of these activities on the 5.6.9. The CREG and the FSMA Belgian market at the highest level . This was the case for the 5.6.8. The CREG and the other national regulators United Kingdom with regard to Brexit, and for Germany with The cooperation protocol between the CREG and the Financial regard to the merger of their natural gas market into one large Services and Markets Authority (FSMA), approved by their re- Apart from the CEER and ACER, in 2019, the CREG continued area . spective Boards of Directors in December 2016, lays down the to maintain good contacts with its regulatory counterparts in arrangements for cooperation with regard to the exchange of other countries . With regard to the neighbouring countries, it In addition to maintaining these direct bilateral contacts with information and expertise between the two bodies with a view maintained good contacts at the highest level . neighbouring colleagues, in 2019 the CREG also answered to guaranteeing the integrity and transparency of the energy questions on various topics from the Dutch, German, Romanian, markets . This agreement is important because there is more For example, together with the chairmanship of the French ener- Cypriot, French, Czech, Greek and Polish regulators or regulatory and more interaction between the REMIT Regulation and the gy regulator CRE, and thanks to the co-financing of the European institutions . financial domain . Commission, work continued on the development of Regulae .fr, the international network for French-speaking energy regulators . Above all, 2019 was marked by the further development of In 2019, the CREG made every effort to continue and expand The CREG contributed to the organisation of the fifth workshop regional and European cooperation between regulators in im- this cooperation . on the theme of renewable energy . This workshop took place plementing the European network codes and guidelines for on 2 and 3 July in Cotonou, Benin, at the invitation of the Au- electricity . For example, 16 decisions were taken within the Eu- 5.6.10. The CREG and Parliament torité de Régulation de l'Electricité (ARE) du Bénin . The general ropean Regulators Forum, which was set up to meet to the ob- meeting was held on 19 and 20 November in Luxembourg City, ligation for all national energy regulators in the European Union Over the years, the CREG has developed a constructive rela- Grand Duchy of Luxembourg, and addressed the legal and or- to take joint decisions (the 'all NRA decisions') on joint proposals tionship with Parliament and more specifically with the Energy, ganisational unbundling regulations for traditional players in the from all of the transmission system operators, the all TSO pro- Environment and Climate Commission (hereinafter "the Energy energy sector in greater detail . posals . In three of these cases, unanimity could not be achieved Commission") . Among other things, the CREG complied with and the decision was referred to ACER . requests for a hearing from this commission and, on the basis In the context of Brexit and on the basis of earlier signals from of a detailed explanation (see also point 5 .7 .2 . of this report), the institutions and Member States of the European Union, the At regional level, for the further development of harmonised its budget was adopted unanimously . Whenever the CREG was CREG continued its commitment in 2019 to consolidate the short- and long-term capacity allocation rules, the CREG is part invited by the Energy Commission to give an explanation, it was regulatory framework of the Belgian electricity and gas markets of the "Core" region (for interconnections with neighbouring thanked by members of Parliament for the high level of exper- in the event that the United Kingdom leaves the European Union countries on the mainland, i .e . France and the Netherlands) and tise provided . In conclusion, it can be stated that the CREG without an agreement . To this end, the CREG and the other of the "Channel" region (for interconnections with Great Britain) . strictly complies with its legal obligations as regards providing energy regulators of the neighbouring countries of the United In 2019, two decisions were taken in the Core region regarding information to Parliament about the funds it manages . Kingdom (i .e . France (CRE), the Netherlands (ACM), Denmark the longer-term allocation rules . In the absence of agreement (DUR), Norway (NVE) and Ireland (CRU)) have held close between the regulators, one decision on the regional design On 18 November 2019, for the first time, the CREG organised consultations with the European Commission in order to clarify of long-term transmission rights was referred to ACER . In the a study afternoon with the members of parliament of the Ener- various issues relating to existing or planned interconnections Channel region, three joint decisions were taken in application gy Commission at its premises . The CREG presented the main with the United Kingdom . The continuity of the functioning of of the CACM and FCA Regulations . In addition, the CREG, in lines of its work and explained its functioning . The presentations

90 CREG Annual report 2019 5. The CREG were enriched by various presentations by the members of within CEER and ACER . This working group concentrates on of the general cooperation between the two authorities and the parliament on the different themes . The two institutions were the optimal general workflow of European dossiers between REMIT Regulation as themes .187 therefore able to come together in a more informal framework, the various working groups that are part of Forbeg and the four allowing genuine dialogue to take place . regulators themselves . As in previous years, the focus was Informal contacts between the CREG and the BMA also took on the topics discussed at the various European forums, the place in 2019, as well as formal contacts for the matters men- Following this study afternoon and at the request of the members General Assembly within CEER and the Board of Regulators tioned above . of parliament to structure the meetings with the CREG in such a within ACER . The new market design for electricity, as set way as to enable them to ask questions on topical issues more out in the legislative package "Clean Energy for all Europeans" ■ Merger case INEOS – RWE Generation Belgium NV (CHP frequently than during the presentation of the general policy published by the European Commission on 14 June 2019, was Inesco) paper which takes place once a year, the CREG undertook to the common thread in all meetings . organise new study days/half-days on a specific subject at the On 15 February 2019, the Competition Board of the BMA ap- request of the Energy Commission . The Distribution Systems Working Group (DS WG) aims to in- proved the acquisition of RWE Generation Belgium by INEOS form the regional regulators of the activities of the CEER DS Oxide . In 2018, the CREG had responded to a request for infor- 5.6.11. The CREG and the regional regulators WG, present the documents that are on the agenda to the re- mation from the BMA in the context of this takeover . gional regulators so that these can submit comments on these The CREG's informal collaboration with the three regional documents, thereby improving the information exchange be- ■ CREG report on the relationship between costs and prices on regulators (BRUGEL, CWaPE and VREG) continued in 2019 tween the Belgian and the European regulators . In 2019, the the Belgian natural gas market in 2018 within Forbeg . Six plenary sessions were held . The CREG working group convened eight times and continued discussions acted as Chair in the first semester and BRUGEL in the second on the work of CEER DS WG (see point 5 .6 .3 . of this report) . As part of its role to permanently monitor the gas market, the semester . The CREG chaired the 'Information Exchange', CREG issued a report on the relationship between costs and 'Europe' and 'Distribution System' working groups . The CREG also took part in the "gas", "electricity", "tariffs", "re- prices on the Belgian natural gas market in 2018188 and submit- newable energy sources" and "consumers" working groups set ted this to the Belgian Competition Authority in particular . In 2019, the 'information exchange' working group continued its up within Forbeg . work on the editing of the joint annual publication of the four 5.6.13. The CREG and Belgian universities regulators on the evolution of the Belgian energy market . On the 5.6.12. The CREG and the competition authorities basis of a statistical overview of the electricity and natural gas In the framework of its strategic objectives, the CREG regularly markets, the regulators wish to present the evolution of these ■ General collaboration between the CREG and the Belgian works together with Belgian universities, by participating in col- markets and of competition in Belgium . The working group is Competition Authority loquia and scientific activities . also responsible for filling in the ACER and CEER questionnaires on the indicators of the gas and electricity market . The working As set out in the 2018 annual report, general cooperation be- Since 2015, it has also awarded an annual prize for the most group also carried out the Monitoring Reports of the same tween the CREG and the Belgian Competition Authority (BMA) innovative Master's thesis based around energy . In this way, organisations, meaning that data was collected from the four was formalised on 3 December 2017 in a Royal Decree . In im- the CREG aims to support and encourage developments in the regulators in view of providing indicators for Belgium . plementation of this Royal Decree, systematic cooperation was energy sector . Each winner receives €2,500 and the possibility set up between the CREG and the BMA . of undertaking an internship at the CREG . The 'Europe' working group met four times in 2019 . This working group provides a formal framework that enables the CREG to In this context, the second annual meeting between the two au- On 17 May 2019, the two winners for 2018 and their promoters perform its tasks as national regulator and represent Belgium thorities took place in 2019 with the issues set out in the context were invited by the CREG to receive their prize . The winners

187 Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency. 188 Report (RA)2021 of 14 November 2019 on the relationship between costs and prices on the Belgian natural gas market in 2018.

CREG Annual report 2019 91 5. The CREG

are Arthur Schillemans for his thesis entitled "Optimal bidding • Financing the funds The same natural gas companies also made degressivity re- strategies for large-scale energy storage system owners" imbursement applications totalling €17,102,978 . Additionally, (Katholieke Universiteit Leuven) and Adriano Arrigo for his The expected annual amounts of the federal contribution are an amount of €1,311,073 in federal contributions, not paid to thesis entitled "A technical survey on optimal power flow under made up of the basic amount for each fund for the current year the CREG by the direct pipeline operator due to the granting of uncertainty: An extended out-of- sample analysis" (Universiteit as well as any possible amount to take account of the previous degressivity measures to their customers, was requested from van Bergen) . years' shortfall/surplus and cover the various exemptions . the FPS Finance to be split between the various funds .

5.7. The finances of the CREG Overall, the revenues from the federal natural gas contribution Finally, five end customers with a consumption location for recorded in 2019 were clearly higher than the expected amounts, which a separate bill was issued by different suppliers submitted 5.7.1. Federal contribution in particular due to the general increase in the volume of natural an application to the CREG for adjustment based on the degres- gas consumed (mainly by industry) in 2019 compared to the sivity measure from which they had benefited in 2018 . In total, The federal contribution is a surcharge levied on the quantity of reference volume (2017) used to calculate the federal natural the CREG reimbursed €2,398,463 to them . electricity and natural gas used in Belgium 189. The contribution gas contribution 2019 . is used to supply the various funds run by CREG (see section On the basis of the general resources of the state budget, in 5 .7 .2 hereof) . • Exemptions and degressivity 2019 the FPS Finance made an advance of €20,575,000 available to the CREG to cover the above-mentioned applications for In December 2019, in accordance with the regulations190, the The complete federal contribution was invoiced by Fluxys Bel- reimbursement of degressivity . The shortfall of €237,514 will CREG calculated and published the unit surcharges of the vari- gium or shippers to the natural gas companies, but these com- be added by the FPS Finance to the amount requested by the ous components of the federal electricity and gas contribution panies cannot recover the full amount from their end customers, CREG in 2020 . to be applied from 1 January to 31 December 2020 . since some benefit from a reduction (degressivity) or even an exemption . The legislation specifies in this context that they can • Irrecoverables A . Federal natural gas contribution ask the CREG every quarter to repay the difference between the federal contribution they paid to Fluxys Belgium or shippers and In 2019, the legal flat-rate increase of 0 .7% earmarked to cover Each quarter, the natural gas transmission system operator what they received from their customers . natural gas companies against federal contributions that they (Fluxys Belgium) and the operators of a direct pipeline191 have to have been unable to recover from their customers due to non- pay the federal contribution for which they had previously billed For example, in 2019, the CREG reimbursed natural gas com- payment, generated an amount of €174,995, which, at the end their customers to the CREG . In 2019, these companies also panies a total of €18,970,382 on the one hand, corresponding of the year, was distributed between the funds financed by the directly financed the CREG fund, the social energy fund, and the to the exemption from the federal contributions for natural gas federal natural gas contribution . protected clients fund . destined for the generation of electricity injected into the system (electricity power plants and quality cogeneration units), B . The federal electricity contribution For their part, the natural gas companies that offered their cus- and €208,973 on the other, which corresponds to the exemption tomers discounts (degressivity and exemptions) submit their from the federal contribution granted to the international insti- The electricity transmission system operator (Elia System Oper- applications for reimbursement to the CREG on a quarterly basis tutions . These reimbursements were made using the available ator, hereinafter Elia) pays the contribution it has billed to its cus- (see below) . means in the various funds . tomers the previous quarter to the CREG on a quarterly basis . In

189 In accordance with the international agreements, international institutions, which include European institutions as well as diplomatic assignments, consular posts, international organisations and armed forces located in Belgium, are completely exempt. 190 In particular: (1) the Royal Decree of 17 December 2019 amending the Royal Decree of 24 March 2003 setting the federal contributions destined for the financing of certain public service obligations and costs related to the regulation and control of the electricity market and the Royal Decree of 2 April 2014 laying down the rules for the federal contribution destined for the financing of certain public service obligations and costs related to the regulation and control of the natural gas market (Belgian Official Gazette of 24 December 2019). This decree sets the amount earmarked for the greenhouse gas fund, for 2020, at 0 euros and extends the freezing of the amount earmarked for the social energy fund. In this context, on 4 December 2019 the CREG submitted to the Minister its opinion (A)2029 on the draft of the Royal Decree and (2) the Royal Decree of 20 December 2019 determining the amounts for 2020 of the funds earmarked to finance the actual costs resulting from the application of price caps for electricity and natural gas supply to protected residential customers (Belgian Official Gazette of 27 December 2019). 191 On 31 December 2019 Wingas was the only operator of a direct pipeline in Belgium.

