Annual report 2018
Commission for Electricity and Gas Regulation
Annual report 2018 Table of contents 3.1.4.2. Correlation of the development plan for the transmission 1. Foreword ...... 5 system with the development plan for the European network . 32 3.1.4.3. Flow-based market coupling ...... 32 2 Key national legislative developments ...... 9 3.1.4.4. The use of Dynamic Line Rating in the capacity calculation . . 33 3.1.4.5. The implementation of network codes ...... 33 2.1. Amending the legal framework for the strategic reserve ...... 10 3.1.4.6 The System Operating Policy regarding compensation between 2.2. Allocation of past balances of the federal contribution ...... 11 Elia and Nemo Link ...... 35 2.3. Amending the federal support mechanism for offshore wind energy . . .11 3.1.4.7. The results of the day-ahead market in November 2017 . . . .35 2.4. Procedure for the domain concessions for the offshore installations of 3.1.4.8. The day-ahead wholesale market from 1 to 7 October 2018 .35 electricity transmission ...... 12 3.1.4.9. Setting up and storing the common network models . . . . 36 2.5. Amending the technical regulations ...... 12 3.1.4.10. Determining the synchronous zone of continental Europe . 36 3.2. Competition ...... 36 3 The electricity market ...... 13 3.2.1. Monitoring of wholesale and retail prices ...... 36 3.2.1.1. CREG studies conducted in 2018 ...... 36 3.1. Regulation ...... 14 3.2.1.2. Monitoring energy market prices for households and 3.1.1. Electricity generation ...... 14 small-scale professional users ...... 40 3.1.1.1. Electricity generation licences ...... 14 3.2.2. Monitoring of market transparency and openness ...... 44 3.1.1.2. Electricity generation in the North Sea ...... 14 3.2.2.1. Electrical power demand ...... 44 3.1.1.3. Analysis of the support for offshore wind energy ...... 16 3.2.2.2. Market share of wholesale generation ...... 45 3.1.1.4. Commissioning of the Modular Offshore Grid ...... 16 3.2.2.3. Energy exchange ...... 46 3.1.2. Electricity supply ...... 17 3.2.2.4. Transparency, REMIT and financial instruments ...... 49 3.1.2.1. Supplying customers connected to the transmission system . .17 3.2.2.5. Charter of best practices for electricity and gas price 3.1.2.2. Price caps ...... 18 comparison websites ...... 50 3.1.2.3. Trends in and fundamentals of electricity prices ...... 18 3.3. Consumer protection ...... 50 3.1.3. Transmission and distribution ...... 19 3.4. Security of supply ...... 51 3.1.3.1. Renewal of the designation, unbundling and certification of the 3.4.1. Monitoring the balance between supply and demand ...... 51 transmission system operator ...... 19 3.4.2. Verifying the development plan for the transmission system ...... 52 3.1.3.2. Corporate governance ...... 19 3.4.3. Operational security of the grid ...... 52 3.1.3.3. The closed industrial networks and the traction power network .19 3.4.4. Investment in cross-border interconnections ...... 53 3.1.3.4. Technical operation ...... 19 3.4.5. Measures to cover peak demand and deal with shortfalls ...... 54 3.1.3.5. System tariffs ...... 24 3.4.5.1. Strategic reserve: winter periods 2018-2019-2020 ...... 54 3.1.4. Cross-border issues ...... 28 3.4.5.2. Access to demand management ...... 55 3.1.4.1. Access to cross-border infrastructure ...... 28 3.4.5.3. Security of electricity supply for winter 2018-2019 ...... 56
2 CREG Annual report 2018 4 The natural gas market ...... 57 5. The CREG ...... 75
4.1. Regulation ...... 58 5.1. CREG's Board of Directors and staff ...... 76 4.1.1. Natural gas supply ...... 58 5.2. Gas and Electricity Advisory Board ...... 78 4.1.1.1. Federal natural gas supply licences ...... 58 5.3. General policy plan, comparative report on the objectives and 4.1.1.2. Price caps ...... 59 achievements of the CREG, and the memorandum of the CREG for 4.1.1.3. Trends in and fundamentals of the natural gas price . . . . . 59 the attention of the federal elections ...... 80 4.1.2. Transmission and distribution ...... 59 5.4. Handling questions and complaints ...... 80 4.1.2.1. Unbundling and certification of the transmission system 5.5. Presentations made by the CREG ...... 81 operator ...... 59 5.6. The CREG and other authorities ...... 85 4.1.2.2. Corporate governance ...... 60 5.6.1. The CREG and the European Commission ...... 85 4.1.2.3. Technical operation ...... 61 5.6.2. The CREG within ACER ...... 85 4.1.2.4. System and LNG tariffs ...... 63 5.6.3. The CREG within CEER ...... 88 4.1.3. Cross-border issues and market integration ...... 65 5.6.4. European Gas Regulatory Forum ...... 91 4.1.3.1. Access to cross-border infrastructure ...... 65 5.6.5. European Electricity Regulatory Forum ...... 91 4.1.3.2. Correlation between the investment plan for the transmission 5.6.6. Citizens' Energy Forum ...... 92 network and the development plan for the European network . 65 5.6.7. Energy Infrastructure Forum ...... 92 4.1.3.3. Market integration ...... 65 5.6.8. The CREG and the other national regulators ...... 92 4.2. Competition ...... 67 5.6.9. The CREG and the FSMA ...... 93 4.2.1. Monitoring of wholesale and retail prices ...... 67 5.6.10. The CREG and Parliament ...... 93 4.2.1.1. CREG studies conducted in 2018 ...... 67 5.6.11. The CREG and the regional regulators ...... 93 4.2.1.2. Monitoring energy market prices for households and small 5.6.12. The CREG and the competition authorities ...... 94 professional users ...... 67 5.6.13. The CREG and Belgian universities ...... 95 4.2.2. Monitoring of market transparency and openness ...... 67 5.7. The finances of the CREG ...... 95 4.3. Consumer protection ...... 68 5.7.1. Federal contribution ...... 95 4.4. Security of supply ...... 68 5.7.2. Funds ...... 97 4.4.1. Monitoring the balance between supply and demand ...... 68 5.7.3. Accounts 2018 ...... 99 4.4.2. Monitoring TSO investment plans ...... 71 5.7.4. Auditor’s report on the annual accounts of the Commission for 4.4.3. Forecasts on future demand, available reserves and additional capacity. 72 Electricity and Gas Regulation (CREG) for the year ended 31 4.4.4. Covering peak offtake ...... 73 December 2018 ...... 104 5.8. List of acts drawn up by CREG in 2018 ...... 106
CREG Annual report 2018 3 LIST OF TABLES LIST OF FIGURES
1 Energy offtake by customers connected to the federal transmission system ...... 17 1 Change in offshore wind power installed capacity per wind farm ...... 15 2 Average unweighted imbalance tariff ...... 23 2 Net generation of offshore green electricity per wind farm ...... 16 3 Trends in the tariff burden (not including connection, PSO tariffs, surcharges and VAT) 3 Average unweighted imbalance tariff and BELPEX DAM price ...... 24 for users of the transmission system ...... 26 4 Availability and use of interconnection capacity ...... 29 4 Average export and import capacity and average net nomination per year ...... 29 5 Impact of the guaranteed availability of 20% of the thermal capacity of the critical branches 6 Wholesale market shares in electricity generation capacity ...... 45 on trade between different bidding zones ...... 31 7 Wholesale market shares in power generated ...... 45 6 Daily congestion rents from market coupling ...... 32 8 Elia grid load (energy and peak capacity) ...... 51 7 Monthly trends in the price of electricity for a standard household customer ...... 43 9 Breakdown by plant type of installed capacity connected to the Elia grid ...... 51 8 Monthly trends in the price of natural gas for a standard household customer ...... 43 10 Breakdown by primary energy type of electricity generated in 2018 by plants located 9 Monthly trends in the price of electricity for SMEs and the self-employed ...... 43 on sites connected to the Elia grid ...... 52 10 Monthly trends in the price of natural gas for SMEs and the self-employed ...... 43 11 Companies active in 2018 on the Belgian market for transmitting natural gas ...... 58 11 Average monthly load on the Elia grid ...... 44 12 Breakdown of Belgian natural gas demand by user segment ...... 68 12 Average monthly prices of the daily market for delivery of electricity 13 Directorates and staff of the CREG ...... 77 in the countries of the CWE region ...... 47 14 Members of the Gas and Electricity Advisory Board ...... 79 13 Average annual prices of the daily market for the supply of electricity in 15 Overview of presentations made by members of the CREG ...... 81 the countries of the CWE region ...... 47 16 Summary of the 2018 budget accounts in expenditure ...... 100 14 Average monthly strength of the Epex Spot Belgium market ...... 48 17 Summary of the 2018 budget accounts in revenue ...... 100 15 Energy traded and average price on the intraday exchange ...... 48 18 Summary of the 2018 budget accounts in expenditure ...... 101 16 Comparison of wholesale prices for short-term and long-term contracts ...... 49 19 Balance sheet as of 31 December 2018 ...... 102 17 Changes in the maximum physical load for the interconnections with France and the Netherlands . . 52 18 Fluxys Belgium's tariff trends for natural gas transmission (entry/exit tariffs for H-gas) ...... 64 19 Net natural gas transactions between the ZTP* Belgian natural gas market (Belux) and the markets in the neighbouring countries ...... 66 20 Average annual natural gas price on the day-ahead and year-ahead markets ...... 66 21 Distribution of Belgian H-gas and L-gas demand by user segment ...... 68 22 Evolution of natural gas consumption per user segment corrected for climate variations ...... 69 23 Breakdown of incoming natural gas by entry zone ...... 70 24 Composition of the average supply portfolio of suppliers operating in Belgium ...... 70 25 Composition of the average supply portfolio for the Belgian natural gas market ...... 70 26 Market shares of supply companies in the transmission network ...... 71 27 Forecast for demand for natural gas in Belgium ...... 72 28 Breakdown of the peak offtake by user segment ...... 73 29 Breakdown of the sources of natural gas to cover the peak offtake ...... 73
4 CREG Annual report 2018 1. Foreword 1
Foreword
CREG Annual report 2018 5 1. Foreword
2018 was characterised by various changes, not least the in order to identify possible anomalies, anticipate changes the consequences of a wave of consolidations initiated in upheavals in the energy markets: the extended shutdown and determine common operating rules. the sector since 2016. The competitive development of of several nuclear reactors, the announcement of impending the wholesale and retail markets remains one of the main power shortages during the winter, the cessation of the In the same vein and in close cooperation with the various priorities of the CREG, in the general interest and in the activities of several electricity and natural gas suppliers, parties involved, the CREG regularly sought information on interest of Belgian consumers. significant price developments for electricity, natural gas and the developments linked to the specific context of Brexit,
CO2, progress in the procedure for adopting the draft laws of in order to anticipate the impact of the exit conditions of Through its initiatives and innovative actions, including the the Clean Energy Package, problems with the reimbursement the United Kingdom, in particular in the context of the IUK CREG SCAN tool, which was consulted more than 387,000 of the generation capacity, etc. interconnection, the Nemo Link interconnection and the times in 2018, the CREG also aims to ensure that all coupling between the British market and the markets of consumers can benefit from clear and sufficient illuminating The CREG closely followed the continually changing and the Central-West-European region. information according to their own specific needs. This sometimes unpredictable events in the energy sector, as information must enable them to be proactive and make well as the repercussions for the Belgian energy markets The CREG remains vigilant in protecting the interests of informed choices in the liberalised energy market, and take and customers, through various brainstorming exercises. Belgian consumers, both large-scale and small-scale, and full advantage of the opportunities offered by technological This was often prompted by pro-active consultation with the as part of its regular monitoring has closely followed the innovation and digital development. Indeed, the reality on various market players or competent authorities, without trends in electricity and natural gas prices, including the the ground shows, for example, that almost 18% and 13% compromising its objectivity and independence. impact of the unavailability of nuclear power stations on of electricity and natural gas consumers respectively have prices, and the impact of prices on the competitiveness never switched to another electricity or natural gas supplier, Regarding the functioning of the markets and their of electricity-intensive businesses in particular. Where despite the fact that the energy markets were liberalised contribution to security of supply, the CREG formulated a necessary, this analysis was followed by recommendations more than ten years ago and that energy is a basic need that number of recommendations and opinions aimed, inter alia, or, as may have been the case, proposals for corrective directly affects the daily lives of consumers. at increasing not only the generation capacity of electricity measures, without incurring additional costs for the in Belgium, but also the import capacity, by implementing a federal budget, without jeopardising the competitiveness 2018 was also characterised by various legal developments more efficient coupling of the electricity markets (Flow-based of SMEs and without undermining the purchasing power at the national level relating to the amendment of the legal Market Coupling) in close cooperation with neighbouring of households. We also focused on the competitive framework for the strategic reserve, the allocation of the countries. The European process of reflection on building dynamics of the retail markets in 2018, a year which, for past balances of the federal contribution, the amendment an integrated energy market, in which the CREG actively the first time since 2003, was characterised by a drop in of the federal mechanism for supporting offshore wind participates within the CEER and ACER, has been continued, the number of active suppliers, who were confronted with energy, and the procedures for domain concessions for the
6 CREG Annual report 2018 1. Foreword
offshore electricity transmission installations. Thanks to the In this context, the CREG will ensure, as it did in the past, know-how of its highly qualified staff, the CREG has made that its actions fit within the framework of efficient and a substantial contribution to the preparatory work on these effective management of the resources at its disposal, in the energy-related issues, which are extremely complex from name of corporate social responsibility towards consumers, a technical, economic and legal perspective. In the context without prejudice to its independence and the smooth of this process and pursuant to the powers entrusted to implementation of the legal tasks entrusted to it, which will it, the CREG has made efforts to promote, at its level, an undoubtedly have an even wider scope in the future. appropriate and balanced regulation that reflects the reality on the ground as much as possible and provides a solution I would like to conclude this foreword by thanking Mrs Marie- to future challenges. Pierre Fauconnier for the professionalism and dynamism she showed during her mandate as Chairwoman of the Board of This same objective is reflected in all the acts approved by Directors up to November 2018. the CREG in 2018, which are described in more detail in this activity report. I wish you pleasant reading.
Finally, profound transformations are taking shape on the horizon. These may have been induced individually or jointly by the energy transition, by the digital age or by the reform of the energy markets following the adoption of new European regulatory texts, which play a decisive role in determining the future of the energy markets and the competent authorities, including the national regulatory authorities. The CREG intends to prepare itself even better in this respect, in a spirit of trust and constructive dialogue with all stakeholders and the competent authorities, both at national and European level, where the cooperation, contributions and proactive Koen Locquet role of the CREG need to be significantly reinforced. Acting Chairman of the Board of Directors February 2019
CREG Annual report 2018 7
2. Key national legislative developments 2
Key national legislative developments
CREG Annual report 2018 9 2. Key national legislative developments
2.1. Amending the legal framework for the market will depend on the date that such return was notified, and The procedure for assessing whether tenders are manifestly strategic reserve whether or not the unit in question is included in the strategic unreasonable and, where appropriate, for imposing prices and reserve, on the understanding that a return to the market cannot volumes has also been comprehensively revised. The following The Law of 30 July 20181 amended the Law of 29 April 1999 on the disrupt either the calculation of strategic reserve needs, or any in particular can be highlighted: (i) the obligation imposed on organisation of the electricity market (hereinafter the 'Electricity ongoing calls to tender. the CREG to publish, no later than the day of the launch of the Act') in order, firstly, to adapt the legal framework for the strategic procedure to set up the strategic reserve, the criteria against reserve, and secondly, to adapt the conditions for withdrawal The provisions of the Electricity Act relating to the strategic which the manifestly unreasonable nature of the tenders will from and return to the market for electricity generation facilities. reserve were also comprehensively amended by this Law of 30 be assessed; (ii) the possibility offered to the CREG going July 2018. forward, in the context of its analysis, of asking tenderers in the These amendments follow on from the commitments entered strategic reserve to submit all the information relating to their into by the Belgian State regarding the notification procedure As regards the preceding analyses, the intention is now for the tenders within a period of seven days; (iii) the possibility for the for the strategic reserve to the European Commission pursuant electricity transmission system operator to consult users of the Directorate-General for Energy of the FPS Economy, SMEs, Self- to Articles 107 and 108 of the Treaty on the Functioning of the grid and the CREG on any change in the basic assumptions and employed and Energy (hereinafter the "Directorate-General for European Union and approved by the decision of the European methodology used to analyse the national security of the supply Energy") to participate as observers in the preparatory work for the Commission of 7 February 2018.2 situation for the next winter period. opinion of the CREG; (iv) the obligation for the CREG to provide an estimate in the opinion it gives of the price level at which The above-mentioned Law of 30 July 2018 starts by extending If it proves necessary to set up a strategic reserve, this can now the price of the tenders considered manifestly unreasonable the notification obligation for operators in the event that electricity only be set up for one year; the Law of 30 July 2018 has therefore can be regarded as reasonable; (v) the power of the King to generation installations are decommissioned: this obligation now eliminated the possibility of setting up a strategic reserve for a determine a procedure whereby a price imposed for the supply relates to the temporary or permanent decommissioning of any period of up to three years. The volume of the strategic reserve of the strategic reserve by candidates who have submitted an installation with an installed capacity of 5 MW or more, but also to for the next winter period will be calculated by ministerial decree, offer deemed manifestly unreasonable can be determined by the temporary or permanent structural reduction of the installed by 15 January at the latest, but the Law of 30 July 2018 introduced ministerial decree (this procedure was laid down in the Royal capacity by 5 MW or more. The law stipulates that a definitive the possibility for the Minister to revise this volume, upwards Decree of 13 November 20184). decommissioning, once it has become effective, will make it or downwards, on the basis of the circumstances relating to impossible to generate electricity, except in the context of the security of supply. This adjustment must be made no later than 1 Finally, it should be noted that the Law of 30 July 2018 contains a strategic reserve and the provision of a black-start service. September prior to the start of the winter period. number of provisions aimed at specifying the framework within which studies regarding the security of supply must or may be This law also lays down the conditions for the return to the The Law of 30 July 2018 also amends the conditions for carried out by the transmission system operator. On the one hand, market of generation units that have notified of a temporary participating in the procedure for setting up the strategic reserve, the law now requires the system operator to perform, every two decommissioning or a reduction in capacity, whereby a unit that by allowing operators of emergency power groups that can work years, an analysis of the needs of the Belgian electricity system has notified of a permanent decommissioning will no longer be in islanding3 to participate, and by clarifying the generation units in terms of the country's adequacy and flexibility for the next ten able to return to the market in the future. The return date to the that must participate, under penalty of an administrative fine. years, for which the basic assumptions and scenarios, as well
1 Law of 30 July 2018 amending the Law of 29 April 1999 on the organisation of the electricity market with a view to adapting the legal framework for the strategic reserve (Belgian Official Journal of 31 August 2018). 2 European Commission, decision SA.48648, Belgium – Strategic reserve, 7 February 2018. 3 The Law of 30 July 2018 also incorporated a definition of this concept in the Electricity Act (Art. 2, 68° of the Electricity Act). This is (translation) an "installation for the generation of electricity within a consumption site, for which the nominal capacity is not significantly higher than the consumption capacity of the site in question, and which is installed exclusively for the purpose of guaranteeing the supply of electricity of this site, or part thereof, in the event of an interruption in the supply of electricity from the grid to which it is connected for this site, or part thereof". 4 Royal Decree of 13 November 2018 laying down the procedure by which the Directorate-General for Energy draws up a proposal for the Minister for Energy concerning the prices and volumes to be imposed on tenderers for the strategic reserve, for whom the tenders were deemed manifestly unrea- sonable by the commission (Belgian Official Journal of 26 November 2018).
10 CREG Annual report 2018 2. Key national legislative developments as the methodology used, are determined in collaboration with contribution, meaning that the distribution system operators, at the end of October 2017 between the federal government and the Directorate-General for Energy and the Federal Planning who invoice the federal contribution via the suppliers to end these domain concession holders, the CREG was tasked with Bureau and in consultation with the CREG (Art. 7bis, § 4bis of customers, collected too much in federal contributions between drawing up a proposal for a Royal Decree, which it submitted on the Electricity Act). On the other hand, and in addition to the 2009 and 2017, which needs to be redistributed. 16 April 2018.7 The preliminary draft decree was submitted to the periodic analyses stipulated by the law, a new article 7decies European Commission and a decision to approve it was taken on allows the Minister for Energy to request the system operator In view of the different practices applied by the various distribution 27 September 2018.8 to carry out all necessary studies regarding the adequacy of system operators in this respect, the above-mentioned Law the Belgian electricity system. All analyses and studies in this of 18 March 2018 stipulates that if the amount of the federal In essence, the main changes compared to the previous support area must now be published, specifically on the website of the contribution invoiced by a distribution system operator exceeds mechanism (see Annual Report 2017, page 11) are as follows: Directorate-General for Energy. the amount invoiced to it by the transmission system operator, - Levelised Cost of Energy (LCOE) set at €79/MWh, whereby the difference is allocated by the distribution system operator the rest of the formula for determining the minimum purchase 2.2. Allocation of past balances of the federal on the basis of the annual settlements approved by the CREG. price for green certificates remains unchanged; contribution - Mandatory purchase of green certificates for a quantity of For the years 2018 and subsequent years, the Royal Decree of electricity which must be determined by ministerial decree, The Law of 18 March 20185 introduced a new paragraph 4 in 24 March 2003 laying down the detailed rules on the federal corresponding to 63,000 full load hours and for a maximum Article 21bis of the Electricity Act, which introduces a federal contribution to the financing of certain public service obligations period of 17 years from the commissioning of each installation, contribution intended to finance certain public service obligations and the costs associated with the regulation and control of the and in any case until 31 December 2037, except in cases of and the costs associated with regulating the electricity market. electricity market, was already amended in 2017 in order to take force majeure; This adjustment is designed to make it possible to allocate the account of decentralised electricity generation in the context of - Determination of a mechanism of monthly advances, for which surpluses of the federal contribution paid between 2009 and determining the invoiced amounts of the federal contribution the amount is determined in advance by the CREG on the 2017 by end customers connected to the distribution system. (see Annual Report 2017, page 88). basis of an estimated minimum price and generation volume; - During the first five years of operation, an additional annual To ensure that the federal contribution can cover its needs, only advance is granted if actual generation is lower than estimated the quantity of electricity passing through the transmission 2.3. Amending the federal support mechanism (this is to guarantee the revenues of concession holders for the system is taken into account. Based on this, the unit value of for offshore wind energy period, in accordance with the agreement); the federal contribution is calculated, i.e. the amount that each - Introduction of a settlement system by the CREG to ensure end customer must pay for each MWh they draw from the Through the Royal Decree of 17 August 2018 amending the Royal that the support received corresponds to actual generation and grid. However, with the increase in decentralised generation, Decree of 16 July 2002 on the establishment of mechanisms to the minimum price observed at the time of generation; it became clear that the number of MWh invoiced to end promote electricity generated from renewable energy sources - However, for the first five years of operation, one settlement is customers was larger than the quantity of electricity passing (Belgian Official Journal of 27 August 2018), the King wanted to made at the end of the period and the reimbursement of the through the transmission system, which was used as a basis determine the procedures to support the concession holders excess is carried over to the end of the support period. for calculating the amount needed to cover costs by the federal Northwester 2 and SeaMade.6 Following an agreement reached
5 Law of 18 March 2018 amending the Law of 29 April 1999 on the organisation of the electricity market with regard to the detailed rules on the federal contribution to the financing of certain public service obligations and of the costs associated with the regulation and control of the electricity market (Belgian Official Journal of 3 April 2018). 6 SeaMade: originally Mermaid and Seastar. 7 Proposal (A)1740 for an amendment to the Royal Decree of 16 July 2002 on the establishment of mechanisms to promote electricity generated from renewable energy sources, 16 April 2018. 8 European Commission, decision SA.51306, Belgium Individual aid to three offshore wind farm projects (Mermaid, Seastar and Northwester2), 27 September 2018.
CREG Annual report 2018 11 2. Key national legislative developments
2.4. Procedure for the domain concessions for the generation of electricity in maritime areas in which the Restoration Code. This Royal Decree was drawn up in the for the offshore installations of electricity Belgium can exercise jurisdiction, with a view to the entry into context of the implementation of Commission Regulation (EU) transmission force of the MOG. This concerns the authorisation for the laying 2017/2196 of 24 November 2017 establishing a network code of cables and the authorisations and licences to carry out certain on electricity emergency and restoration. Pursuant to Article 13/1 of the Electricity Act, on 1 March 2018 the activities in maritime areas. King approved a decree on the conditions and procedure for the In accordance with Article 11 of the Electricity Act, the draft granting of domain concessions to the system operator for the Finally, the Royal Decree of 1 March 2018 also contains a Royal Decree was submitted to the CREG for its opinion, construction and operation of installations for the transmission chapter regarding the declarations of public utility, in order which was given on 11 October 2018.10 of electricity, in maritime areas over which Belgium can to grant the transmission system operator the right to place exercise jurisdiction in accordance with international maritime electricity transmission installations in the perimeter of a domain From now on, the protection and restoration plans (instead of law (Belgian Official Journal of 8 March 2018). The draft Royal concession for the generation of offshore electricity, or to make the rescue code and the restoration code) will be submitted Decree was the subject of two opinions issued by the CREG direct use of the installations of such a concession holder in by the transmission system operator for approval by the on 7 July 2016 and 7 September 2017 (see Annual Report 2016, order to install transmission installations there. In accordance Minister for Energy, after the opinion of the CREG. If there is page 14 and Annual Report 2017, page 14). with Article 24 of the Decision of 1 March 2018, the declaration no approval, the system operator must submit a new proposal. of public utility provides a statutory easement of public utility. It Previously, the protection and restoration codes were simply In the first chapter, the Royal Decree of 1 March 2018 should also be highlighted that a declaration of public utility is drawn up by the system operator. sets out the criteria for granting domain concessions, the not the only possible way of authorising the system operator to requirements for submitting the application, the procedure for use the domain concession granted to a producer of offshore The Royal Decree of 12 December 2018 also introduces a processing concession applications and for granting or refusing electricity or of this producer's installations: these modalities new Article 315/1 into the technical regulations, which also a concession, the obligations of the concession holder, the can be provided for by a simple agreement between the parties, tasks the Minister for Energy with approving a number of conditions for modifying and renewing the concession and the of which a copy must be sent to the Directorate-General for instruments (for example, the "procedures governing the role cases for terminating the concession. Energy (cf. Art. 3, §2, 8° of the Decision of 1 March 2018). of the contractual providers of protection services"), thereby implementing the possibility offered by the above-mentioned Following the amendment of the Electricity Act of 13 July 2.5. Amending the technical regulations Regulation 2017/2196 to grant such authorisation power to an 2017, aimed at establishing a legal framework for the Modular entity other than the national regulatory body. Offshore Grid ('MOG') (see Annual Report 2017, page 10), the The Royal Decree of 12 December 20189 amends the provisions Royal Decree of 1 March 2018 also provides the conditions of the Royal Decree of 19 December 2002 containing technical for the transfer, to the transmission system operator, of the regulations for the management of the electricity transmission administrative permits granted to domain concession holders system and access to it, which relates to the Rescue Code and
9 Royal Decree of 12 December 2018 amending the Royal Decree of 19 December 2002 containing technical regulations for the management of the electricity transmission system and access to it in order to determine the approval of protection plans and restoration plans as well as points (c), (d) and (g) of Article 4 (2) of Regulation (EU) 2017/2196 of 24 November 2017 establishing a network code on electricity emergency and restoration (Belgian Official Journal of 17 December 2018). 10 Opinion (A)1837 of 11 October 2018 on a draft Royal Decree amending the Royal Decree of 19 December 2002 containing technical regulations for the management of the electricity transmission system and access to it. See also point 3.1.3.4. A of this report.
12 CREG Annual report 2018 3. The electricity market 3
The electricity market
CREG Annual report 2018 13 3. The electricity market
3.1. Regulation subject to an obligation of prior notification to the CREG and to B. Green certificates, certificates of guarantee of origin and the federal Energy Minister or their delegate. In 2018, the CREG guarantees of origin 3.1.1. Electricity generation received 23 such notifications. • Applications submitted to the CREG 3.1.1.1. Electricity generation licences 3.1.1.2. Electricity generation in the North Sea On 19 July 2018, the CREG approved the proposal for a The construction of installations for electricity generation is A. Domain concessions for offshore wind energy contract for the purchase of green certificates between Elia subject to the prior granting of an individual permit issued by the and Rentel. The obligation to purchase green certificates for Federal Minister for Energy on the advice of the CREG. In this During the course of 2018, at the request of the Directorate- electricity generated by offshore wind energy is the object context, the CREG issued five opinions in 2018, of which all five General for Energy, the CREG issued five opinions on requests of a contract between the domain concession holder and the were favourable.11 to modify the domain concessions for the construction and system operator.14 operation of installations for the generation of electricity from A ministerial decree of 19 September 2018, published in the wind energy in maritime areas.12 Subsequently, on 20 September and 25 October 2018, the Belgian Official Journal of 7 December 2018, grants an individual CREG approved the applications of Rentel to grant green permit for the construction of a photovoltaic installation for the At the start of July 2018, at the request of the Directorate- certificates for electricity generation from the 309 MW generation of electricity with a capacity of 75 MW to Kristal Solar General for Energy, the CREG issued a positive opinion on offshore wind farm.15 The wind turbines in question meet the Park NV, within the territory of the city of Lommel. the transfer of the domain concession from the joint venture conditions for the granting of green certificates for the net Mermaid to Seastar NV.13 By ministerial decree of 18 July generated electricity from the date on which the respective On the other hand, the construction of new Belgian production 2018 (Belgian Official Journal of 13 August 2018), the domain certificates of guarantee of origin for each wind turbine are installations with a net developable capacity of less than or equal concession initially granted to the joint venture Mermaid was signed. to 25 MWe does not require prior ministerial approval, but it is transferred to Seastar NV.