92 CREG Annual report 2019 5. The CREG

2019 Elia financed the CREG funds, the social energy fund, the amounts of the federal contribution for electricity collected . The exemption from it, as is the case for the international institu- denuclearisation fund and the protected customers fund . Due following amounts were paid into the federal contribution funds: tions . In this context, the legislation provides that they can re- to the emptying of the greenhouse gas fund (see point 5 7. .2 .D quest from the CREG every quarter a refund of the difference below), Elia did not make any contribution to this fund in 2019 . Table 16: Distribution among the funds managed by the CREG between the federal contribution paid to Elia and the distribu- of the excess amounts collected from the federal tion system operators and what they have received from their For their part, the electricity companies that offered their end contribution for electricity from the distribution system customers . customers discounts (degressivity and exemption) submit their operators (€) (Source: CREG) applications for reimbursement to the CREG on a quarterly basis Funds Distribution of the amounts In 2019, the CREG also repaid a total of €673,962 in federal (see below) . CREG 901,627 contributions to the electricity companies that they were una- Denuclearisation 6,244,277 ble to invoice to international institutions using the resources In the course of 2019, the CREG received questions and com- Greenhouse gases 0 available in the various funds . They were repaid €18,163,697 ments from a number of market players on the way in which, Social energy 2,876,452 in the context of reductions (degressivity) granted to their Protected customers 10,075,462 among other things, the federal contribution for electricity should customers . This amount was due to the fact that the request TOTAL 20,097,818 be invoiced correctly . For this reason, it developed guidelines to for regularisation of an end customer194 with a consumption respond to the requests for clarification from the market players location for which a separate invoice was issued by different concerned . These guidelines serve to guarantee that the federal The CREG has included these amounts (in full or in part) in suppliers . contribution for electricity is invoiced and collected in a correct, its calculation of the unit amounts of the federal contribution non-discriminatory and uniform manner on Belgian territory 192. 2020 . Additionally, an amount of €41,227,700 in federal contributions, not paid to the FPS Finance by Elia due to the granting of de- • Financing the funds As a result of the above-mentioned regularisation, the pro- gressivity measures to some of their customers, was request- ceeds of the federal contribution for electricity in 2019 were ed to be split between the various electricity funds . The expected annual amounts of the federal contribution are 11 .7% higher than the expected amounts for all funds com- made up of the basic amount for each fund for the current year bined . Without this regularisation, they would have been only On the basis of the general resources of the state budget, in as well as any possible amounts destined to take account of 0 .2% higher than expected . 2019 the FPS Finance made an advance of €61,800,000 avail- the previous years' shortfall/surplus and cover the exemptions able to the CREG to cover all applications for reimbursement enjoyed by the international institutions . Finally, it should be emphasised that there is no implementing of the degressivity . An amount of €2,408,169 was ultimately decree for the statutory exemption which should have been not used and will be deducted by the FPS Finance from the Since 1 January 2018, the DSOs have invoiced the federal contri- granted to storage facilities since 1 January 2018193, whereas amount requested by the CREG in 2020 . bution to electricity by using the values published by the CREG the CREG had anticipated this exemption when calculating the without changing them, on all the quantities of electricity they 2019 federal contribution . • Irrecoverables have transported, including decentralised generated electricity injected directly into their systems . In 2019, at the time of the • Exemption and degressivity In 2019, the legal flat-rate increase of 0 .7% earmarked to cover annual closure of the 2018 accounts, the DSOs sent the CREG electricity companies against federal contributions that they have the certified statement of the difference between their revenue Electricity companies were charged the full federal contribu- been unable to recover from their customers in previous years and costs from the 2018 federal contribution . For the first time, tion by Elia and the distribution system operators, while they due to non-payment, generated an amount of €176,630, which, at the CREG, together with the DSOs, regularised the excess cannot recover the full amount from their end customers the end of the year, was distributed between the funds financed since some benefit from a reduction (degressivity) or even an by the federal electricity contribution .

192 Guidelines (R)2042 of 20 December 2019 for the invoicing and collection of the federal "electricity" contribution. 193 See Annual Report 2017, point 5.8.1.B. 194 A second end customer for which the CREG approved the repayment, provided that the certification of the amount requested was transferred, waived the reimbursement because of the cost and the work that this certification would entail.

CREG Annual report 2019 93 5. The CREG

A number of electricity companies were unable to recover their However, for the calculation of the unit value of the CREG In the end, in 2019 a total net revenue of €33,644,517 for elec- customers' defaults from the CREG because the amounts of irre- surcharge, this amount was supplemented by €18,383 and tricity and €21,582,630 was recorded for natural gas in this fund . coverables had not been certified by an auditor or an accountant, €10,834 with a view to reimbursing the electricity and natural as required by Royal Decree . gas companies of the exemptions granted to the international In addition to the transfer of the fourth payment for 2018 institutions . On the other hand, the electricity and natural gas (€13,222,573) to the PCSWs, the cash balance of the fund al- C . Offshore surcharge profits for the 2017 financial year were deducted from the lowed for the full payment of the first three amounts for 2019, amount to be covered by the federal contribution, in order to requested by the FPS Social Integration (€39,683,016) . This surcharge levied by Elia to its end customers and electricity be reimbursed to the end customers 195. companies, who then pass it on to their own customers, is On 31 December 2019, the assets of the fund totalled intended to offset the costs borne by Elia due to its obligation The CREG accounts for 2019 are set out in detail in point 5 .7 .3 €29,758,423 . As such, the CREG will be able to pay the full fourth to purchase the green certificates granted to electricity below . instalment for 2019 to the PCSWs at the end of January 2020 . generation in the North Sea . B . Social Energy Fund C . Denuclearisation Fund The CREG is responsible for reimbursing Elia and the electricity companies who granted their customers degressivity on this For 2019, the frozen amount of €52,890,292 (€30,750,170 This fund is financed exclusively by the federal contribution surcharge . In 2019, the CREG reimbursed them €50,959,186 from the electricity sector and €22,140,122 from the natural charged by the electricity sector . It needed to be €69,000,000196 and €86,992,051 respectively . To these amounts must be added gas sector) is envisaged to help the public centres for social for the year 2019, to which was added €124,128 to offset the the requests from two end customers with a consumption site welfare in their task of providing guidance and financial social exemption for the international institutions . whose invoices were invoiced separately by different suppliers support in the area of energy . in 2018 . They were reimbursed a total of €414,678 in offshore Thanks to the €6,244,277 extraordinary income from the degressivity . By Law of 20 December 2019, published in the Belgian Official regularisation with the distribution system operators (see Gazette on 30 December 2019, the legislator decided not to point 5 .7 .1 .B above), a total net income of €74,108,489, which On the basis of the general resources of the state budget, ratify the extension of the freeze on the above amounts for the exceeded requirements, could be booked in the fund in 2019 . in 2019 the FPS Finance made an advance of €134,500,000 year 2019, as originally provided for by the Royal Decree of 19 available to the CREG to cover the above-mentioned applica- December 2018 . This enabled the CREG to deposit the full amount for 2019 tions for reimbursement of the degressivity . The shortfall of to ONDRAF/NIRAS 2019 and to carry out the repayments of €3,865,915 will be added by the FPS Finance to the amount The framework of the resulting regularisation has yet to be deter- exemptions granted to the international institutions for a total requested by the CREG in 2020 . mined by the legislator . amount of €214,139 .

5.7.2. Funds This amount, to be covered by the federal contribution, is On 31 December 2019, the assets of the fund totalled supplemented by €58,224 and €54,955 respectively in order €5,015,328 . A . CREG Fund to reimburse the exemptions allocated to the international institutions . In addition, € 5,000,000 is deducted from the At its plenary session of 20 December 2018, the Chamber envelope from the natural gas sector in order to correct the of Representatives set the amount intended for the partial distribution of the financing of the fund between this sector and financing of the operating costs of the CREG for 2019 at the electricity sector . €15,075,561 .

195 See Annual Report 2017, point 5.8.3. 196 The Royal Decree of 19 December 2018 (Belgian Official Gazette of 28 December 2018) setting the amounts provided for the financing of the denuclearisation fund was ratified by a Law of 20 December 2019 (Belgian Official Gazette of 27 December 2019).

94 CREG Annual report 2019 5. The CREG

D . Greenhouse Gas Fund E . The protected customers funds for electricity and natural gas allocation for the fund's balance, the CREG will continue to manage it . Despite the lack of revenues in the greenhouse gas fund197 and For the year 2019198 the needs of these funds totalled thanks to the resources still available in the fund, the statutory €106,534,893 for electricity and €55,702,504 for natural gas, G . Fund to offset the loss of income suffered by the municipalities fixed amount of €3,600,000 relating to the year 2019 was paid to which €199,861 and €155,179 must be added, respectively, to the general Environment Directorate of the FPS Public Health, for the reimbursement of the exemptions of the international The fund, which has been completely inactive for several years, Food Chain Safety and Environment (hereinafter "AD Environ- institutions . had an unchanged balance of €578,691 on 31 December 2019, ment") to finance the federal policy to reduce greenhouse gas which corresponds to the interest received since 2005 . As long emissions . A net total revenue of €117,228,887 was recorded for the elec- as no legal allocation of the balance of the fund is available, it tricity fund . For natural gas a net total revenue of €70,188,826 cannot be closed and the CREG will continue to manage it . In addition, the greenhouse gas fund also pre-financed, through was recorded . quarterly instalments, the €14,490,000 corresponding to the 5.7.3. Accounts 2019 VAT due on the annual amount intended for ONDRAF/NIRAS . In 2019 the reimbursements for the sector's companies who The VAT authorities refunded the CREG for the amount of these supplied the protected household customers at the social tariff in The specific revenue from the federal contribution for electricity quarterly advances . 2018 amounted to €105,155,502 for electricity and €74,262,301 (€11,071,649) and the federal contribution for natural gas for natural gas . All energy companies were reimbursed as soon (€5,602,667) exceeded the expected amounts of 6 .3% and On 31 December 2019, the assets of the fund totalled as their files were approved (in full or in part) by the CREG . 19 7%. respectively . €40,484,011 . On 31 December 2019 the assets of the two funds totalled To this is added an amount of €200,770 (€121,606 for the • Kyoto JI/CDM Fund €42,902,284 for electricity and €33,227,499 for natural gas . electricity sector and €79,164 for the natural gas sector) . This These two amounts are a first financing of the funds with a amount is made up of the revenue from irrecoverables and sup- The Kyoto Joint Implementation/Clean Development Mecha- view to the next reimbursements in October 2020 . ply licences directly linked to the revenue from the electricity nism fund, which is also managed by the CREG, collects the and natural gas sectors and the miscellaneous and exceptional amounts originating from the greenhouse gas fund specifically F . The fund for flat-rate reductions for natural gas and electricity revenue and financial income of which 69% comes from the allocated to the financing of greenhouse gas reduction projects heating electricity sector and 31% from the natural gas sector . that allow Belgium to achieve its objectives under the Kyoto Protocol . This fund, also known as the heating premium fund, has been The total proceeds are therefore €11,193,255 for the electricity abolished from the Electricity Act, but remains included in Ar- sector and €5,681,831 for the natural gas sector . This In 2019, the AD Environment did not use the fund to purchase ticle 3, §6 of the above-mentioned Royal Decree of 24 March corresponds to total revenues of €16,875,086 . CO2 emission credits . 2003 . The total expenditure of the CREG for the financial year 2019 On 31 December 2019, the assets of the fund totalled However, in 2012, no amount was called up and no regularisa- amounted to €14,415,804, a decline of 1 .6% compared to 2018 . €14,972,767 . tion for the past was made . The subtotal of personnel costs fell overall by 3 .2% compared On 31 December 2019 the assets of the fund amounted to 2018 . This decrease is due in part to the fact that the Chair- to €24,404,014 split up into €16,810,476 for electricity and woman of the CREG Board of Directors, who resigned at the €7,593,538 for natural gas . As long as there is no regulatory end of 2018, was not replaced in 2019 and that the replacement

197 The Royal Decree of 19 December 2018 (Belgian Official Gazette of 28 December 2018) setting the amounts provided for the financing of the greenhouse gas fund - € 0 for 2019 - was ratified by the above-mentioned Law of 20 December 2019. 198 Royal Decree of 21 December 2018 determining the amounts for 2019 of the funds destined to finance the actual costs resulting from the application of maximum prices for electricity and natural gas supply to protected residential customers (Belgian Official Gazette of 31 December 2018). This Royal Decree was confirmed by the above-mentioned Law of 20 December 2019.

CREG Annual report 2019 95 5. The CREG

of several experienced experts, who retired in 2018 and 2019, The balance of the 2019 revenues will then be returned to end In 2019, the FPS Policy and Support asked all bodies, including was delayed . customers and deducted from the amount to be financed by the the CREG, to include the 2018 holiday pay and the provision for revenue from the federal contribution for electricity and natural the 2019 holiday pay (which will only be paid in 2020) in their On the other hand, the subtotal of operating expenses increased gas at the time of the next calculation of the CREG surcharge 2019 budget . As a result, a commitment and a clearance of overall by 5 .6% compared to 2018, primarily as a result of the for electricity and natural gas (2021 surcharge calculated in De- €1,270,414 must be added to the amounts in the table . increase in costs for external experts to, e .g ., carry out technical cember 2020) . and legal studies and the communication service . Differentiated appropriations still open on 31 December 2019 As of 31 December 2019 the balance sheet total consolidated totalled €942,765 (ICT infrastructure, software development, The cost of legal assistance, on the other hand, fell . Several with the funds was €206,356,585 . studies, legal advice, recruitment, communication service and claims that had been filed against the CREG in recent years had training) . This amount consists of differentiated appropriations a favourable outcome for the CREG . The following tables provide a summary of the budget accounts of previous years still open at the close of the financial year 2019 for expenditure and revenue: (€243,705) and of the financial year 2019 (€699,060) . General expenses and depreciation remain fairly stable compared to 2018 . Table 17: Summary of the 2019 budget accounts in expenditure (€) Table 18: Summary of the 2019 budget accounts in revenue (€) (Source: CREG) (Source: CREG) As such, financial year 2019 therefore closed with an overall sur- Budget 15,075,561 Budget 13,735,042 plus of the revenues received by the CREG in relation to the Commitments 14,751,454 Entitlements 15,502,072 costs of €2,359,282 (€1,177,350 for the electricity sector and Clearances 14,052,394 Clearances 15,502,072 €1,181,932 for the natural gas sector) . Differentiated appropriations 699,060 Overall, the CREG's revenue for 2019 was 12 .9% higher than Thanks to this surplus, the electricity and natural gas reserves199 The CREG budget for 2019 was set at €15,075,561 . Commit- expected . were brought up to a level of €12,762 and €5,734 respectively . ments for a total amount of €14,751,454 therefore correspond to 97 .85% of the budget .

199 As the budget for the year 2019 has been approved with an increase of €123,307, the electricity and natural gas reserves need to be adjusted.

96 CREG Annual report 2019 5. The CREG

Table 19: Income statement as at 31 December 2019 (€) (Source: CREG) 2019 2018 Personnel costs 11,809,636 12,183,030 Salaries and charges 11,293,957 11,970,924 Variation provisions for indemnities for outgoing Members of the Board of Directors 179,082 -70 .218 Variation in provisions for holiday bonuses -64,032 -74,386 Temporary staff 46,102 0 Recruitment costs 37,988 16,852 Training, seminars 61,571 66,755 Leasing, company cars 254,968 273,104 Bodies 15,246 29,567 Remuneration of Gas and Electricity Advisory Board 15,246 29,567 "Personnel costs" sub-total 11,824,882 12,212,597 External experts 598,993 462,127 External studies 352,171 151,190 Communication service 63,433 54,678 Translators, Auditor, Social Secretariat 128,517 104,428 Legal fees relating to lawsuits 54,872 151,831 General costs 1,872,137 1,870,342 Rent and charges for premises 838,082 828,560 Parking facilities 61,153 70,676 Building maintenance and security 121,556 125,821 Equipment maintenance and servicing 230,781 145,745 Documentation 121,425 142,129 Telephone, post, Internet 38,553 40,578 Office supplies 6,679 7,334 Meetings and representation costs 83,074 94,586 Travel expenses (including abroad) 42,723 71,416 Membership of associations 46,088 44,051 Insurance, taxes and sundry costs 282,023 299,448 Amortisations 213,836 208,939 Depreciation on tangible fixed assets 213,836 208,939 Financial costs 5,957 6,388 Other 5,957 6,388 "Other operating costs" sub-total 2,690,923 2,547,796 TOTAL CHARGES 14,515,804 14,760,393 Income (surcharges and fees) 14,351,048 14,725,017 Federal contribution electricity and natural gas 16,655,820 15,913,215 Transfer of irrecoverable funds - natural gas and electricity 16,514 19,069 CREG adjustment - electricity, year n –1,164,588 -171,758 CREG adjustment - natural gas, year n –1,176,197 -1,047,510 Other fees 19,500 12,000 Financial income 116 58 Income from current assets 92 58 Other financial income 24 0 Extraordinary income 164,640 35,318 Other extraordinary income 164,640 35,318 TOTAL INCOME 14,515,804 14,760,393 RESULT FOR THE FINANCIAL YEAR 0 0

CREG Annual report 2019 97 5. The CREG

Table 20: Balance sheet as of 31 December 2019 (€) (Source: CREG) ASSETS 2019 2018 FIXED ASSETS Intangible and tangible fixed assets 301,241 311,277 Building refurbishment 103,123 94,537 Furniture and vehicles 45,472 58,976 IT and telephone equipment 152,646 157,764 Financial fixed assets 870 295 Various guarantees 870 295 CURRENT ASSETS Amounts receivable within one year 1,443,949 614,210 Trade receivables 260,718 19,996 Funds receivables 1,183,231 594,214 Cash at bank and in hand 204,106,537 199,651,041 The CREG Fund 9,682,717 8,807,195 Social Energy Fund 29,673,841 27,356,045 Greenhouse Gas Fund 40,484,011 44,084,002 Denuclearisation Fund 4,960,450 203,243 Kyoto JI/CDM Fund 14,972,767 14,972,767 Protected Customers Fund - Electricity 33,048,156 31,315,679 Protected Customers Fund - Natural Gas 42,813,736 36,501,251 Municipalities Fund 578,691 578,691 Heating Grant Fund 24,404,014 24,404,014 Federal Contribution Fund 0 18 Electricity Degressivity Fund 2,490,112 2,729,870 Offshore Degressivity Fund 138,866 7,060,929 Natural Gas Degressivity Fund 404,160 1,106,797 Irrecoverable Fund - Electricity 296,036 367,744 Irrecoverable Fund - Natural Gas 158,076 161,213 Cash 904 1,584 Accruals 503,989 393,515 TOTAL ASSETS 206,356,586 200,970,339

98 CREG Annual report 2019 5. The CREG

LIABILITIES 2019 2018 EQUITY Profit brought forward 1,314,222 1,314,222 CREG sector reserve 2,261,334 2,242,838 Electricity 1,560,320 1,547,558 Gas 701,014 695,280 PROVISIONS Compensation for outgoing members of the Board of Directors 650,849 471,767 AMOUNTS PAYABLE Amounts payable within one year 6,524,034 5,505,036 Trade debts 4,054,268 2,964,933 Taxes, salaries and social charges payable 2,469,766 2,540,103 Various debts 195,606,147 191,436,476 Social Energy Fund 29,758,423 27,436,625 Greenhouse Gas Fund 40,484,011 44,084,002 Denuclearisation Fund 5,015,328 270,074 Kyoto JI/CDM Fund 14,972,767 14,972,767 Protected Customers Fund - Electricity 42,902,284 31,426,688 Protected Customers Fund - Natural Gas 33,227,499 36,632,804 Municipalities Fund 578,691 578,691 Heating Grant Fund 24,404,014 24,404,014 Federal Contribution Fund 0 18 Electricity Degressivity Fund 3,128,780 2,729,870 Offshore Degressivity Fund 138,866 7,060,929 Natural Gas Degressivity Fund 404,160 1,106,797 Irrecoverable Fund - Electricity 403,041 517,578 Irrecoverable Fund - Natural Gas 188,283 215,620

Accruals 0 0 TOTAL LIABILITIES 206,356,586 200,970,339

CREG Annual report 2019 99 5. The CREG

5.7.4. Auditor’s report on the annual accounts for the responsibilities under those standards are further described Misstatements can arise from fraud or error and are considered year ended 31 December 2019 in the ‘Auditor's responsibilities for the audit of the annual ac- material if, individually or in the aggregate, they could counts' section in this report. We have complied with all the reasonably be expected to influence the economic decisions In accordance with the assignment entrusted to us by the Man- ethical requirements that are relevant to the audit of annual ac- of users taken on the basis of these annual accounts. agement Board pursuant to Article 31, §1 of the internal rules counts in Belgium, including those concerning independence. dated 4th December 2015 of the Commission for Electricity and When executing our audit, we respect the legal, regulatory Gas Regulation (in short “the Commission”), we hereby present We have obtained from the Management Board and the and normative framework applicable for the audit of annu- our statutory auditor’s report. It includes our report on the audit officials of the Commission the explanations and information al accounts in Belgium. However, a statutory audit does not of the annual accounts as well as our report on the other legal necessary for performing our audit. guarantee the future viability of the Commission, neither the and regulatory requirements. This report is an integrated whole efficiency and effectiveness of the management of the Com- and is indivisible. We believe that the audit evidence we have obtained is suffi- mission by the Management Board. cient and appropriate to provide a basis for our opinion. We have been appointed as auditor by the Management Board As part of an audit in accordance with ISAs, we exercise on 9 March 2018. We have performed the legal audit of the Responsibilities of the Management Board for the drafting professional judgment and maintain professional skepticism Commission’s annual accounts for 20 consecutive years. of the annual accounts throughout the audit. We also:

REPORT ON THE ANNUAL ACCOUNTS The Management Board is responsible for the preparation of • Identify and assess the risks of material misstatement of annual accounts that give a true and fair view in accordance with the annual accounts, whether due to fraud or error, design Unqualified opinion the financial reporting framework applicable in Belgium, and for and perform audit procedures responsive to those risks, and such internal control as the Management Board determines is obtain audit evidence that is sufficient and appropriate to pro- We have audited the annual accounts of the Commission, which necessary to enable the preparation of annual accounts that are vide a basis for our opinion. The risk of not detecting a mate- comprise the balance sheet as at 31 December 2019, the profit free from material misstatement, whether due to fraud or error. rial misstatement resulting from fraud is higher than for one and loss account for the year then ended to the annual accounts, resulting from error, as fraud may involve collusion, forgery, characterised by a balance sheet total of 206,356,586 EUR and In preparing the annual accounts, the Management Board is re- intentional omissions, misrepresentations, or the override of the profit and loss account stands at 0 EUR, in accordance with sponsible for assessing the Commission’s ability to continue as a internal control; the Royal Decrees of 24 March 2003 and of 2 April 2014 relating going concern, disclosing, as applicable, matters related to going to the financing of the Commission, with the total income and concern and using the going concern basis of accounting unless • Obtain an understanding of internal control relevant to the charges standing at 14,515,804 EUR. the Management Board has no realistic alternative but to do so. audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing In our opinion, the annual accounts give a true and fair view of Auditor’s responsibilities for the audit of the annual an opinion on the effectiveness of the Commission’s internal the Commission’s net equity and financial position as at 31 De- accounts control; cember 2019, as well as of its results for the year then ended, in accordance with the financial reporting framework applicable Our objectives are to obtain reasonable assurance about • Evaluate the appropriateness of accounting policies used and in Belgium. whether the annual accounts as a whole are free from the reasonableness of accounting estimates and related dis- material misstatement, whether due to fraud or error, and to closures made by the Management Board; Basis for unqualified opinion issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee • Conclude on the appropriateness of the Management Board’s We conducted our audit in accordance with International that an audit conducted in accordance with ISAs will always use of the going concern basis of accounting and, based on the Standards on Auditing (ISAs) as applicable in Belgium. Our detect a material misstatement when it exists. audit evidence obtained, whether a material uncertainty exists

100 CREG Annual report 2019 5. The CREG

related to events or conditions that may cast significant doubt Responsibilities of the auditor Other statements on the Commission’s ability to continue as a going concern. In the context of our mandate and in accordance with the If we conclude that a material uncertainty exists, we are re- Belgian standard (version revised in 2020) which is comple- • Without prejudice to certain formal aspects of minor impor- quired to draw attention in our auditor’s report to the related mentary to the International Standards on Auditing (ISAs) as tance, the accounting records are maintained in accordance disclosures in the annual accounts or, if such disclosures are applicable in Belgium, our responsibility is to verify, in all ma- with the general rules of the Law of 22 May 2003 on the inadequate, to modify our opinion. Our conclusions are based terial aspects, the other information contained in the annual organisation of the budget and the accounting of the federal on the audit evidence obtained up to the date of our auditor’s report, as well as the legality, with respect to the “Gas” Act, State and with the Royal Decree of 10 November 2009 fixing report. However, future events or conditions may cause the the “Electricity” Act as well as their implementing decrees, of the chart of accounts applicable to the federal State, Commu- Commission to cease to continue as a going concern; the operations to recognise in the accounts, and to report on nities, Regions and the Joint Community Commission. these matters. • Evaluate the overall presentation, structure and content of • As at 31 December 2019, the Commission has entered the annual accounts and whether the annual accounts repre- Aspects related to the other information included in the into commitments for an amount of: 942,764.49 EUR. sent the underlying transactions and events in a manner that annual report These commitments do not appear in the accounts as they achieves fair presentation. don’t constitute debts. In the context of our audit of the annual accounts, we are We communicate with the Management Board regarding, also responsible for considering, in particular based on the • We have not noted any breaches of the “Electricity” and among other matters, the planned scope and timing of the au- knowledge we have obtained during the audit, whether the “Gas” Acts or their implementing decrees as regards dit and significant audit findings, including any significant defi- information disclosed in the annual report under the title transactions booked in the accounts of the Commission. ciencies in internal control that we identified during our audit. “CREG finances” contains any material misstatement, i.e. any information which is inadequately disclosed or otherwise Brussels, 14 February 2020 OTHER LEGAL AND REGULATORY REQUIREMENTS misleading. Based on the procedures we have performed, there are no material misstatements we have to report to you. Responsibilities of the Management Board Statement related to independence The Management Board is responsible for the preparation and the content of the additional information contained in the an- Our audit firm and our network did not provide services nual report, as well as for the compliance with the legal and which are incompatible with the audit of annual accounts, as BDO Réviseurs d’Entreprises SCRL regulatory requirements regarding the bookkeeping of the defined by the “Electricity” Act, and our audit firm remained Represented by Christian SCHMETZ Commission and the compliance with the Law of 12 April 1965 independent of the Commission during the terms of our Auditor on the transmission of gaseous and other products by pipeline mission. (the “Gas” Act), the Law of 29 April 1999 on the organisation of the electricity market (the “Electricity” Act) and their implementing decrees.