11 Opinion (A)1787 of 12 July 2018 on the granting of an individual permit for the construction of an installation for the generation of electricity (solar park) in Lommel by Kristal Solar Park NV; Opinion (A)1809 of 23 August 2018 on the granting of individual permits for the construction of an installation for the generation of electricity (Cogeneration) in Kallo by Borealis Kallo NV; Opinion (A)1826 of 6 September 2018 regarding the need to renew the individual generation licence granted to RWE Generation Belgium NV for the construction of an electricity generation plant in Zwijndrecht following the acquisition of all the shares by INEOS Oxide Limited; Opinion (A)1824 of 6 September 2018 regarding the need to renew the individual generation licence granted to T-Power NV for the construction of an electricity generation facility in Tessenderlo following the acquisition of all the shares by the Tessenderlo Group NV; Opinion (A)1828 of 17 September 2018 regarding the need to renew the individual permit for the establishment of the CCGT plant of Marcinelle as a result of the change of control of Marcinelle Energie NV; Opinion (A)1872 of 6 December 2018 regarding the need to renew the individual permit for the establishment of the CCGT plant in Manage as a result of the change of control of Bali Wind NV. 12 Opinion (A)1726 of 1 February 2018 on the application for modification of the domain concession for the construction and operation of installations for the generation of electricity from wind in maritime areas granted to Northwester 2 NV; Opinion (A)1748 of 26 April 2018 on the application for modification of the domain concession by ministerial decree of 12 May 2015 granted to Northwester 2 NV for the construction and operation of installations for the generation of electricity from water, currents or winds in maritime areas above Bligh bank; Opinion (A)1774 of 15 June 2018 on the application for modification of the domain concession, granted by ministerial decree of 20 July 2012 to the joint venture Mermaid for the construction and operation of installations for the generation of electricity from water, currents or winds in maritime areas above Bligh bank; Opinion (A)1775 of 15 June 2018 on the application for modification of the domain concession, granted by ministerial decree of 1 June 2012 to the joint venture Seastar for the construction and operation of installations for the generation of electricity from wind in maritime areas between the Lodewijkbank (formerly 'Bank zonder Naam') and Bligh bank; Opinion (A)1862 of 15 November 2018 on the application for extension of the domain concession granted by ministerial decree of 5 October 2009 to Norther NV for the construction and operation of installations for the generation of wind electricity in maritime areas south of Thornton Bank. 13 Opinion (A)1784 on the application for the Mermaid joint venture to transfer the domain concession to Seastar NV for the construction and operation of wind power generation plants in maritime areas, granted by Ministerial Decree of 20 July 2012. 14 Decision (B)1755 of 19 July 2018 on the application for approval of the proposal for a contract for the purchase of green certificates between Elia System Operator NV and Rentel NV. 15 Decision (B)1821 of 20 September 2018 on the request of Rentel for the granting of green certificates for the electricity generated by the wind turbines R_A4, R_A5, R_A6, R_A7, R_B2, R_B3, R_B4, R_B6, R_B7, R_C2, R_C3, R_C4, R_C5, R_D2, R_D3, R_D5, R_D6, R_E1, R_E2, R_E3, R_F1, R_F2, R_F4, R_F5, R_G1, R_G2, R_G3 and R_G8 and decision (B)1834 of 25 October 2018 on the request of Rentel for the granting of green certificates for the electricity generated by the wind turbines R_A1, R_A2, R_A3, R_B1, R_B5, R_C1, R_D1, R_D4, R_E4, R_F3, R_G4, R_G5, R_G6 and R_G7.
14 CREG Annual report 2018 3. The electricity market
Net electricity generation (prior to transformation) from all CREG issues one green certificate per net MWh generated. In addition, in its decisions of 28 June, 11 October, 8 November certified offshore wind farms reached 3,391 GWh in 2018, The green certificates issued for the net generation in 2018 of and 26 November 2018, the CREG set the minimum price for an increase of almost 18.4% compared to net generation in the four operational offshore wind farms represent an amount the green certificates issued for the electricity generated by the 2017 (2,864 GWh). This increase is almost entirely due to the of €350,247,917 (compared to €294,722,159 in 2017). The unit installations in the domain concessions of Rentel, Northwester commissioning of the Rentel wind farm. cost of subsidising offshore activities via green certificates rose 2, Norther, Mermaid and Seastar16 respectively. In this regard, slightly in 2018 to €103.3/MWh, compared with €102.9/MWh the CREG examined whether there was a difference between The net monthly generation per domain concession holder is in 2017. the price of electricity in the contract and an average nominal shown in Figure 2. The average load factor in 2018 (generation price that is equal to 90% of the reference price for electricity. divided by installed capacity) ranges from a minimum of 15% in July to a maximum of 63% in February. Finally, in 2018, the CREG issued a positive opinion on the request to renew the accreditation of the non-profit organisation SGS Statutory Services Belgium as an inspection body.17 Figure 1: Change in offshore wind power installed capacity per wind farm between April 2009 and December 2018 (Source: CREG) The inspection body is responsible for issuing the certificate of guarantee of origin for offshore wind energy generation 1400 installations, and for carrying out periodic inspections, at least 1200 annually, of conformity of the data included in the guarantee of origin certificate. 1000
• Change in installed capacity in generated offshore wind 800 and green energy
MW 600 The total installed capacity of offshore wind turbines increased by 308.7 MW in 2018, to 1,186.8 MW. The change in installed 400 capacity since April 2009 is shown in Figure 1. 200 This increase can be attributed to the completion of the Rentel 0 wind farm on Bligh Bank. Apr./09 Apr./10 Apr./11 Apr./12 Apr./13 Apr./14 Apr./15 Apr./16 Apr./17 Apr./18 Dec./09 Dec./10 Dec./11 Dec./12 Dec./13 Dec./14 Dec./15 Dec./16 Dec./17 Dec./18 Aug./09 Aug./10 Aug./11 Aug./12 Aug./13 Aug./14 Aug./15 Aug./16 Aug./17 Aug./18 In 2018, all offshore wind farms combined injected 3,305 GWh into the transmission system. C-Power Belwind Northwind Nobelwind Rentel
16 Decision (B)1768 of 28 June 2018 on the determination of the correction factor for the 3rd period (03.10.2018 - 02.10.2019) for determining the minimum price for the green certificates issued for the electricity generated by the installations in the Rentel domain concession; Decision (B)1832 of 11 October 2018 on the request to determine the correction factor for determining the minimum price for green certificates issued for electricity generated by the installations located in the Northwester 2 domain concession for the first period after financial close; Decision (B)1832 of 11 October 2018 on the request to determine the correction factor for determining the minimum price for green certificates issued for electricity generated by installations located in the domain concession of Northwester 2 for the first period after financial close; Decision (B)1860 of 26 November 2018 on the request to determine the correction factor for determining the minimum price for green certificates issued for electricity generated by installations located in the Mermaid domain concession for the first period after financial close; Decision (B)1861 of 26 November 2018 on the request to determine the correction factor for determining the minimum price for green certificates issued for electricity generated by the installations located in the Seastar domain concession for the first period after financial close. 17 Opinion (A)1753 of 24 May 2018 on the request of the non-profit organisation SGS Statutory Services Belgium regarding the renewal of its accreditation as an inspection body.
CREG Annual report 2018 15 3. The electricity market
Figure 2: Net generation of offshore green electricity per wind farm between April 2009 and December 2018 (Source: CREG) about their use. Furthermore, an overview is given of the procedures for determining the support and the design of the 500 future support mechanism is discussed in more detail. Finally, various important aspects of the competitive tendering 450 process are discussed.18 400
350 3.1.1.4. Commissioning of the Modular Offshore
300 Grid
250 On 1 March 2018, the Royal Decree was promulgated on GWh 200 the conditions and the procedure for the granting of domain 150 concessions to the system operator for the construction and
100 operation of electricity transmission facilities in the maritime areas over which Belgium has jurisdiction under international 50 maritime law (see point 2.4 of this report). In May 2018, at 0 the request of the Directorate-General for Energy, the CREG issued an opinion on the request from Elia Asset NV with a Apr./09 Apr./10 Apr./11 Apr./12 Apr./13 Apr./14 Apr./15 Apr./16 Apr./17 Apr./18 Dec./09 Dec./10 Dec./11 Dec./12 Dec./13 Dec./14 Dec./15 Dec./16 Dec./17 Dec./18 Aug./09 Aug./10 Aug./11 Aug./12 Aug./13 Aug./14 Aug./15 Aug./16 Aug./17 Aug./18 view to granting such a domain concession. The CREG issued C-Power Belwind Northwind Nobelwind Rentel a positive opinion, with a double suspensive condition.19 By Royal Decree of 8 July 2018 (Belgian Official Journal of 20 July C. Guarantees of Origin account was also opened for Rentel, the new wind farm that 2018), Elia Asset NV was granted a domain concession for the became operational in 2018. construction and operation of electricity transmission facilities The CREG continued to manage the guarantees of origin in the maritime areas south of Lodewijkbank. database in 2018. Via this database, producers of offshore 3.1.1.3. Analysis of the support for offshore wind energy wind energy are issued guarantees of origin, which allow In accordance with Article 7, §2, paragraph 4 of the Electricity them to export to other European markets. To this end, the In the context of the principle note 'Tendering offshore wind Act, the CREG took various decisions on the amount to cover CREG has remained an active member of the Association of farms from 2020', which was approved by the Council of the total costs of the connection to the Modular Offshore Issuing Bodies (AIB), an association that manages the hub Ministers on 31 August 2018, the CREG carried out an analysis Grid ("MOG") for the offshore wind farms Northwester 220, through which most European databases are connected to of the design of the support mechanism and the organisation Mermaid21 and Seastar22. To cover all the financing costs of each other. In March, the CREG hosted the first general of tendering in the Belgian context. the installations connected to the Modular Offshore Grid, the meeting of the year. At the general meeting in September, CREG decided that the LCOE of Northwester 2 needed to be the AIB approved the audit of the CREG registry. At the The note describes the evolution of the support mechanisms increased by €12.67/MWh, that of Mermaid by €12.70/MWh technical level, the switch was made to the v71 system. An for offshore in Belgium and raises a number of concerns and that of Seastar by €10.54/MWh.
18 Note (F)1880 of 20 December 2018 on the support mechanism for the construction of offshore wind farms after 2020. 19 Opinion (A)1767 of 24 May 2018 on the request submitted by Elia Asset NV for the construction and operation of electricity transmission facilities, in the maritime areas in which Belgium can exercise jurisdiction in accordance with international maritime law, in this case the Modular Offshore Grid. 20 Decision (B)1788 of 26 July 2018 on the determination of the amount to cover the total costs of the connection to the Modular Offshore Grid for the domain concession Northwester 2. 21 Decision (B)1830 of 4 October 2018 on the determination of the amount to cover the total costs of the connection to the Modular Offshore Grid for the domain concession Mermaid. 22 Decision (B)1831 of 4 October 2018 on the determination of the amount to cover the total costs of the connection to the Modular Offshore Grid for the domain concession Seastar.
16 CREG Annual report 2018 3. The electricity market
In addition, in accordance with Article 6/2, §1 of the Electricity Table 1: Energy offtake by customers connected to the federal transmission system, 2007 to 2018 inclusive (Sources: Elia, CREG) Act, the CREG submitted a proposal for a Royal Decree to the Minister for Energy in order to set a deadline for the Suppliers Electrabel NV Other suppliers Total implementation of each part of the MOG and to determine 01/01/2018 37 50 83* Access points at the remuneration system for domain concession holders in 31/12/2018 39 51 86* the event of the unavailability of the MOG.23 At the request 2007 12,469 (87.7%) 1,743 (12.3%) 14,211 of the Minister for Energy, this proposal amends an earlier 2008 11,470 (84.0%) 2,183 (16.0%) 13,654 2009 10,807 (87.6%) 1,526 (12.4%) 12,333 proposal that was sent to the Minister on 10 November 2017 2010 12,163 (88.7%) 1,551 (11.3%) 13,714 (see Annual Report 2017, page 10). 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) 3.1.2. Electricity supply 2013 7,484 (57.6%) 5,519 (42.4%) 13,004 2014 8,598 (62.6%) 5,130 (37.4%) 13,728 3.1.2.1. Supplying customers connected to the 2015 6,465 (50.6%) 6,318 (49.4%) 12,783 transmission system 2016 4,133 (37.8%) 6,787 (62.2%) 10,920 2017 4,947 (43.7%) 6,362 (56.3%) 11,309 The following table shows the market share of Electrabel and 2018 7,278 (62.1%) 4,442 (37.9%) 11,720 24 other suppliers regarding net electricity supply to major industrial * Since four access points were supplied at the same time during 2018 by two suppliers, the total number of access points is generally lower by four units than customers connected to the federal transmission system (voltage the total number of access points of all suppliers. above 70 kV).
Compared to 2017, the total volume of energy offtake in 2018 by and returning to its 2014 level. In 2018, Electrabel's number In 2018, the CREG submitted five proposals for the granting final customers of the transmission system increased by 3.6% of access points remained lower than that of other suppliers, of a permit to the Minister for Energy, in response to requests (410.9 GWh). After a period of decline, with the low point in 2016, indicating that the average customer of Electrabel is larger from Eneco Belgium NV, Eni Gas & Power NV, Statkraft Markets consumption on the transmission system has increased over the than the average customer of other suppliers. GmbH, Lampiris NV and Aspiravi Energy NV.25 past two years. Federal permits for electricity supply to customers connected During the course of 2018, the Minister for Energy granted an According to an initial estimate, Electrabel's market share directly to the transmission system are granted by the individual permit for the supply of electricity to Powerhouse of the transmission system in 2018 would be 62.1%, a level Minister for Energy at the proposal of the CREG for a period BV26, Eneco Belgium BV27, Eni Gas & Power NV28, Statkraft that is rising sharply. Electrabel's market share is recovering of five years. Markets GmbH29, Lampiris NV30 and Aspiravi Energy NV.31
23 Proposal (C)1801 for a Royal Decree amending the Royal Decree of 16 July 2002 on the establishment of mechanisms to promote electricity generated from renewable energy sources, 19 July 2018. 24 These figures do not take account of the energy supplied directly by local production, or consumers in the Grand Duchy of Luxembourg. 25 Proposal (E)1717 concerning the granting of a permit for the supply of electricity to Eneco Belgium NV, 11 January 2018; Proposal (E)1720 concerning the granting of a permit for the supply of electricity to Eni Gas & Power NV, 18 January 2018; Proposal (E)1727 regarding the granting of a permit for the supply of electricity to Statkraft Markets GmbH, 8 February 2018; Proposal (E)1751 regarding the granting of a permit for the supply of electricity to Lampiris SA, 17 May 2018; Proposal (E)1779 regarding the granting of a permit for the supply of electricity to Aspiravi Energy NV, 21 June 2018. 26 Ministerial Decree of 9 January 2018 (Belgian Official Journal of 25 January 2018). 27 Ministerial Decree of 12 February 2018 (Belgian Official Journal of 14 March 2018). 28 Ministerial Decree of 22 February 2018 (Belgian Official Journal of 14 March 2018). 29 Ministerial Decree of 27 February 2018 (Belgian Official Journal of 14 March 2018). 30 Ministerial Decree of 21 June 2018 (Belgian Official Journal of 2 July 2018). 31 Ministerial Decree of 26 July 2018 (Belgian Official Journal of 10 August 2018).
CREG Annual report 2018 17 3. The electricity market
3.1.2.2. Price caps The social price cap for the supply of electricity for the period For the retail market, the CREG shows, per region, the trends from 1 August 2018 to 31 January 2019 was: of the all-in price of electricity and natural gas in Belgium, for: • For unprotected customers whose supply contract has - 14.579 euro cent/kWh (€0.14579/kWh) for the single tariff; - Residential DC electricity customers (3,500 kWh/year, single- been terminated - 15.363 euro cent/kWh (€0.15363/kWh) for the dual tariff rate meter) (peak times); - Residential T2 natural gas customers (23,260 kWh/year) The maximum prices applicable by the distribution system - 11.550 euro cent/kWh (€0.11550/kWh) for the dual tariff (off- - Social customers operators to unprotected customers whose supply contract peak times); - Dropped customers has been terminated (also termed 'dropped customers') - 8.753 euro cent/kWh (€0.08753/kWh) for the night-only tariff. - SMEs electricity (50,000 kWh/year, single-rate meter) and are calculated every six months by the distribution system - SMEs natural gas (100,000 kWh/year) operators and verified by the CREG. They are calculated as These tariffs are expressed without VAT, the federal follows: price of energy + transmission + distribution + margin. contribution, the connection fee (Wallonia) and the contribution The CREG also compares the average all-in price of electricity to the energy fund (Flanders). However, the transmission and and natural gas charged in Belgium and the neighbouring The CREG is also responsible for monitoring the procedure for distribution system tariffs are included. countries (Germany, France, the Netherlands and the United calculating the margin. Kingdom) to residential DC electricity customers, T2 natural The CREG also evaluated the amount necessary to finance gas customers and SMEs for electricity and natural gas. • For protected household consumers on low incomes or the protected customers’ electricity fund, which is the basis in precarious situations of calculation of the protected customer component of the Furthermore, every six months the CREG publishes a separate federal contribution (see point 5.7.2. of this report). note with the results of the international comparison of energy In accordance with current legislation, the CREG calculated prices between Belgium and the neighbouring countries and published the social tariffs applicable from 1 February 2018 To this end, and as part of protected customer reimbursements, (Germany, France, the Netherlands and the United Kingdom). to 31 July 2018 and from 1 August 2018 to 31 January 2019 for the CREG publishes the 'reference energy' components The graphs published by the CREG in this context provide an the supply of electricity to protected household consumers on for electricity and natural gas twice a year for suppliers and overview of the various components of the average annual low incomes or in precarious situations. distribution system operators. energy bill in the five countries, both for household consumers and for SMEs. The social price cap for the supply of electricity for the period 3.1.2.3. Trends in and fundamentals of electricity prices from 1 February 2018 to 31 July 2018 was: The following are some of the trends observed in 2018 for - 14.284 euro cent/kWh (€0.14284/kWh) for the single tariff; In 2018, the CREG continued its monthly publication of electricity: - 15.102 euro cent/kWh (€0.15102/kWh) for the dual tariff (peak a dashboard informing stakeholders of the important - At the beginning of 2018, both the distribution tariffs and the times); developments in the factors influencing electricity prices. transmission tariffs were modified. - 11.187 euro cent/kWh (€0.11187/kWh) for the dual tariff (off- - In the neighbouring countries, no new surcharge was peak times); In the wholesale market, the CREG primarily monitors the introduced in 2018; existing system tariffs and surcharges, - 8.288 euro cent/kWh (€0.08288/kWh) for the night-only tariff. changes in a number of key parameters in the setting of the however, were adjusted, as is the case every year. electricity and natural gas prices in the Belgian exchange and neighbouring exchanges (Germany, France and the Netherlands).
18 CREG Annual report 2018 3. The electricity market
3.1.3. Transmission and distribution not require a revision of the original certification of Elia System announced in connection with the mandates/functions/ Operator NV, and therefore did not require the launch of a (new) activities exercised by the directors of Elia System Operator 3.1.3.1. Renewal of the designation, unbundling certification procedure. and Elia Asset (see also section 3.1.3.1). and certification of the transmission system operator In addition, in accordance with its powers of monitoring 3.1.3.3. The closed industrial networks and the traction compliance with unbundling requirements by the transmission power network Following a request for an opinion from the Federal Minister system operator, in 2018 the CREG also monitored various for Energy, on 20 December 2018 the CREG issued a positive modifications published in connection with the mandates/ On the proposal of the Directorate-General of Energy, and opinion on the request for the renewal of the designation functions/activities exercised by six directors of Elia System after receiving the opinion from the CREG and the system of Elia System Operator NV as operator of the transmission Operator and Elia Asset, in addition to their mandates as operator, the Minister for Energy may confer the title of closed system for electricity.32 directors of Elia System Operator and Elia Asset (see also point industrial network operator, for the part operated at a rated 3.1.3.2 below). voltage exceeding 70 kV, to a natural or legal person owning a The interconnector Nemo Link Ltd was certified on 19 February network or having right of use thereof and who has requested 2018 by the British regulator Ofgem, in the context of the 3.1.3.2. Corporate governance that title in accordance with the Electricity Act. Under the ownership unbundling model, following a positive opinion same procedure, the Minister may recognise the network as from the European Commission on 7 February 2018, and was The CREG took cognizance of the 2017 activity report of the a closed industrial network provided that the regions involved designated by the UK Secretary of State as operator of this Corporate Governance Committee of Elia System Operator have an opportunity to issue an opinion within sixty days. On infrastructure. and Elia Asset in the framework of the monitoring of the 20 December 2018 the Minister for Energy granted such a title, application of Articles 9 and 9ter of the Electricity Act and the and recognition to five companies and networks. This undersea electricity interconnector between Belgium and evaluation of its effectiveness in relation to the objectives of the United Kingdom is a joint venture between the Belgian independence and impartiality of the transmission system 3.1.3.4. Technical operation system operator Elia and the British system operator National operator. The CREG asked Elia System Operator to update the Grid, and was officially inaugurated on 5 December 2018. composition and internal rules of the advisory committees set A. Draft amendment of the technical regulations up within the Board of Directors, including the newly created Nemo Link Ltd was designated operator of the British part of the Strategic Committee. The Third Energy Package introduced the "European network interconnection, while Elia System Operator NV was designated codes" to develop and enhance the European electricity as operator of the Belgian part, in accordance with the Belgian The CREG also took cognizance of the report of the compliance market. Electricity Act. The CREG closely monitored the certification officer on compliance with the programme of commitments by by Ofgem, its British counterpart, and examined the possible Elia System Operator and Elia Asset employees in 2017. The Since 2015, eight network codes and guidelines have been consequences for the certification of Elia System Operator NV. purpose of this programme of commitments is to prevent any adopted at European level. Based on the information provided by Elia to the CREG, on the discrimination between system users and/or categories of one hand, and the decision by Ofgem to certify Nemo Link system users. On 17 May 2018, following official consultation, Elia submitted (and the positive opinion of the European Commission), on the its proposal to amend the federal technical regulations and other, the Board of Directors of the CREG concluded that this Finally, in accordance with its powers of monitoring compliance its proposal for general requirements in terms of compliance joint venture and the operation of this new interconnector did with the Electricity Act, the CREG examined the modifications with the FPS Economy and the regulators. In particular, these
32 Opinion (A)1874 of 20 December 2018 on the request for the renewal of the designation of Elia System Operator NV as operator of the transmission system for electricity.
CREG Annual report 2018 19 3. The electricity market
proposals aim to implement the European network codes Pending this completely new regulation, the Directorate- amendments to maintain consistency with the current RfG33, DCC34 and HVDC35 and to align the text of the federal General for Energy requested a second opinion from the CREG situation of the Belgian and European system. In its decision, technical regulations with the eight European network codes in September 2018 in the context of a one-off amendment to the CREG approves the proposed amendments to the ARP and guidelines in the Belgian context. Elia's proposal of 17 May the current federal technical regulations of 19 December 2002, contract, with some additional requests and suggestions for 2018 came about following two years of intensive consultation specifically to give the federal Minister for Energy the power, this approval.40 with market players. following an opinion from the CREG, among others, to approve the system protection plan, the restoration plan, the list of the In June 2018, the CREG received a request from Elia for At the start of August 2018, the federal minister responsible main system users and the measures to be taken, the list of approval to amend the general terms and conditions of the for energy asked the CREG to give an opinion on a draft the main high priority system users and the procedures and Access Responsible Party contract (ARP contract). The new federal technical regulation to replace the current conditions for disconnecting and reactivating them, as well as proposed amendments primarily relate to the inclusion of federal technical regulations established by Royal Decree the test plan referred to in the European network code E&R.37 conditions relating to the future offshore interconnection of 19 December 2002. The CREG issued its opinion on 28 between Belgium and the UK, and the adjustments relating September 2018.36 The CREG noted that this draft royal decree On 11 October 2018, the CREG issued an opinion on the to the use of the baseline for the Strategic Demand Reserves. for opinion underwent substantial corrections as a result of the matter.38 The resulting Royal Decree was promulgated on The CREG decided to approve the proposed amendments.41 informal cooperation between the departments of the CREG 12 December 201839 and entered into force on the same day and the Directorate-General for Energy that preceded it. In this (see also point 2.5 of this report). In October 2018, the CREG received a request from Elia to opinion, the CREG highlights a number of possible additional approve the amendments to the general terms and conditions improvements to the text. In addition, the CREG recommends B. Connection and access of the Access Responsible Party contract (ARP contract). that, one year after the entry into force of the new federal These amendments are necessary to adapt the ARP contract technical regulations, the provisions should be evaluated in On 21 March 2018, the CREG received a request from Elia to the extension of the energy transfer for the tertiary reserve consultation with stakeholders and revised where necessary, for approval to amend the general terms and conditions of markets reserved for the non-CIPU and SDR units and to given the length and complexity of this new regulatory text. the Access Responsible Party contract (ARP contract). These improve data exchange and automation. The CREG decided to The new federal technical regulations are normally scheduled amendments primarily relate to the implementation of the approve the proposed amendments.42 for spring 2019. first phase of the energy transfer via a Flexibility Service Provider (FSP), as well as the case of activity of multiple Finally, as regards 2018, we need to mention the announcement NEMOs in Belgium. They also contain a number of additional on 25 June by Anode-Energie E&E of the suspension of its
33 Commission Regulation (EU) 2016/631 of 14 April 2016 establishing a network code on requirements for grid connection of generators. 34 Commission Regulation (EU) 2016/1388 of 17 August 2016 establishing a Network Code on Demand Connection. 35 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. 36 Opinion (A)1816 of 28 September 2018 on a draft Royal Decree amending the Royal Decree containing technical regulations for the operation of the electricity transmission system and access to it, and repealing the Royal Decree of 19 December 2002 containing technical regulations for the mana- gement of the electricity transmission system and access to it. 37 Commission Regulation (EU) 2017/2196 of 24 November 2017 establishing a network code on electricity emergency and restoration. 38 Opinion (A)1837 of 11 October 2018 on a draft Royal Decree amending the Royal Decree of 19 December 2002 containing technical regulations for the management of the electricity transmission system and access to it. 39 Royal Decree of 12 December 2018 amending the Royal Decree of 19 December 2002 containing technical regulations for the management of the electricity transmission system and access to it in order to determine the approval of protection plans and restoration plans as well as points (c), (d) and (g) of Article 4 (2) of the European network code E&R (Belgian Official Journal of 17 December 2018). 40 Decision (B)1741 of 19 April 2018 on amendments to the terms and conditions of the ARP contracts, proposed by the system operator. 41 Decision (B)1805 of 19 July 2018 on amendments to the terms and conditions of the ARP contracts, proposed by the system operator. 42 Decision (B)1854 of 8 November 2018 on amendments to the terms and conditions of ARP contracts, proposed by the system operator.