CREG Annual report 2019 101 5. The CREG

5.8. List of acts drawn up by CREG in 2019

(B)656G/39 Décision sur les modalités finales de détermination des incitants pour Fluxys Belgium SA au cours de la période 2020-2023 25 .04 .2019 Beslissing over de finale modaliteiten van de bepaling van de stimulansen voor Fluxys Belgium NV in de periode 2020-2023 (B)656G/40 Decision on the amended tariff proposal of Fluxys Belgium SA for transmission tariffs for 2020-2023, as well as on the discounts, multipliers and seasonal factors applicable 07 .05 .2019 to the tariffs of the natural gas transmission network of Fluxys Belgium SA for the period 2020-2023 Décision sur la proposition tarifaire amendée de Fluxys Belgium SA relative aux tarifs de transport pour les années 2020-2023, ainsi que sur les rabais, multiplicateurs et facteurs saisonniers applicables aux tarifs de réseau de transport de gaz naturel de Fluxys Belgium SA pour la période 2020-2023 Beslissing over het aangepast tariefvoorstel van Fluxys Belgium NV over de vervoerstarieven voor de jaren 2020-2023, alsook over de kortingen, multiplicatoren en seizoensfactoren van toepassing op de aardgasvervoersnettarieven van Fluxys Belgium NV voor de periode 2020-2023 (B)656G/41 Décision sur le rapport tarifaire adapté incluant les soldes introduit par la SA Fluxys Belgium concernant l'exercice d’exploitation 2018 11 .07 .2019 Beslissing over het aangepast tariefverslag met inbegrip van de saldi ingediend door Fluxys Belgium NV met betrekking tot het boekjaar 2018 (B)656G/42 Décision sur la redevance d’équilibrage à des fins de neutralité et la valeur du petit ajustement 25 .10 .2019 Beslissing over de neutraliteitsheffing voor balancering en de waarde van de kleine aanpassing (B)656G/43 Décision sur la proposition tarifaire amendée de Fluxys Belgium SA relative aux tarifs des services de stockage pour les années 2020-2023 20 .12 .2019 Beslissing over het aangepast tariefvoorstel van Fluxys Belgium NV over de tarieven van de opslagdiensten voor de jaren 2020-2023 (B)657G/16 Décision sur le rapport tarifaire incluant les soldes introduit par la SA Fluxys LNG concernant l'exercice d’exploitation 2018 11 .07 .2019 Beslissing over het tariefverslag met inbegrip van de saldi ingediend door de NV Fluxys LNG voor het exploitatiejaar 2018 (B)657G/17 Décision sur la proposition tarifaire actualisée de la SA Fluxys LNG relative aux tarifs pour l’utilisation du terminal méthanier de Zeebrugge 27 .06 .2019 Beslissing over het geactualiseerde tariefvoorstel van Fluxys LNG NV met betrekking tot de tarieven voor het gebruik van de methaangasterminal van Zeebrugge (B)658E/55 Décision sur les modalités de détermination des incitants destinés à l’amélioration des performances du gestionnaire du réseau de transport d’électricité au cours de la 25 .04 .2019 période régulatoire 2020-2023 Beslissing over de modaliteiten voor het bepalen van de stimulansen om de prestaties van de netbeheerder van het transmissienet voor elektriciteit in de loop van de regulatoire periode 2020-2023 te verbeteren (B)658E/61 Décision relative à la demande d’approbation du rapport tarifaire incluant les soldes introduit par la SA Elia System Operator concernant l'exercice d’exploitation 2018 18 07. .2019 Beslissing over de vraag tot goedkeuring van het tariefverslag met inbegrip van de saldi ingediend door de NV Elia System Operator met betrekking tot het boekjaar 2018 (B)658E/62 Décision relative à la demande d’approbation de la proposition tarifaire adaptée introduite par la SA Elia System Operator pour la période régulatoire 2020-2023 07 .11 .2019 Beslissing betreffende de vraag tot goedkeuring van het aangepast tariefvoorstel ingediend door de NV Elia System Operator voor de regulatoire periode 2020-2023 (B)658E/63 Décision sur les objectifs à atteindre par la SA Elia System Operator en 2020 dans le cadre de l’incitant à la promotion de l’équilibre du système visé à l’article 27 de la 21 .11 .2019 méthodologie tarifaire Beslissing over de doelstellingen die Elia System Operator NV in 2020 moet behalen in het kader van de stimulans ter bevordering van het systeemevenwicht zoals bedoeld in artikel 27 van de tariefmethodologie (B)658E/64 Décision sur le plan de recherche et développement de la SA Elia System Operator pour la période régulatoire 2020-2023 dans le cadre de l’incitant à l’innovation visé à 23 .12 .2019 l’article 26, §2 de la méthodologie tarifaire Beslissing over het onderzoeks- en ontwikkelingsplan van de NV Elia System Operator voor de regulatoire periode 2020-2023 in het kader van de stimulans ter bevordering van de innovatie bedoeld in artikel 26, § 2 van de tariefmethodologie

102 CREG Annual report 2019 5. The CREG

(B)658E/65 ● Rapport provisoire relatif aux montants que la CREG a l’intention d’allouer à la SA Elia System Operator pour l’exercice d’exploitation 2019 pour les incitants visés à l’article 12 .12 .2019 23 de la méthodologie tarifaire pour le réseau de transport d’électricité et pour les réseaux d’électricité ayant une fonction de transport Voorlopig rapport over de bedragen die de CREG zich voorneemt voor het exploitatiejaar 2019 aan Elia System Operator nv toe te kennen voor de stimulansen bedoeld in artikel 23 van de tariefmethodologie voor het elektriciteitstransmissienet en voor de elektriciteitsnetten met een transmissiefunctie (B)1442/5 Decision on the Charging Methodology related to the Interconnector (UK) Access Agreement and the Interconnector (UK) Access Code 28 .03 .2019 Décision relative à la méthodologie de tarification relative au contrat d’accès conclu avec Interconnector (UK) et au règlement d’accès d’Interconnector (UK) Beslissing betreffende de vergoedingsmethodologie met betrekking tot de toegangsovereenkomst met Interconnector (UK) en het toegangsreglement van Interconnector (UK) (B)1442/6 Décision relative à la méthodologie de tarification relative au contrat d’accès conclu avec Interconnector (UK) et au règlement d’accès d’Interconnector (UK) 12 .09 .2019 Beslissing betreffende de vergoedingsmethodologie met betrekking tot de toegangsovereenkomst met Interconnector (UK) en het toegangsreglement van Interconnector (UK) (B)1864 Décision relative à la demande d’approbation de la SA Elia System Operator d’une annexe spécifique aux règles d’allocation harmonisées pour la frontière entre zones de 24 .01 .2019 dépôt des offres Belgique – Grande-Bretagne Beslissing over de goedkeuringsaanvraag van de NV Elia System Operator voor een specifieke annex aan de geharmoniseerde toewijzingsregels voor de biedzonegrens België – Groot-Brittannië (B)1865 Décision relative à la demande d’approbation de la SA Elia System Operator de règles de nominations pour les échanges en day-ahead à la frontière entre zones de dépôt 24 .01 .2019 des offres Belgique – Grande-Bretagne en cas d’enchères fictives Beslissing over de goedkeuringsaanvraag van de NV Elia System Operator voor nominatieregels voor uitwisselingen in day-ahead op de biedzonegrens België – Groot- Brittannië in het geval van schaduwveilingen (B)1885 Décision concernant la proposition de la SA Elia System Operator relative aux règles de fonctionnement de la réserve stratégique applicables à compter du 1er novembre 2019 07 .02 .2019 Beslissing over het voorstel van de NV Elia System Operator betreffende de werkingsregels voor de strategische reserve toepasbaar vanaf 1 november 2019 (F)1887 Étude sur le poids de la facture d’électricité et de gaz naturel dans le budget des ménages belges 10 01. .2019 Studie over het aandeel van de elektriciteits- en aardgasfactuur in het budget van de Belgische huishoudens (A)1888 Avis relatif à la demande de la SA Fluxys Belgium d’avenant à l’autorisation de transport A322-2260 pour la déviation de la conduite de transport de gaz naturel à hauteur du 10 01. .2019 canal Bruxelles-Charleroi, un passage en surface de la conduite est remplacé par un passage souterrain au moyen d’un forage dirigé Advies over de aanvraag van de NV Fluxys Belgium voor een bijvoegsel aan vervoersvergunning A322-2260 voor de omlegging van de aardgasvervoersleiding ter hoogte van het kanaal Brussel - Charleroi, een bovengrondse doorgang van de leiding wordt vervangen door een ondergrondse doorgang via een gestuurde boring (Z)1889 Note relative aux évolutions marquantes sur les marchés de gros belges de l’électricité et du gaz naturel en 2018 24 .01 .2019 Nota over de opvallende evoluties op de Belgische groothandelsmarkten voor elektriciteit en aardgas in 2018 (B)1890 Décision relative à la proposition commune modifiée, de la SA Elia System Operator et de tous les gestionnaires de réseau de transport, d’exigences organisationnelles, 21 .01 .2019 rôles et responsabilités clés pour les échanges de données Beslissing over het gewijzigde gemeenschappelijk voorstel van de NV Elia System Operator en alle transmissiesysteembeheerders voor belangrijke organisatorische vereisten, taken en verantwoordelijkheden met betrekking tot gegevensuitwisseling

● Act not published due to the confidentiality of the information it contains . The board of directors may evaluate the confidential nature of information in view of, amongst others, the Guidelines concerning confidential information due to their commercially sensitive or personal nature, as published on the CREG website .

CREG Annual report 2019 103 5. The CREG

(B)1891 Décision relative à la demande d'approbation de la proposition de la SA Elia System Operator concernant l’adaptation apportée au couplage de marchés journalier dans la 07 .02 .2019 région Europe Centre-Ouest (CWE) faisant suite à l’application d’une restriction des importations françaises durant la période hivernale 2018-2019 en cas de risques prévus pour la sécurité du réseau électrique suisse Beslissing over de aanvraag tot goedkeuring van het voorstel van de NV Elia System Operator voor de aanpassing aan de day-ahead marktkoppeling in de regio Central West Europe naar aanleiding van de toepassing van een Franse importbeperking gedurende de periode winter 2018-2019 in het geval van voorspelde systeemveiligheidsrisico’s op het Zwitserse elektriciteitsnet (A)1892 Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Total Gas & Power Belgium SA 24 .01 .2019 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Total Gas & Power Belgium NV (A)1893 Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Ineos Services Belgium SA 31 .01 .2019 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Ineos Services Belgium NV (B)1894 Décision relative à la demande d’approbation de la SA Elia System Operator et de tous les gestionnaires de réseau de transport de la région pour le calcul de la capacité 24 .01 .2019 Channel d’une méthodologie commune modifiée pour le redispatching et les échanges de contrepartie coordonnés et d’une proposition modifiée de méthodologie commune pour la répartition des coûts du redispatching et des échanges de contrepartie Beslissing over de goedkeuringsaanvraag van de NV ELIA SYSTEM OPERATOR en alle transmissiesysteembeheerders van de Channel capaciteitsberekeningsregio voor een gewijzigde gemeenschappelijke methodologie voor gecoördineerde redispatching en compensatiehandel en voor een gewijzigd voorstel voor een gemeenschappelijke kostendelingsmethodologie voor redispatching en compensatiehandel (B)1895 Décision relative à la demande de la SA Fluxys Belgium d’approbation du contrat standard de raccordement modifié et des annexes 1 et 4 31 .01 .2019 Beslissing over de aanvraag van de NV Fluxys Belgium tot goedkeuring van het gewijzigde Standaard Aansluitingscontract en de bijlagen 1 en 4 (A)1897 Avis relatif à la demande de la SA Fluxys Belgium d’autorisation de transport pour la pose d'une nouvelle conduite de transport de gaz naturel visant le raccordement du 31 .01 .2019 consommateur final Air Liquide sur les terrains de Covestro Advies over de aanvraag van de NV Fluxys Belgium van een vervoersvergunning voor de aanleg van een nieuwe aardgasvervoersleiding voor de aansluiting van de eindverbruiker Air Liquide op de terreinen van Covestro (A)1898 Avis relatif à la demande de la SA Fluxys Belgium d’avenant à l’autorisation de transport pour l’adaptation de la station de compression de gaz naturel de Winksele dans le 31 .01 .2019 cadre de la conversion L/H Advies over de aanvraag van de NV Fluxys Belgium van een bijvoegsel aan de vervoersvergunning voor de aanpassing van het compressiestation voor aardgas van Winksele in het kader van de L/H conversie (A)1899 Avis relatif à la demande de SA Fluxys Belgium d’avenant à l’autorisation de transport de gaz naturel A322-257 du 16 janvier 1968 pour la pose de nouvelles installations 31 .01 .2019 de transport de gaz naturel à Flobecq Advies over de aanvraag van de NV Fluxys Belgium voor een bijvoegsel aan de vervoersvergunning voor aardgas A322-257 van 16 januari 1968 voor de aanleg van nieuwe aardgasvervoersleidingen in Flobecq (E)1900 Proposition relative à l'octroi d'une autorisation de fourniture d'électricité à GETEC Énergie AG 07 .02 .2019 Voorstel betreffende de toekenning van een vergunning voor de levering van elektriciteit aan GETEC Energie AG (Z)1901 Note en réaction à la consultation publique organisée par Elia au sujet des données de l’étude sur les besoins d’adéquation et de flexibilité du système belge 07 .02 .2019 Nota als reactie op de openbare raadpleging georganiseerd door Elia over de data voor de studie over adequacy- en flexibiliteitsnoden van het Belgische systeem (A)1902 Avis relatif à la demande de la SA Fluxys Belgium d’un avenant à l’autorisation de transport A322-1643 pour la modification de la stratégie d’intervention et l’installation fixe 07 .02 .2019 d'extinction à poudre sèche au terminal GNL Advies over de aanvraag van de NV Fluxys Belgium van een bijvoegsel aan de vervoersvergunning A322-1643 voor de wijziging van de interventiestrategie en de vaste poederblusintallatie op de LNG-terminal

104 CREG Annual report 2019 5. The CREG

(B)1903 Décision relative à la proposition commune, formulée par la SA Elia System Operator et tous les gestionnaires de réseau de transport, de méthodologie modifiée pour le 14 .02 .2019 calcul des échanges programmés résultant du couplage unique journalier Beslissing over het gemeenschappelijke voorstel van de NV Elia System Operator en alle transmissiesysteembeheerders voor een gewijzigde methodologie voor de berekening van de geplande uitwisselingen resulterend uit de eenvormige day-aheadkoppeling (B)1904 Décision relative à la proposition commune, formulée par la SA Elia System Operator et tous les gestionnaires de réseau de transport, de méthodologie modifiée pour le 21 .02 .2019 calcul des échanges programmés résultant du couplage unique infrajournalier Beslissing over het gemeenschappelijke voorstel van de NV Elia System Operator en alle transmissiesysteembeheerders voor een gewijzigde methodologie voor de berekening van de geplande uitwisselingen resulterend uit de eenvormige intradaykoppeling (B)1905 Décision relative à la demande d’approbation de la proposition de la SA Elia System Operator de règles de fonctionnement pour l’accès au marché infrajournalier de 04 .04 .2019 l’électricité dans le cadre de la gestion de la congestion Beslissing over de aanvraag tot goedkeuring van het voorstel van de NV Elia System Operator voor werkingsregels voor de toegang tot de intraday elektriciteitsmarkt in het kader van congestiebeheer (A)1906 Avis relatif à un projet d’arrêté ministériel portant modification des arrêtés ministériels du 30 mars 2007 portant fixation de prix maximaux sociaux pour la fourniture de 14 .02 .2019 gaz aux clients résidentiels protégés à revenus modestes ou à situation précaire et portant fixation de prix maximaux sociaux pour la fourniture d’électricité aux clients résidentiels protégés à revenus modestes ou à situation précaire Advies betreffende een ontwerp van ministerieel besluit houdende wijziging van de ministeriële besluiten van 30 maart 2007 houdende vaststelling van sociale maximumprijzen voor de levering van aardgas aan de beschermde residentiële klanten met een laag inkomen of in een kwetsbare situatie en houdende vaststelling van sociale maximumprijzen voor de levering van elektriciteit aan de beschermde residentiële klanten met een laag inkomen of in een kwetsbare situatie (C)1907 Proposition d’arrêté royal fixant les seuils d’investissements et les critères d’éligibilité des coûts d’investissement en vue du classement des capacités dans les catégories 12 .12 .2019 de capacités Voorstel van koninklijk besluit tot vaststelling van de investeringsdrempels en de criteria voor het in aanmerking komen van investeringskosten met het oog op de klassering van capaciteiten in capaciteitscategorieën (B)1908 Décision relative à la proposition soumise par Interconnector (UK) Limited de modifications du contrat d’accès conclu avec IUK, du règlement d’accès d’IUK et du programme 28 .02 .2019 d’accès Beslissing over het door Interconnector (UK) Limited ingediende voorstel van wijzigingen aan de Toegangsovereenkomst met IUK, het Toegangsreglement van IUK en het Toegangsprogramma (Z)1909 Rapport comparatif des objectifs formulés dans la note de politique générale de la CREG et des réalisations de l’année 2018 25 .04 .2019 Vergelijkend verslag van de doelstellingen geformuleerd in de algemene beleidsnota van de CREG en van de verwezenlijkingen van het jaar 2018 (B)1910 Décision relative à la détermination de la valeur de transfert des installations que Rentel cède à Elia dans le cadre du Modular Offshore Grid et révision du subside pour le 27 .06 .2019 câble et de la surcharge pour le câble de Rentel Beslissing over de bepaling van de overdrachtswaarde van de installaties die Rentel overdraagt aan Elia in kader van het Modular Offshore Grid en over de herziening van de kabelsubsidie en de kabeltoeslag van Rentel (B)1911 Décision relative à la proposition de la SA Elia System Operator de règles d’allocation et de nomination journalières alternatives pour la frontière entre zones de dépôt des 14 .03 .2019 offres Belgique – Grande-Bretagne en cas de sortie de la Grande-Bretagne du marché intérieur européen de l’énergie Beslissing over het voorstel van de NV Elia System Operator voor alternatieve day-ahead allocatie- en nominatieregels voor de biedzonegrens België – Groot-Brittannië in het geval waarin Groot-Brittannië de Europese interne energiemarkt verlaat

CREG Annual report 2019 105 5. The CREG

(B)1912 Décision relative à la demande d’approbation de la SA Elia System Operator, des méthodologies et conditions incluses dans les accords d’exploitation de bloc RFP visés à 14 .03 .2019 l’article 119 Beslissing over de vraag van de NV Elia System Operator tot goedkeuring van de methodologieën en voorwaarden die zijn opgenomen in de operationele overeenkomsten voor LFC-blokken bedoeld in artikel 119 (B)1912/2 Décision relative à la demande d’approbation de la SA Elia System Operator, de la proposition modifiée des méthodologies et conditions incluses dans les accords 27 .05 .2019 d'exploitation de bloc RFP visés à l'article 119 Beslissing over de vraag van de NV Elia System Operator tot goedkeuring van het gewijzigde voorstel van de methodologieën en voorwaarden die zijn opgenomen in de operationele overeenkomsten voor LFC-blokken bedoeld in artikel 119 (B)1913 Décision relative à la demande d’approbation d’une proposition de modalités et conditions applicables au responsable d’équilibre ou « BRP » 28 .03 .2019 Beslissing inzake de aanvraag tot goedkeuring van een voorstel voor de voorwaarden van de balanceringsverantwoordelijke of “BRP” (B)1913/2 Décision relative à la demande d’approbation d’une proposition modifiée de modalités et conditions applicables au responsable d’équilibre ou « BRP » 27 .05 .2019 Beslissing inzake de aanvraag tot goedkeuring van een gewijzigd voorstel voor de voorwaarden van de balanceringsverantwoordelijke of “BRP” (F)1914 Étude relative aux composantes des prix de l’électricité et du gaz naturel 21 .03 .2019 Studie over de componenten van de elektriciteits- en aardgasprijzen (B)1915 Décision relative à la proposition commune, formulée par la SA Elia System Operator et tous les gestionnaires de réseau de distribution de la région de calcul de la capacité 21 .03 .2019 Core, modifiant les exigences régionales relatives aux règles d’allocation harmonisées Beslissing over het gemeenschappelijke voorstel van de NV Elia System Operator en alle transmissiesysteembeheerders van de Core capaciteitsberekeningsregio tot wijziging van de regionale eisen betreffende de geharmoniseerde toewijzingsregels (B)1916 Décision relative à la demande d’approbation de la proposition, formulée par la SA Elia System Operator, de méthodologies, conditions et valeurs incluses dans les accords 02 .04 .2019 d'exploitation de zone synchrone énumérés à l'article 118 concernant les règles de dimensionnement applicables aux réserves FCR Beslissing over de aanvraag tot goedkeuring van het voorstel door de NV Elia System Operator voor methodologieën, voorwaarden en waarden vervat in de operationele overeenkomsten van synchrone zones overeenkomstig artikel 118 met betrekking tot de FCR-dimensioneringsregels (B)1917 Décision relative à la demande d’approbation de la proposition, formulée par la SA Elia System Operator, de méthodologies, conditions et valeurs incluses dans les accords 02 .04 .2019 d'exploitation de zone synchrone et énumérés à l'article 118 concernant les limites au volume d'échange et de partage de RR entre zones synchrones Beslissing over de aanvraag tot goedkeuring van het voorstel door de NV Elia System Operator voor methodologieën, voorwaarden en waarden vervat in de operationele overeenkomsten van synchrone zones overeenkomstig artikel 118 met betrekking tot grenswaarden voor de uitwisseling van RR tussen synchrone zones (B)1918 Décision relative à la demande d’approbation de la proposition, formulée par la SA Elia System Operator, de méthodologies, conditions et valeurs incluses dans les accords 02 .04 .2019 d'exploitation de zone synchrone et énumérés à l'article 118 concernant les limites au volume d'échange et de partage de FRR entre zones synchrones Beslissing over de aanvraag tot goedkeuring van het voorstel door de NV Elia System Operator voor methodologieën, voorwaarden en waarden vervat in de operationele overeenkomsten van synchrone zones overeenkomstig artikel 118 met betrekking tot grenswaarden voor de uitwisseling van FRR tussen synchrone zones (f)1919 Étude sur la compétitivité du gaz naturel utilisé en tant que carburant CNG (compressed natural gas) et LNG (liquefied natural gas) pour divers types de véhicules 28 .03 .2019 Studie over de concurrentiepositie van aardgas gebruikt als CNG (compressed natural gas) en LNG (liquefied natural gas) brandstof voor verschillende voertuigtypes (A)1920 Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Lampiris SA 28 .03 .2019 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Lampiris NV (B)1921 Décision relative à la demande de la SA Fluxys Belgium d’approbation du Contrat standard de transport de gaz naturel, du Règlement d'accès pour le transport de gaz naturel 11 .04 .2019 et du Programme de transport de gaz naturel modifiés Beslissing over de aanvraag van de NV Fluxys Belgium tot goedkeuring van het gewijzigde Standaard Aardgasvervoerscontract, Toegangsreglement voor aardgasvervoer en Aardgasvervoersprogramma

106 CREG Annual report 2019 5. The CREG

(RA)1922 ● Rapport sur la vérification des revenus et des coûts réels de la centrale nucléaire de Tihange 1 pour la période du 1er janvier 2018 au 31 décembre 2018 conformément à la 27 .06 .2019 Convention relative à la prolongation de la durée de vie de Tihange 1 datée du 12 mars 2014 et à la modification de la Convention relative à la prolongation de la durée de vie datée du 31 mars 2017 Rapport over de verificatie van de inkomsten en de werkelijke kosten van de kerncentrale van Tihange 1 voor de periode van 1 januari 2018 tot 31 december 2018 overeenkomstig de Conventie aangaande de verlenging van de levensduur van Tihange 1 de dato 12 maart 2014 en de wijziging van de Conventie aangaande de verlenging van de levensduur de dato 31 maart 2017 (A)1923 ● Avis relatif à la marge de profitabilité de la production industrielle d’électricité par fission de combustibles nucléaires par les centrales soumises à la contribution de répartition 27 .06 .2019 (Doel 3, Doel 4, Tihange 2 et Tihange 3) pour l’année 2018 Advies betreffende de winstmarge van de industriële productie van elektriciteit door splijting van kernbrandstoffen door de centrales onderworpen aan de repartitiebijdrage (Doel 3, Doel 4, Tihange 2 en Tihange 3) voor het jaar 2018 (A)1923bis ● Avis relatif à la marge de profitabilité de la production industrielle d’électricité par fission de combustibles nucléaires par les centrales soumises à la contribution de répartition 14 .08 .2019 (Doel 3, Doel 4, Tihange 2 et Tihange 3) pour l’année 2018 - Version coordonnée de l’avis approuvée par le comité de direction de la CREG par procédure écrite le 14 août 2019 après incorporation d’un corrigendum Advies betreffende de winstmarge van de industriële productie van elektriciteit door splijting van kernbrandstoffen door de centrales onderworpen aan de repartitiebijdrage (Doel 3, Doel 4, Tihange 2 en Tihange 3) voor het jaar 2018 - Gecoördineerde versie van het advies goedgekeurd door het directiecomité van de CREG via schriftelijke procedure op 14 augustus 2019 met verwerking van het corrigendum (B)1924 Décision relative à la demande d’approbation, formulée par la SA Elia System Operator de l’adaptation apportée à la méthodologie de calcul de la capacité en infrajournalier 06 .06 .2019 selon le processus increase/decrease dans la région CWE Beslissing over de aanvraag tot goedkeuring van de NV Elia System Operator voor de aanpassing aan de methodologie voor de berekening van de capaciteit in intraday volgens het increase/decrease proces in de CWE regio (A)1925 Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Getec Énergie GmbH 25 .04 .2019 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Getec Energie GmbH (E)1926 Proposition relative à la demande d’octroi d'une autorisation individuelle de fourniture d'électricité à Getec Énergie GmbH 25 .04 .2019 Voorstel over de toekenning van een individuele leveringsvergunning voor elektriciteit aan Getec Energie GmbH (F)1927 Étude sur la fourniture en gaz naturel des grands clients industriels en Belgique 18 07. .2019 Studie over de aardgaslevering aan grote industriële klanten in België (B)1928 Décision relative à la proposition de la SA Elia System Operator de modalités et conditions générales régissant le rôle des fournisseurs contractuels de services de 18 06. .2019 reconstitution Beslissing over het voorstel van Elia System Operator NV van de voorwaarden om op te treden als aanbieder van hersteldiensten op contractbasis (B)1929 Décision relative à la demande d’approbation de la proposition, formulée par la SA Elia System Operator, d’hypothèses et de méthodologie en vue d'une analyse des coûts et 17 .04 .2019 bénéfices destinée à évaluer la durée requise pour que les unités ou groupes fournissant des FCR dotés de réservoirs d'énergie limités restent disponibles en état d'alerte Beslissing over de aanvraag tot goedkeuring van het voorstel door de NV Elia System Operator voor de aannamen en methodologie voor een kosten-batenanalyse teneinde de tijdsperiode te beoordelen waarin FCR-leverende eenheden of groepen met beperkte energiereservoirs beschikbaar moeten blijven tijdens de alarmtoestand (B)1930 Avis relatif à la demande de la société anonyme Northwester 2 de modification de la concession domaniale pour la construction et l’exploitation d'installations de production 25 .04 .2019 d'électricité à partir des vents dans les espaces marins, qui lui a été octroyée par arrêté ministériel du 12 mai 2015 Advies over de aanvraag door de naamloze vennootschap Northwester 2 tot wijziging van de domeinconcessie voor de bouw en de exploitatie van installaties voor de productie van elektriciteit uit wind in de zeegebieden, haar toegekend bij ministerieel besluit van 12 mei 2015