20 CREG Annual report 2018 3. The electricity market
activities as Access Responsible Party (ARP) on 27 June 2018. The proposed developments relate to: Under the impetus of the CREG, Elia has made significant The CREG worked actively with Elia, the regional regulators, - updating the data used in the analyses; efforts in recent years to develop the ancillary services market, the distribution system operators and the suppliers of which - ruling out the risk of an offshore storm from the calculation of in particular for reserve capacity, to reduce prices. For example, Energie E&E was the ARP, in order to limit the consequences blackouts of generation units; Elia organised weekly auctions (FCR44 and aFRR45) and monthly of this suspension of activities. - including Nemo Link in the calculation of the forced auctions (mFRR46), which allowed more economic operators shutdowns after commissioning at the beginning of 2019; to participate in the tendering procedures. Since 1 August Energie E&E fulfilled three roles: a pioneer role in an ARP pool, - applying a confidence level of 99.0%, which is the minimum 2016, Elia has also contracted part of the primary adjustment the role of ARP in the strict sense for twelve suppliers and the value specified by the SOGL regulations; capacities via a regional auction platform that is also accessible role of energy consumer for these twelve suppliers. The joint - verifying compliance with the SOGL regulations concerning in Germany, Austria, the Netherlands, France and Switzerland. action of the above-mentioned actors made it possible to find the use of a method to reduce the FRR balancing capacity to a solution to enable the suppliers to change ARP, meaning that be contracted; However, it was clear once again that it is difficult to purchase their activities are not compromised and there is no cascade - removing the reserve requirement from a single ARP and certain services for the necessary volumes and at reasonable effect. In addition, in the context of the application of the distinguishing between the 'standard system' and the 'global prices. In accordance with Article 12quinquies of the Electricity ARP contract, the CREG ensures that Elia takes all necessary system'; Act, Royal Decrees imposing price and volume conditions measures to limit the financial impact of unbalanced tariffs on - implementing the assumption of 100% availability for aFRR needed to be regularly enacted to ensure the provision of revenues. and mFRR balancing capacity; the 'black start service' and the voltage and reactive energy - introducing a dynamic method for dimensioning downward control services for a reasonable price. C. Balancing and ancillary services FRR needs in accordance with the European SOGL regulations, and of a method for translating downward FRR Furthermore, in order to keep increases in the costs of ancillary • Reserve capacity needs into downward FRR resources. services at a reasonable level, the Electricity Act requires Elia to submit annual reports to the CREG on proposed prices for the Elia must evaluate and determine the primary, secondary Following public consultation with the market players, the supply of ancillary services. The CREG then gives an indication and tertiary reserve capacity that contributes to ensuring the CREG approved Elia's proposal.43 of whether the proposed prices are manifestly unreasonable, security, reliability and efficacy of the transmission system in and will justify its opinion. the control area. It must send its method of evaluation and the • Price bids and volumes for ancillary services outcome to the CREG for approval. In 2018, the CREG received reports from Elia for tertiary To ensure the safety, reliability and efficiency of the transmission control services, voltage and reactive capacity, as well as for In August 2018, Elia submitted a request for approval of network, Elia needs to have access to a certain volume of the 'black start'. In its report on the tenders for the black-start47 the method of evaluation and determination of the primary, ancillary services at its disposal, on a permanent basis. The service, the CREG considered this time that no tender was secondary and tertiary reserve capacity for 2019 to the CREG. procedures in this respect are specified in the technical manifestly unreasonable. On the other hand, in its report on regulations of 19 December 2002 on the management of the the control service, voltage and reactive capacity,48 the CREG transmission system and access to it. established that the prices of certain selected offers, for each
43 Decision (B)1808 of 18 October 2018 on the request for approval of the method of evaluation and determination of the primary, secondary and tertiary reserve capacity for 2019. 44 As regards the Frequency Containment Reserve. This is the EU's terminology for the primary reserve. 45 As regards the Automatic Frequency Restoration Reserve. This is the EU's terminology for the secondary reserve. 46 As regards the Manual Frequency Restoration Reserve. This is the EU's terminology for the tertiary reserve. 47 Report (RA)1786 of 5 July 2018 on the manifestly unreasonable nature, or otherwise, of the prices offered to Elia System Operator NV for the provision of a black-start service during the period from 1 November 2018 to 31 December 2020. 48 Report (RA)1833 of 28 September 2018 on the manifestly unreasonable nature, or otherwise, of the prices offered to Elia System Operator NV for the provision of a control service for voltage in 2019.
CREG Annual report 2018 21 3. The electricity market
of these services, were manifestly unreasonable. Accordingly, • Balancing The developments proposed in the first proposal relate to the Minister for Energy drew up draft Royal Decrees to impose the conditions for participation in the unreserved tertiary price and volume conditions on the producers concerned and The transmission system operator is responsible for monitoring, adjustment capacity of the non-CIPU technical units which submitted them to the CREG for approval.49 maintaining and, if need be, re-establishing the balance are unable to activate the required capacity within 15 minutes, between supply and demand for electricity in the control area, changes relating to the definition of the rising marginal price in Based on assumptions about the availability and use to be made inter alia as a result of possible individual imbalances caused the event of activation of a tertiary offer via a CIPU technique of ancillary services in 2019, the cost difference between the by the various Access Responsible Parties. Elia is required to in the event of downtime, with a start-up time of more than 15 tenders selected by Elia and the tenders ultimately selected, submit a proposal for the market operating rules for offsetting minutes and how the unit start-up cost as defined in the CIPU adapted following the above-mentioned royal decrees 15-minute imbalances to the CREG for approval. contract is integrated into the activation price, clarification of promulgated on 20 December, would be around €1 million. the price caps applicable to the prices of adjustment capacity In November 2017, Elia submitted a proposal for amendment offers, and changes relating to the techno-economic merit In 2018, weekly auctions were held for primary and secondary to the market’s operating rules regarding the offsetting of order of the activation of the adjustment capacity. The CREG control services and weekly reports had to be drawn up by 15-minute imbalances. The proposed developments primarily approved Elia's proposal.52 These rules entered into force on Elia. The CREG noted that, at a constant volume, there was relate to the conditions for the participation of non-CIPU 5 November 2018 and remained in force until 30 November a significant reduction in costs compared with 2017 (-30%). technical units in the non-reserved tertiary reserve. Following 2018. However, this drop could have been larger without the price public consultation with the market players, the CREG increase from week 41 onwards (+20% compared to the same approved Elia's proposal.50 The developments proposed in the second proposal relate period in 2017). to the conditions for participation in the unreserved tertiary In July 2018, Elia submitted a proposal for amendment to the adjustment capacity of the non-CIPU technical units which As regards the tertiary reserve, the CREG notes the elimination market’s operating rules regarding the offsetting of 15-minute are unable to activate the required capacity within 15 minutes, of the product R3 ICH and the purchase of the entire volume imbalances. In addition to several clarifications, the proposed clarifications relating to the definition of the rising marginal (830 MW) via monthly auctions. The unit costs of the tertiary developments relate to the introduction of a price for the offer price in the event of activation of a tertiary offer via a CIPU regulatory capacity increased slightly (+10%) until September to activate the reserved tertiary reserve via non-CIPU technical technique in the event of downtime, with a start-up time 2018 compared to the same period in 2017. However, in the units, changes to the price cap for the activation of the upward of more than 15 minutes and how the unit start-up cost as period from October to December, the average price in 2018 tertiary reserves and changes to the techno-economic merit defined in the CIPU contract is integrated into the activation was nine times higher than in 2017. In short, over the year as a order for the activation of adjustment capacity. Following price, and changes relating to the techno-economic merit whole, the average unit cost of tertiary regulatory capacity in public consultation with the market players, the CREG order of the activation of the adjustment capacity. The CREG 2018 more than tripled compared with 2017. approved Elia's proposal.51 These rules entered into force on approved Elia's proposal.53 These rules entered into force on 1 1 December 2018. December 2018. This change in the prices of the reserve capacity is due, at least in part, to the adequacy problems that arose at the end In October 2018, Elia submitted two proposals for amendment of the year. to the market’s operating rules regarding the offsetting of 15-minute imbalances.
49 Opinion (A)1881, (A)1882, (A)1883 and (A)1884 of 13 December 2018. 50 Decision (B)1713 of 8 February 2018 on the proposal of Elia System Operator NV on amending the market's operating rules regarding the offsetting of 15-minute imbalances – Entry into force on 1 April 2018. 51 Decision (B)1806 of 20 September 2018 on the proposal of Elia System Operator NV on amending the market's operating rules regarding the offsetting of 15-minute imbalances – Entry into force on 1 December 2018. 52 Decision (B)1856 of 30 October 2018 on the proposal of Elia System Operator NV on amending the market's operating rules regarding the offsetting of 15-minute imbalances – Entry into force on 5 November 2018. 53 Decision (B)1857 of 30 October 2018 on the proposal of Elia System Operator NV on amending the market's operating rules regarding the offsetting of 15-minute imbalances – Entry into force on 1 December 2018.
22 CREG Annual report 2018 3. The electricity market
• Exchange and purchase of balancing capacity for the • Valorisation of the generation reserves necessary for the The HHI index for the reserves bid for CIPU units was 3,964 in frequency containment reserves security of the system 2018, compared with 3,896 in 2017 and 4,107 in 2016. The index for the reserves bid for non-CIPU units was 2,739, and 3,156 In October 2018, the CREG received a request for approval In 2018, the CREG continued its work to valorise the scarce for all bids for all technologies combined. Eight companies from Elia and the transmission system operators in the generation reserves. A third study on the design of a scarcity submitted bids for CIPU units (two more than in 2017), 11 for region where balancing capacity for frequency containment pricing mechanism is ongoing and is expected to be completed non-CIPU units and 16 for all technologies combined. The slight reserves is purchased, for common and harmonised rules and in early 2019. increase in the HHI index for CIPU units in 2018 is explained by processes for the exchange and purchase of balancing capacity a slight increase in the share of the second largest player EDF for frequency containment reserves. • Volumes activated and concentration of bids Luminus, offset by a decrease in the share of Engie-Electrabel and smaller players. In consultation with the other regulatory authorities concerned, In 2018, activations to offset imbalances in the control area fell the CREG decided to approve the proposal.54 by 0.1% compared to 2017, totalling 1,092 GWh. The proportion • Price of offsetting individual imbalances of secondary reserves in these activations reached 46.0% in In October 2018, the CREG received another request for 2018, compared with 46.3% in 2017 and 46.7% in 2016. This The imbalance tariff is based on the principle of a single approval from Elia and the transmission system operators in slight decrease is mainly due to the strong increase in the marginal price which takes account of the imbalance of the the region where balancing capacity for frequency containment tertiary reserve, which is more than offset by the decrease in Access Responsible Party and the direction of the imbalance reserves is purchased. This request for approval relates to the activation of other resources, mainly those of the IGCC, in the control area. the proposal for the exemption of the relevant transmission which amounted to 401 GWh in 2018 compared to 427 GWh system operators from the obligation for suppliers of balancing in 2017. Table 2 gives an overview of the trend in the average tariff services to transfer their obligations to provide balancing (unweighted) for positive imbalances (injection > offtake) and capacity. In 2018, there was an upward activation of 0 MWh and a for negative imbalances (injection < offtake) of the Access downward activation of 500 MWh of reserves located abroad Responsible Parties for the period 2007-2018. In consultation with the other regulatory authorities concerned, by the transmission system operators, while these activations the CREG decided to approve the proposal.55 amounted to 3,050 and 2,950 MWh respectively in 2017 (Source: Elia data). • Purchase of balancing capacity for the frequency restoration reserves Table 2: Average unweighted imbalance tariff during the period 2007-2018 (Source: Elia data) In November 2018, the CREG received a request from Elia for approval of the exemption from the obligation to purchase €/MWh 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 upward and downward balancing capacity separately for the 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 frequency restoration reserves with automatic activation. 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
The CREG decided to approve the proposal.56
54 Decision (B)1877 of 18 December 2018 on the application for approval of the proposal by Elia System Operator NV for common and harmonised rules and processes for the exchange and purchase of balancing capacity for frequency containment reserves. 55 Decision (B)1878 of 18 December 2018 on the application for approval of the proposal for the exemption of Elia System Operator NV for the exemption of the relevant transmission system operators from the obligation for suppliers of balancing services to transfer their obligations to provide balancing capacity. 56 Decision (B)1879 of 18 December 2018 on the application for approval of the proposal of Elia System Operator NV for the exemption from the obligation to purchase upward and downward balancing capacity separately for the frequency restoration reserves with automatic activation.
CREG Annual report 2018 23 3. The electricity market
Figure 3: Average unweighted imbalance tariff and BELPEX DAM price during the period 2007-2018 (Sources: Elia and BELPEX/EPEX In 12 cases, a connection to the federal transmission system SPOT data) was unavailable for more than 24 hours. These connections were unavailable between 1 day and 17 hours, and for more 90 than 187 days (on 31 December 2018 the connection was still unavailable). 80
70 Based on these indicators, the availability of the transmission
60 system in 2018 was significantly lower than in previous years.
50 3.1.3.5. System tariffs
€/MWh 40 A. The transmission system 30
20 a) Tariff methodology
10 n Regulatory period 2016-2019 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 In 2018, the CREG needed to adapt the hitherto applicable 2016-2019 tariff methodology, firstly by introducing a legal Injection > offtake Injection < offtake Belpex DAM framework for the Modular Offshore Grid in 2017 (see Annual Report 2017, page 10) and secondly by introducing a new tariff guideline in the Electricity Act of 29 April 1999 to promote the development of electricity storage (see Annual Report 2017, page 11). These two amendments to the legal provisions are intended to handle the accelerated uptake of intermittent Figure 3 can be used to compare these average prices with the Interruption Duration) was 2 hours 13 minutes 04 seconds generation resources. trend in average prices on the BELPEX/EPEX SPOT day-ahead (compared to 8 minutes 13 seconds in 2014). market over the same period. The amending decree adopted on 29 March 2018,57 following There were 59 incidents on the transmission system in 2018 a public consultation, came into force on 18 May 2018, D. Time taken by the transmission system operator to carry out (42 in 2017). As the transmission system is configured as a immediately after the CREG had received the express approval connections and repairs grid, such incidents do not usually result in customer supply of the transmission system operator, Elia System Operator interruptions. In 58% of cases, automatic reconnection was (Elia), as referred to in Article 12, §4 of the Electricity Act, and In 2018, the AIT (Average Interruption Time) on the federal attempted. These attempts were successful in 70% of cases the approval of the European Commission with regard to the transmission system was 18 minutes 19 seconds (compared on the 380 kV and 220 kV systems, and in 83% of cases on provisions relating to electricity storage. to 0 minutes 44 seconds in 2017) and the AID (Average the 150 kV network.
57 Decision (B)1718 of 29 March 2018 amending decision (Z)141218-CDC-1109/7 establishing the tariff methodology for the electricity transmission system and electricity grids having a transmission function.
24 CREG Annual report 2018 3. The electricity market
Finally, since the tariff methodology came into force on 1 tariff methodology process and which sets out the procedure customers and grid users on the other. Elia will use this January 2016, a significant part of Elia's remuneration now to be followed to specify the tariff methodology 2020-2023 for methodology to submit its tariff proposal. The tariffs will be depends on whether a number of objectives, set by the CREG the electricity transmission system and the electricity grids announced in the course of 2019. during the course of the regulatory period, have been achieved. with a transmission function, or the adjustment of the tariff The CREG took three decisions in this respect in 2018. methodology in force at the time of signing the agreement. b) Tariff evolution The agreement also lays down the procedure for approving On 5 January and 28 June 2018, the CREG established the tariff proposals and tariff modifications. Finally, it also stipulates As detailed in the Annual Report 2015, on 3 December 2015 objectives to be achieved by Elia in 2018 and 2019 in the that the decision on the tariff proposal for 2020-2023 must be the CREG approved Elia's tariff proposal for the regulatory context of the incentive subject to the CREG's discretion, as brought forward to the beginning of November 2019. period 2016-2019. referred to in Article 27 of the tariff methodology 2016-2019.58 The incentive for 2019 aims in particular to promote adequacy On 19 April 2018, a consultation meeting was organised However, in order to verify proportionality, non-discriminatory between supply and demand. between the CREG and Elia to prepare for the public application and compliance with the tariff evolution rules laid consultation on the new tariff methodology 2020-2023. down, the tariffs relating to the implementation of public On 20 December 2018, the CREG also took a decision in service obligations and the surcharges will be subject to an this context on the objectives to be achieved by Elia in 2019 The above-mentioned public consultation of the CREG on the annual review. as part of the incentive for the measured increase in the draft decision establishing the tariff methodology ran from 2 to interconnection capacity made available in the Belgian control 29 May 2018. The CREG received 3 responses (from ENGIE, Four tariff modifications were approved in 2018. area.59 FEBEG and FEBELIEC) which were summarised and assessed in a report on the public consultation.60 On 14 June 2018, the CREG approved Elia's amended proposal n Regulatory period 2020-2023 on its contribution to the costs of the NEMOs designated in On 7 June 2018, the CREG submitted its amended draft Belgium for establishing, modifying and implementing uniform To ensure consistency with the tariff methodology applicable decision, based on these responses, setting out the tariff day-ahead and intraday coupling (see point 3.1.4.5 of this report). during the regulatory period 2020-2023 for the natural gas methodology to the Chamber of Representatives, which did transmission system, the natural gas storage facility and the not have any remarks in this respect. In the context of the commitments made by the Belgian LNG facility (see point 4.1.2.4 of this report), the CREG also State vis-à-vis the European Commission during the process anticipated the procedure for the tariff methodology for the The CREG adopted the final decision setting out the tariff of notifying the strategic reserve mechanism in the area of electricity transmission system and for the electricity grids methodology for the regulatory period 2020-2023 on State aid, on 28 June 2018 the CREG approved the request with a transmission function. 28 June 2018.61 for approval of the updated tariff proposal with a view to amending, as from 1 November 2018, the tariff for maintaining Laying down the tariff methodology for the above-mentioned This methodology is based on proven principles, which have and restoring the individual balance of the access responsible regulatory period 2020-2023 required a relatively long process. been refined and supplemented. The regulation is intended to parties, submitted by Elia System Operator NV. This relates On 6 February 2018, Elia and the CREG concluded an strike the right balance between the quality of the services to an update of the tariff which is set administratively if the agreement on the procedure which forms the basis of the provided on the one hand, and the prices borne by end strategic reserve is activated.62
58 Decision (B)658E/49 of 5 January 2018 on amending one of the objectives to be achieved by Elia System Operator NV in 2018 in the context of the incentive left to the discretion of the CREG as referred to in Article 27 of the tariff methodology and decision (B)658E/52 of 28 June 2018 on the objectives to be achieved by Elia in 2019 in the context of the incentive left to the discretion of the CREG as referred to in Article 27 of the tariff methodology. 59 Decision (B)658E/57 of 20 December 2018 on the objectives to be achieved by Elia System Operator NV in 2019 in the context of the incentive for market integration as referred to in Article 24, §1, 2) and §3 of the tariff methodology. 60 Report on the consultation on the draft decision (Z)1109/10 setting out the tariff methodology for the electricity transmission system and for the electricity grids with a transmission function for the regulatory period 2020-2023, 7 June 2018. 61 Decision (Z)1109/10 of 28 June 2018 establishing the tariff methodology for the electricity transmission system and electricity grids having a transmission function for the regulatory period 2020-2023. 62 Decision (B)658E/53 of 28 June 2018 on the request for approval of the updated tariff proposal with a view to amending, from 1 November 2018, the tariff for maintaining and restoring the individual balance of the access responsible parties, submitted by Elia System Operator NV.
CREG Annual report 2018 25 3. The electricity market
By decision of 25 October 2018,63 the CREG approved the In addition, in the context of the procedures for the public Energy. The texts submitted for opinion related to, firstly, the request submitted by Elia for approval of the updated tariff obligation to finance support measures for renewable energy reform of the system of green certificates, and secondly, the proposal relating to certain tariffs for public service obligations in Wallonia, the CREG was asked to give an opinion on the proposed solution to sustainably tackle the growing imbalance and surcharges applicable from 1 January 2019, with the draft decree amending the decree of 12 April 2001 on the in the market for green certificates.65 exception of the tariff relating to the strategic reserve. organisation of the regional electricity market and the draft decree of the Walloon government amending the decree of the The trend in the tariff burden (not including connection, PSO By decision of 6 December 2018, the CREG approved the Walloon government of 30 November 2006 on the promotion tariffs, surcharges and VAT) for users of the transmission adjusted tariff for the public service obligations of the strategic of electricity generated from renewable energy sources or system is illustrated in the table below. reserve as from 1 January 2019.64 cogeneration, for the attention of the Walloon Minister for
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)
COST OF NETWORK (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%
63 Decision (B)658E/56 of 25 October 2018 on the request for approval of the updated tariff proposal submitted by Elia System Operator NV concerning the tariffs for public service obligations and taxes and surcharges, with the exception of the tariff for the strategic reserve, applicable from 1 January 2019. 64 Decision (B)658E/59 of 6 December 2018 on the request for approval of the updated tariff proposal to adapt, from 1 January 2019, the tariffs for the financing of the public service obligations of the strategic reserve. 65 Opinion (A)1852 of 18 October 2018 on the draft decree amending the decree of 12 April 2001 on the organisation of the regional electricity market and the draft decree of the Walloon government amending the decree of the Walloon government of 30 November 2006 on the promotion of electricity generated from renewable energy sources or cogeneration.
26 CREG Annual report 2018 3. The electricity market
• The offshore surcharge EEAG guidelines. The reform proposed by the CREG is B. Distribution systems intended to improve the competitive position of electricity- In a letter dated 19 October 2017, the Federal Minister for Energy intensive customers, primarily the smallest among them, • Determination of the amount of the reallocation of the asked the CREG to make a proposal on possible changes to without incurring additional costs for the federal state's federal contribution for the period from 1 January 2009 the degressivity mechanism, both for the offshore surcharge budget, without affecting the competitive position of SMEs, to 31 December 2017 and for the federal contribution. The Minister clarified that this and by maintaining the purchasing power of households.66 proposal must be in line with European legislation, in particular Up until now, the calculation for the federal electricity the European Commission's EEAG guidelines on State aid Pursuant to Article 14sexies of the Royal Decree of 16 July contribution has been based exclusively on the amount of for environmental protection and energy for the period 2014- 2002 on the establishment of mechanisms to promote electricity supplied via the transmission system, in accordance 2020. This proposal also had to satisfy the request made to electricity generated from renewable energy sources, a with the applicable regulations. Given the increasing share of the Minister by the Council of Ministers on 23 March 2017 Ministerial Decree of 6 December 2018 (Belgian Official decentralised electricity generation, it is increasingly common to (translation) "submit proposals within one year to ensure Journal of 11 December 2018), at the CREG's proposal,67 set for electricity to be injected into the distribution system, and that (...) the offshore surcharge and the federal contribution the amount of the offshore surcharge (or the 'tariff for public no longer to pass through the transmission system. The federal are adjusted in such a way that the competitive position of service obligations with a view to the financing of federal green contributions relating to this part of electricity generation were electricity-intensive consumers and SMEs is not affected, and certificates') for 2019 at €7.2875/MWh, which is an increase of nonetheless paid by customers to the distribution system to safeguard the purchasing power of households, without 41% compared to the surcharge applied in 2018. This increase operators, and resulted in balances in the 2009-2017 period. extra costs for the state budget". is due to the full availability of the Rentel wind farm (unlike in 2018) and the commissioning of the Norther wind farm. At the proposal of the CREG, the Electricity Act was amended The reform proposal of the degressivity mechanism drawn up to organise the reimbursement of these balances to customers by the CREG, largely inspired by the European Commission's c) Balances connected to the distribution system. In consultation with the above-mentioned EEAG guidelines, aims at replacing the regional regulators and distribution system operators, the current mechanism which supports the largest electricity By decision of 5 July 2018, the CREG approved the adjusted CREG also made the necessary calculations for Flanders, consumers with a mechanism that supports customers that tariff report, including the operating balances relating to the Brussels and Wallonia. For each distribution system operator, have been identified as "electricity-intensive". As regards the financial year 2017 submitted by Elia System Operator NV.68 the CREG decided to calculate the exact amount.69 It is then term 'electricity-intensive customer', the CREG proposes These balances are the result of the differences between the up to the distribution system operators to allocate the total using the broadest possible definition in accordance with the tariff estimates which appear in the initial tariff decision and amount of €85 million for Flanders,€14.1 million for Wallonia European Commission's EEAG guidelines. As regards the the figures and quantities actually recorded. The cumulative and €0.1 million for Brussels to end customers according to a level of aid provided to these 'electricity-intensive customers', balance for the years 2015, 2016, 2017 and 2018 is reflected in timetable drawn up in consultation with the regional regulator the CREG also proposes envisaging the highest possible the tariff base for the period 2020-2023. in question. discounts in accordance with the European Commission's
66 Study (B)1704 of 18 January 2018 for a proposal to reform the mechanism of the federal contribution and the offshore surcharge. 67 Proposal (C)1649 on the calculation of the surcharge for offsetting the real net cost to the operator of the system resulting from the obligation to purchase and sell green certificates in 2019, 29 November 2018. 68 Decision (B)658E/51 of 5 July 2018 on the request for approval of the adjusted tariff report, including the balances submitted by Elia System Operator NV for the financial year 2017. 69 Flanders: decisions 1756 Gaselwest, 1757 Iverlek, 1758 Iveka, 1759 Imea, 1760 Intergem, 1761 Imewo, 1762 Sibelgas, 1763 Inter-Energa, 1764 Infrax West, 1765 Iveg and 1766 PBE of 14 June 2018 relating to the calculation of the amount of the federal electricity contribution to be reallocated for the period from 1 January 2009 to 31 December 2017; Brussels and Wallonia: decisions 1789 Sibelga, 1790 Resa, 1791 Ores Mouscron, 1792 Ores Brabant, 1793 Ores Verviers, 1794 Ores Luxembourg, 1795 Ores Est, 1796 Ores Hainaut, 1797 Ores Namur, 1798 REW, 1799 Aieg and 1800 Aiesh of 18 October 2018 relating to the calculation of the amount of the federal electricity contribution to be reallocated for the period from 1 January 2009 to 31 December 2017.
CREG Annual report 2018 27 3. The electricity market
Finally, following another legislative amendment it proposed, - Professional customers from 2018 onwards the CREG will be responsible for monitoring The figure below shows the trends in the monthly average this aspect on an annual basis, meaning that balances relating Electricity (Ic1): over the period 2007-2017, the distribution import and export capacity made available to the daily market, to the federal contribution can no longer be established at the system tariff increased on average by €1,092.74 (+30.48%) and their total net use. This shows that the average monthly level of the distribution system operators. in Flanders, €1,676.23 (+39.93%) in Wallonia and €109.30 values of net exports in 2018 were significantly higher than (+2.02%) in Brussels. This is partly due to the higher costs in 2017. We can see that since May 2015, there are no more • Analysis of the distribution tariffs of public service obligations, higher energy costs to offset values for the available interconnection capacity for imports and network losses, and the introduction of multi-year tariffs. In exports. On 20 May 2015, the Available Transmission Capacity In its annual study into price components (see also point Flanders, the impact of the application of corporate tax on (ATC) method for calculating interconnection capacity was 3.2.1.1 of this report, "Price components"), the CREG observed system activities of distribution system operators has also replaced by the Flow Based Market Coupling (FBMC) method the following with regard to distribution tariffs: been felt since 2015. in the Central-West-European (CWE) region, consisting of the borders of the bidding zones Belgium, the Netherlands - Household customer Natural gas (T4): over the period 2007-2017, the average and France and the zone formed by Germany, Luxembourg increase in the distribution network tariff (+€914.28 in Flanders and Austria. With the ATC method, the transmission system Electricity (DC - dual hourly tariff): over the period 2007-2017, (+16.33 %), + €3,958.64 in Wallonia (+67.46%) and +€1,619.98 operators (TSO) determine the available interconnection the distribution system tariff increased on average by €254.25 in Brussels (+25,81%)) is lower, however, since the costs of capacity for imports and exports at each border. This capacity (+170.37%) in Flanders, €73.84 (+48.46%) in Wallonia and the public service obligations are mainly allocated to domestic was then allocated to the market through the market coupling €51.81 (+36.70%) in Brussels. This is partly due to the higher consumers because they are more applicable to them. mechanism on D-1. In the FBMC method, the calculation is no costs of public service obligations, higher energy costs to longer made for each border and for each possible direction offset network losses, and the introduction of multi-year 3.1.4. Cross-border issues of exchange. The available capacities on the system elements tariffs. In Flanders, the impact of the application of corporate taken into account is allocated using a mechanism that tax on system activities of distribution system operators has 3.1.4.1. Access to cross-border infrastructure favours commercial exchanges that best valorise the available also been felt since 2015. transmission system capacity on the system elements In 2018, net physical imports into Belgium rose sharply considered. Flow Based Market Coupling combines the Natural gas (T2): over the period 2007-2017, the distribution compared to 2017. information regarding the transmission system, supplied by system tariff increased on average by €62.45 (+26.97%) in the various CWE TSOs, with the demand curves offered in the Flanders, €176.73 (+73.36%) in Wallonia and €30.87 (+12.08%) Gross imports to Belgium were 21.6 TWh and gross exports different CWE bidding zones, supplied by the market players. in Brussels. This is due to deficits of past years being carried were 4.3 TWh, representing a net physical import of 17.3 TWh, Since a preliminary calculation of the capacity for cross-border forward, the increase in public service obligations and the compared to just over 6 TWh in 2017. However, Belgium's net imports and exports is no longer available, as from May 2015 introduction of multi-year tariffs. In Flanders, the impact of the physical imports were higher in 2014 (17.6 TWh) and in 2015 the CREG has only had access to the actual interconnection application of corporate tax on system activities of distribution (21.0 TWh). capacity used. system operators has also been felt since 2015.
28 CREG Annual report 2018 3. The electricity market
Figure 4: Availability and use of interconnection capacity from 2007 to 2018 (Source: CREG)
MW 4,000 FBMC
3,000
2,000
1,000
0
-1,000
-2,000 -2,225
-3,000 -2,729 -3,011
-4,000
-5,000 2007/01 2007/04 2007/07 2007/10 2008/01 2008/04 2008/07 2008/10 2009/01 2009/04 2009/07 2009/10 2010/01 2010/04 2010/07 2010/10 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
Average export capacity Average import capacity Average nomination
Table 4 shows the same information, but expressed as annual Table 4: Average export and import capacity and average net nomination per year (MW) (Sources: Elia data, CREG calculations) averages. In 2018, the average net import70 of 2,029 MW was close to that of the record year 2015, when an import volume of Year Average export capacity Average import capacity Net average export nomination 2,379 MW was recorded. In 2018, we again see cross-border 2007 2,317 -3,908 -711 exchanges characterised by the typically high import volumes 2008 2,242 -3,882 -1,212 of the years 2012 to 2015, when the annual net import average 2009 2,460 -3,877 316 continued to rise until a maximum value was reached in 2015. 2010 2,558 -4,023 23 2011 2,791 -4,250 -253 2012 2,971 -4,245 -1,050 2013 2,821 -3,933 -1,109 2014 2,697 -3,562 -1,910 2015 2,545 -3,291 -2,379 2016 - - -732 2017 - - -736 2018 - - -2,029 Average - - -982
70 By convention, the CREG uses a negative value for imports and a positive value for exports. As such, a drop in average net imports must be interpreted as a rise in net exports or a drop in the negative value of net exports in the table.
CREG Annual report 2018 29 3. The electricity market
The clear increase in the position of Belgian imports compared verify on which line or critical branch critical outage (CBCO) to the borders (through the introduction of highly congested to 2017 is mainly due to the shutdown of several nuclear power the congestion occurred. This information is available via the internal lines). That is the reason why, in their joint position plants (in addition to planned shutdowns) at the end of 2018. As Implicit Allocation Utility Tool on the website of the Joint paper in 2015, the CWE regulators asked the CWE system a result, during the months of September to December 2018, Allocation Office (JAO). The data analysis carried out in 2016 operators to review the selection method. When no proposal only one nuclear power plant (Doel 3 with 1,006 MW) was and 2017 showed that the congestion primarily occurred on for review was forthcoming, the regulators repeated their available from mid-October to mid-November (out of a total internal transmission lines where hardly any capacity was request at the beginning of 2017. The proposal that the CREG of approximately 6,000 MW) and one additional unit (Tihange available for cross-border trade. discussed with the CWE regulators and Elia in March 2016, and 1 with 962 MW) for the remainder of those months, after which it submitted to the CWE system operators, represents which a third unit (Doel 4 with 1,039 MW) was commissioned. Low capacity for trading between bidding zones with a low RAM an important contribution in this respect. One of the essential However, the shutdown of the nuclear power plants is not may be due to a decision to use the capacity of the system elements of the CREG's proposal is the fact that minimum the only reason for the observed increase in the volume of element for other purposes, such as (1) commercial exchanges conditions should be imposed with regard to the available imports. Since the end of April 2018, flows exchanged in the within the zone, (2) loop flows resulting from commercial capacity on the system elements taken into account in the CWE region have also benefited from a coordinated measure exchanges within another bidding zone and/or (3) high safety flow-based market coupling of the CWE region. This measure at regional level aimed at making a minimum volume of 20% margins applied by the system operators. The method currently is necessary so that flow-based market coupling actually helps of the thermal capacity of the system elements available to the used to select the critical network elements in the CWE FBMC increase the volume of cross-border exchanges and improve the market (which is taken into account in the flow-based market technology allows low RAM internal lines to block cross-border convergence of prices between the bidding zones. coupling). The separation of the bidding zone consisting trade. In principle, these internal lines should not restrict of Germany, Austria and Luxembourg into two zones with commercial exchanges between different zones (see in this The study of the system operators in the CWE region that Germany and Luxembourg on the one side, and Austria on the respect ACER Recommendation of 14 November 2016 and we received in 2018 did not enable us to apply a new rule other, on 1 October 2018, also had a favourable impact on the Article 1.7 of the Annex to Regulation (EC) No 714/2009). The for selecting the system elements to be taken into account. volumes exchanged, in particular through a reduction in loop current selection method provides that a line can be selected This is why it was decided for the CWE region to guarantee a flows. The low volume of imports in 2017 was due in particular as a critical branch if the impact (in percentage) of one of the minimum of 20% of the thermal capacity of a critical branch for to the restrictions of the available capacity for commercial commercial exchanges between the 4 (currently 5) bidding commercial exchanges between bidding zones. This measure exchanges in the CWE region on the system elements within zones on that line exceeds 5% (for example: the exchange is particularly important for the internal critical branches, the bidding zones that are taken into account in the market of 100 MW between two zones leads to a flow of 5 MW on where the flows resulting from internal exchanges into the coupling. the system element). This rule does not offer the possibility bidding zones take up a large part of the available capacity. This to ensure the non-discrimination of commercial exchanges measure was introduced at the end of April 2018 and made it Since the introduction of FBMC in May 2015, for each hour between zones in favour of internal exchanges in the zones, possible to increase the volumes of exchanges from the CWE when there was no price convergence, it is possible to but it does enable system operators to shift internal congestion region, as shown in Figure 5 below.
30 CREG Annual report 2018 3. The electricity market
Figure 5: Impact of the guaranteed availability of 20% of the thermal capacity of the critical branches on trade between different bidding Table 5: Annual revenues from the monthly and annual capacities zones (Sources: TSO CWE, CREG calculations) offered for auction (in millions of euros) (Sources: Elia data, CREG calculations) 70% 3 500
Year Annual Monthly Total 60% 3 000 auctions auctions
50% 2 500 2007 38.9 16.0 54.9 2008 27.1 11. 6 38.7 40% 2 000 2009 30.9 12.3 43.2 2010 25.5 8.1 33.6 30% 1 500 2011 10.1 5.2 15.3
20% 1 000 2012 15.6 8.5 24.1 2013 36.7 20.7 57.4 10% 500 2014 42.6 24.1 66.6 2015 65.1 37.0 102.1 0% 0 2016 33.4 30.7 64.1 2016 2017 2018 Active internal CBs - # Hours Active cross-zonal CBs - Average RAM (%FMAX) 2017 42.0 22.7 64.6 Active cross-zonal CBs - # Hours Active internal CBs - Average RAM (%FMAX) 2018 20.1 23.5 43.7 Total - # Hours Total - Average RAM (%FMAX) The bars (right-hand scale) show, for the last three years, the evolution of the number of hours in which a critical branch restricted cross-border exchanges, whereby a distinction can be made between internal critical branches between zones and the total number of restrictions. The segments on the right show the evolution of the average available capacity (in %, left-hand scale) on the critical branches made available to the market, whereby again a distinction can be made between the internal critical branches between the zones and all of them. This image only relates to the months of May to August for each year. Despite the implementation of market coupling in November 2010 between five countries of the CWE region (Luxembourg, Belgium, the Netherlands, France and Germany), considerable Figure 5 shows that the commercial exchanges in the CWE of the thermal capacity of the lines available to commercial price discrepancies between exchanges can still be region in 2016 and 2017 were mainly restricted by the internal exchanges, which are included in the new European legislative observed in D-1. These discrepancies indicate saturation critical branches in the bidding zones. It is primarily these package, the Clean Energy Package, which is currently being of the interconnection capacity between the various internal lines, although they are only influenced slightly by finalised. Thanks to this new 20% rule, Belgium was able markets. The price gap is a reflection of the severity of the the commercial exchanges between the zones (usually 4%), to record a record import volume of 5,196 MW at 6pm on observed congestion. that limited the exchanges in the CWE region, given the very 26 December 2018. limited margins resulting in particular from the presence of The evolution of the gross commercial congestion rents very high flows as a result of the (priority) internal exchanges The following table shows the evolution of annual revenues generated by the market coupling in D-1, before offsetting in the bidding zone. In 2018, the situation changes significantly from import and export capacities purchased by market actors the long-term rights, is illustrated in figure 6 for the Belgian due to the application of the 20% rule. From 2018 on, it is in explicit auctions, valid for the following year or the following market in the period from 2007 to 2018. The figure shows the the 'cross-zone' lines that restrict commercial exchanges the month. The table shows that the market players paid a total of total revenues of the daily market by border. In practice, this most. The available capacities made available for commercial €43.7 million to purchase the annual and monthly capacities amount is shared by the holders of long-term rights and the exchanges are close to 60% on average for cross-zone lines, offered in 2018, an amount significantly lower than in 2017. The transmission system operator. and only 42% for internal lines. By way of comparison, we revenues from the annual auctions in 2018 were lower than refer here to the ambitious objectives of making at least 70% the revenues from the monthly auctions.
CREG Annual report 2018 31 3. The electricity market
In 2018, the gross congestion rents generated at the Belgian Figure 6: Daily congestion rents from market coupling (Sources: by ENTSO-E, the methodology of the development plan was borders for D-1 amounted to €131.3 million. This amount is Elia data, CREG calculations) not applied transparently. 54% higher than in 2017 and sets a new record, exceeding the 140 131.3 previous record of 2013. The congestion rents are distributed 128.1 3.1.4.3. Flow-based market coupling more or less equally across the two borders: €62 million at the 120 Belgian-Dutch border compared to €69 million at the Franco- On 28 June 2018, the CREG received a proposal from Elia and Belgian border. This new record is primarily due to the high 107.9 the other TSOs in the Central West European region (CWE levels of congestion observed in 2018, in particular the high 100 97.1 region) to adapt to market coupling following the integration
volume of imports in that year (17.3 TWh). 85.2 of the bidding zone border between Germany and Austria/ Luxembourg (DE/LU-AT) and the incorporation of the 20% Until 21 May 2015, the congestion rents could be calculated 80 minimum RAM rule. per border and per direction. This is no longer the case. Since 68.0 67.6 67,6 67,6 the introduction of flow-based market coupling between In this decision, the CREG agrees to the introduction of the million euros 60 the four bidding zones of the CWE region, congestion rents bidding zone border on 1 October 2018. The CREG asks Elia are determined based on the results of flow-based market 43.2 44.3 to ensure that the implementation is carried out efficiently, 40 37.1 36.9 coupling, and then allocated to a bidding zone border using 33.3 including in terms of guaranteeing long-term rights and the a distribution formula. At present, the revenues per border quality of the baseline scenario or base case. are divided equally between the two neighbouring system 20 operators (50/50). The CREG also agrees to the application of the 20% minimum RAM rule, in force since April 2018, as a temporary measure to Moreover, all European transmission system operators have 0 make minimum capacity available to the market. However, Elia jointly proposed a new method to divide congestion rents 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 did not demonstrate the optimal nature of this measure, nor under Commission Regulation (EU) 2015/1222 of 24 July 2015 France → Belgium Belgium → France its non-discriminatory character. The CREG asks Elia to further establishing a guideline on capacity allocation and congestion Netherlands → Belgium Belgium → Netherlands explain and justify this. Total CWE Flow-based (21/05/2015) management. On 14 December 2017, at the request of all regulatory authorities, ACER, through its Decision 07-2017, 3.1.4.2. Correlation of the development plan for the In addition, the CREG requests that the application of the adapted and adopted the methodology proposed by the transmission system with the development plan external restrictions on Belgium's overall net position be transmission system operators. The main changes from the for the European network justified and scientifically substantiated. These external original allocation methodology concern the distribution of restrictions were supposed to be introduced when the Nemo congestion rents from exchanges externally to the capacity In the context of its opinion on the draft federal development Link was commissioned, as the Belgian net overall position calculation region and the distribution of costs related to the plan (see point 3.4.2 of this report), the CREG examined would then be determined not only by exchanges in the CWE compensation of long-term transmission rights. the correlation between the development plan for the region, but also by exchanges with the United Kingdom in transmission system drawn up by Elia and the EU ten year the Channel region. The CREG asks Elia to submit this in a network development plan 2018 (TYNDP 2018). Although the report for approval and then to publish it. The report must be assumptions and scenarios in the federal development plan published before being applied. are closely aligned with those of the TYNDP 2018, drawn up
32 CREG Annual report 2018 3. The electricity market
Finally, the CREG has observed that the transparency decision on various proposals from the European transmission Following a restricted consultation with Elia and the relevant regarding the operation of CWE FBMC within the CWE system operators and Nominated Electricity Market Operators NEMOs (EPEX SPOT Belgium and Nord Pool), the CREG decided region is insufficient. It asks Elia to fulfil these transparency (NEMOs). These proposals include methodologies that are on 14 June 2018 to approve this proposal.75 This positive final requirements.71 essential for establishing uniform day-ahead, intraday and long- decision came after a number of objections formulated by the term market coupling in Europe. CREG in the draft decision had been met during the consultation 3.1.4.4. The use of Dynamic Line Rating in the capacity phase. calculation • Products that NEMOs can take into account in the uniform day-ahead and intraday coupling process • Appeal for annulment by EPEX SPOT Belgium regarding In October 2017, the CREG decided not to approve a proposal the sharing of the costs of the NEMOs and the from Elia regarding the use of Dynamic Line Rating (DLR). The In February 2017, EPEX SPOT Belgium and Nord Pool submitted contribution to the NEMOs. CREG asked Elia to submit a new proposal. In December 2017, various applications for approval to the CREG. Elia submitted an amended proposal that takes into account In November 2017, the CREG sent a letter to Elia, Nord Pool the comments made by the CREG in its October decision. These proposals were developed jointly at European level by and EPEX SPOT Belgium informing them of its non-binding The CREG then decided to approve the amended proposal all NEMOs and submitted to the regulatory authorities for guidelines on Elia's proposal regarding the contribution to regarding DLR.72 approval. the costs of the NEMOs ("Guidance on the sharing of costs incurred for the establishment, amending and operating single Dynamic Line Rating is a method of dynamically determining Following a request for amendment in August 2017, the CREG, day-ahead and intraday coupling"). the capacity of overhead transmission lines, i.e. the maximum in consultation with the other European regulatory authorities, electrical current which can pass through a transmission line, decided to approve the amended proposals for products that By application dated 28 December 2017, EPEX SPOT Belgium taking into account its design, safety criteria and the weather the NEMOs can take into account in the uniform coupling requested the Brussels Market Court to partially annul and conditions (temperature, wind speed, etc.) for the line in process, on the one hand in day-ahead73 and on the other hand revise these guidelines. In its judgement of 9 May 2018, question. in intraday.74 the Market Court confirmed the non-binding nature of these guidelines and ruled that it was not an actual decision, with 3.1.4.5. The implementation of network codes • Participation in the costs of the NEMOs the result that EPEX SPOT's appeal was declared inadmissible and rejected. The entry into force of various network codes has led to a In December 2017, Elia submitted a proposal for approval, relating number of additional tasks for various regulatory authorities, to its contribution to the costs of the NEMOs designated in • Back-up methodology including the CREG, and the need to strengthen European Belgium for establishing, modifying and implementing uniform and regional cooperation. As part of the implementation of the day-ahead and intraday coupling. This proposal was slightly In February 2017, EPEX SPOT Belgium and Nord Pool submitted CACM Regulation (EU) 2015/1222, the FCA Regulation (EU) modified and an amended final proposal was presented in January an application for approval regarding the back-up methodology 2016/1719, and the EB Regulation (EU) 2017/2195, the CREG, 2018. It specifies the principles for the distribution and possible to the CREG. These proposals were developed jointly at along with other regulatory authorities, needed to take a contribution of Elia to the costs of the NEMOs, in relation to the European level by all NEMOs and submitted to the regulatory obligations pursuant to the CACM Regulation (EU) 2015/1222. authorities for approval. Following a request for amendment in
71 Decision (B)1814 of 30 August 2018 regarding the request for approval of the proposal by Elia System Operator NV for the adaptation to market coupling in the Central-West-European region following the integration of the German-Austrian bidding zone border and the integration of the 20% minimum RAM rule. 72 Decision (B)1712 of 25 January 2018 regarding the proposal by Elia System Operator NV for a methodology for using Dynamic Line Rating in the capacity calculation. 73 Decision (B)1723 of 1 February 2018 regarding the joint approval application of EPEX SPOT Belgium NV and Nord Pool AS and all nominated electricity market operators for the products that the NEMOs can take into account in the uniform day-ahead coupling process. 74 Decision (B)1724 of 1 February 2018 regarding the joint approval application of EPEX SPOT Belgium NV and Nord Pool AS and all nominated electricity market operators for the products that the NEMOs can take into account in the uniform intraday coupling process. 75 Decision (B)1742 of 14 June 2018 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.
CREG Annual report 2018 33 3. The electricity market
August 2017, the CREG decided, in consultation with the other • Regional draft regarding long-term transmission rights Following a request for amendment in March 2018, the CREG European regulatory authorities, to approve the amended in the Channel region decided to approve the amended proposal.81 proposal for the back-up methodology.76 In April 2017, Elia submitted an approval request to the CREG • Methodology for the provision of generation and • Methodology for the calculation of intraday capacity for a proposal for a regional draft regarding long-term electricity baseload data applicable at the Belgian borders transmission rights. Elia drafted this proposal together with all transmission system operators in the Channel region. In July 2017, Elia submitted an approval request to the CREG In May 2017, Elia submitted an approval request to the CREG Following a request for amendment from the CREG, Elia for a uniform methodology for the provision of generation for a proposal on the methodology for calculating capacity amended the proposal. The CREG then decided to approve the and baseload data. Elia drafted this proposal together with all for cross-border intraday trading. Elia drafted this proposal amended proposal.79 European TSOs in the context of the European network code together with the transmission system operators of the on Forward Capacity Allocation. The CREG decided to approve Central-West-European region. • Regional draft regarding long-term transmission rights the proposal.82 in the Core region In accordance with the joint position paper of the Central- • Reserve procedures in the Channel region West-European regulators, drafted in September 2017, the At the end of 2017, Elia submitted an approval request to the CREG then decided to approve the proposal. In this regard, the CREG for amendments to the regional draft regarding long- In May 2018, the CREG received an approval request from CREG asked Elia to improve its description of the proposed term transmission rights in the Core capacity calculation Elia and the transmission system operators of the Channel methodology and include it in an amended proposal to be region. The proposal was drafted by all TSOs in the Core region region for joint reserve procedures. In consultation with the submitted to the CREG.77 and covers the long-term rights to the bidding zone borders of other regulatory authorities concerned, the CREG decided to Germany/Luxembourg with Austria and of the Czech Republic approve the proposal.83 • Nomination rules of the physical transmission rights in with Slovakia. The CREG decided to approve the proposal.80 the Channel region In August 2018, the CREG received an approval request • Common network model from Elia for the allocation rules through shadow auctions. In July 2017, Elia submitted an approval request to the CREG These shadow auctions are used in application of the reserve for the nomination rules for physical transmission rights at the In 2017, Elia submitted an approval request to the CREG procedures for the day-ahead markets. The CREG decided to bidding zone borders in the Channel region. Elia drafted this for the methodology for the common network model. The approve the proposal.84 proposal together with the transmission system operators of proposal was drafted by all European TSOs in the context of the Channel capacity calculation region. The CREG decided to the European network code on Forward Capacity Allocation. approve the proposal.78
76 Decision (B)1725 of 1 February 2018 regarding the joint approval application of EPEX SPOT Belgium NV and Nord Pool AS and all nominated electricity market operators for the back-up methodology. 77 Decision (B)1732 of 22 February 2018 regarding the approval request of the proposal by Elia System Operator NV on the methodology for calculating the intraday capacity applicable at Belgian borders. 78 Decision (B)1735 of 19 April 2018 on the joint proposal by Elia System Operator NV and all transmission system operators of the Channel capacity calculation region for the nomination rules concerning the systems for electricity exchange between bidding zones. 79 Decision (B)1730 of 22 February 2018 on the amended joint proposal by Elia System Operator NV and all transmission system operators of the Channel capacity calculation region for the regional draft for long-term transmission rights. 80 Decision (B)1769 of 21 June 2018 on the joint proposal by Elia System Operator NV and all transmission system operators of the Core capacity calculation region to amend the regional draft for long-term transmission rights. 81 Decision (B)1691 of 21 June 2018 on the amended joint proposal of Elia System Operator NV and all transmission system operators for a methodology for the common network model. 82 Decision (B)1690 of 8 March 2018 on the joint approval request by Elia System Operator NV and all transmission system operators for a methodology for providing generation and baseload data. 83 Decision (B)1863 of 29 November 2018 on the approval request of Elia System Operator NV and all transmission system operators of the Channel capacity calculation region for the joint proposal for the reserve procedures. 84 Decision (B)1866 of 29 November 2018 on the approval request of Elia System Operator NV for the allocation rules for day-ahead capacity in shadow auctions.
34 CREG Annual report 2018 3. The electricity market
• Methodology for the capacity calculation of the day- The principles and measures to be taken in order to achieve Link Interconnector is reduced by Elia. The CREG decided to ahead and intraday markets in the Channel region these objectives need to be included, firstly, in the protection approve the proposal.88 plan of the system to which the interruption plan belongs and In May 2018, the CREG received an approval request from Elia secondly, in the restoration plan. The latter applies when the 3.1.4.7. The results of the day-ahead market in November to develop, together with the transmission system operators electricity system is in a black-out status, despite the protective 2017 of the Channel region, a coordinated net transmission capacity measures taken by the system. approach for calculating cross-zone capacities for the day-ahead Following informal requests from various market participants, and intraday markets. In consultation with the other regulatory In accordance with the above-mentioned network code and the CREG analysed the results of the daily market in October authorities concerned, the CREG decided to approve the the Royal Decree of 12 December 2018,87 following a formal and November 2017. Besides an analysis of the available proposal on 29 November 2018.85 public consultation with the stakeholders, Elia submitted the generation capacity during this period, the note discusses in two plans to the Minister for Energy for approval in December detail the pricing and bidding behaviour on 9 and 16 November.89 In September 2017, the CREG received an approval request 2018, after consultation with the CREG. However, the CREG from Elia for a coordinated capacity calculation methodology. still has to give its opinion to the Minister as stipulated in the 3.1.4.8. The day-ahead wholesale market from 1 to 7 This methodology sets out how Elia and the transmission Royal Decree of 12 December 2018 (see also point 2.5 of this October 2018 system operators of the Channel region will jointly calculate report). cross-zone capacities for the day-ahead and intraday markets. Until 1 October 2018, Germany, Luxembourg and Austria On 6 December 2018, the CREG decided to approve the This European network code gives the CREG a specific belonged to one price area. Since 1 October 2018, Austria has amended proposal following two previous requests for power of approval, in particular with regard to the rules for been in a separate price area. This means that different prices amendments in March and July 2018.86 the suspension and restoration of market activities and the may occur between Austria and Germany/Luxembourg if there specific balancing rules applicable during the suspension of is network congestion and cross-border trade needs to be • Electricity emergency and restoration market activities. Elia therefore submitted a proposal for these restricted for operational security reasons. rules to the CREG, also in December 2018. In 2019, the CREG During the course of 2018, the CREG organised a series of will assess the proposals received from Elia and formulate In this note, the CREG examined the market outcomes of the meetings with Elia and the Directorate-General for Energy to decisions in accordance with its legal obligations. day-ahead flow-based market coupling during the first week gain a clear understanding of the content and requirements following the splitting of the German-Austrian price area (from of Commission Regulation (EU) 2017/2196 of 24 November 3.1.4.6 The System Operating Policy regarding 1 to 7 October 2018). Compared to the planning which was 2017 establishing a network code on electricity emergency compensation between Elia and Nemo Link known on 30 August 2018, there was approximately 1,500 MW and restoration. less nuclear generation capacity available in Belgium during this In September 2018, Elia submitted an approval request to the period. As regards market outcomes, the relatively high prices This Regulation contains provisions to ensure the operational CREG for the compensation mechanism to be applied when during this period for Belgium and the low prices in Germany security of the electricity system and to prevent crisis situations. the commercial capacity of the Nemo on 3 October 2018 are especially striking at first glance.
85 Decision (B)1869 of 29 November 2018 on the request by Elia System Operator NV and all transmission system operators of the Channel capacity calculation region for an application of a coordinated net transmission capacity approach. 86 Decision (B)1867 of 6 December 2018 on the approval request of Elia System Operator NV and all transmission system operators of the Channel capacity calculation region for an amended proposal for the common coordinated capacity calculation methodologies for the day-ahead and intraday markets. 87 Royal Decree of 12 December 2018 amending the Royal Decree of 19 December 2002 containing technical regulations for the management of the electricity transmission network and access to it in order to determine the approval of protection plans and restoration plans as well as points (c), (d) and (g) of Article 4,(2) of Regulation (EU) 2017/2196 of 24 November 2017 establishing a network code on electricity emergency and restoration (Belgian Official Journal of 17 December 2018). 88 Decision (B)1839 of 8 November 2018 on the approval request by Elia System Operator NV for the System Operating Policy on compensation between Elia and Nemo Link. 89 Note (Z)1715 of 28 June 2018 on the outcomes of the day-ahead market in November 2017.
CREG Annual report 2018 35 3. The electricity market
This note concludes that, as regards the examined period, the support an efficient European single market and facilitate CNG is more environmentally friendly and economical than splitting of the price areas of Austria and Germany/Luxembourg integration into renewable energy sources. petroleum fuels. has so far progressed in a technically correct manner: the market coupling appears to be the same as before the split. It is therefore crucial that these models are accurate. Articles The study analysed the characteristics of CNG, the Belgian In addition, on 3 October, the Belgian electricity market was 70(5) and 70(6) of the SO Regulation therefore provide that each targets for CNG by 2020 and the regional support measures. It much more robust than might initially be concluded: with TSO evaluates and ensures the accuracy of the variables. To also covered CNG vehicles and filling stations, the composition an additional demand of 1,000 MW, imports appear to have this end, the CREG asked Elia to take the necessary measures of the price at the pump and the possible impact on the systems. increased by an average of 866 MW, raising the average by 31 December 2019 at the latest to enable the CREG to Finally, the study made a cost-benefit analysis between CNG market price by 30%. With additional demand of 2,000 MW, assess whether Elia complies with these legal provisions.91 vehicles and vehicles equipped with other engines. imports would have increased by an average of 1,700 MW. 3.1.4.10. Determining the synchronous zone of In economic terms, the pump price of CNG, expressed in €/ Part of the reason for this robust result for 3 October 2018 continental Europe kg, appears to be about 25% cheaper than that of petrol and was that the loop flows through Belgium were lower than diesel, expressed in €/litre. However, the difference in fuel cost average on that day. If loop flows rise, the CREG expects On 12 September 2018, the CREG decided to approve the per km is greater, with CNG being 33% cheaper than diesel, imports to Belgium to increase less strongly, and these are joint proposal by Elia System Operator NV and all transmission and 77% cheaper than petrol.93 also accompanied by faster rising prices on the Belgian day- system operators in the synchronous zone of continental ahead market.90 Europe concerning the determination of the load frequency • The billing method applied to household customers control blocks or "LFC blocks". This proposal lays down the 3.1.4.9. Setting up and storing the common network structure of the LFC blocks, LFC zones and responsibility An analysis by the CREG shows that suppliers active on the models areas for the synchronous zone of continental Europe. For Belgian energy market apply various billing methods for the Belgium, the proposal corresponds to the current situation. energy component and for additional services. On 17 September 2018, the CREG approved the joint Belgium is an LFC block consisting of one LFC zone and one proposal from Elia and all transmission system operators responsibility area.92 With a view to greater transparency for the consumer and the for a methodology for drawing up and storing the common supplier, the CREG has formulated four recommendations: network models. This proposal was submitted on the basis of 3.2. Competition Articles 67(1) and 70 of Regulation (EU) 2017/1485 establishing 1. Consumers who change supplier in the course of a contract a guideline on electricity transmission system operation ("SO 3.2.1. Monitoring of wholesale and retail prices year can still pay the full year's subscription fee. Other Regulation"). suppliers charge the fee pro rata. In the case of a delivery 3.2.1.1. CREG studies conducted in 2018 period of 18 months with a subscription fee of €50 per year, These common network models should allow the efficient and there is a difference of €25 between the two methods. The coordinated use of emergency services, which are necessary • The profitability of natural gas used as fuel for cars CREG argues for a method whereby either the fee is charged to ensure operational safety and voltage quality in real time, pro rata over the entire term of the contract, or the fee for the The CREG study into the profitability of natural gas used as first year of the contract is charged on a flat-rate basis and a fuel for cars (CNG or compressed natural gas) shows that pro rata from the second year of the contract. That way, the supplier can recover the costs for attracting a new customer.
90 Note (Z)1847 of 15 October 2018 on the Belgian day-ahead wholesale electricity market from 1 to 7 October 2018, focusing on the market outcomes for 3 October 2018. 91 Decision (B)1829 of 17 September 2018 on the joint proposal from Elia System Operator NV and all transmission system operators for a methodology for drawing up and storing the common network models. 92 Decision (B)1825 of 12 September 2018 on the joint proposal by Elia System Operator NV and all transmission system operators in the Synchronous zone of Continental Europe concerning the determination of the LFC blocks. 93 Study (F)1736 of 29 March 2018 on the profitability of natural gas used as a fuel (CNG or compressed natural gas) for cars.