CREG Annual report 2019 107 5. The CREG

(B)1931 Décision relative à la demande d’approbation de la SA Elia System Operator de méthodologie modifiée pour la répartition du revenu de congestion 06 .06 .2019 Beslissing over de aanvraag tot goedkeuring van de NV Elia System Operator voor een gewijzigde methodologie voor het verdelen van de congestie-inkosten (B)1932 Décision relative à la demande d’octroi, formulée par la SA Norther, de certificats verts pour l’électricité produite par les éoliennes NRT_F01, NRT_F02, NRT_F03, NRT_F04, 13 .06 .2019 NRT_I01, NRT_I02, NRT_I03, NRT_I04, NRT_J01, NRT_J02, NRT_J03 et NRT_J04 Beslissing over de aanvraag van de NV Norther voor toekenning van groenestroomcertificaten voor de elektriciteit opgewekt door de windmolens NRT_F01, NRT_F02, NRT_F03, NRT_F04, NRT_I01, NRT_I02, NRT_I03, NRT_I04, NRT_J01, NRT_J02, NRT_J03 en NRT_J04 (E)1933 Proposition relative à l'octroi d'une autorisation de fourniture d'électricité à Electrabel SA 07 .05 .2019 Voorstel betreffende de toekenning aan de NV Electrabel van een vergunning voor de levering van elektriciteit (E)1934 Proposition relative à l'octroi d'une autorisation de fourniture d'électricité à Luminus SA 07 .05 .2019 Voorstel betreffende de toekenning aan de NV Luminus van een vergunning voor de levering van elektriciteit (A)1935 Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Eni SpA 07 .05 .2019 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Eni SpA (A)1936 Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à OMV Gas Marketing & Trading Belgium SPRL 07 .05 .2019 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan OMV Gas Marketing & Trading Belgium BVBA (B)1937 Décision relative à la demande d’approbation, formulée par la SA Elia System Operator de la proposition d’adaptations apportées au couplage de marché fondé sur les flux 20 .06 .2019 en région CWE Beslissing met betrekking tot de aanvraag tot goedkeuring van de NV Elia System Operator voor het voorstel tot aanpassingen aan de stroomgebaseerde marktkoppeling in de CWE-regio (B)1938 Décision relative à la demande d’octroi, formulée par la SA Norther, de certificats verts pour l’électricité produite par les éoliennes NRT_A01, NRT_A02, NRT_A03, NRT_A04, 11 .07 .2019 NRT_B01, NRT_B02, NRT_B03, NRT_B04, NRT_C01, NRT_C02, NRT_C03, NRT_C04, NRT_D01, NRT_D02, NRT_D03, NRT_D04, NRT_E01, NRT_E02, NRT_E03, NRT_E04, NRT_G01, NRT_G02, NRT_G03, NRT_G04, NRT_H01, NRT_H02, NRT_H03, NRT_H04, NRT_K01, NRT_K02, NRT_K03 et NRT_K04 Beslissing over de aanvraag van de NV Norther voor toekenning van groenestroomcertificaten voor de elektriciteit opgewekt door de windmolens NRT_A01, NRT_A02, NRT_A03, NRT_A04, NRT_B01, NRT_B02, NRT_B03, NRT_B04, NRT_C01, NRT_C02, NRT_C03, NRT_C04, NRT_D01, NRT_D02, NRT_D03, NRT_D04, NRT_E01, NRT_E02, NRT_E03, NRT_E04, NRT_G01, NRT_G02, NRT_G03, NRT_G04, NRT_H01, NRT_H02, NRT_H03, NRT_H04, NRT_K01, NRT_K02, NRT_K03 en NRT_K04 (A)1939 Avis relatif à la demande de SA Fluxys Belgium d’avenant à l’autorisation de transport de gaz naturel A323-3717 pour la canalisation de transport de gaz naturel DN250 à 17 .05 .2019 basse pression entre Leuze-en-Hainaut et Beloeil Advies over de aanvraag van Fluxys Belgium NV van een bijvoegsel aan de vervoersvergunning voor aardgas A323-3717 voor de aardgasvervoersleiding DN250 aan lage spanning tussen Leuze-en-Hainaut en Beloeil (A)1940 Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Equinor ASA 06 .06 .2019 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Equinor ASA (B)1941 Décision relative à la proposition d’Elia System Operator SA de règles de suspension et de rétablissement des activités de marché et de règles spécifiques régissant le 19 .09 .2019 règlement des déséquilibres et le règlement du rééquilibrage de l’énergie en cas de suspension des activités de marché Beslissing over het voorstel van Elia System Operator NV van de regels voor de opschorting en het herstel van marktactiviteiten en de specifieke regels voor onbalansverrekening en verrekening van balanceringsenergie in het geval van opschorting van marktactiviteiten (A)1942 Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Belgische Technische Gassen SPRL (B .T .G .) 27 .05 .2019 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Belgische Technische Gassen BVBA (B .T .G .) (B)1943 Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Scholt Energy Control SA 06 .06 .2019 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Scholt Energy Control NV

108 CREG Annual report 2019 5. The CREG

(A)1944 Avis relatif à l’indépendance de madame Laurence Bovy en tant qu’administrateur indépendant de Fluxys Belgium SA 13 .06 .2019 Advies over de onafhankelijkheid van mevrouw Laurence Bovy als onafhankelijke bestuurder van Fluxys Belgium NV (A)1945 Avis relatif à l’indépendance de madame Sandra Gobert en tant qu’administrateur indépendant de Fluxys Belgium SA 13 .06 .2019 Advies over de onafhankelijkheid van mevrouw Sandra Gobert als onafhankelijke bestuurder van Fluxys Belgium NV (A)1946 Avis relatif à l’indépendance de madame Sandra Wauters en tant qu’administrateur indépendant de Fluxys Belgium SA 13 .06 .209 Advies over de onafhankelijkheid van mevrouw Sandra Wauters als onafhankelijke bestuurder van Fluxys Belgium NV (A)1947 Avis relatif à l’indépendance de madame Valentine Delwart en tant qu’administrateur indépendant de Fluxys Belgium SA 13 .06 .2019 Advies over de onafhankelijkheid van mevrouw Valentine Delwart als onafhankelijke bestuurder van Fluxys Belgium NV (A)1948 Avis relatif à l’indépendance de monsieur Christoph von dem Bussche en tant qu’administrateur indépendant de Fluxys LNG SA 13 .06 .2019 Advies over de onafhankelijkheid van de heer Christoph von dem Bussche als onafhankelijke bestuurder van Fluxys LNG (A)1949 Avis relatif à l’indépendance de monsieur Stephan Kamphues en tant qu’administrateur indépendant de Fluxys LNG SA 13 .06 .2019 Advies over de onafhankelijkheid van de heer Stephan Kamphues als onafhankelijke bestuurder van Fluxys LNG NV (F)1950 Étude sur l’analyse de la réaction du marché de l’électricité à la suite de l’indisponibilité de plusieurs réacteurs nucléaires en Belgique durant la période d’octobre 2018 à 20 .06 .2019 février 2019 Studie met betrekking tot de analyse van de reactie van de elektriciteitsmarkt ten gevolge van de onbeschikbaarheid van meerdere kernreactoren in België in de periode van oktober 2018 tot februari 2019 (B)1951 Décision relative à la fixation du facteur de correction portant sur la 2ième période (05 .10 .2019 – 04 10. .2020) pour la détermination du prix minimum des certificats verts 18 07. .2019 délivrés pour l’électricité produite par les installations de la concession domaniale de Northwester 2 Beslissing over de vastlegging van de correctiefactor voor de 2de periode (05 .10 .2019 – 04 .10 .2020) ter bepaling van de minimumprijs voor de groenestroomcertificaten uitgereikt voor de elektriciteit geproduceerd door de installaties in de domeinconcessie van Northwester 2 (E)1952 Proposition relative à l'octroi d'une autorisation de fourniture d'électricité à Scholt Energy Control SA 20 .06 .2019 Voorstel betreffende de toekenning aan Scholt Energy Control NV van een vergunning voor de levering van elektriciteit (B)1953 Décision relative à la demande d’approbation du contrat standard de GNL - contrat de services GNL (LSA) de la SA Fluxys LNG 28 .06 .2019 Beslissing over de aanvraag tot goedkeuring van het Standaard LNG-contract - LNG dienstenovereen-komst (LSA) van de NV Fluxys LNG (B)1954 Décision relative à la proposition, formulée par la SA Elia System Operator et tous les gestionnaires de réseau de transport de la région de calcul de la capacité Channel, de 20 .06 .2019 modification des règles de nomination pour les programmes d’échange d’électricité entre zones de dépôt des offres Beslissing over het voorstel van de NV Elia System Operator en alle transmissiesysteembeheerders van de Channel capaciteitsberekeningsregio voor de wijziging aan de nominatieregels betreffende schema’s voor de elektriciteitsuitwisseling tussen biedzones (B)1955 Décision relative à la demande de la SA Fluxys Belgium d’approbation du Contrat standard de transport de gaz naturel, du Règlement d'accès pour le transport de gaz naturel 04 .07 .2019 et du Programme de transport de gaz naturel modifiés Beslissing over de aanvraag van de NV Fluxys Belgium tot goedkeuring van het gewijzigde Standaard Aardgasvervoerscontract, Toegangsreglement voor aardgasvervoer en Aardgasvervoersprogramma (E)1956 Proposition relative à l'octroi d'une autorisation de fourniture d'électricité à Total Gas & Power Belgium SA 27 .06 .2019 Voorstel betreffende de toekenning aan Total Gas & Power Belgium NV van een vergunning voor de levering van elektriciteit (F)1957 Analysis by the CREG of the Elia study ‘Adequacy and flexibility study for Belgium 2020 - 2030’ 11 .07 .2019 Étude portant sur l’analyse de l’étude d’Elia ‘Adequacy and flexibility study for Belgium 2020 - 2030’ Studie betreffende de analyse over de studie van Elia ‘Adequacy and flexibility study for Belgium 2020 - 2030’

CREG Annual report 2019 109 5. The CREG

(F)1958 Study on the functioning and price evolution of the Belgian wholesale electricity market - monitoring report 2018 05 .09 .2019 Étude relative au fonctionnement et évolution des prix sur le marché de gros belge de l’électricité – rapport de monitoring 2018 Studie over de werking van en de prijsevolutie op de Belgische groothandelsmarkt voor elektriciteit – monitoringrapport 2018 (B)1959 Décision relative à la fixation du facteur de correction portant sur la 4e période (14 .12 .2019 - 13 .12 .2020) pour la détermination du prix minimum des certificats verts délivrés 23 .08 .2019 pour l’électricité produite par les installations de la concession domaniale de Norther Beslissing over de vastlegging van de correctiefactor voor de 4de periode (14 .12 .2019 - 13 .12 .2020) ter bepaling van de minimumprijs voor de groenestroomcertificaten uitgereikt voor de elektriciteit geproduceerd door de installaties in de domeinconcessie van Norther (A)1960 Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Vattenfall Energy Trading Netherlands SA 18 07. .2019 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Vattenfall Energy Trading Netherlands NV (A)1961 Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Uniper Global Commodities SE 18 07. .2019 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Uniper Global Commodities SE (B)1962 Décision relative à la fixation du facteur de correction portant sur la 2e période (03 .12 .2019 – 02 .12 .2020) pour la détermination du prix minimum des certificats verts délivrés 05 .09 .2019 pour l’électricité produite par les installations de la concession domaniale de Mermaid Beslissing over de vastlegging van de correctiefactor voor de 2de periode (03 .12 .2019 – 02 .12 .2020) ter bepaling van de minimumprijs voor de groenestroomcertificaten uitgereikt voor de elektriciteit geproduceerd door de installaties in de domeinconcessie van Mermaid (B)1963 Décision relative à la fixation du facteur de correction portant sur la 2e période (03 .12 .2019 - 02 .12 .2020) pour la détermination du prix minimum des certificats verts délivrés 05 .09 .2019 pour l’électricité produite par les installations de la concession domaniale de Seastar Beslissing over de vastlegging van de correctiefactor voor de 2de periode (03 .12 .2019 – 02 .12 .2020) ter bepaling van de minimumprijs voor de groenestroomcertificaten uitgereikt voor de elektriciteit geproduceerd door de installaties in de domeinconcessie van Seastar (A)1965 Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Electrabel SA 18 07. .2019 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Electrabel NV (A)1966 Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Axpo Benelux SA 18 07. .2019 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Axpo Benelux NV (B)1967 Décision relative à l’accréditation du comparateur de prix en ligne « Comparateur-Énergie .be / Énergie-Vergelijker .be / EnergyPrice .be de Wikipower S .P .R .L . » 23 .08 .2019 Beslissing over de accreditatie van de online prijsvergelijker “Comparateur-Energie .be / Energie-Vergelijker .be / EnergyPrice .be van Wikipower BVBA” (B)1968 Décision relative à la proposition adaptée de la SA Elia System Operator portant sur sa participation aux coûts des NEMO en Belgique relatifs à la mise en place, la 07 .11 .2019 modification et l’exécution du couplage unique journalier et infrajournalier en 2019 Beslissing over het aangepaste voorstel van de NV Elia System Operator over haar bijdrage aan de kosten van de in België aangewezen NEMO’s voor de vaststelling, wijziging en uitvoering van de eenvormige day-ahead- en intradaykoppeling in 2019 (A)1969 Avis relatif à l’indépendance de madame Jane Murphy en tant qu’administrateur indépendant au sein du conseil d’administration de la SA Elia Transmission Belgium 12 .09 .2019 Advies over de onafhankelijkheid van mevrouw Jane Murphy als onafhankelijke bestuurder in de raad van bestuur van Elia Transmission Belgium NV (A)1970 Avis relatif à l’indépendance de monsieur Luc De Temmerman en tant qu’administrateur indépendant au sein du conseil d’administration de la SA Elia Transmission Belgium 12 .09 .2019 Advies over de onafhankelijkheid van de heer Luc De Temmerman als onafhankelijke bestuurder in de raad van bestuur van Elia Transmission Belgium NV (A)1971 Avis relatif à l’indépendance de monsieur Michel Allé en tant qu’administrateur indépendant au sein du conseil d’administration de la SA Elia Transmission Belgium 12 .09 .2019 Advies over de onafhankelijkheid van de heer Michel Allé als onafhankelijke bestuurder in de raad van bestuur van Elia Transmission Belgium NV (A)1972 Avis relatif à l’indépendance de monsieur Frank Donck en tant qu’administrateur indépendant au sein du conseil d’administration de la SA Elia Transmission Belgium 12 .09 .2019 Advies over de onafhankelijkheid van de heer Frank Donck als onafhankelijke bestuurder in de raad van bestuur van Elia Transmission Belgium NV