36 CREG Annual report 2018 3. The electricity market
2. The costs of certificate obligations (green electricity and in Brussels and 4.59% in Wallonia. This increase is primarily The main conclusions are as follows: cogeneration) are charged separately by most suppliers. due to the rising prices on the international wholesale markets These costs are often increased or even doubled during the since September 2017. - Belgian households and small business customers have a high term of the contract, for both fixed and variable energy price electricity bill, which is partly explained by the costs of the grid, contracts. The CREG argues in favour of including the costs During the same period, the average price of the energy but mainly by taxes, surcharges and certificate obligations. for these certificate obligations in the energy component. component for natural gas also increased: in Flanders by Belgium is the second most expensive country for electricity That way, the consumer can be sure from the outset of the 3.40%, in Brussels by 2.09% and in Wallonia by 3.14%. for the two profiles covered by this study (after Germany) and costs that will be charged to them. Compared with electricity, the price differences between the is on average 22% more expensive than the average of the regions for natural gas are more limited. neighbouring countries. On the other hand, Belgian households 3. For the annual settlement, suppliers use a standard annual and small business customers have a relatively small natural profile to breakdown the volume of electricity or natural The "theme in the spotlight" section of this note raises the gas bill. For both profiles, Belgium ranks second in the ranking gas consumed by the consumer. Some suppliers also use question of whether the cheapest tariff on the market is of the cheapest prices of the five countries (after the United correction factors that are only known internally. The CREG accessible to all customers. It shows that signing up to one Kingdom). Natural gas prices in Belgium are on average 14% argues that only publicly available data that are applied in a of the ten cheapest electricity and/or natural gas products cheaper than the average price in the neighbouring countries. uniform manner should be used. often goes hand in hand with additional conditions. The most There are significant differences between regions, both for important condition is "exclusively online". Additional payment electricity and for natural gas. 4. For electricity contracts based on quarterly parameters terms occupies the second spot. Both types of conditions linked to the short-term market (spot products), the energy make the cheapest electricity and natural gas products more - In general, small business customers pay less per kWh than price is only known at the end of a quarter. If the contract is difficult to access for the (economically) more vulnerable household customers, both for electricity and for natural gas. terminated at the beginning of a quarter, the supplier would members of society.95 This is partly due to the lack of VAT, but that is not the only in principle have to wait until the end of that quarter to draw reason: in general, small business customers also pay less for up the settlement. As a result, it may come into conflict with • European comparison of electricity and natural gas the "energy" component and for the grid component. the regional regulations on billing periods. The CREG argues prices for household customers and SMEs that, in such cases, suppliers should calculate the energy - There are large price differences between the countries, both price for that period based on the available daily quotations.94 In accordance with its powers regarding the final price of for electricity and for natural gas. However, these differences electricity and natural gas, the CREG commissioned PwC to are relatively more limited for small business customers than • Electricity and natural gas prices for household carry out a study comparing the electricity and natural gas for household customers. For example, a household customer customers prices for household customers and small business customers, in Germany pays almost twice as much for electricity as a between the three Belgian regions and four neighbouring household customer in France. For a small business customer, In its half-yearly survey of energy prices for household countries (Germany, France, the Netherlands and the United this difference is smaller. For natural gas, a household customer customers, the CREG observed that the average price of the Kingdom). The study is based on data from February 2018 and in the Netherlands pays the most, almost twice the price paid energy component for electricity rose over the period March covers various parts of the bill. by a customer in the United Kingdom. In the case of a small 2017 - March 2018 in all regions: by 5.69% in Flanders, 6.54% business customer, the difference is also smaller: a small business customer in the Netherlands pays more than one third more than a small business customer in the United Kingdom.
94 Study (F)1722 of 19 April 2018 on the cataloguing of the applied billing method for the electricity and natural gas energy component and the costs of green electricity and cogeneration certificates for household customers. 95 Note (Z)1749 of 26 April 2018 on energy prices for household customers of electricity and natural gas.
CREG Annual report 2018 37 3. The electricity market
- Finally, a relatively low cost of electricity does not mean that Nevertheless, the impact of group purchases on the energy • Monitoring energy market prices for households and the cost of natural gas is relatively low and vice versa. The market is significant: imposing product specifications and small professional users correlation even seems to go in the opposite direction (except conditions on energy suppliers, imposing the way subscription for the United Kingdom): in countries or regions where the fees are charged, influencing the percentage of supplier In its annual monitoring study, the CREG discusses the main cost of electricity is relatively low, the cost of natural gas is changes and communicating potential savings to consumers. developments on the retail market (see point 3.2.1.2 of this relatively high, and vice versa.96 report). That is why the CREG is looking to extend its legal powers, • Group purchases in the retail market so that it can systematically request information from the • Verification mission in the context of extending the organisers of group purchases and, in this way, inform lifetime of the Tihange 1 power plant In 2014, the CREG carried out an initial study into the consumers transparently.97 organisation of group purchases in the energy market. At the On 28 June 2018, the CREG published its report (RA)1771 on time, group purchases were still a relatively new phenomenon. • The offering from cooperative companies the verification of the revenues and actual costs of the Tihange They have since become commonplace and have also brought a 1 nuclear power plant for the period from 1 January 2017 until certain dynamism to the market. However, this follow-up study In a new study, the CREG examined the cooperative companies 31 December 2017, in accordance with the Convention on shows that around 13% of natural gas customers and 18% of operating on the Belgian electricity market. The study provides extending the lifetime of Tihange 1 of 12 March 2014 and the electricity customers have never changed their energy supplier. an overview of the structures and conditions of entry, the market amendment to the Convention on extending the lifetime of 31 In recent years, even group purchases have not managed shares and the cost price for electricity of these companies. March 2017. to convince these so-called passive consumers to actively participate in the energy market. In any case, participating in The CREG identified various structures of companies that supply • Nuclear distribution fee a group purchase does not necessarily guarantee consumers electricity, and advises consumers to find information about the the cheapest product. Not all suppliers offer this possibility. company and the conditions of entry before subscribing to the On 28 June 2018, the CREG issued an opinion on the profit And suppliers who do participate are not obliged to offer the share(s) of a cooperative company. In comparing estimated margin of the industrial production of electricity by the fission lowest price. costs of supply of electricity, consumers should distinguish of nuclear fuels by the nuclear power plants subject to the between the purchase of the share and the supply of electricity. distribution fee (Doel 3, Doel 4, Tihange 2 and Tihange 3) for Consumers responding to an offer via a group purchase should the year 2017,99 in accordance with the Law of 11 April 2003 also bear in mind that if the supplier makes a proposal for The study shows that the offering from cooperative companies on provisions made for the decommissioning of nuclear power renewal at the end of the contract period, the renewal contract for certain consumption profiles can be an interesting option plants and for the management of irradiated fissile material in will in most cases feature a higher price. (Belgian green electricity). these plants.
The CREG does not currently have the authority to request The CREG advises consumers to always make a price The amount for the nuclear distribution fee for the year 2018 was information directly on group purchases. Group purchases comparison on the basis of their personal consumption data.98 set by Royal Decree of 15 October 2018 at €177,000,000.00.100 are not included in the CREG Scan either, making it de facto impossible for consumers to compare them with the offering on the market.
96 A European comparison of electricity and natural gas prices for residential and small professional consumers, final report, 28 June 2018. 97 Study (F)1827 of 18 October 2018 on group purchases within the retail market for electricity and natural gas. 98 Study (F)1815 of 25 October 2018 on the offering from cooperative companies on the Belgian electricity market. 99 Opinion (A)1770 of 28 June 2018 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 2017. 100 Royal Decree of 15 October 2018 establishing the amount, for 2018, 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 Journal of 30 October 2018).
38 CREG Annual report 2018 3. The electricity market
• Mission to verify the pledge of the Belgian State to also the annual evolutions of the distribution and transmission • Functioning of the wholesale electricity markets in 2017 extend the operating life of Tihange 1, Doel 1 and system fees and the charges. and price trends on this market Doel 2. For electricity, the average price for residential customers For the fourth year in a row, the load on the Elia grid, an indicator On 6 September 2018, at the request of the Minister for Energy, increased by 71.81% between 2007 and 2017. In concrete of Belgian electricity consumption, was approximately 77 TWh the CREG issued a report in the context of the verification, for terms, this is an average increase of €163.34/MWh in Flanders, in 2017. This is around 6% of total consumption in the Central- the year 2017, of the pledge made by the Belgian State, in order €74.51/MWh in Wallonia and €33.43/MWh in Brussels. For West-European region (Belgium, the Netherlands, Luxembourg, to ensure the compatibility of the notified measures to extend business customers in Belgium, the average price likewise France, Germany and the United Kingdom). The stabilisation in the operating life of Tihange 1, Doel 1 and Doel 2.101 increased, by 11.68%. However, the trend varies from one Belgian electricity offtake came on the heels of a continuous region to another. In Flanders, the price charged to business decline which started in 2007. At the same time, the estimated • Impact of the unavailability of nuclear power plants in end users increased, on average, by €14.12/MWh and in amount of solar electricity generated stabilised at around 3 TWh Belgium on electricity prices Wallonia by €28.26/MWh. In Brussels, the price fell on average in 2017, i.e. at the same level as in 2015 and 2016. by €6.91/MWh. In 2017, compared with 2016, the CREG The announcement that the shutdown of certain nuclear power observed an increase of 5.81% for household consumers in In a special section on electricity consumption, the impact of plants would be extended led to price peaks in September 2018, Belgium, or an average increase of €19.47/MWh in Flanders, wind farms on residual peak demand is briefly analysed. The both in the short-term market and in the medium and long- €12.23/MWh in Wallonia and €5.51/MWh in Brussels. For conclusion of this analysis is that more wind capacity only slightly term market. There was certainly an impact on the consumer's professional customers in Belgium, the average price also rose reduces the need for peak capacity. On the other hand, more bill, but this is difficult to quantify. It should be borne in mind by 4.89%, or an average increase of €2.88/MWh in Flanders, wind capacity greatly reduces the number of hours that this peak that consumers' supply contracts have a range of durations, €11.52/MWh in Wallonia and €9.27/MWh in Brussels. capacity is needed to meet the demand for electricity. In 2017, the renewal procedures and time horizons (old contracts that have already installed wind capacity reduced the number of operating expired in recent months and are not renewed will be affected For natural gas, the average price for residential customers hours of the peak capacity by more than 50%. This creates more frequently). increased by 14.54% between 2007 and 2017. This is opportunities for peak capacity that can only be activated for a an increase, on average, of €3.69/MWh in Flanders, limited number of hours per year (such as demand management • Composition of prices €13.41/MWh in Wallonia and €3.54/MWh in Brussels. For and emergency generators). business customers in Belgium the average price fell by In the context of its competence regarding the end price for 0.77%. Here as well, there are differences by region. On The average price on the Belgian day-ahead market in 2017 was electricity and gas, on 29 March 2018 the CREG presented the average, business customers in Flanders pay €1.11/MWh less an average of €44.6/MWh. This price was comparable with France results of the annual update of its study on the components of for natural gas, in Wallonia €0.88/MWh more and in Brussels (€45.0/MWh) but higher than in the Netherlands (€39.3/MWh) electricity and natural gas prices. €0.22/MWh more. In 2017, compared with 2016, an increase and Germany (€34.2/MWh). There were similar price differences of 5.70% was observed for household consumers in Belgium, in 2016. The average price on the forward supply market in 2018 Since 2007, the CREG has followed the evolution of electricity or an average increase of €3.38/MWh in Flanders, €2.66/ was €37.3/MWh. This price was on average €1/MWh higher than and gas prices charged to the end customer. This annual MWh in Wallonia and €2.12/MWh in Brussels. For professional the price in France and around €1/MWh lower than the price study takes into account the evolution of the components of customers in Belgium, the average price also rose by 8.41%, in the Netherlands. With €32.4/MWh, Germany was €5/MWh electricity and natural gas prices. In addition to the evolution or an average increase of €2.42/MWh in Flanders, €2.10/MWh cheaper on average. of the pure energy price that follows the market, there are in Wallonia and €2.03/MWh in Brussels.102
101 Report (RA)1820 of 6 September 2018 on the verification, for the year 2017, of the pledge made by the Belgian State, in order to ensure the compatibility of the notified measures to extend the operating life of Tihange 1, Doel 1 and Doel 2. 102 Study (F)1738 of 29 March 2018 on electricity and natural gas price components.
CREG Annual report 2018 39 3. The electricity market
The large price differences between the countries mentioned study largely upholds the decisions made beforehand: while studies aimed to identify the main factors that influenced, and can partly be explained by the inefficient functioning of day-ahead Belgian consumers who are not electricity-intensive enjoy a will still influence in the future, the energy prices charged to market coupling, with various restrictions caused in the German major competitive advantage, Belgian electricity-intensive major Belgian industrial customers. system, as well as an increasing number in the Dutch and Belgian consumers suffer a significant competitive disadvantage.104 systems. The last three months of 2017 saw an improvement. 3.2.1.2. Monitoring energy market prices for households • Supply of major industrial customers in Belgium and small-scale professional users In 2017, the use of reserves to balance the Elia grid accounted for 664 GWh (open balancing capacity). This figure is more or At its own initiative, the CREG conducted a study on • Observations for 2018 less the same as in 2016. With an activation of 504 GWh, it was electricity supply to major industrial customers in Belgium primarily the secondary reserves (aFRR) that were activated. The in 2017 with the aim of improving the transparency of the On 15 November 2018, the CREG published a study into the activation of around 430 GWh of reserves was avoided thanks to supply of electricity to major industrial customers.105 Analysis annual monitoring of prices on the electricity and natural gas the International Grid Control Cooperation (IGCC), a mechanism of the supply contracts shows that industrial customers markets for households and small professional consumers. whereby a country's imbalance is offset with other countries mainly enter into short-term contracts (with a duration of The CREG's findings for 2018 were as follows: participating in the mechanism. The IGCC mechanism shows 1 or 2 years). In 2017, the billed energy prices ranged from how important it is for Belgium to cooperate at European level, €15/MWh to €96/MWh, with 50% of the customers being - Despite the phasing-out of the safety net mechanism, all even for balancing and reserves.103 between €46/MWh and €56/MWh. This study discusses the suppliers of products with a variable energy component determining factors that contribute to the differences in the continue to use quarterly price parameters linked to exchange • European comparison of prices to large industrial billed energy price. The market share of the dominant supplier quotations for electricity and natural gas. Since 1 June 2018, customers has declined almost continually since 2002. Compared with Mega has been the only supplier to use a monthly indexation 2016, the annual electricity offtake from the Elia grid increased parameter. In 2015, PwC conducted a study on behalf of CREG entitled to 17.17 TWh in 2017 and a comparison of energy exchanges 'A European comparison of electricity and gas prices for between access responsible parties (ARPs) in 2017 shows - In 2018, the number of active suppliers on the retail market large industrial consumers'. This showed that the situation of that there were fewer exchanges on the electricity exchanges fell slightly for the first time. This fall was mainly due to the Belgian industrial consumers was complex and that further and that the industrial ARPs purchased more energy from effects of a wave of consolidation in the sector that started research was necessary. other ARPs than from the dominant ARP. in 2016. The follow-up study conducted in June 2016 once again compared energy prices for six industrial consumers (four for This study is based, among others, on two studies into the - In general, increased competition between suppliers has electricity and two for natural gas, selected in consultation mechanisms for determining the energy prices applicable in a clear effect on the evolution of the market shares of the with the relevant sector organisations) in Belgium and the four 2017 in electricity supply contracts of large industrial customers different suppliers. Not only are the market shares of the neighbouring countries. of Electrabel and EDF Luminus.106 In these studies, the CREG former standard suppliers under pressure, but new suppliers examined in detail the mechanisms for determining the are also increasingly competing with each other. On 16 July 2018, PwC submitted to the CREG its third annual various components of the energy price, based on which the follow-up study on the situation during January 2018. This new bill for large Belgian industrial customers was drawn up. These
103 Study (F)1734 of 7 June 2018 on the functioning of the Belgian wholesale electricity market and price trends on this market – monitoring report 2017. 104 A European comparison of electricity and gas prices for large industrial consumers – Final report, 2018 update, 16 July 2018. 105 Study (F)1871 of 13 December 2018 on the supply of major industrial customers in Belgium in 2017. 106 Study (F)1822 of 11 October 2018 on the price setting mechanisms applicable in 2017 in electricity supply contracts of the major industrial customers of Electrabel NV; Study (F)1823 of 29 November 2018 on the price setting mechanisms applicable in 2017 in electricity supply contracts of the major industrial customers of EDF Luminus NV.
40 CREG Annual report 2018 3. The electricity market
- On average, each supplier offers three products for the supply basis. The CREG strives to ensure that as many consumers as The CREG also continuously compares the energy component of electricity and five products for the supply of natural gas. possible, with as much involvement in the free energy market for the supply of electricity and natural gas to household and There are fewer active suppliers in Brussels compared to as possible, are able and willing to make conscious choices.107 SME end customers with the average energy component of Flanders and Wallonia. In particular, the offering to families neighbouring countries. is limited in Brussels and amounts to about half of the other • Databases of energy prices regions. In the context of its general monitoring duties, in 2012 the Since 2012, the CREG has established, for each supplier CREG also established a permanent database of energy - Most suppliers charge a fixed contribution, on top of the operating in Belgium, for any variable type of contract and prices in the neighbouring countries (Germany, France, the cost of using energy, which, they claim, serves to cover their for any new standard contract, by consultation with them, Netherlands) and in the United Kingdom. administrative costs. Some suppliers bill on a pro rata basis a database to record the methodology for calculation of according to the number of days of effective delivery, while variable energy prices, including indexation formulas and the As such, in addition to the energy component, the CREG has others bill per delivery year commenced. The CREG suggests parameters that they use. To this end, and in order to keep monitored the all-in prices (total bill) in Belgium and in the obliging all suppliers to bill the fixed fee pro rata to the number the database up-to-date, the CREG makes use of publicly neighbouring countries on a monthly basis, since 2012. of days delivered, in order to avoid this fixed cost acting as a available data (suppliers’ websites) and the data that suppliers brake on switching suppliers. are obliged to submit to the CREG every month. The results obtained by the CREG are, furthermore, checked by country by comparing them with the results obtained using - Providing sufficiently clear and understandable information In addition to the variable components, the database also the price simulators of neighbouring countries. to consumers is becoming increasingly important. However, includes all the products that have a fixed energy component. tariff maps and bills are still too often difficult for consumers All the elements included in the price formula of the energy In an effort to improve both the content and clarity of its to understand. Additional services, whether charged or not, component (subscription, indexation parameters and related communication, the CREG publishes infographics that provide marketed as 'taking away the hassle' for consumers, are also coefficients, renewable energy and combined heat and power a clear overview of the number of active suppliers and their on the rise, making it increasingly complex for the consumer contributions) are included separately in the database. The product offering, as well as potential savings. to compare and make the right choice. energy component of the annual energy bill is then calculated for certain standard customers108 using relevant annual The analysis of the energy component and the permanent As a regulator, the CREG recognises this problem and will consumption levels. comparison of prices between Belgium and the neighbouring continue to make efforts to provide consumers with clear countries are illustrated in the following figures. and comprehensible information, for example by publishing The results are compared by sampling with those from information graphs containing data on suppliers, their products the suppliers’ calculation modules and the existing price and prices, and by updating the CREG Scan on a monthly comparison modules.
107 Study (F)1858 of 15 November 2018 into the annual monitoring of prices on the electricity and natural gas markets for households and small professional consumers. 108 Electricity household customer: 3,500 kWh/year, single meter and electricity SME: 50,000 kWh/year, single meter Natural gas household customer: 23,260 kWh/year and natural gas SME: 100,000 kWh/year
CREG Annual report 2018 41 3. The electricity market
INFOGRAPHIC FOR HOUSEHOLDS December 2018 INFOGRAPHIC FOR SMEs & SELF-EMPLOYED December 2018 Number of existing products (active and dormant*) Number of existing products (active and dormant*)
FLANDERS WALLONIA BRUSSELS FLANDERS WALLONIA BRUSSELS 60 55 21 52 51 45
1094 1220 728 1043 1105 858
56 53 19 45 48 41
563 572 436 502 514 475
active dormant active dormant active dormant active dormant active dormant active dormant
Cheapest and most expensive offer (€/year**) : 12/2018 Cheapest and most expensive offer (€/year**) : 12/2018
FLANDERS (12 active suppliers) WALLONIA (10 active suppliers) BRUSSELS (6 active suppliers) FLANDERS (12 active suppliers) WALLONIA (10 active suppliers) BRUSSELS (9 active suppliers)
€528 €7736 €7769 €6937 €580 €582 €3745 €4301 €3511 €278 €328 €285
Duration: 1 year Duration: 1 year Duration: 1 year Duration: 1 year Duration: 1 year Duration: 1 year Duration: 1 year Duration: 3 years Duration: 1 year Duration: 3 years Duration: 3 years Duration: 3 years Type: fixed Type: variable Type: variable Type: variable Type: variable Type: variable Type: fixed Type: variable Type: fixed Type: variable Type: fixed Type: variable
FLANDERS (13 active suppliers) WALLONIA (11 active suppliers) BRUSSELS (6 active suppliers) FLANDERS (13 active suppliers) WALLONIA (11 active suppliers) BRUSSELS (10 active suppliers)
€882 €882 €893 €3640 €3640 €3640 €2640 €2640 €631 €631 €650 €2640
Duration: 1 year Duration: 1 year Duration: 1 year Duration: 1 year Duration: 1 year Duration: 1 year Duration: 1 year Duration: 4 years Duration: 1 year Duration: 4 years Duration: 3 years Duration: 3 years Type: fixed Type: variable Type: fixed Type: variable Type: fixed Type: variable Type: fixed Type: fixed Type: fixed Type: fixed Type: fixed Type: variable
Potential for savings Potential for savings FLANDERS WALLONIA BRUSSELS FLANDERS WALLONIA BRUSSELS
Most Most expensive expensive existing €605 €1129 €606 €1129 €528 €1129 existing €7736 €4432 €7769 €4432 €6937 €4432 product product
€327 €498 €278 €498 €243 €479 €3991 €1792 €3468 €1792 €3426 €1792
CREG Scan - Do you have the best energy contract ? CREG Scan - Do you have the best energy contract ? * dormant products: do not appear in the results of the price comparisons, but are included in the CREG Scan * dormant products: do not appear in the results of the price comparisons, but are included in the CREG Scan ** 23.260 kWh of natural gas, 3.500 kWh of electricity, excluding VAT, taxes, distribution and transmission ** 100.000 kWh of natural gas, 50.000 kWh of electricity, excluding VAT, taxes, distribution and transmission
42 CREG Annual report 2018 3. The electricity market
Figure 7: Monthly trends in the price of electricity in 2018 for a standard household customer Figure 9: Monthly trends in the price of electricity in 2018 for SMEs and the self-employed (standard customer = 3,500 kWh/year) (energy component) (Source: CREG) (standard customer = 50,000 kWh/year) (energy component) (Source: CREG)
100 100
95 95
90 90
85 85
80 80
75 75
70 €/MWh 70 €/MWh 65 65
60 60
55 55
50 50
45 45 1/12/17 1/01/18 1/02/18 1/03/18 1/04/18 1/05/18 1/06/18 1/07/18 1/08/18 1/09/18 1/10/18 1/11/18 1/12/18 1/12/17 1/01/18 1/02/18 1/03/18 1/04/18 1/05/18 1/06/18 1/07/18 1/08/18 1/09/18 1/10/18 1/11/18 1/12/18 Average DE, FR, NL Average BE Average DE, FR, NL Average BE
Figure 8: Monthly trends in the price of natural gas in 2018 for a standard household customer Figure 10: Monthly trends in the price of natural gas in 2018 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)
50 50
40 40
30 30 €/MWh €/MWh 20 20
10 10
0 0 1/12/17 1/01/18 1/02/18 1/03/18 1/04/18 1/05/18 1/06/18 1/07/18 1/08/18 1/09/18 1/10/18 1/11/18 1/12/18 1/12/17 1/01/18 1/02/18 1/03/18 1/04/18 1/05/18 1/06/18 1/07/18 1/08/18 1/09/18 1/10/18 1/11/18 1/12/18
Average DE, FR, NL Average BE Average DE, FR, NL Average BE
CREG Annual report 2018 43 3. The electricity market
3.2.2. Monitoring of market transparency and Figure 11: Average monthly load on the Elia grid from 2007 to 2018. (Sources: Elia data, CREG calculations) openness MWh/h
3.2.2.1. Electrical power demand 11,50011 500
According to the data supplied to the CREG, the load109 on the Elia grid110 without pump consumption by the pumping stations 11,00011 000 - in other words net offtake plus grid losses - was estimated at 76,652 GWh in 2018, compared to 77,414 GWh in 2017, or 10,50010 500 a fall of 1.0% from one year to the next. The peak 15-minute 10,364 load in 2018 was estimated at 12,440 MW, compared with 9,904 10,00010 000 12,867 MW in 2017 (Source: Elia, for 2018: provisional data, 9,806 February 2019). 9,692 9,591 9 500 9,500 9,440 9,549 Figure 11 shows the average monthly load on the Elia grid per 9,226 year for the years 2007 to 2018. After a steep reduction in the 9,049 9,227 99,000 000 load from October 2008 following the economic crisis, which also continued into 2009, the load recovered in early 2010. The 8 500 recovery did not last, however, as the decline in load returned 8,500 8,223 8,737 8,619 the following year to reach its lowest average levels in 2014, 8,521 8,050 8,065 8,334 8,377 2015, 2016 and 2017. Compared to 2007, the decrease in the 8,163 8,256 88,000 000 8,132 average load was 13.5% in 2018. These figures have not been 8,042 8,040 weighted for meteorological factors. 7,788 77,500 500 1 2 3 4 5 6 7 8 9 10 11 12 Local power generation by sites connected to the Elia grid is not fully taken into account in these figures. Synergrid has 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 estimated local generation at 10.6 TWh in 2018 (10.4 TWh in 2017), i.e. a 1.9% rise compared with 2017.
109 The Elia grid load is based on the injections of electrical power into the Elia 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 facilities 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). 110 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 2018 3. The electricity market
3.2.2.2. Market share of wholesale generation The HHI, a widely used concentration index, fell slightly again The dominant position of Electrabel fell slightly to 69% in in 2018. With a value of 5040, it remains very high. By way of 2018 (compared to 77% in 2017). In 2018, the HHI fell to 5130, Table 6 provides an estimate, in both absolute value (in GW) comparison, a market is considered to be highly concentrated confirming that the market is extremely 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. Table 7 provides the same estimate, but in terms of the energy Electrabel still has a substantial market share (69%) of total actually generated. Overall, the units connected to the Elia grid generation. The second largest player is EDF Luminus, with a generated 57.8 TWh in 2018, considerably less than in 2017. market share of 17% in terms of generation capacity.
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 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Electrabel 12.1 11. 4 11. 0 10.7 9.9 9.9 10.2 10.2 10.1 10.6 76% 72% 70% 66% 65% 68% 71% 73% 72% 69% EDF-Luminus (1) 2.2 2.4 2.4 2.3 2.2 1. 8 1. 7 1. 9 2.0 2.6 14% 15% 15% 14% 15% 12% 12% 14% 14% 17% E.ON 1. 2 1. 5 1. 5 1. 5 1. 5 1. 1 0.6 0.0 0.0 0.0 8% 9% 9% 9% 10% 7% 4% 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% 0% 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 3% 3% 3% 7% 9% 10% 11% 11% 11% 12% Total 16.0 15.8 15.8 16.0 15.3 14.6 14.5 14.0 14.1 15.4 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
HHI 5 970 5 540 5 170 4 720 4 460 4 760 5 160 5 510 5 420 (1) The shares of SPE and EDF Luminus have been combined since 2010, following the takeover of SPE by EDF. 5 040
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 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Electrabel 70.3 62.7 58.9 50.7 49.9 40.7 37.2 55.0 54.4 40.1 82% 72% 73% 71% 71% 68% 67% 79% 77% 69% EDF-Luminus (1) 12.2 12.2 9.3 8.5 8.6 7. 6 6.6 6.5 7. 8 9.7 14% 14% 12% 12% 12% 13% 12% 9% 11% 17% E.ON 0.5 8.8 8.5 7. 8 6.9 6.3 4.6 0.9 0.0 0.0 1% 10% 11% 11% 10% 11% 8% 1% 0% 0% T-Power 0.0 0.0 1. 0 0.5 0.4 1. 4 2.2 2.6 2.5 2.4 0% 0% 1% 1% 1% 2% 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 3% 3% 4% 6% 7% 7% 9% 7% 8% 10% Total 85.5 86.6 80.5 71.9 70.7 59.9 55.8 69.9 70.2 57.8 100% 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 (1) The shares of SPE and EDF Luminus have been combined since 2010, following the takeover of SPE by EDF. 5 130
CREG Annual report 2018 45 3. The electricity market
3.2.2.3. Energy exchange price convergence with any of its neighbouring countries for increase if 500 MW extra was purchased was lower than €4.5/ 41.8% of the hours. This is an increase compared to the 35.9% MWh in 2018, except in September, October and November, Despite gradual market coupling, price convergence in the recorded in 2017. when the increase was around €10.33/MWh. The monthly CWE region has still not materialised. This can be explained average relative decrease in the price if 500 MW extra was by various factors, including the unavailability of nuclear power In the wake of the high prices observed on the EPEX SPOT sold was lower than €4.1/MWh in 2018, except in October plants in France and Belgium and, more prominently, the Belgium DAM in the fourth quarter of 2018, on 28 June 2018 and November when the decreases were €6.1/MWh and priority access to loop flows: flows resulting from commercial the CREG published its analysis of day-ahead prices for delivery €6.8/MWh respectively. exchanges which are not in competition with cross-border on 9 November 2017 and 16 November 2017 (note (Z)1715). In commercial exchanges between bidding zones but which, like addition, the CREG published a note on price setting on the daily The intraday market provides market participants with the the latter, also use the transmission system which connects market based on the daily market outcomes from 1 to 7 October possibility to manage their unexpected changes in expected bidding zones (see study (F)1687 by the CREG). 2018, with a focus on those of 3 October (note (Z)1847). The injection or offtake after the closure of the day-ahead market main conclusion of both notes is that the robustness of the via a public market. Unexpected changes include, for instance, In 2018, the average daily market price in Belgium was €55.3/ Belgian market is dependent on loop flows: the lower the loop the unexpected unavailability of a generating plant, but also MWh, higher than the €50.2/MWh in France and the €52.5/ flows, the more Belgium can import at high prices, which limits changes resulting from updated forecasts of wind and solar MWh in the Netherlands. By way of comparison, in 2017 the the price increase on the Belgian market. Loop flows were energy injections. The introduction of Epex Spot's M7 system daily market price in Belgium was €44.6/MWh. The average reduced in 2018 as a result of (1) the splitting of the German in October 2016 facilitated trade on the Belgian intraday German daily market price in 2018 also rose compared to 2017, and Austrian price zones, (2) the guarantee by TSOs in Germany, market by linking the Belgian market to that of Germany, but at €44.7/MWh remained the lowest in the CWE region. the Netherlands, France and Belgium that at least 20% of the France, Austria and Switzerland. The total traded volume on However, the rise in the German daily market price is stronger maximum capacity of each restricting system element would be the intraday market rose to 2,012 GWh in 2018. This is a slight than the increase in the Belgian daily market price, both in made available for cross-border trade, and (3) the increase of the rise compared to 2017 (1,991 GWh). The average intraday price absolute and relative terms. International factors, such as CO2 import limit for Belgium from 4500 MW to 5500 MW. rose by 23% to €56.3/MWh in 2018. and gas prices, are driving the price increase in Belgium and its neighbouring countries. The total volume traded on the Epex Spot Belgium daily market The wholesale prices for short and long-term contracts rose in was 25.9 TWh, compared to 17.9 TWh in 2017. This equates to 2018. The contracts for supply the following year had an average In 2018, the proportion of hours in which there was price approximately 33.8% of total offtake from the Elia grid. price of €51.0/MWh, representing an increase of 37% compared convergence fell slightly in the entire CWE region (with a margin to 2017 (€37.3/MWh). In 2018, the average daily market price of €1/MWh) to 37.4%, compared to 37.9% in 2017. There was The sensitivity of the electricity price on the daily market to was higher than the average price of the year-ahead contract price convergence with France in 49.5% of the hours, and with additional offtake volumes (market depth) is an important with delivery in 2018 (i.e. trade during 2017). The average daily the Netherlands in 51.6%. Price convergence with Germany factor. The greater the sensitivity, the more easily the price market price in 2018 was €55.3/MWh compared to €37.3/MWh rose sharply to 40.0%. Despite this rise, Belgium had no can be manipulated. The monthly average relative price for contracts traded in 2017 for delivery the following year.