110 CREG Annual report 2019 5. The CREG

(A)1973 Avis relatif à l’indépendance de monsieur Bernard Gustin en tant qu’administrateur indépendant au sein du conseil d’administration de la SA Elia Transmission Belgium 12 .09 .2019 Advies over de onafhankelijkheid van de heer Bernard Gustin als onafhankelijke bestuurder in de raad van bestuur van Elia Transmission Belgium NV (A)1974 Avis relatif à l’indépendance de madame Roberte Kesteman en tant qu’administrateur indépendant au sein du conseil d’administration de la SA Elia Transmission Belgium 12 .09 .2019 Advies over de onafhankelijkheid van de mevrouw Roberte Kesteman als onafhankelijke bestuurder in de raad van bestuur van Elia Transmission Belgium NV (A)1975 Avis relatif à l’indépendance de madame Saskia Van Uffelen en tant qu’administrateur indépendant au sein du conseil d’administration de la SA Elia Transmission Belgium 12 .09 .2019 Advies over de onafhankelijkheid van de mevrouw Saskia Van Uffelen als onafhankelijke bestuurder in de raad van bestuur van Elia Transmission Belgium NV (A)1976 Avis relatif à un projet d’arrêté ministériel portant modification de l’arrêté ministériel du 30 mars 2007 portant fixation de prix maximaux sociaux pour la fourniture d’électricité 22 .07 .2019 aux clients résidentiels protégés à revenus modestes ou à situation précaire Advies betreffende een ontwerp van ministerieel besluit houdende wijziging van het ministerieel besluit van 30 maart 2007 houdende vaststelling van sociale maximumprijzen voor de levering van elektriciteit aan de beschermde residentiële klanten met een laag inkomen of in een kwetsbare situatie (B)1977 Décision relative à la demande d’approbation de la proposition de contrat pour l’achat de certificats verts conclu entre Elia System Operator SA et Northwester 2 SA 12 .09 .2019 Beslissing over de vraag tot goedkeuring van het voorstel van contract voor het aankopen van groenestroomcertificaten tussen Elia System Operator NV en Northwester 2 NV (B)1978 Décision relative à la demande, formulée par la SA Elia System Operator, de suspension de l’obligation, applicable aux unités de production d’électricité d’une puissance 23 .08 .2019 installée maximale inférieure à 25 MW et d’une tension au point de raccordement supérieure ou égale à 110 kV, de se conformer à certaines exigences du code de réseau européen RfG dans l’attente de la décision sur le fond de la CREG relative à la demande de dérogation soumise le 9 juillet 2019 Beslissing over het verzoek van de NV Elia System Operator tot schorsing van de verplichting voor elektriciteitsproductie-eenheden met een maximaal geïnstalleerd vermogen lager dan 25 MW en een spanning op het aansluitingspunt hoger dan of gelijk aan 110 kV om aan bepaalde eisen van de Europese netcode RfG te voldoen in afwachting van de beslissing ten gronde van de CREG over het op 9 juli 2019 ingediende afwijkingsverzoek (B)1979 Décision relative à la demande de la SA Fluxys Belgium d’approbation du contrat standard de raccordement modifié et des annexes 6 et 11 03 .10 .2019 Beslissing over de aanvraag van de NV Fluxys Belgium tot goedkeuring van het gewijzigde Standaard Aansluitingscontract en de bijlagen 6 en 11 (F)1980 ● Étude relative aux mécanismes de fixation du prix de l’énergie en vigueur en 2018 au sein des contrats de fourniture d’électricité des grands clients industriels d’Electrabel SA 28 .11 .2019 Studie over de in 2018 geldende mechanismen voor de vorming van de energieprijs in leveringscontracten voor elektriciteit van de grote industriële afnemers van Electrabel NV (F)1981 ● Étude relative aux mécanismes de fixation du prix de l’énergie en vigueur en 2018 au sein des contrats de fourniture d’électricité des grands clients industriels d’EDF 28 .11 .2019 Luminus SA Studie over de in 2018 geldende mechanismen voor de vorming van de energieprijs in leveringscontracten voor elektriciteit van de grote industriële afnemers van EDF Luminus NV (B)1982 Décision relative à la proposition soumise par Interconnector (UK) Limited de modifications du contrat d’accès conclu avec IUK, du règlement d’accès d’IUK et du programme 12 .09 .2019 d’accès Beslissing over het door Interconnector (UK) Limited ingediende voorstel van wijzigingen aan de Toegangsovereenkomst met IUK, het Toegangsreglement van IUK en het Toegangsprogramma (F)1983 Étude relative à la fourniture d’électricité des grands clients industriels en Belgique en 2018 20 .12 .2019 Studie over de elektriciteitsbelevering van grote industriële klanten in België in 2018 (A)1985 Avis relatif à la demande d’EPEX SPOT SE de désignation en qualité d’opérateur désigné du marché d’électricité (NEMO) 05 .09 .2019 Advies over de aanvraag van EPEX SPOT SE tot aanwijzing als benoemde elektriciteitsmarktbeheerder (NEMO)

CREG Annual report 2019 111 5. The CREG

(Z)1986 Note on the implementation of a scarcity pricing mechanism in Belgium 12 .09 .2019 Note relative à la mise en œuvre d'un mécanisme de rémunération de la rareté en Belgique Nota over de implementatie van een scarcity pricing-mechanisme in België (F)1987 Study on the best forecast of remedial actions to mitigate market distortion 10 10. .2019 Étude 1987 sur la meilleure prévision de mesures correctives pour prévenir la distorsion du marché Studie 1987 over de beste prognose van corrigerende maatregelen om marktverstoring tegen te gaan (B)1988 Décision finale relative à la demande de nomination de madame Valérie Vandegaart en tant que cadre chargé du respect des engagements de la SA Balansys et l’approbation 07 .11 .2019 des conditions régissant le mandat ou les conditions d’emploi, y compris la durée du mandat du cadre chargé du respect des engagements Eindbeslissing over de aanvraag tot benoeming van mevrouw Valérie Vandegaart als nalevingsfunctionaris van de NV Balansys en de goedkeuring van de voorwaarden betreffende het mandaat of de arbeidsvoorwaarden, met inbegrip van de duur van het mandaat van de nalevingsfunctionaris (A)1991 Avis relatif aux projets d’arrêtés ministériels concernant les prix maximaux pour la fourniture de gaz naturel et d’électricité aux clients protégés résidentiels 12 .09 .2019 Advies inzake ontwerpen van ministerieel besluit met betrekking tot maximumprijzen voor levering van aardgas en elektriciteit aan residentiële beschermde afnemers (B)1992 Décision relative à la demande d’approbation, soumise par la SA Elia System Operator, de règles d’allocation infrajournalières et de règles de nomination journalières et 10 10. .2019 infrajournalières pour les échanges à la frontière entre les zones de dépôt des offres Belgique – Grande-Bretagne Beslissing over de goedkeuringsaanvraag van de NV Elia System Operator voor intraday allocatieregels en day-ahead- en intraday nominatieregels voor uitwisselingen op de biedzonegrens België – Groot-Brittannië (B)1993 Décision relative à la demande d’approbation de la SA Elia System Operator de règles alternatives d’allocation et de nomination infrajournalières et à long terme pour les 03 .10 .2019 échanges à la frontière entre zones de dépôt des offres Belgique – Grande-Bretagne en cas de sortie de la Grande-Bretagne du marché intérieur européen de l’énergie Beslissing over de goedkeuringsaanvraag van de NV Elia System Operator voor alternatieve intraday en langetermijnallocatie- en nominatieregels voor uitwisselingen op de biedzonegrens België – Groot-Brittannië in het geval waarin Groot-Brittannië de Europese interne energiemarkt verlaat (B)1994 Décision relative à la certification de la nouvelle entité juridique envisagée par Elia System Operator SA aux fins des missions de GRT 27 .09 .2019 Beslissing betreffende de certificering van de nieuwe juridische entiteit die door Elia System Operator NV wordt voorgesteld voor de opdrachten van TNB (A)1995 Avis relatif au transfert d’Elia Asset sous la nouvelle structure envisagée aux fins des missions du gestionnaire du réseau de transport 12 .09 .2019 Advies over de overdracht van Elia Asset onder de nieuwe geplande structuur voor de taken van de transmissienetbeheerder (F)1996 Étude sur le monitoring annuel des prix du marché de l’électricité et du gaz pour les ménages et les petits consommateurs professionnels 17 .10 .2019 Studie over de jaarlijkse monitoring van de prijzen op de elektriciteits- en aardgasmarkt voor gezinnen en kleine professionele verbruikers (A)1997 Avis relatif à l’octroi d’une autorisation individuelle pour la construction d’une installation de production d'électricité (parc éolien) à Zeebruges par la SA ICO Windpark 19 .09 .2019 Advies betreffende de toekenning van een individuele vergunning voor de bouw van een installatie voor de productie van elektriciteit (windturbinepark) in Zeebrugge door de NV ICO Windpark (B)1998 ● Décision relative à la fixation du facteur de correction portant sur la 4e période (03 .10 .2019 – 02 .10 .2020) pour la détermination du prix minimum des certificats verts délivrés 12 .11 .2019 pour l’électricité produite par les installations de la concession domaniale de Rentel Beslissing over de vastlegging van de correctiefactor voor de 4de periode (03 .10 .2019 – 02 .10 .2020) ter bepaling van de minimumprijs voor de groenestroomcertificaten uitgereikt voor de elektriciteit geproduceerd door de installaties in de domeinconcessie van Rentel (Z)1999 Note de politique générale pour l’année 2020 25 .10 .2019 Algemene beleidsnota voor het jaar 2020

112 CREG Annual report 2019 5. The CREG

(B)2000 Décision relative à la demande d’approbation d’une proposition de modalités et conditions applicables au fournisseur de services d'équilibrage ou « BSP » (Balancing Service 03 .10 .2019 Provider) pour la mFRR Beslissing inzake de aanvraag tot goedkeuring van een voorstel van voorwaarden van de aanbieder van balanceringsdiensten of “BSP” (Balancing Service Provider) voor mFRR (B)2000/2 Décision relative à la demande d’approbation d’une proposition modifiée de modalités et conditions applicables au fournisseur de services d'équilibrage ou « BSP » 20 .12 .2019 (Balancing Service Provider) pour la mFRR Beslissing inzake de aanvraag tot goedkeuring van een gewijzigd voorstel van voorwaarden van de aanbieder van balanceringsdiensten of “BSP” (Balancing Service Provider) voor mFRR (RA)2001 ● Rapport relatif au caractère manifestement déraisonnable ou non des prix offerts à Elia System Operator SA pour la fourniture du service de réglage de la tension et de la 03 .10 .2019 puissance réactive en 2020 Verslag betreffende het al dan niet manifest onredelijk karakter van de aan Elia System Operator NV aangeboden prijzen voor de levering van de dienst voor de regeling van de spanning en het reactieve vermogen in 2020 (A)2002 Avis relatif à l’octroi d’une autorisation individuelle relative à l’établissement d’une installation de production d’électricité du type TGV de 870 MWe à Manage par la SA Bali 03 .10 .2019 Wind Advies betreffende de toekenning van een individuele vergunning voor de bouw van een installatie voor de productie van elektriciteit van het type STEG van 870 MWe in Manage door de NV Bali Wind (B)2003 Décision relative à la demande d’approbation de la proposition de contrat pour l’achat de certificats verts du parc éolien offshore Mermaid conclu entre Elia System Operator 25 .10 .2019 SA et SeaMade SA Beslissing over de vraag tot goedkeuring van het voorstel van contract voor het aankopen van groenestroomcertificaten van het offshore windpark Mermaid tussen Elia System Operator NV en SeaMade NV (B)2004 Décision relative à la demande d’approbation de la proposition de contrat pour l’achat de certificats verts du parc éolien offshore Seastar conclu entre Elia System Operator 25 .10 .2019 SA et SeaMade SA Beslissing over de vraag tot goedkeuring van het voorstel van contract voor het aankopen van groenestroomcertificaten van het offshore windpark Seastar tussen Elia System Operator NV en SeaMade NV (Z)2005 ● Note REMIT 25 .10 .2019 Nota - REMIT case N7 2017 (Z)2006 ● Note REMIT 25 .10 .2019 Nota - REMIT case N145 2018 (E)2007 Proposition relative à l'octroi d'une autorisation de fourniture d'électricité à RWE Supply & Trading GmbH 10 10. .2019 Voorstel betreffende de toekenning van een vergunning voor de levering van elektriciteit aan RWE Supply & Trading GmbH (Z)2008 ● Note REMIT 25 .10 .2019 Nota - REMIT case (Z)2009 ● Note REMIT 25 .10 .2019 Nota - REMIT case (Z)2010 ● Note REMIT 07 .11 .2019 Nota - REMIT case

CREG Annual report 2019 113 5. The CREG

(B)2011 Décision relative à la proposition commune, formulée par la SA Elia System Operator et tous les gestionnaires de réseau de transport de la région de calcul de la capacité 17 .10 .2019 Core, modifiant les exigences régionales relatives aux règles d’enchères harmonisées Beslissing over het gemeenschappelijke voorstel van de NV Elia System Operator en alle transmissiesysteembeheerders van de Core capaciteitsberekeningsregio tot wijziging van de regionale eisen betreffende de geharmoniseerde toewijzingsregels (F)2012 Étude sur le poids de la facture d’électricité et de gaz naturel dans le budget des ménages belges en 2018 14 .11 .2019 Studie over het aandeel van de elektriciteits- en aardgasfactuur in het budget van de Belgische huishoudens in 2018 (B)2013 Décision relative à la demande d’approbation d’une proposition de modification des modalités et conditions applicables au responsable d'équilibre (T&C BRP) concernant 20 .12 .2019 l’intégration de la procédure de gestion des tempêtes en mer Beslissing inzake de aanvraag tot goedkeuring van een wijzigingsvoorstel aan de voorwaarden voor de balanceringsverantwoordelijke (T&C BRP) met betrekking tot de integratie van de procedure voor het beheer van storm op zee (B)2014 Décision concernant la demande d’approbation, formulée par la SA Elia System Operator, de dérogation à l’article 16, huitième alinéa du règlement (UE) 2019/943 portant 06 .12 .2019 sur une capacité disponible minimale d'échange entre zones Beslissing over de goedkeuringsaanvraag van de NV Elia System Operator voor een derogatie van artikel 16, achtste lid van Verordening (EU) 2019/943 met betrekking tot een minimale beschikbare capaciteit voor zone overschrijdende handel (A)2015 Avis relatif à la demande de la désignation de la SA Elia Transmission Belgium en tant que gestionnaire du réseau de transport d’électricité 25 .10 .2019 Advies over de aanvraag tot aanwijzing van Elia Transmission Belgium NV als beheerder van het transmissienet voor elektriciteit (C)2016 ● Proposition sur le calcul de la surcharge destinée à compenser le coût réel net supporté par le gestionnaire du réseau résultant de l’obligation d’achat et de vente des 21 .11 .2019 certificats verts en 2020 Voorstel over de berekening van de toeslag om de reële nettokost te compenseren die door de netbeheerder gedragen wordt naar aanleiding van de aan- en verkoopverplichting van groenestroomcertificaten in 2020 (Z)2017 ● Note REMIT 07 .11 .2019 Addendum REMIT case N137/2018 (A)2018 Avis relatif à l’octroi d’une autorisation individuelle relative à l’établissement d’une installation de production d’électricité du type TGV de 490 MWe à Roux par la SA Electrabel 07 .11 .2019 Advies betreffende de toekenning van een individuele vergunning voor de bouw van een installatie voor de productie van elektriciteit van het type STEG van 490 MWe in Roux door de NV Electrabel (B)2019 Décision relative au rapport sur la participation d’Elia en 2018 aux coûts supportés par les NEMO dans le cadre de la mise au point, la modification et l’application du couplage 20 .12 .2019 unique journalier et infrajournalier des marchés Beslissing in verband met het verslag over de bijdrage van Elia in 2018 in de kosten die door de NEMO’s worden gedragen in het kader van de vaststelling, de wijziging en de toepassing van de eenvormige day ahead en intraday koppeling van de markten (F)2020 Étude relative aux prix pratiqués sur le marché belge du gaz naturel en 2018 14 .11 .2019 Studie over de prijzen op de Belgische aardgasmarkt in 2018 (RA)2021 ● Rapport relatif à la relation entre les coûts et les prix sur le marché belge du gaz naturel en 2018 14 .11 .2019 Verslag met betrekking tot de verhouding tussen de kosten en prijzen op de Belgische aardgasmarkt in 2018 (A)2022 Avis sur la proposition de plan de défense du réseau d'Elia System Operator SA, en ce compris les listes des utilisateurs significatifs du réseau et des utilisateurs significatifs 14 .11 .2019 du réseau de haute priorité et les mesures/conditions associées Advies over het voorstel van systeembeschermingsplan van Elia System Operator NV met inbegrip van de lijsten van significante netgebruikers en significante netgebruikers met hoge prioriteit en de bijhorende maatregelen/voorwaarden

114 CREG Annual report 2019 5. The CREG

(A)2023 Avis sur la proposition de plan de reconstitution d'Elia System Operator SA, en ce compris les listes des utilisateurs significatifs du réseau et des utilisateurs significatifs du 14 .11 .2019 réseau de haute priorité et les mesures/conditions associées Advies over het voorstel van herstelplan van Elia System Operator NV met inbegrip van de lijsten van significante netgebruikers en significante netgebruikers met hoge prioriteit en de bijhorende maatregelen/voorwaarden (Z)2024 Note concernant les paramètres déterminant le volume de la capacité achetée dans le cadre du mécanisme de capacité 20 .12 .2019 Nota over de parameters waarmee de hoeveelheid in het kader van het capaciteitsmechanisme aangekochte capaciteit wordt bepaald (B)2025 Décision relative à la demande d’approbation de la SA Elia System Operator, de la proposition de modification de l’accord d’exploitation de bloc RFP Elia 06 .12 .2019 Beslissing over de vraag van de NV Elia System Operator tot goedkeuring van het voorstel tot wijziging van de operationele overeenkomst voor LFC-blok Elia (B)2026 Décision sur la demande d’approbation d’Elia de la méthodologie pour déterminer, pour chacun des services d'équilibrage, la capacité d'équilibrage à réserver auprès des 06 .12 .2019 fournisseurs de services d'équilibrage au sein de la zone de déséquilibre Beslissing over de aanvraag tot goedkeuring van Elia van de methodologie om, voor elk van de balanceringsdiensten, de balanceringscapaciteit te bepalen die bij de aanbieders van balancerings¬diensten moet worden gereserveerd binnen de onevenwichtszone (A)2027 Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Wintershall Dea GmbH 06 .12 .2019 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Wintershall Dea GmbH (B)2028 Décision relative à la demande, formulée par la SA Elia System Operator le 9 juillet 2019, de dérogation à l’obligation, applicable aux unités de production d’électricité d’une 06 .12 .2019 puissance installée maximale inférieure à 25 MW et d’une tension au point de raccordement supérieure ou égale à 110 kV, de se conformer à certaines exigences du code de réseau européen RfG Beslissing over het verzoek van de NV Elia System Operator van 9 juli 2019 tot afwijking van de verplichting voor elektriciteitsproductie-eenheden met een maximaal geïnstalleerd vermogen lager dan 25 MW en een spanning op het aansluitingspunt hoger dan of gelijk aan 110 kV om aan bepaalde eisen van de Europese netcode RfG te voldoen (A)2029 Avis relatif à un projet d’arrêté royal portant modifications de l’arrêté royal du 24 mars 2003 fixant les modalités de la cotisation fédérale destinée au financement de certaines 04 .12 .2019 obligations de service public et des coûts liés à la régulation et au contrôle du marché de l'électricité et de l’arrêté royal du 2 avril 2014 fixant les modalités de la cotisation fédérale destinée au financement de certaines obligations de service public et des coûts liés à la régulation et au contrôle du marché du gaz naturel Advies over een ontwerp van koninklijk besluit tot wijziging van het koninklijk besluit van 24 maart 2003 tot bepaling van de nadere regels betreffende de federale bijdrage tot financiering van sommige openbare dienstverplichtingen en van de kosten verbonden aan de regulering van en controle op de elektriciteitsmarkt en van het koninklijk besluit van 2 april 2014 tot vaststelling van de nadere regels betreffende een federale bijdrage bestemd voor de financiering van bepaalde openbare dienstverplichtingen en van de kosten verbonden aan de regulering van en controle op de aardgasmarkt (A)2030 Avis relatif au projet de proposition d’arrêté royal fixant la méthodologie de calcul de capacité et des paramètres pour les enchères dans le cadre du mécanisme de 06 .12 .2019 rémunération de capacité, transmis par Elia le 22 novembre 2019 Advies met betrekking tot het ontwerpvoorstel van koninklijk besluit dat de berekeningsmethodologie van de capaciteit en de parameters voor de veilingen in het kader van het capaciteitsvergoedingsmechanisme vastlegt, dat op 22 november 2019 door Elia werd bezorgd (A)2031 ● Avis relatif au projet d'arrêté royal imposant à Electrabel SA une obligation de service public couvrant le volume et le prix du service réglage de la tension et de la puissance 13 .12 .2019 réactive du 1er janvier 2020 au 31 décembre 2020 inclus Advies over een ontwerp van koninklijk besluit houdende oplegging van een openbare dienstverplichting aan Electrabel nv tot dekking van het volume en de prijs voor de dienst regeling van de spanning en het reactief vermogen vanaf 1 januari 2020 tot en met 31 december 2020 (A)2032 ● Avis relatif au projet d'arrêté royal imposant à Aspiravi SA une obligation de service public couvrant le volume et le prix du service réglage de la tension et de la puissance 12 .12 .2019 réactive du 1er janvier 2020 au 31 décembre 2020 inclus Advies over een ontwerp van koninklijk besluit houdende oplegging van een openbare dienstverplichting aan Aspiravi nv tot dekking van het volume en de prijs voor de dienst regeling van de spanning en het reactief vermogen vanaf 1 januari 2020 tot en met 31 december 2020

(A)2033 ● Avis relatif au projet d'arrêté royal imposant à RWEST une obligation de service public couvrant le volume et le prix du service réglage de la tension et de la puissance réactive 12 .12 .2019 du 1er janvier 2020 au 31 décembre 2020 inclus Advies over een ontwerp van koninklijk besluit houdende oplegging van een openbare dienstverplichting aan RWEST tot dekking van het volume en de prijs voor de dienst regeling van de spanning en het reactief vermogen vanaf 1 januari 2020 tot en met 31 december 2020 (A)2034 ● Avis relatif au projet d'arrêté royal imposant à EDF Luminus une obligation de service public couvrant le volume et le prix du service réglage de la tension et de la puissance 12 .12 .2019 réactive du 1er janvier 2020 au 31 décembre 2020 inclus Advies over een ontwerp van koninklijk besluit houdende oplegging van een openbare dienstverplichting aan EDF Luminus nv tot dekking van het volume en de prijs voor de dienst regeling van de spanning en het reactief vermogen vanaf 1 januari 2020 tot en met 31 december 2020 (A)2035 ● Avis relatif au projet d'arrêté royal imposant CGNEE une obligation de service public couvrant le volume et le prix du service réglage de la tension et de la puissance réactive 12 .12 .2019 du 1er janvier 2020 au 31 décembre 2020 inclus Advies over een ontwerp van koninklijk besluit houdende oplegging van een openbare dienstverplichting aan CGNEE tot dekking van het volume en de prijs voor de dienst regeling van de spanning en het reactief vermogen vanaf 1 januari 2020 tot en met 31 december 2020 (A)2036 ● Avis relatif au projet d'arrêté royal imposant à Nyrstar une obligation de service public couvrant le volume et le prix du service réglage de la tension et de la puissance réactive 12 .12 .2019 du 1er janvier 2020 au 31 décembre 2020 inclus Advies over een ontwerp van koninklijk besluit houdende oplegging van een openbare dienstverplichting aan Nyrstar tot dekking van het volume en de prijs voor de dienst regeling van de spanning en het reactief vermogen vanaf 1 januari 2020 tot en met 31 december 2020 (A)2037 ● Avis relatif au projet d'arrêté royal imposant à Total Direct Energy une obligation de service public couvrant le volume et le prix du service réglage de la tension et de la 12 .12 .2019 puissance réactive du 1er janvier 2020 au 31 décembre 2020 inclus Advies over een ontwerp van koninklijk besluit houdende oplegging van een openbare dienstverplichting aan Total Direct Energy tot dekking van het volume en de prijs voor de dienst regeling van de spanning en het reactief vermogen vanaf 1 januari 2020 tot en met 31 december 2020 (A)2038 Avis concernant un projet d’arrêté royal relatif à l’établissement des conditions auxquelles les détenteurs de capacités étrangères directes et indirectes peuvent participer 12 .12 .2019 au mécanisme de rémunération de capacité Advies betreffende een ontwerp van koninklijk besluit houdende vaststelling van de voorwaarden waaronder de houders van rechtstreekse en onrechtstreekse buitenlandse capaciteit kunnen deelnemen aan het capaciteitsvergoedingsmechanisme (B)2041 Avis relatif à la nécessité d’un renouvellement d’une autorisation individuelle couvrant l’établissement d’un parc éolien à Villers-le-Bouillet, Wanze et Verlaine suite au transfert 20 .12 .2019 de propriété de Luminus SA à Eolus SA Advies over de noodzaak van een hernieuwing van een individuele vergunning voor de bouw van een windmolenpark in Villers-le-Bouillet, Wanze en Verlaine als gevolg van de eigendomsoverdracht van Luminus nv naar Eolus nv (R)2042 Lignes directrices relatives à la facturation et la perception de la cotisation fédérale « électricité » 20 .12 .2019 Richtlijnen voor de facturatie en inning van de federale bijdrage “elektriciteit” (A)2044 Avis relatif à la proposition de loi (DOC 55 0703/001) modifiant la loi du 29 avril 1999 relative à l’organisation du marché de l’électricité et la loi du 12 avril 1965 relative au 20 .12 .2019 transport de produits gazeux et autres par canalisations, en vue de mieux protéger les PME Advies over het wetsvoorstel (DOC 55 0703/001) tot wijziging van de wet van 29 april 1999 betreffende de organisatie van de elektriciteitsmarkt en van de wet van 12 april 1965 betreffende het vervoer van gasachtige produkten en andere door middel van leidingen met het oog op een betere bescherming van kmo’s

116 CREG Annual report 2019 Responsible Editor Koen LOCQUET Rue de l’Industrie 26-38 1040 Brussels

Design www .inextremis .be

Illustrations www .stock .adobe com.

Staff photo Nicolas Leleu CREG – Rue de l’Industrie, 26-38 - 1040 Brussels T +32 (0)2 289 .76 .11 - www .creg .be