46 CREG Annual report 2018 3. The electricity market
Figure 12: Average monthly prices for the period 2007-2018 of the daily market for delivery of electricity in the countries of the CWE region (Sources: Epex Spot Belgium, EPEX Spot, CREG calculations) 100
90
80 77.6 70 67.8 62.3 60 57.2 50 €/MWh 40
30
20
10
0 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
BE NL FR DE
Figure 13: Average annual prices for the period 2007-2018 of the daily market for the supply of electricity in the countries of the CWE region (Sources: Belpex, EPEX Spot, CREG calculations)
80
70
60 55.3 €/MWh 52.5 50 50.2 45.0 44.7 44.6 40 36.6 39.3 36.7 34.2 30 32.2 29.0
20 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 BE NL FR DE
CREG Annual report 2018 47 3. The electricity market
Figure 14: Average monthly strength of the Epex Spot Belgium market between 2007 and 2018 (Sources: Epex Spot Belgium, CREG calculations)
45 41.43 40
35
30
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
0
-5 -4.69 -4.05 -4.82 -4.28 -4.69 -6.00 -8.60 -8.55 -6.50 -9.03 -6.80 -10 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
500 MW additional purchased 500 MW additional sold
Figure 15: Energy traded and average price on the intraday exchange (Source: Epex Spot Belgium, CREG calculations)
120 300000
100 250000
80 200000
60 150000 GWh €/MWh
40 100000
20 50000
0 0 I I I I I I I I I I 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 Belpex Intraday Volume EPEX SPOT Belgium Intraday Volume EPEX SPOT Belgium (Belpex) Intraday Price
48 CREG Annual report 2018 3. The electricity market
Figure 16: Comparison of wholesale prices for short-term and long-term contracts (Sources: Epex Spot Belgium, Epex Spot, ICE Endex, In this context, the market players need to register on a CREG calculations) platform and keep their registration details up to date. In 2018,
90 the CREG validated various changes of registration.
80 It also helped market players with their registration or other
70 68.85 questions about REMIT.
60 61.37 44.58 55.27 Following the peer review that the CREG underwent in June 50 37.54 43.92 51.01 2017 before the peer review panel (ACER and other regulators 41.43 36.62 that are part of the RISIG group) and in order to validate the €/MWh 40 36.44 safety policy with regard to REMIT, the CREG received the 30 33.38 37.27 approval of ACER, with several minor comments, in early 2018. The CREG took actions to resolve/clarify these remarks and 20 sent its statements to ACER for validation. 10
0 Finally, in 2018, the CREG conducted various investigations 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 and ad hoc analyses on questions from market players about D + 1 M + 1 Q + 1 Y + 1 possible violations of the REMIT Regulation. Of these cases, seven were closed or transferred to another body. The CREG 3.2.2.4. Transparency, REMIT and financial instruments the transparency of the Belgian wholesale markets for electricity drafted a note for three of these cases. It received six new and natural gas. The CREG made an informative presentation on cases in 2018. • Our workshop of 15 May the legislation on transparency, REMIT and financial instruments. The first case closed in 2018 pertained to a possible On 15 May 2018, the CREG organised a workshop on the role of A note was published on the CREG website containing a infringement of Article 3 of REMIT. The analysis showed that market players in bringing about a more efficient market on the summary of the presentations and discussions which took information had been published ineffectively. After the market basis of European legislation on transparency, REMIT and financial place, and the conclusions of the workshop. participant had remedied this oversight, the CREG decided not instruments. This workshop was intended for market players in to take any sanctioning measures.112 the broad sense of the word: European institutions, regulators, • REMIT transmission system operators, transparency platforms, business The second case related to a possible breach of Article 5 federations and companies active in the wholesale market for The REMIT regulation (Regulation on wholesale Energy Market of REMIT. The analysis showed that there was insufficient electricity and gas. This workshop was organised following Integrity and Transparency)111 sets out a series of rules aimed evidence to rule that the operator in question may have the study carried out by the CREG on 5 October 2017 on the at preventing and punishing manipulations and insider trading attempted to give false or misleading signals, to keep the price application of European and Belgian legislation in the context of in the wholesale energy market. at an artificial level or to use fraud or deception.113
111 Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency. 112 Note (Z)1859 of 15 November 2018: REMIT case N137/2018. 113 Note (Z)1665 of 11 October 2018: REMIT case N17/2016.
CREG Annual report 2018 49 3. The electricity market
The third case concerned an investigation into a possible 3.3. Consumer protection • Simplification of the energy bill breach of Article 5 of REMIT. The analysis showed that there were elements which suggested that the operator in question The CREG continued to stress the consumer protection aspect In 2017, the CREG, as expert party, participated in the multi- may have attempted to give false or misleading signals, to of its work in 2018. stakeholder consultation organised by the King Baudouin keep the price at an artificial level or to use fraud or deception. Foundation, on the possible simplification of the electricity and Due to the specific context and the prompt corrective actions • CREG Scan natural gas bill. taken by the economic operator, no immediate further steps were taken.114 Launched in February 2017, the CREG Scan is intended for As part of the project, the following themes were discussed in individuals, SMEs and the self-employed, with a maximum workshops: identifying best practice as regards electricity and 3.2.2.5. Charter of best practices for electricity and gas annual consumption of 50,000 kWh for electricity and 100,000 natural gas bills, proposing simplified bills and testing them price comparison websites kWh for natural gas. with consumers with a view to ultimately arriving at a number of specific recommendations for a simpler energy bill. Following consultation with stakeholders, the CREG took The CREG Scan enables consumers to check whether the a decision in July 2018 on the charter of best practices for contract they have signed up to in the past is an active or Work continued on simplifying the energy bill launched by the electricity and gas price comparison websites.115 a dormant contract and where it stands in relation to the King Baudouin Foundation throughout 2018. cheapest and most expensive product on the market today. The aim of this charter is to provide household consumers (and On 19 October 2018, the Ministers for Energy and the Minister SMEs) with useful, relevant and coherent information for online The CREG Scan is easy to use and is complementary to for Consumer Affairs announced that they would work price comparisons for electricity and gas. The charter contains existing price comparison websites, which only compare together on a simplified energy bill. In 2018, the CREG actively a number of provisions that an (online) price comparison must active electricity and natural gas products. The tool is aimed participated in the working group organised in this context by comply with in order to obtain accreditation from the CREG. at ensuring that consumers make informed decisions and, the Cabinet of the Minister for Consumer Affairs. The provisions of the charter relate to the following principles: especially, that they have full information. • Charter - The service provider must provide clear information about • Revision of the consumer agreement its services; In the context of its consumer protection role, the CREG - The services must be user-friendly and straightforward; On 28 June 2017, the Minister of Work, Economy and continued to monitor compliance with the provisions of - The service provider must be accurate: it must provide non- Consumers and the energy suppliers signed a new agreement: the Charter of best practices for electricity and gas price misleading, complete, correct, relevant information that is 'De consument in de vrije elektriciteits- en gasmarkt' (The comparison websites until June 2018, and took action if it up to date; consumer in the free electricity and gas market). Most of found that market players had used references to the CREG or - The service provider must act responsibly with the the provisions of this new agreement entered into force on other regional regulators. information from and for the user. 1 January 2018.
114 Note (Z)1664 of 11 October 2018: REMIT case N61/2017. 115 Decision (B)1614 of 5 July 2018 on the amendment of the charter of best practices for electricity and gas price comparison websites.
50 CREG Annual report 2018 3. The electricity market
• Consumer information 3.4. Security of supply with 2017, from 14,069 MW to 15,396 MW. This increase by 1,327 MW was the result of various developments in 2018. In 2018, the CREG continued to inform consumers, in particular 3.4.1. Monitoring the balance between supply and Firstly, the commissioning of the Rentel wind farm contributed about prices and price trends, among other things via: demand to an increased installed capacity of offshore wind turbines. Furthermore, the generation units of Seraing and Vilvoorde - the annual study into the evolution of the components of • Demand116 (725 MW in total) returned to the market after having been electricity and natural gas prices (see points 3.1.3.5 and contracted in the strategic reserve in previous years. Finally, the 3.2.1.1 of this report); The load on the Elia grid was 76.65 TWh in 2018, compared unavailability of certain nuclear power stations prompted some - monitoring energy market prices for households and small with 77.41 TWh in 2017, equating to a fall of 1.0% between actors to take temporary measures, such as the installation professional users (see point 3.2.1.2 of this report); 2017 and 2018. of diesel generators or the recommissioning of units that had - the study into electricity supply to major industrial been definitively decommissioned. For winter 2018-2019, no customers in Belgium in 2017, with the aim of improving the Table 8: Elia grid load (energy and peak capacity) for the period volume of strategic reserve was contracted. transparency of the supply of electricity to major industrial 2007-2018 (Source: Elia, 2018: provisional data) customers (see point 3.2.1.1. of this report); Table 9: Breakdown by plant type of installed capacity connected - infographics and monthly dashboards for electricity and Energy Peak capacity to the Elia grid as of 31 December 2018 (Source: Elia) natural gas (see point 3.2.1.2 of this report); (GWh) (MW) - the monthly publication of quoted gas prices TTF101, TTF103 2007 86 619 14 033 Installed capacity and, since February 2018, ZTP101. This monthly index Power plant type 2008 87 760 13 431 MW % informs end users and system users in Belgium about a 2009 81 575 13 513 Nuclear plants 5 919 38.4 price reference that can be used in gas supply contracts. CCGT and gas turbines 4 609 29.9 This new monthly index from PEGAS enhances the visibility 2010 86 501 13 845 of the notional ZTP market and should further enhance its 2011 83 350 13 201 Conventional power plants 315 2.0 liquidity; 2012 81 717 13 369 Cogeneration 8 74 5.7 - the processing of enquiries and complaints received from 2013 80 534 13 446 Incinerators 247 1. 6 consumers (see point 5.4 of this report). 2014 77 161 12 736 Diesel engines 61 0.4 2015 77 184 12 634 Turbojets 177 1. 1 Finally, readers are referred to the work carried out by the Hydro (excluding pumping power CREG in the context of European working groups handling 2016 77 295 12 734 86 0.6 plants) aspects relating to consumer protection in the field of energy 2017 77 414 12 867 (see point 5.6 of this report). 2018 76 652 12 440 Pumping power plants 1 308 8.5 Onshore wind farms 231 1. 5 Offshore wind farms 1 187 7. 7 • Installed capacity and generated energy Biomass 382 2.5 Total 15 396 100.0 During the course of 2018, the installed generation capacity connected to the Elia grid in Belgium increased compared
116 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.
CREG Annual report 2018 51 3. The electricity market
Table 10: Breakdown by primary energy type of electricity relating to the location, frequency and scale of the expected 3.4.3. Operational security of the grid generated in 2018 by plants located on sites connected to congestion in the various scenarios are also extremely the Elia grid important. Crucial information in this respect is whether the The graph below illustrates the changes in the maximum Power generated expected congestion is caused by commercial exchanges physical load for the interconnectors with France and the Primary energy GWh % or loop flows. The CREG also believes it is relevant that Elia Netherlands. This physical load is a combination of flows Nuclear1 27 250 38.0 addresses the alternatives examined and the criteria on which resulting from commercial imports to and exports from these alternatives have not been selected. Belgium and of flows resulting from transit through the Belgian Natural gas1 19 326 26.9 network. Coal1 0 0.0 Finally, the CREG proposes that Elia draw up a detailed 1 Fuel 4 0.0 roadmap for the delivery of phase 2 of the Modular Offshore Other self-generated power used 117 1 560 2.2 Grid upon final approval of the Maritime Spatial Plan. locally3 Hydro (including pumping power Figure 17: Changes between 2007 and 2018 in the maximum physical load for the interconnections with France and the Netherlands 1 142 1. 6 plants)1 (Source: CREG, based on Elia data) Other1 10 115 14.1 Total2 59.400 100.0 4,0004 000 1 Source: Elia, provisional data 2 Source: Synergrid, provisional data 3,0003 000 3 Source: CREG calculations (values not supplied by Elia) 2,0002 000
3.4.2. Verifying the development plan for the 1,0001 000 transmission system 0 MW
The CREG publishes its opinion on Elia's draft Federal -1,000-1 000
Development Plan for the period 2020-2030. -2,000-2 000
Elia proposes a total of €5 billion in investments over a period -3,000-3 000 of 10 years. The CREG requests a clear cost-benefit analysis -4,000-4 000 of the proposed investments for the Belgian end consumer. -5,000-5 000 It is not clear from the draft version of the development plan 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 whether all the investments are cost-effective. 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 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 Furthermore, the CREG asks for more transparency when the 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 need to strengthen the grid and make new investments is 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 identified. For example, Elia has to catalogue the assumptions regarding the location of generation and offtake. The figures
117 Opinion (A)1802 of 12 July 2018 on the 2020-2030 draft development plan of Elia System Operator NV.
52 CREG Annual report 2018 3. The electricity market
In 2018, the maximum peak flow on the Dutch border towards n Planned strengthening of the northern border This strengthening of the interconnection capacity at the the Netherlands (exports) was 2,515 MW, compared to 3,104 northern border (in combination with the Brabo project) will MW in 2017. This peak was recorded on 12 March, when Brabo project reduce the risk that this border becomes a restricting factor for France exported 5,255 MW to Belgium, the Netherlands and the increasingly larger and variable trade flows between the Germany. At the time, Belgium imported 973 MW. The Brabo project is part of the strengthening of the Belgian markets within the CWE area. electricity grid. The project is necessary to guarantee supplies The maximum peak flow of 3,755 MW at the Dutch border in throughout Belgium and, in particular, to the Antwerp port The commissioning of this project is planned for 2022. the direction of Belgium (import) was recorded on 5 February region, and will be implemented in several phases. 2018, when Belgium and France together imported 7,815 MW Van Eyck-Maasbracht project from Germany and the Netherlands. Belgium imported 1,701 Brabo II and Brabo III include the construction of an additional MW at the time. above-ground 380 kV two-circuit connection between the The Van Eyck-Maasbracht project currently being studied Zandvliet and Mercator (Kruibeke) stations on the north-south involves strengthening the existing 380 kV Van Eyck-Maasbracht The maximum peak flow of 2,921 MW on the French border axis of Antwerp in order to ensure the intended increase in interconnection. The reference solution consists of replacing towards France (export) was recorded on 19 March 2018, interconnection capacity at the northern border following the the existing conductors of the above-ground alternating current when France imported 7,493 MW from Belgium (436 MW), the completion of Brabo I. connection between Van Eyck (Belgium) and Maasbracht (the Netherlands (82 MW) and Germany/Luxembourg/Austria (6,975 Netherlands) with high-performance conductors, installing MW). The peak flow on the French border towards Belgium The need to ensure a rise in industrial consumption in the two additional phase shifters and restructuring the Van Eyck (import) was recorded on 23 December with a maximum of 4,196 Antwerp port area (especially phase II) and to create a reception substation. Other variants are also being examined. The MW, slightly higher than the level of 2017. At the time, France capacity for centralised generation (especially phase III) is also solution is being examined by three parties: Elia, TenneT and and Germany exported a total of 9,731 MW to Belgium (4,252 being taken into account. Amprion. This project is currently being studied. MW), the Netherlands (2,946 MW) and Austria (2,532 MW). Brabo II has already started and is expected to be completed The commissioning of this project is planned for 2030. These maximum values were recorded during hours when the in 2020. loop flows charged by Elia in the calculation of the day-ahead n Planned strengthening of the southern border capacity calculations (see Elia website) were relatively low, i.e. Brabo III is currently being studied. The commissioning of this no more than 466 MW as opposed to the annual average of last phase is planned for 2025. Avelin-Horta project 812 MW. This implies that the physical capacity utilisation of the interconnectors is at its maximum at low loop flows. Zandvliet-Rilland project This project aims, firstly, to strengthen the existing 380 kV interconnection between Avelin/Mastaing (France) and 3.4.4. Investment in cross-border interconnections This project aims to strengthen the existing 380-kV Zandvliet- Avelgem (Belgium) by replacing the current conductors of the Rilland interconnector by replacing the conductors of the above-ground alternating current connection between Avelin/ The high-voltage grid needs to permanently evolve to meet the above-ground alternating current connection between Mastaing and Avelgem with high-performance conductors needs of consumers and the market, and to guarantee security Zandvliet (Belgium) and Rilland (the Netherlands) with high- and to replace the current conductors of the above-ground of supply. Strengthening interconnections at European level is performance conductors, installing two additional phase alternating current connection between Avelgem and Horta one of the major challenges for achieving these objectives. shifters and restructuring the Zandvliet substation. (Zomergem) with high performance conductors.
The commissioning of this project is planned for 2021.
CREG Annual report 2018 53 3. The electricity market
Lonny-Achêne-Gramme project n Planned interconnections between Belgium and the between Belgium and Germany with a capacity of around United Kingdom 1,000 MW. This project is in the implementation phase. This project involves strengthening the existing 380 kV The planned commissioning date is 2020. interconnection between Achêne/Gramme (Belgium) and The NEMO project involves the construction of a 1,000 MW Lonny (France). It will be implemented in various phases. direct current submarine cable about 140 km long. This project The possibility of a second interconnection between Belgium will connect Richborough in the UK to the 'Gezelle' substation, and Germany is currently being studied. The standard solution The first phase of this upgrade is necessary to allow a better which is part of the Stevin project in Bruges. is a 1,000 MW direct current (HVDC) submarine cable distribution of the expected flows at the southern border by connection. The location of the connection point between 2025. The reference solution consists of installing a phase For Belgium, this means that energy can be exchanged Belgium and Germany has not yet been decided. shifter on the Belgian side. directly with the UK, which should lead to greater security of supply in view of the diversification engendered by a new In view of the preliminary results of the study and the fact that The second phase is an additional upgrade. The reference interconnection. developing infrastructure on this scale would take around ten solution consists of replacing the existing conductors of the years, commissioning is currently scheduled for 2028 at the above-ground 380 kV alternating current connection between Construction started in mid-2016. The technical completion of earliest. Achêne/Gramme (Belgium) and Lonny (France) with high- the new connection is planned for early 2019, after which its performance conductors, installing a second phase shifter and commercial operation can start. 3.4.5. Measures to cover peak demand and deal with restructuring the Achêne and Gramme substations. shortfalls A second project, the Nautilus project, is in a study phase This project is currently being studied. The commissioning of and consists of analysing whether a second interconnection 3.4.5.1. Strategic reserve: winter periods 2018-2019-2020 this project is planned for 2030. between Belgium and the United Kingdom is possible. The standard solution is a 1,000 to 1,400 MW direct current On 15 January 2018, the Minister for Energy tasked the Aubange-Moulaine project (HVDC) submarine cable connection. transmission system operator (Elia) with setting up a strategic reserve for a volume of 500 MW for the winter period This project aims to strengthen the existing 220 kV connection In view of the preliminary results of the study and the fact that 2018-2019.118 between Aubange (Belgium) and Moulaine (France) by developing infrastructure on this scale would take around ten installing two phase shifters at the Aubange substation. years, commissioning is currently scheduled for 2028 at the As required by law, Elia submitted the operating rules for the earliest. strategic reserve for the winter period 2018-2019 to the CREG The upgrade at the southern border complements the for approval. The CREG organised a public consultation on its upgrade at Avelin-Avelgem, and reduces the risk that this n Planned interconnection between Belgium and Germany draft decision. On 9 February 2018, the CREG decided to adopt interconnection becomes a restricting factor for the exchange an amended version of the operating rules.119 of flows between markets. The ALEGrO project involves the construction of a 1,000 MW direct current (HVDC) underground cable about 90 km long. This Elia also needs to lay down the procedures for establishing the The commissioning of this project is planned for 2021. interconnection connects the substations at Lixhe (Belgium) strategic reserve after consultation with grid users, the CREG and Oberzier (Germany) and will be the first direct connection and the Directorate-General for Energy. The CREG formulated
118 Ministerial Decree of 15 January 2018 instructing the system operator to provide an additional strategic reserve from 1 November 2018 (Belgian Official Journal, 6 February 2018). 119 Decision (B)1716 of 9 February 2018 on the proposal of Elia System Operator NV on the operating rules of the strategic reserve applicable, from the procurement in 2018.
54 CREG Annual report 2018 3. The electricity market a number of remarks to the proposal for a procedure for the In the context of the public consultation organised by Elia - the formula for determining the standard transfer price establishment of strategic reserves for the winter period 2018- on the methodology, assumptions and data sources for applied by the CREG if no agreement was reached during 2019 that was submitted by Elia for consultation.120 dimensioning the volumes for the strategic reserve for winter the commercial negotiations between the market players; 2019-2020, the CREG gave its remarks on Elia's proposal in a - the model of standard clauses applicable between the On 28 June 2018, the CREG issued an opinion on whether note dated 17 May 2018.124 flexibility service provider and the supplier in the absence of or not the prices offered to Elia System Operator NV for the agreement on the terms of their contractual relationship.125 supply of the strategic reserve in response to the call for 3.4.5.2. Access to demand management tenders of 2018, were manifestly unreasonable.121 In addition, in the context of a tariff incentive imposed by the • Participation of the flexibility of demand in the electricity CREG in its tariff methodology, the CREG also took a decision Following the announcement on 29 March 2018 that the markets in Belgium on the proposal for a standard form for the bank guarantee CCGT unit at Seraing would return to the market, the Minister applicable in the context of the energy transmission submitted for Energy asked Elia to review its analysis of the need for Following the enactment on 13 July 2017 of the law amending by Elia System Operator NV.126 a strategic reserve. Given that it also took into account a the law of 29 April 1999 on the organisation of the electricity request from European regulators to the TSOs to allocate at market with a view to improving demand flexibility and Subsequently, in the context of the implementation of Article least 20% of the interconnection capacity to the market, Elia electricity storage, the CREG was given new competences 19bis, §2 of the Electricity Act, the CREG took two decisions. recommended not establishing a strategic reserve for the which it exercised in 2018. On 24 May 2018, after consultation with the competent winter period 2018-2019. As such, on 29 August 2018, the regional authorities and after consulting Elia, the CREG Minister for Energy instructed Elia not to establish a strategic Pursuant to Article 19bis, §§3 to 5 of the Law of 29 April 1999 decided to conditionally approve the rules governing the reserve for the winter period 2018-2019.122 to facilitate the transfer of energy, the CREG took a decision on energy transmission on the market for free bids of tertiary 15 March 2018 which lays down the following matters: reserves, as presented by Elia System Operator NV.127 On The tariff of the public service obligation 'strategic reserve' 17 September 2018, the CREG, after consultation with the amounted to €0.4298 net per MWh taken off in 2018. In its - the rules to be followed regarding the remuneration of the competent public authorities and after consultation with Elia, decision of 6 December 2018,123 the CREG approved Elia's transferred energy; decided to approve the amendment to the rules submitted by amended proposal to adapt this tariff. The new tariff (€0/MWh) - the formula(s) for determining the standard transfer price; Elia System Operator organising energy transmission in order will be applicable from 1 January 2019. - the mechanisms for the financial and contractual guarantees to enable energy transmission to the reserved tertiary and to be obtained from the flexibility service provider: strategic reserve markets.128
120 Note (Z)1721 of 25 January 2018 on the proposal of "Procedure for establishing a strategic reserve valid for the 2018 call for tenders" that was submitted by ELIA SYSTEM OPERATOR NV for consultation. 121 Opinion (A)1772 of 28 June 2018 on the manifestly unreasonable nature, or not, of the prices offered to Elia System Operator NV for the supply of the strategic reserve in response to the call for tenders of 2018. 122 Ministerial Decree of 29 August 2018 revising the instruction to establish a strategic reserve 2018-2019 and repealing the Ministerial Decree of 15 January 2018 instructing the system operator to establish a strategic reserve as from 1 November 2018 (Belgian Official Journal of 3 September 2018) and Ministerial Decree of 29 August 2018 revising the instruction to establish a strategic reserve 2018-2019 (Belgian Official Journal of 6 September 2018). 123 Decision (B)658E/59 of 6 December 2018 on the request for approval of the updated tariff proposal for the application from 1 January 2019 of the tariffs for the financing of the public service obligations of the Strategic Reserve, submitted by Elia System Operator NV. 124 Note (Z)1752 of 17 May 2018 on the reaction to the public consultation organised by Elia System Operator NV on the methodology, assumptions and data sources for dimensioning the volumes for the strategic reserve for winter 2019-2020. 125 Decision (B)1677 of 15 March 2018 implementing Article 19bis, §§3 to 5 of the Law of 29 April 1999 on the organisation of the electricity market, in order to facilitate the energy transmission. 126 Decision (B)1846 of 29 October 2018 on the proposal for a standard form for the bank guarantee applicable in the context of the energy transmission submitted by Elia System Operator NV. 127 Decision (B)1747 of 24 May 2018 on the proposal by Elia System Operator NV concerning the rules governing energy transmission. 128 CREG Decision (B)1807 of 17 September 2018 on the proposal by Elia System Operator NV concerning an amendment of the rules governing energy transmission.
CREG Annual report 2018 55 3. The electricity market
In the context of the implementation of Article 8 of this the short term to improving the security of electricity supply generation facilities to return to the market quickly and allow Electricity Act, the CREG approved Elia's proposal for the during the winter 2018-2019. These measures have been for a temporary increase in the net developable capacity of terms of reference setting out the criteria and modalities for implemented or are being discussed with our neighbouring certain units. In its opinions, the CREG essentially wrote that monitoring the performance of managing demand flexibility countries.131 more justification had to be given as to why it was necessary to data with an energy transmission and the criteria and modalities invoke Article 32 of the Electricity Act. for selecting an external auditor.129 In addition, given the risks this situation posed to Belgium's security of supply, measures were taken pursuant to Article The CREG also offered support for the conclusion of bilateral Finally, in the second half of 2018, the CREG took decisions 32 of the Electricity Act, which allows the King to take the and multilateral agreements on measures for the operational on requests for application of the formula for determining the necessary protective measures in the event of a sudden crisis management of solidarity in order to ensure Belgium's security standard transfer price, pursuant to the provisions of Chapter on the energy market. of supply for winter 2018-2019. III of the above-mentioned decision 1677.130 In this context, in accordance with the aforementioned article Finally, the CREG also took a decision to allow the operating rules 3.4.5.3. Security of electricity supply for winter 2018-2019 32, the CREG was asked to give an opinion on four draft of the market for the compensation of 15-minute imbalances for Royal Decrees containing protective measures for Belgium's the introduction of a product to allow the submission of free Following the announcements regarding the unavailability of electricity supply in the event of a crisis.132 These Royal Decrees quotations of R3 by non-CIPU units with an activation period of nuclear power stations, the CREG, in its note of 28 September contain measures that derogate from the Electricity Act or its more than 15 minutes in response to a signal from Elia (see also 2018, proposed a number of measures that could contribute in implementing decrees and, in particular, allowed certain idle point 3.1.3.4, C), balancing, of this report).
129 Decision (B)658E/54 of 17 September 2018 on the question from Elia System Operator to approve the terms of reference setting out the criteria and modalities for monitoring the performance of managing demand flexibility data with an energy transmission bythe system operator and the criteria and modalities for selecting an external auditor. 130 Decisions (B)1810, (B)1811, (B)1812 and (B)1813 of 20 September 2018, decisions (B)1817, (B)1818 and (B)1819 of 4 October 2018, decisions (B)1840, (B)1843, (B)1844 and (B)1845 of 25 October 2018, decision (B)1855 of 8 November 2018 and decision (B)1870 of 13 December 2018. 131 Note (Z)1835 of 28 September 2018 on short-term measures concerning the operation of the market in order to guarantee the security of supply of electricity for winter 2018-2019. 132 Opinion (A)1836 of 27 September 2018 concerning a draft Royal Decree containing protective measures in the event of a crisis in Belgium's electricity supply; Opinion (A)1853 of 18 October 2018 concerning two draft Royal Decrees containing protective measures in the event of a crisis in Belgium's electricity supply; Opinion (A)1868 of 19 November 2018 concerning a draft Royal Decree containing protection measures in the event of a crisis in Belgium's electricity supply; Opinion (A)1886 of 19 December 2018 concerning a draft Royal Decree containing protection measures in the event of a crisis in Belgium's electricity supply.
56 CREG Annual report 2018 4. The natural gas market 4
The natural gas market
CREG Annual report 2018 57 4. The natural gas market
4.1. Regulation Table 11: Companies active in 2018 on the Belgian market for transmitting natural gas - Change compared with 2017 (Source: CREG) 2017 2018 Δ2018/2017 4.1.1. Natural gas supply VOLUME TRANSPORTED IN BELGIUM (IN TWH)* MARKET SHARE IN BELGIUM (IN %) TWh % TWh % (%)** (%-point)***
4.1.1.1. Federal natural gas supply licences ANTARGAZ FINAGAZ 1.16 0.64 1.44 0.77 24 0.1 ARCELORMITTAL ENERGY SCA 4.61 2.54 4.87 2.60 6 0.1 The supply of natural gas to customers (distribution companies AXPO SOLUTIONS AG 0.20 0.11 0.12 0.06 -40 -0.1 or end customers whose gas offtake at each supply point BELGIAN ECO ENERGY NV 0.10 0.06 0.11 0.06 10 0.0 permanently amounts to a minimum of one million m³ per DIRECT ENERGIE 3.55 1.95 2.84 1.52 -20 -0.4 year) established in Belgium is subject to the prior granting of EDF LUMINUS 19.20 10.55 20.16 10.78 5 0.2 ENECO ENERGY TRADE BV 5.99 3.29 9.63 5.15 61 1.9 an individual permit issued by the Minister for Energy (except ENERGY GLOBAL HANDEL BV 0.34 0.18 when it is carried out by a distribution company on its own ENGIE 58.27 32.02 61.18 32.70 5 0.7 distribution system). ENI S.P.A. 31.81 17.48 21.09 11.27 -34 -6.2 ENOVOS LUXEMBOURG SA 0.62 0.34 1.74 0.93 181 0.6 The application dossiers for federal natural gas supply licences EQUINOR ASA 5.44 2.99 5.77 3.08 6 0.1 are sent to the CREG, which examines the criteria and then ESSENT SALES PORTFOLIO MANAGEMENT BV 4.09 2.18 sends its opinion to the Minister for Energy. EUROPEAN ENERGY POOLING 1.87 1.03 3.35 1.79 79 0.8 GAS NATURAL EUROPE SAS 7.08 3.89 6.64 3.55 -6 -0.3 In 2018, the CREG issued eight opinions in response to GETEC ENERGIE AG 0.35 0.19 0.25 0.14 -29 -0.1 applications for natural gas supply licences. These applications LAMPIRIS SA 4.19 2.30 0.001 0.00 -100 -2.3 came from Eneco Belgium, Gazprom Marketing & Trading NATGAS AKTIENGESELLSCHAFT 1.41 0.77 1.29 0.69 -9 -0.1 Limited, Ineos Energy Trading Ltd, EDF Luminus SA, Direct PROGRESS ENERGY SERVICES 1.80 0.99 0.98 0.52 -46 -0.5 Energie SA, Direct Energie Belgium SA, Getec Energie AG and RWE SUPPLY & TRADING GMBH 9.05 4.98 6.38 3.41 -30 -1.6 European Energy Pooling bvba.133 SOC. EUROP. DE GESTION DE L’ENERGIE SA 2.42 1.33 1.76 0.94 -27 -0.4 TOTAL GAS & POWER LTD 5.29 2.91 14.56 7.78 175 4.9 During the course of 2018, the Minister for Energy granted UNIPER GLOBAL COMMODITIES SE 0.46 0.25 0.50 0.27 9 0.0 an individual supply licence for natural gas to six companies, VATTENFALL ENERGY TRADING NETHERLANDS SA 6.32 3.47 6.45 3.44 2 0.0 namely Eneco Belgium SA,134 Gazprom Marketing & Trading WINGAS GMBH 10.80 5.93 11.57 6.18 7 0.3 Ltd,135 Ineos Energy Trading Ltd,136 EDF Luminus SA,137 Direct FINAL TOTAL 182 100 187 100 3 Energie SA138 and Direct Energie Belgium SA.139 * These figures only concern supplies to customers connected to the natural gas transmission system and to the offtake points on the distribution systems. For separate statistics on supplies to customers connected to the natural gas transmission and distribution systems, please consult the joint publication of the four energy regulators on the CREG website (www.creg.be). ** Relative change in 2018 compared with 2017 (2017 is the baseline). *** Absolute change in market share.
133 Opinions (A)1737, (A)1739, (A)1754, (A)1773, (A)1782, (A)1785, (A)1875 and (A)1876. 134 Ministerial Decree of 2 May 2018 (Belgian Official Journal of 28 May 2018). 135 Ministerial Decree of 25 May 2016 (Belgian Official Journal of 4 June 2018). 136 Ministerial Decree of 10 July 2018 (Belgian Official Journal of 23 July 2018). 137 Ministerial Decree of 26 July 2018 (Belgian Official Journal of 10 August 2018). 138 Ministerial Decree of 24 August 2018 (Belgian Official Journal of 6 September 2018). 139 Ministerial Decree of 24 August 2018 (Belgian Official Journal of 6 September 2018).
58 CREG Annual report 2018 4. The natural gas market
In 2018, total natural gas consumption140 amounted to The other active network users each have a market share 4.1.1.3. Trends in and fundamentals of the natural gas 187 TWh, representing an increase of 3% compared with below 2%. price consumption in 2017 (182 TWh). There was slightly higher consumption for end consumers connected to the distribution On 31 December 2018, 36 grid users were in possession of The following are some of the trends observed for natural gas in systems (+1.0%), a considerable increase in consumption both a federal supply permit for natural gas. During the course of 2018: by industrial consumers (+5.9%) and for the generation of 2018, 25 of them carried out supply activities on the natural electricity (possibly combined with heat production) (+4.2%). gas transmission system for Belgian end consumers. By way - At the start of 2018, the distribution and transmission tariffs of comparison, at the end of 2007, just six grid users were were adapted. Two new companies started supply activities on the wholesale operating on the Fluxys Belgium transmission system for - In the neighbouring countries, no new surcharge was introduced market for natural gas in 2018. Taking into account the merging supplies to Belgian end customers. in 2018; existing system tariffs and surcharges, however, were of transmission operations within a company from the same adjusted, as is the case every year. group, 25 companies were active on the Belgian transmission 4.1.1.2. Price caps market last year. Readers are referred to point 3.1.2.3 of this report. • For unprotected customers whose supply contract has The top 3 companies active on the transmission network - with been terminated 4.1.2. Transmission and distribution a combined market share of 55%, down 5% compared to 2017 - remain unchanged. Engie Electrabel remains in first place and Readers are referred to section 3.1.2.2 of this report, which 4.1.2.1. Unbundling and certification of the transmission slightly increased its market share from 32.0% to 32.7%. Eni also applies to natural gas. system operator S.p.A. holds on to second place but has once again seen its market share fall slightly by 6.2% to 11.3%. The market share • For protected household customers on low incomes or In accordance with its powers of monitoring compliance with of EDF Luminus rose by 0.2% to reach 10.8%. in precarious situations unbundling requirements by the TSO, the CREG concluded that the changes made in 2018 to the shareholdings in the Total gas & power Ltd, whose market share increases by 4.9% In accordance with current legislation, the CREG calculated subsidiaries of the parent company Fluxys comply with the (to 7.8%) takes over the fourth place from Wingas GmbH, and published the social tariffs applicable from 1 February 2018 provisions of the Gas Act of 12 April 1965. which occupies the fifth place with 6.2%. Eneco Energy Trade to 31 July 2018 and from 1 August 2018 to 31 January 2019 for BV has a market share of 5.2%. the supply of natural gas to protected household consumers The shareholdings of the subsidiaries of the parent company on low incomes or in precarious situations. Fluxys underwent the following changes in 2018: There are only 6 market players with a market share higher than 5%. The maximum social price for the supply of natural gas - In the context of the Greek restructuring plan, the Greek was 2.595 euro cent/kWh (€0.02595/kWh) for the period authorities launched a tender procedure in April 2018 to sell The market share of Gas Natural Fenosa SAS declines slightly from 1 February 2018 to 31 July 2018 and 2.636 euro 66% of the share capital of the Greek transmission system (0.3%) to 3.6%. Vattenfall Energy Trading Netherlands remains cent/kWh (€0.02636/kWh) for the period from 1 August 2018 to operator (TSO) DESFA. DESFA was certified in 2014 under stable at 3.4%. RWE Supply & Trading GmbH experiences a 31 January 2019. the ITO model and is the only TSO for natural gas in Greece. fall (1.6%) to 3.4%. Equinor ASA (Statoil) retains its market The European consortium selected to take over 66% of share of 3.1%. The market share of ArcelorMittal Energy SCA This is the price without VAT, federal contribution, and the shares is called SENFLUGA Energy Infrastructure stabilises at 2.6%. Essent Sales Portfolio Management BV connection fee (Wallonia). The tariffs of the transmission and Holdings SA and is made up of the following companies: accounts for a market share of 2.2%. distribution networks are included.
140 The assessment is based on figures related to shipping activities on the transmission system as communicated by the transmission system operator.
CREG Annual report 2018 59 4. The natural gas market
Snam SpA (60%), Fluxys Europe BV (20%) and Enagas - In November 2018, Fluxys Europe BV and Enagás placement du Québec' in Interconnector UK, through the Internacional S.L.U. (20%). At the request of the Greek Internacional S.L.U. jointly sold their complete shareholding companies Gasbridge 1 BV and Gasbridge 2 BV, of which they regulator responsible for certifying DESFA, the CREG noted in Swedegas, owner and operator of the Swedish natural are joint shareholders. As far as Interconnector UK Limited in November 2018 that its decision from 2012 regarding the gas network, to FS Gas Transport AB. FS Gas Transport AB is concerned, there were no significant developments in the certification of Fluxys Belgium was still valid and that Fluxys is indirectly a wholly-owned subsidiary of the European areas of unbundling and certification in 2018. Europe BV has no interests in gas and electricity production Diversified Infrastructure Fund II of First State Investment and/or supply companies that could have an impact on the (First State). 4.1.2.2. Corporate governance Greek energy market. - In October 2018, Rostock LNG GmbH, a joint venture In the context of the monitoring of the application of Article 8/3 - Fluxys Europe BV, together with its partners in the consortium between Novatek and Fluxys Europe BV, signed a land lease of the Gas Act and the assessment of its effectiveness with AXA Investment Managers-Real Assets, acting on behalf of agreement with the Port of Rostock for the construction and regards to the requirements of independence and impartiality its customers, and Crédit Agricole Assurances, decided to operation of a medium-scale storage terminal for liquefied of operators, the CREG examined the activity reports of the purchase a 35.76% stake in Dunkerque LNG, owner of the natural gas (LNG). The joint venture between Novatek (49%) corporate governance committees of Fluxys Belgium and liquefied natural gas (LNG) terminal in Dunkirk, from EDF and Fluxys Europe BV (51%) aims at the construction and Fluxys LNG for the year 2017. and Total. This 35.76% shareholding is in addition to the operation of an LNG terminal capable of receiving and 25% already held by Fluxys Europe BV, bringing the total unloading medium-sized LNG carriers, storing LNG and The CREG also examined the report of the compliance officer shareholding of the company and its consortium partners to providing LNG distribution services, such as the loading of on compliance with the programme of commitments by Fluxys 60.76%. Through the consortium, Fluxys Europe BV holds tankers (and possibly freight trains) to supply industry or Belgium and Fluxys LNG employees in 2017. The purpose of this 30.39% of the capital of the terminal, while AXA Investment filling stations for trucks using LNG as a fuel, and loading programme of commitments is to prevent any discrimination Managers-Real Assets, acting on behalf of its customers, operations to supply LNG as a maritime fuel, primarily to between system users and/or categories of system users. and Crédit Agricole Assurances each hold 15.19% of the ships operating in the Baltic Sea. capital. Fluxys Europe BV's stake in Gaz-Opale, the company In its favourable opinions of 14 June 2018141 and 25 October responsible for operating the terminal, is maintained at In 2018, the shareholdership of Interconnector UK Limited 2018,142 the CREG concluded that Ms Anne Leclercq and 49%, the remaining 51% being held by Dunkerque LNG. In consisted of Fluxys UK Limited (37.60%), Gasbridge 1 Ms Sabine Colson met the criteria for independent directors addition to the 35.76% stake transferred to Fluxys Europe BV (23.68%), Snam International BV (23.68%) and Fluxys with regard to their directorships on the board of directors of BV and its consortium partners, EDF and Total sold their Interconnector Limited (15.04%). Fluxys Belgium. Furthermore, analysis of documents received remaining 39.24% stake in the plant to a consortium of and additional information showed that these appointments Korean investors led by IPM Group, in cooperation with In February 2018, the Italian TSO Snam SpA and Fluxys are compatible with compliance by Fluxys Belgium with the Samsung Asset Management. Europe BV decided to exercise their proportional right of rules on ownership unbundling. pre-emption on the shareholding of the 'Caisse de dépôt et
141 Opinion (A)1777 of 14 June 2018 on the independence of Ms Anne Leclercq as an independent director of Fluxys Belgium NV. 142 Opinion (A)1850 of 25 October 2018 on the independence of Ms Sabine Colson as an independent director of Fluxys Belgium NV.
60 CREG Annual report 2018 4. The natural gas market
4.1.2.3.Technical operation dated July 2018, the CREG analysed the functioning of the D. Time taken by the transmission system operator to carry out Belux balancing system during this cold spell. It concluded connections and repairs A. Natural gas transmission licences that the system is robust, even in difficult and even exceptional circumstances. Network users also find the functioning of the In accordance with the Gas Act, the CREG is responsible for The construction and operation of installations for natural gas system to be extremely effective and transparent. In this way, monitoring the time taken by the natural gas transmission transmission is subject to the prior granting of a permit issued this market-driven balancing system ensures the effective and system operator to carry out connections and repairs. by the Federal Minister for Energy, on the advice of various efficient functioning of the natural gas market, which translates authorities, including the CREG. into competitive prices on the wholesale market.145 In 2018, two new connections were created for end customers and two for public distribution. The construction of these four In 2018, the CREG issued four favourable opinions in this The trends relating to the market-based balancing model, new connections took 80 and 124 months, respectively, for respect.143 in effect from 1 October 2012 and summarised in the 2013 end customers, and 57 and 84 months, respectively, for public Annual Report (pages 55-56), are still applicable in 2018. distribution. B. Balancing zone and balancing model C. Regulations governing system security and reliability, and In 2018, five repairs were carried out following accidents or • Balancing zone standards and requirements for quality of service and incidents, and twenty repairs were carried out in the context of supply maintenance periods. Four of the five unplanned repairs were In 2017, Fluxys Belgium and Creos entrusted the management carried out within the same day, after consultation with – and of the grid balancing of the integrated Belux zone to a joint Pursuant to Article 133 of the Code of Conduct, the natural without any impact on – the shippers and the end consumers. venture: Balansys. The CREG approved the balancing contract gas transmission system operator must apply a monitoring The twenty repairs under scheduled maintenance periods proposed by Balansys, the balancing code and the balancing system that tracks the quality and reliability of its natural gas were carried out to avoid any impact on service delivery. All programme. However, the approval will only take effect after transmission system and the transmission services provided. scheduled operations were for a limited time (usually one day approval of the compliance programme of Balansys by the or a few days) and were carried out in conjunction with the end Agency for the Cooperation of Energy Regulators (ACER). In In particular, this monitoring system makes it possible to consumer and/or shippers concerned. addition, Balansys must also comply with the comments made determine quality criteria in terms of: by the CREG in its decision and draw up a new proposal for - frequency of service interruptions and/or reductions; E. Code of Conduct incident management and emergency situations.144 - average duration of service interruptions and/or reductions; - causes and remedies for these service interruptions and/or • Fluxys Belgium • The balancing model reductions; - the portfolio of natural gas transmission services offered. On 26 April 2018, after consulting the market players, the CREG At the end of February and beginning of March 2018, North- approved Fluxys Belgium's application to amend the regulatory Western Europe was hit by a cold spell that was described There were no service interruptions or reductions in 2018. documents for natural gas transmission (transmission contract, in the specialised press as The Beast from the East. In a note transmission programme and access regulations).
143 (A)1731, (A)1744, (A)1841 and (A)1842. 144 Decision (B)1746 of 26 April 2018 on the approval request by Balansys NV of the balancing contract, the balancing code and the balancing programme. 145 Note (Z)1803 of 19 July 2018 on network balancing in the BeLux natural gas market during the cold spell end of February start of March 2018.
CREG Annual report 2018 61 4. The natural gas market
Among other things, the amendments relate to the transfer of This proposal was drafted following various market consultations This new Regulation closely follows the existing one the commercial system balancing activity by Fluxys Belgium by IUK on the method of capacity allocation. The market players (Regulation (EU) No. 994/2010) but provides for much more to Balansys, the capacity conversion service on the Prisma participating in the consultations welcomed IUK's efforts to explicit, regional cooperation to manage emergencies. In platform, invoicing and the introduction of new services such develop and expand its range of flexible services. Most of addition, a legal framework is provided to develop a solidarity as reshuffling. them saw added value in the provision of transport services mechanism between the European member states as regards via implicit allocation as an additional possibility to the explicit continuous supply for protected customers. The CREG asked Fluxys Belgium to submit an action plan for offering via Prisma. In addition, the market players did however natural gas quality and a roadmap for the integration of physical express a number of critical considerations about the way In 2018, the CREG worked together with the Directorate- and notional trading services by 15 June 2018 at the latest.146 in which implicit allocation was offered. In response to this, General for Energy to develop the requested plans and In its letter of 11 June 2018, Fluxys Belgium communicated to IUK amended the access regulations and specified the rules mechanisms for Belgium. Risk analyses at regional and national the CREG its intentions regarding the quality and integration of and general conditions for the partners of implicit allocation level were drawn up for scenarios in which gas supply and the two hubs ZTP (P) and ZTP (N). The CREG will continue to in an annex. infrastructure are disrupted. This relates to scenarios both for monitor this in 2019. the supply of L-gas and H-gas. The development of a solidarity In this way, the market consultations resulted in an acceptable mechanism between Member States in the event of a crisis, • Fluxys LNG framework within which capacity can be offered and allocated as required by Article 13 of the new Regulation, was one of the implicitly. main topics of discussion in the various European workshops. In the context of the expansion of the capacity of the LNG terminal at Zeebrugge, the following adjustments to the The CREG also asked IUK to explicitly monitor the application The CREG also assists the Directorate-General for Energy regulatory documents were proposed by Fluxys LNG: addition of the implicit allocation method and to communicate the in the application of the European Regulation concerning of two new services concerning small-scale mooring rights result to the CREG by 1 April 2019 at the latest.148 measures to safeguard security of supply in Belgium. In this and residual storage. context, the CREG primarily focuses on the optimisation of F. Measures to safeguard security of supply market functioning and possible market instruments that Following consultation by Fluxys LNG with the market players, aim to safeguard security of supply. Residual risks require the CREG decided to approve the amendments to the The Gas Coordination Group of the European Commission appropriate intervention on the part of the authorities, which conditions for the LNG terminal in Zeebrugge submitted by coordinates the application of Regulation (EU) No 2017/1938 can be integrated within the operation of the market without Fluxys LNG.147 of the European Parliament and of the Council of 25 October disruptive consequences. 2017 concerning measures to safeguard security of gas supply • Interconnector (UK) and repealing Regulation (EU) No 994/2010, published on 28 The new regulation (EU) No 2017/1938 is the result of an October 2017. The CREG represents Belgium in this group, initiative by the European Commission in 2014 to revise On 1 March 2018, the CREG approved the proposal for an alongside the designated competent authority, namely the regulation (EU) No 994/2010. In this context, and in close implicit allocation method submitted by Interconnector (UK). Directorate-General for Energy. collaboration with the European Commission, CEER set up a
146 Decision (B)1745 of 26 April 2018 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. 147 Decision (B)1750 of 17 May 2018 on the approval request for the amended LNG access regulations for the Zeebrugge LNG Terminal, the amended LNG Terminal Agreement for LNG Resupply Services and the amended LNG Terminalling Programme. 148 Decision (B)1729 of 1 March 2018 regarding the proposal submitted by Interconnector (UK) relating to the Access agreement with IUK, the Access regulations of IUK, the System Users Agreement, the system for the Transmission of Natural Gas performed by IUK between the UK and Belgium, and the implicit safety methodology and the derogation from articles 8, 9, 10, 19 and 37 of Commission Regulation (EU) No 2017/459 of 16 March 2017 establishing a network code on capacity allocation mechanisms in gas transmission systems and repealing Regulation (EU) No 984/2013.
62 CREG Annual report 2018 4. The natural gas market task force on 26 November 2014 in order to help the European 4.1.2.4. System and LNG tariffs The CREG approved the final decision establishing the Commission with this revision and to publish their opinion with methodology for determining the transmission, storage and regards to security of supply on behalf of the European energy A. Transmission system, storage and LNG LNG tariffs for the period 2020-2023 on 28 June 2018.150 This regulators. On 18 October 2018, this task force published a methodology is based on tried and tested principles that have report on the application in the Member States of the supply a) Tariff methodology been refined and supplemented. The regulation is intended to standard provided for in the Regulation.149 The CREG is Deputy strike the right balance between the quality of the services Chair of this task force. n Transmission, storage and LNG provided and the prices borne by final customers and grid users. Fluxys Belgium will use this methodology to present its tariff As part of its remit to monitor and check the application of On 24 January 2018, the CREG, Fluxys Belgium and Fluxys proposal. The tariffs will be announced in the course of 2019. the Code of Conduct (see also point 4.1.2.3.E of this report), LNG signed the procedural agreement that forms the basis of the CREG monitored balancing on the transmission system the tariff methodology process and lays down the procedure to From 23 October to 22 November 2018, Fluxys Belgium for H-gas and L-gas. In 2018, the CREG did not identify any be followed to determine the tariff methodology 2020-2023 for organised a market consultation on storage tariffs for the period problems that posed a threat to preserving the balance of the the natural gas transmission network, the management of the 2020-2023. This highlighted the fact that a thorough review of system. The current system balancing model puts a heavy natural gas storage facility and the management of the LNG the storage model was inevitable and should be carried out responsibility on system users, and the natural gas transmission facility or the amendment of the tariff methodology in force immediately. As a result, the CREG and Fluxys Belgium agreed system operator now has only to provide residual balancing, if at the time the agreement is signed. The agreement also lays to postpone the date for submitting the tariff proposal, to 15 necessary. The market-based balancing mechanism is closely down the procedure for approving tariff proposals and tariff October 2019 at the latest. monitored and the CREG believes it to be an effective and modifications. important mechanism that also contributes to ensuring the n Interconnector (UK) continuity of natural gas supplies for all end users. The Belgian On 12 March 2018, a consultation meeting was organised balancing zone for H-gas has been expanded since 1 October between the CREG, Fluxys Belgium and Fluxys LNG to prepare At the end of 2017, Interconnector (UK) submitted a request 2015 through the merger with the Luxembourg natural gas for the public consultation on the new tariff methodology. for exemption from the application of certain articles of the market. Ever since this date, the same balancing rules apply The public consultation of the CREG on the draft decision European regulation establishing a network code on harmonised to both markets that have merged into a single balancing establishing the tariff methodology ran from 19 April to 17 transmission tariff structures for gas. The CREG and the UK area with just one trading platform (the existing Zeebrugge May 2018. The CREG received three responses (from FEBEG, regulator OFGEM worked closely together on this request Trading Platform ZTP) and a single entry/exit area. Market- FEBELIEC and AVERE BELGIUM) which were summarised and jointly assessed it. On 28 June 2018, the two regulators based balancing in the single Belux zone is organised by Fluxys and analysed in the consultation report. decided to grant a limited exemption to Interconnector (UK) and Belgium pending the allocation of this responsibility to the informed the European Commission and ACER.151 separate company (Balansys) created by Fluxys Belgium and Based on these responses, the CREG submitted its amended the Luxembourg transmission system operator, CREOS (see draft decision setting out the tariff methodology to the As a reminder, at the end of 2017, the CREG adopted a decision point 4.1.3.3 of this report). Chamber of Representatives, which did not report any findings establishing the tariff methodology for the connection and in this respect. use of an interconnection, and approved the remuneration methodology related to the Access Agreement with Interconnector (UK) and the Access Code of Interconnector (UK) (see Annual Report 2017, page 57).
149 https://www.ceer.eu/sos-standard-application. 150 Decision (Z) 1110/11 of 28 June 2018 establishing the tariff methodology for the natural gas transmission network, the natural gas storage facility and the LNG facility for the regulatory period 2020-2023. 151 Decision (B)1783 of 28 June 2018 on the request by Interconnector (UK) for exemption from the application of certain articles of Commission Regulation (EU) 2017/460 of 16 March 2017 establishing a network code on harmonised transmission tariff structures for gas.
CREG Annual report 2018 63 4. The natural gas market
b) Tariff trends n Balancing tariffs 2019 - confirm the final investment amount for the second pier; - provide a more advanced estimate of the investment budget n Transmission tariffs 2018 Following a market survey in July 2018, Fluxys Belgium and for the expansion needed for the provision of transshipment Balansys submitted a proposal to the CREG to approve the services, namely the fifth storage tank and the additional As stated on page 57 of the 2017 Annual Report, in May balancing tariffs. The CREG accepted the proposal on 25 compressors; 2017 the CREG approved the natural gas transmission tariffs October 2018. The daily and intraday imbalance charge that - introduce tariffs for the new services relating to small-scale applicable in 2018. They were 7.5% lower than in 2017 (including will apply in 2019 will therefore be maintained at its current berthing rights and residual storage services, and indexation). level and the neutrality charge went from €0/MWh to - update the financial parameters as requested by the CREG €0.013/MWh.152 in its decision approving the tariffs in 2014. n Storage tariffs 2018 n LNG terminal tariffs The tariffs for existing services remain unchanged compared The storage tariffs approved in 2015 remained unchanged, to the tariffs approved by the CREG on 2 October 2014, with with the exception of the indexation provided for in advance On 28 June 2018, the CREG approved Fluxys LNG's updated the exception of the tariff for the approval of LNG tankers and by the CREG. tariff proposal. This updated tariff proposal was submitted in the loading tariff for LNG tankers if they have been subscribed order to: during the annual subscription window, both of which are decreasing.
In its decision, the CREG asked Fluxys LNG to submit a new tariff proposal at the latest six months after the commissioning Figure 18: Fluxys Belgium's tariff trends for natural gas transmission (entry/exit tariffs for H-gas) between 2007 and 2018 (Source: CREG) of the fifth tank scheduled for 1 April 2019.153
3.03,0 c) Balances
2.52,5 In its decisions of 12 July 2018, the CREG approved the adjusted tariff reports, including the balances submitted by
2.02,0 Fluxys Belgium NV and Fluxys LNG NV for operating year 2 0 1 7. 154 In this regard, the CREG verified the total income and operating balances of the two companies. These balances are 1.51,5 the result of the differences between the tariff estimates and
€/kWh/h/year the figures and quantities actually established. 1.01,0
0.50,5
0.00,0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
152 Decision (B)656G/38 of 25 October 2018 on the neutrality charge for balancing and the value of small adjustments. 153 Decision (B)657G/15 of 28 June 2018 on the updated tariff proposal of FLUXYS LNG NV for the use of the Zeebrugge LNG terminal. 154 Decision (B)656G/36 of 12 July 2018 on the adjusted tariff report including the balances submitted by Fluxys Belgium NV with respect to financial year 2017 and Decision (B)657G/14 of 12 July 2018 on the adjusted tariff report including the balances submitted by Fluxys LNG NV for operating year 2017.
64 CREG Annual report 2018 4. The natural gas market
B. Distribution systems given that the conversion in France is also jointly included in 4.1.3.3. Market integration the PCI. Readers are referred to point 3.1.3.5.B of this report. Belgium and the surrounding countries represent 57% of the On 4 October 2018, the CREG and the CRE, the French energy European natural gas market. Belgium is located at the centre 4.1.3. Cross-border issues and market integration regulator, reached an agreement on the cross-border sharing of important natural gas corridors in North West Europe and of the costs borne by Belgium or France, without cross-border is characterised by intensive cross-border trade in natural gas. 4.1.3.1. Access to cross-border infrastructure compensation. This decision is a prerequisite for qualifying for The Dutch TTF is the main border market for trade in natural European funding within the CEF (Connecting Europe Facility) gas (H-gas and L-gas) for the Belgian market. In 2018 net natural Under the new European TEN-E Regulation No 347/2013, programme. The European INEA (Innovation and Networks gas transactions from TTF to ZTP amounted to 111.5 TWh. which was published on 25 April 2013 and entered into force Executive Agency), which examined this application for The British NBP continues to show a positive net balance for on 15 May 2013, project promoters may, during a biennial funding, is due to give its opinion on the application at the natural gas transactions to ZTP (13.0 TWh in 2018). Natural gas selection process, submit investment projects to the European beginning of 2019. transactions with both German natural gas markets change Commission with a view to securing Project of Common direction fast between exit to Germany and entry into Belgium. Interest status (hereinafter: PCI). Only projects spanning at The list of European PCI projects is updated every two years With the North German GASPOOL, net natural gas transactions least one national border within the European Union can be and checked by the respective European regional working to ZTP amounted to 34.30 TWh in 2018, while net natural gas considered. PCI status enables a project to benefit from faster groups. At the end of 2018, a new and fourth list of PCIs was transactions from ZTP with the South German NCG amounted to and more efficient licence-granting procedures and revised launched again, for the end of 2019. The CREG follows these 7.8 TWh. France is highly dependent on natural gas transactions regulatory conditions. In addition, a cost-benefit analysis is activities within the working group for the region GasWest. between ZTP and PEG Nord (149.7 TWh in 2018). made of the PCI projects for the different countries to which Not only is the CREG involved in the selection process and these projects apply. This is done with a view to possible cross- monitoring of PCIs, it also contributes, in close consultation The price curves in Figure 20 show the annual average day-ahead border compensation of costs if projects would otherwise not with other regulators and ACER, to the correct implementation (DAM) price of natural gas for the Belgian natural gas market be carried out. There can be no subsidies from the European of the TEN-E Regulation No 347/2013. This includes, among ZTP (since 1 October 2015 ZTP also comprises the Luxembourg Commission to help finance the necessary work other than other things, the assessment of costs and benefits for Belgium natural gas market), the Dutch TTF and both German markets as a last resort, i.e. if the market is unable to finance the cost possibly included in the PCI projects abroad and a possible GASPOOL and NCG. These price curves converge, which of the investment and if significant positive externalities are cost compensation resulting from these foreign projects. Until indicates that smooth cross-border trade in natural gas is nonetheless linked to the project, such as market integration, now, Belgium has not been in receipt of any possible cross- possible between these markets. The annual average year- competition, security of supplies and sustainability. border cost compensation for the completion of PCI projects. ahead price of natural gas (Y+1) is also shown. Given the price convergence and correlation on the short-term market, the long- At the request of Fluxys Belgium, in 2018 the CREG helped 4.1.3.2. Correlation between the investment plan for the term price in the Netherlands and Germany can also be used as draw up an application for European co-financing of the PCI transmission network and the development plan a reference price for the Belgian-Luxembourg market. for the conversion to H-gas of the zone currently supplied with for the European network L-gas. Fluxys Belgium and GRTgaz, the operator of the French gas transmission system, are both promoters of this project Readers are referred to point 4.4.2 of this report.
CREG Annual report 2018 65 4. The natural gas market
The average price of natural gas on the short-term market rose Figure 19: Net natural gas transactions between the ZTP* Belgian natural gas market (Belux) and the markets in the neighbouring to approximately €23.0/MWh in 2018, and on the long-term countries during the period 2011-2018 (in TWh/year, H-gas and L-gas) (Sources: CREG, gasdata.fluxys.com data) market to approximately €20.8/MWh. This is an increase for both products, although not yet to the level of 2013, when they were 220 200 on average above €26/MWh. Average natural gas prices on the 180 short-term market in Belgium and abroad were at a similar level, 160 140 with a difference of 0.8% between NCG and ZTP. 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
* Since 1 October 2015 ZTP also encompasses the Luxembourg natural gas market.
Figure 20: 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)
35
30
25
20 €/MWh 15
10
5 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0 ZTP DAM TTF DAM NCG DAM Gaspool DAM TTF Y+1 NCG Y+1 Gaspool Y+1
66 CREG Annual report 2018 4. The natural gas market
4.2. Competition levels, price breakdown and billing in the different segments Contracts with variable prices based on quoted gas prices (import, resale, supply of residential customers, industrial account for more than 90% of customers. Around 8% of 4.2.1. Monitoring of wholesale and retail prices customers and power plants) of the Belgian natural gas market customers have a fixed price contract and approximately 1% in 2017. have a fixed price contract indexed to quoted oil prices. The 4.2.1.1. CREG studies conducted in 2018 CREG notes that the increased practice of quoted natural gas With more than 40 natural gas companies, the Belgian natural prices is becoming more generalised, both upstream (supply • Natural gas transmission market in Belgium in 2017 gas market is highly competitive. In particular, the study notes contracts) and downstream (sales contracts). that the gross sales margins on the different market sectors In its note on core data for the transmission market for natural and on the types of indexing are falling. Given the HHI index, which fell back to 2,411 in 2017, the lowest gas in Belgium in 2017, the CREG stated that total natural gas level in the study period (2007-2017), the market for industrial consumption last year was 182.0 TWh. This is an increase of In all segments, quoted gas prices were the main vector of customers directly connected to the Fluxys Belgium grid 1.4% compared to consumption in 2016 (179.4 TWh). This prices. Only 1% of industrial contracts are indexed to oil. remains dynamic and competitive. In view of the significant increase is the result of an increased consumption of natural gas As regards household customers and SMEs, 2017 was the drop in volumes that were the subject of supplier changes in in the consumer segments industry and electricity generation. second year in which billing of the transmission component 2017, the switching rates still need to be monitored.157 In the distribution systems segment, there is a slight decrease, was separate from the energy component. The CREG also closely correlated with the lower heating requirements. recommends this split billing for the other segments.156 • Other studies
In 2017, one additional company started delivery activities • Natural gas supply to large industrial customers Readers are referred to point 3.2.1.1 of this report. on the transmission system, while another company ceased its activities, resulting in 23 active market players. The top 3 In 2018, the CREG conducted a new study into natural gas 4.2.1.2. Monitoring energy market prices for households of the supply companies remains unchanged, as does their supply to large industrial customers in Belgium. These and small professional users respective position, but their combined market share falls from customers, which are connected directly to the Fluxys Belgium 67.4% to 60.0%. transmission system, accounted for 24% of consumption by Readers are referred to point 3.2.1.2 of this report. Belgian end consumers in 2017. The HHI index - which gives an indication of market 4.2.2. Monitoring of market transparency and concentration - gives the same signal and drops from fully Analysis of the supply contracts shows that short-term openness 1,900 to 1,580 points.155 contracts (with a duration of 1 or 2 years) are primarily entered into. For example, in 2017, supply contracts of 2 years are the • The REMIT Regulation • Prices on the Belgian natural gas market in 2017 most common: in 42% of cases, followed by contracts of 1 year: in 24% of cases. Readers are referred to point 3.2.2.4 of this report. The study on the prices in force on the Belgian natural gas market in 2017 analyses market shares, price formation, price
155 Note (Z)1733 of 15 March 2018 on core data for the natural gas transmission market in Belgium in 2017 – Comparison with 2016. 156 Study (F)1781 of 28 June 2018 on the prices used on the Belgian natural gas market in 2017. 157 Study (F)1776 of 28 June 2018 on the supply of natural gas to large industrial customers in Belgium.
CREG Annual report 2018 67 4. The natural gas market
• Charter of best practices for electricity and gas price In these conditions, the share of the natural gas offtake on the comparison websites distribution systems was 49.6% in 2018 (compared to 50.6% in 2017). Readers are referred to point 3.2.2.5 of this report. Figure 21: Distribution of Belgian H-gas and L-gas demand by user segment in 2017 and 2018 (Source: CREG) 4.3. Consumer protection
Readers are referred to point 3.3 of this report. 100
4.4. Security of supply 80
4.4.1. Monitoring the balance between supply and demand 60
A. Natural gas demand 40
In 2018, total natural gas consumption amounted to 186.97 TWh, representing an increase of 3.0% compared with 20 consumption in 2017 (181.53 TWh). This increase in demand can be attributed primarily to industry (+5.9%) and natural 0 gas-fired power plants (+4.2%). The growth in demand from Total H L Total H L Total H L large-scale consumers is striking, all the more so as an average Electricity generation Industrial customers Distribution systems natural gas price of €23.0/MWh was recorded on the wholesale market in 2018, 33% higher than in 2017 (€17.3/MWh). The fact 2017 TWh 2018 TWh that small consumers opt for gas is reflected in the figures. The milder temperatures in 2018 compared to 2017 are thought to have reduced heating needs by 3.0%. Nonetheless, demand for natural gas on the distribution systems increased by 1.0%.
Table 12: Breakdown of Belgian natural gas demand by user segment between 2008 and 2018 (in TWh) (Source: CREG)
User segment 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2018/2017 Distribution 88.5 87.6 101.2 82.5 91.9 97.9 79.6 88.1 93.0 91.9 92.8 +1.0% Industry (direct customers) 47.8 39.2 46.9 47.0 45.5 42.8 41.1 43.1 41.8 43.4 46.0 +5.9% Electricity generation (centralised facilities) 54.6 67.3 67.1 53.9 48.1 42.5 39.7 44.6 44.7 46.3 48.2 +4.2% Total 190.9 194.2 215.3 183.4 185.6 183.2 160.4 175.8 179.4 181.5 187.0 +1.4%
68 CREG Annual report 2018 4. The natural gas market
Figure 22: Evolution of natural gas consumption per user segment during the 1990-2018 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 household & 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 industry 100 92 100 103 111 124 132 131 138 149 155 145 152 141 137 140 139 139 132 109 130 130 126 119 114 120 116 122 127 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 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
B. Natural gas supply terminal, accounted for a 3.2% share of the average import The supply portfolios of the individual natural gas suppliers portfolio in 2018 for the Belgian market. Zeebrugge is the main resulted, overall, in a differentiated supply depending on the Natural gas suppliers can choose from a range of entry points on supply point for Belgian natural gas consumers and, in 2018, type of contract. The share of long-term contracts concluded the natural gas transmission system to both carry out national had a share of 44.7%. On a virtual level, there are imports via directly with natural gas producers with a remaining duration and international natural gas transactions and to supply their the interconnection point with France at Blaregnies, both for in excess of 5 years was 39.7% (43.8% in 2017) and remained Belgian customers with H-gas. Natural gas customers who use H-gas and for L-gas, via nominations against the flow of border- the main component of these portfolios. The total supply L-gas are supplied directly from the Netherlands or indirectly, to-border natural gas flows that are initially destined for the provided through supply contracts concluded directly with against the flow, via the Blaregnies interconnection point with French market. natural gas producers was 47.0% (52.9% in 2017). Net supply France. LNG imports, mainly from Qatar via the Zeebrugge on the wholesale market recorded an increase in 2018 to
CREG Annual report 2018 69 4. The natural gas market
53.0% (47.1% in 2017). Long-term contracts with natural gas Figure 23: Breakdown of incoming natural gas by entry zone in Figure 24: Composition of the average supply portfolio of suppliers producers remain the backbone in the portfolio of the most 2018 (Source: CREG) operating in Belgium in 2018 (Source: CREG)
important suppliers on the Belgian market, but suppliers are Blaregnies* increasingly sourcing from the wholesale market (hubs). East (H-gas) (Eynatten) 0.9% 6.8% In 2018, a total of 25 supply companies were operating on the Belgian market. Electrabel (Engie), 33% (32% in 2017), and ENI Other contracts < 1 year Contracts with producers S.p.A., 11% (17% in 2017) together covered 44% (compared North-east West (Zeebrugge) 47.4% > 5 years ('s Gravenvoeren, Dilsen) 39.7% to 49% in 2017 and 58% in 2016) of natural gas supply to 21.8% 41.5% wholesale consumers directly connected to the transmission system and the distribution systems. The third largest supplier was EDF Luminus, who held a stable market share of 11% in 2018. Total Gas & Power Ltd. (8%) and Wingas (6%) joined the group of supply companies in 2018, with a market share North (L-gas) LNG Terminal Contracts with of at least 5%. The remaining 20 supply companies (together 25.2% Other contracts > 1 year North 3.2% producers < 5 years accounting for a market share of 31%) each had a market 5.6% 7.3% (Zelzate, Zandvliet) share of less than 5%, while 11 of these supply companies 0.7% had market share of less than 1%. Market concentration fell in * The Blaregnies entry points are used against the flow of the actual flows 2018 compared to 2017. ('reverse flow'), making use of the predominant transit flows at these points.
Figure 25: Composition of the average supply portfolio for the Belgian natural gas market between 2000 and 2018 (shares in %) (Source: CREG)
100
90
80
70
60
50
40
30
20
10
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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
70 CREG Annual report 2018 4. The natural gas market
Figure 26: Market shares of supply companies in the transmission There are some unfavourable developments in Europe that with Fluxys Belgium with a view to developing an efficient network in 2018 (Source: CREG) make decisions to invest further in extensions less clear- system to enable suppliers to easily switch to H-gas, so that cut. Demand for natural gas is generally stagnating or even they can continue to supply customers who have already Other 5% shrinking, and is also showing increased volatility. Short-term made the switch. During the conversion period, the necessary Wingas GmbH 6% ArcelorMittal transmission capacity orders continue to increase without, transport capacity for L-gas supplies to France will continue to Energy S.C.A. 3% however, showing any commitments in long-term transmission be provided. The aim is to follow the implementation of the Vattenfall Energy Trading contracts with the natural gas transmission system operator. indicative L/H conversion plan as proposed by Synergrid158 with Netherlands NV 3% Direct Energie 2% Furthermore, there is uncertainty about the use of natural gas- a view to a full exit from L-gas in the summer of 2029. This L/H Total Gas & Power Ltd 8% fired plants for future electricity generation. conversion plan is based on the maximum reuse of existing EDF Luminus SA 11% infrastructures to avoid investments that are only needed for RWE Supply & Trading GmbH The deployment of green gas including biomethane, and the the switchover period. The gradual adjustment to a market - UK Desk 3% conversion of temporary electricity surpluses (solar and wind supplied exclusively by H-gas is included in the draft 10-year Gas Natural Europe 4% Eneco Energy Trade European Energy Pooling 2% BV 5% energy) into hydrogen, for example, will help determine the network development plan. Essent Sales Portfolio Management BV 2% future of the natural gas infrastructure, under the influence of Europe's ambitious energy and climate change targets. The LNG terminal at Zeebrugge is being further expanded in Equinor ASA 3% response to the development of the small-scale LNG market In any case, natural gas infrastructure has to make an important and new flows. Following commissioning of a new pier, at Eni S.p.A. 11% Electrabel 33% contribution to a cost-efficient energy transition, since the the start of 2017, for LNG ships with a capacity of 1,000 to storage of electrical energy remains a difficult link to bridge. 210,000 m³ of LNG, the facilities for loading trucks and LNG *Supply companies each with a market share of less than 1%: Antargaz Finagaz, Axpo Solutions AG, Belgian Eco Energy SA, Energy Global Handel In 2018, Fluxys Belgium drafted a ten-year plan concerning the containers were also doubled, increasing the maximum BV, Enovos Luxembourg SA, GETEC Energie AG, Lampiris SA, natGAS development of the system (2019-2028), in accordance with capacity of the terminal from 4,000 to 8,000 shipments per Aktiengesellschaft, Progress Energy Services, Soc. Europ. de Gestion de l’Energie SA, Uniper Global Commodities SE. Article 15/1, paragraph 5 of the Gas Act. The CREG evaluated year on 1 January 2019. This infrastructure is perfectly in line this plan in parallel with the ENTSO-G's 10-year network with the development of the use of LNG as a fuel for maritime development plan (TYNDP 2017) and the TSOs of the North- or road transport or for supplying areas that are not connected 4.4.2. Monitoring TSO investment plans West European region's regional investment plan (GRIP 2017), to the pipeline network. In addition, the construction of a and found no issues. fifth tank with a capacity of 180,000 m³ of LNG (2015-2019) The natural gas transmission system, operated by Fluxys that is currently underway will bring the maximum storage Belgium, has developed in such a way that it has become The current major challenge is the conversion of the separate capacity of the terminal from 386 to 566,000 m³ of LNG. This is an important intersection for transmission pipelines in north- L-gas transmission system with the aim of evolving towards necessary to receive icebreaker LNG vessels from the Sabetta west Europe, reporting a record level in terms of coupling a Belgian natural gas market supplied exclusively with H-gas. peninsula (northeast of Siberia Yamal LNG) if the eastern route with neighbouring transmission systems. Import capacity This conversion is necessary because no new long-term that connects Sabetta directly to Asia is blocked by ice. The increased to more than ten million cubic metres of natural contracts will be concluded with the Netherlands for the supply LNG terminal will make it possible to unload icebreaker LNG gas per hour (100 GWh/hour) with natural gas flowing in both of L-gas, given the way in which the Netherlands is managing ships and load immediately (ship-to-ship transshipment) or directions and no congestion problems. This maturity explains the remaining stocks of L-gas. Furthermore, the Dutch later (ship-storage-ship transshipment) on regular LNG ships why no immediate significant investments in extensions are government has taken drastic measures to limit the extraction in order to transport the LNG further to the end markets. The planned. The need to replace some elements of some facilities of L-gas in Groningenveld because of the risk of earthquakes construction of a third pier in Zeebrugge, which was considered will however increase. in the region. In 2018, the CREG held further consultations for some time, was postponed due to the current level of
158 Federation of transmission and distribution system operators for electricity and natural gas in Belgium.
CREG Annual report 2018 71 4. The natural gas market
market demand and the operational capacity of the terminal trend that takes account of temperature. Taking into account forecasts and the role of natural gas in the transition to a low- which is equipped with two piers. Depending on the signals the numerous uncertainties existing at this moment, these carbon economy. The forecasts include an estimate of the from the markets, the construction of additional infrastructure forecasts are highly hypothetical and may change in the short growth in H-gas demand to replace the L-gas demand, according at the Zeebrugge terminal (additional piers, additional storage term as market conditions change. to the draft L/H conversion plan included in the indicative ten-year tanks, etc.) may still be considered. plan for the development of the Fluxys Belgium network (see Above all, there is a great deal of sensitivity regarding the use of point 4.4.2 of this report). A situation of gradual convergence to Limited annual growth on the distribution systems and the existing power plants and the construction of new power plants a single integrated H-gas market is described within the context expected development for industrial customers and power that run on natural gas, the competitive position of natural gas in of stagnating natural gas demand, except for changes in trends stations have given rise to some local reinforcement. Moreover, the energy mix (especially for wholesale users), the economic or events that cannot currently be predicted. carrying out this investment continues to depend on adequate payment for the capacity by end users. Figure 27: Forecast for demand for natural gas in Belgium until 2028 (GWh, normalised t°, H+L) (Source: CREG)
Finally, the European investment context has been shifting for 250250,000 000 several years, with, firstly, changes in demand-side behaviour. Secondly, European regulations are focusing more on building 200200,000 000 trans-European gas corridors (see point 4.1.3.1 of this report), not only helping with the need for physical supply, but also with a view to encouraging market integration, competition, 150150,000 000 security of supply and sustainability. The aim is also to establish
a sectoral link between electricity and natural gas. Cost issues GWh remain of crucial importance to the CREG, and it is obvious 100100,000 000 that more attention will be paid to alternative solutions to avoid
wasted investment and safeguard the competitiveness of 5050,000 000 natural gas. Cross-border investment decisions are increasingly subject to new factors beyond the national interest. 0 4.4.3. Forecasts on future demand, available reserves 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 and additional capacity. H + L H L
• Demand
The figure below shows the outlook for total natural gas demand 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 together the expected consumption of the household sector, the tertiary sector, the industry and electricity generation. In this case, it involves the normalised
72 CREG Annual report 2018 4. The natural gas market
• Supply Net natural gas supply originating from the Netherlands Natural gas flows entering the Belgian market via Germany covered 60% of peak demand (31% H-gas and 29% L-gas). covered 12% of peak demand. In addition, 4% of this peak The number of importers of H-gas for the Belgian market is Around 22% came directly from the Norwegian gas fields demand came from the underground storage at Loenhout and currently 23 (the same as in 2017). Among all importers there located in the North Sea via the Zeepipe that comes ashore 2% from the LNG terminal at Zeebrugge. is a high degree of diversification, both in terms of supply at Zeebrugge. sources and in terms of supply routes. Under the impetus of European market organisation, the natural gas market has Figure 28: Breakdown of the peak offtake by user segment in 2018 Figure 29: Breakdown of the sources of natural gas to cover the seen more and more short-term transactions, a greater volume (Source: CREG) peak offtake in 2018 (Source: CREG) of trade, increased volatility, more international arbitrage and price coupling between European markets. In Belgium the Wednesday 28 February 2018 Wednesday 28 February 2018 conditions for the attraction and distribution of natural gas 1,030 GWh 1 030 GWh flows are favourable and this can be further enhanced by the Electricity generation 15% Norway gradual transition to a single integrated H-gas market in 2029. NL H-Gas 22% 31% Maintaining the liquidity of the market in Belgium is essential both for Belgium's security of supply and for security of supply of other markets in north-western Europe. Industry 15% Germany Distribution As for L-gas suppliers, there are currently 18 suppliers (like 12% in 2017), which are also active on the Belgian H-gas market systems 70% LNG and depend almost exclusively on the Hilvarenbeek/Poppel 2% interconnection point for supplies from the Netherlands. Loenhout storage Trends on the Belgian L-gas market are defined to a great NL L-Gas 4% extent by the gradual conversion of L-gas customers to H-gas. 29%
4.4.4. Covering peak offtake
The peak offtake day for natural gas in 2018 was recorded on Wednesday 28 February. At that time, Belgian natural gas consumption was 1030 GWh (988 GWh in 2017), which is twice the average daily consumption. Distribution systems accounted for 70% of the peak offtake, 15% was used in generating electricity, and the remaining 15% was used by industry.
The peak daily consumption of 1030 GWh on Wednesday 28 February 2018 was covered by a range of natural gas sources.
CREG Annual report 2018 73
5. The CREG 5
The CREG
CREG Annual report 2018 75 5. The CREG
5.1. CREG's Board of Directors and staff
The Board of Directors is responsible for the operational management of the CREG and undertakes everything that is necessary or useful for the fulfilment of the assignments entrusted to it by the Electricity Act and Gas Act.
The Chair and the three Directors who make up the Board of Directors are appointed by Royal Decree after consideration by the Council of Ministers for a six-year term of office, which can be renewed once. They deliberate as a board in accordance with the usual rules on deliberating meetings.
Since 1 September 2013, Mrs Marie-Pierre Fauconnier has acted as Chair of the Board of Directors, a role which includes responsibility for managing the CREG.
Since 1 November 2018, following the resignation of Mrs Fauconnier and in accordance with the rules of procedure of the Board of Directors, Mr Koen Locquet, in addition to the position of Administrative Director, has also ensured the position of Acting Chairman of the Board of Directors. The two other directors are Mr Laurent Jacquet, who is in charge of price and accounts monitoring, and Mr Andreas Tirez, who is in charge of the technical operation of the electricity and natural gas markets.
76 CREG Annual report 2018 5. The CREG
Table 13: Directorates and staff of the CREG as of 31 December 2018
CHAIR OF THE BOARD OF DIRECTORS DIRECTORATE FOR GENERAL AFFAIRS LOCQUET Koen Acting Chairman of the Board of Directors LOCQUET Koen Director DEVACHT Christiane Executive Assistant SELLESLAGH Arlette Executive Assistant FIERS Jan Secretary of the Board of Directors Gas and Electricity Advisory Board VAN HAUWERMEIREN Geert European Chief Strategic Adviser DE LEEUW Han DE VREESE Annemarie Communications Manager HERREZEEL Marianne Advisers LENOBLE Sophie Senior Adviser General Administration COZIGOU Liana Adviser BAUWENS Evi SAMYN Emilie DIRECTORATE FOR THE TECHNICAL OPERATION OF THE MARKETS VAN ZANDYCKE Benjamin Translators TIREZ Andreas Director LOI Sofia Administration and Logistics coordinator GOOVAERTS Wendy Executive Assistant JUNCO Daniel Logistics staff member VAN KELECOM Inge Multi-functional secretary CEUPPENS Chris CUIJPERS Christian DE DONCKER Nadine DE WAELE Bart HAMELRIJCKX Maryse GHEURY Jacques WYNS Evelyne Multi-functional office staff MARIEN Alain HR Department MEES Emmeric VAN ISTERDAEL Ivo Chief Advisers SMEDTS Hilde Senior Legal Adviser CLAUWAERT Geert QUERTINMONT Carole Counsel PONCELET Yves Senior Advisers VAN MAELE Nele HR Officer FILS Jean-François IT Department MAENHOUDT Marijn DAELEMAN Kurt System and Networks Manager SCHOUTTEET Nico VERHELST Clara Advisers GORTS-HORLAY Pierre-Emmanuel Assistant IT staff DIRECTORATE FOR PRICE AND ACCOUNTS MONITORING Finance JACQUET Laurent Director SCIMAR Paul Head of Finance FELIX Kim Executive Assistant LECOCQ Nathalie Accountant CORNELIS Natalie CROMBEZ Thomas Accounting and Administrative Assistant DEBRIGODE Patricia PINZAN Laurent Administrative Assistant JOOS Benedikt Research, Documentation and Archives LAERMANS Jan Chief Advisers BOUCQUEY Pascal Chief Adviser ALLONSIUS Johan CHICHAH Chorok BARZEELE Elke DETAND Maria-Isabella DUBOIS Frédéric GODDERIS Philip HERNOT Kurt HEREMANS Barbara LIBERT Brice ROOBROUCK Myriam MAES Tom STEELANDT Laurence PIECK An ZEGERS Laetitia Senior Advisers SOFIAS Anastasio Senior Advisers HENGESCH Luc Documentalist COBUT Christine WILMART Gilles Advisers
CREG Annual report 2018 77 5. The CREG
5.2. Gas and Electricity Advisory Board Participation by a representative of the federal Minister for Energy has enabled the Advisory Board to focus its work on The Gas and Electricity Advisory Board provides advice and the most urgent aspects and to be kept informed periodically of acts as a discussion forum, created by the CREG and the the Government's concerns regarding gas and electricity. The Federal Minister for Energy. questions asked by members to the Minister's representative made it possible to inform the Minister of the concerns of the Its role is: Advisory Board. - to set guidelines for the application of the Electricity and Gas Acts and their implementing decrees, on its own initiative or The Advisory Board issued one opinion in 2018, namely at the Minister's request; opinion AR181221-070 on note 1847 on the Belgian day-ahead - to draft opinions on any issue submitted to it by the CREG's wholesale market for electricity from 1 to 7 October 2018, in Board of Directors; particular the market outcomes before 3 October 2018 and - to act as a forum for discussing energy policy objectives and decision 1814 on the approval request by Elia System Operator strategies. NV for the adaptation to market coupling in the CWE region as a result of the integration of the German-Austrian bidding zone The Advisory Board held nine plenary meetings in 2018. border and the integration of the 20% minimum RAM rule.
The Chairman is Mr Peter Claes and the Vice-Chairman is Mr Mathieu Verjans.
78 CREG Annual report 2018 5. The CREG
Table 14: Members of the Gas and Electricity Advisory Board as of 31 December 2018 (Source: Belgian Official Journal) 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 2018 79 5. The CREG
5.3. General policy plan, comparative report A comparative report160 has also been drafted on the objectives In addition, in 2014 the CREG also continued to cooperate on the objectives and achievements of the formulated in the 2016 policy plan and their achievement in with the Federal Energy Mediation Service, the three regional CREG, and the memorandum of the CREG 2017. On 26 April 2018, this report, together with the CREG's energy regulators (BRUGEL, CWaPE and VREG) and the FPS for the attention of the federal elections Annual Report 2017, was submitted to the Minister for Energy, Economy, SMEs, the Self-employed and Energy (Directorate- the President of the Chamber of Representatives and the full General for Economic Inspection and Directorate-General In accordance with the Electricity Act, on 25 October 2018 members of the Economic Commission. In its policy note for for Energy). This cooperation is the result of an agreement the CREG drew up its general policy plan for 2019.159 This 2017, the CREG identified 14 issues for which the different signed in 2011 in which the services involved agreed on the plan is a continuation of what has been undertaken by the objectives needed to be achieved using different deliverables. procedure for the handling of complaints and questions that do Board of Directors since September 2013 and, specifically, The comparative report shows, for each action, the degree of not fall under the competence of the service that receives the the CREG's Strategic Plan for 2013-2019. The policy plan sets completion achieved and explains why if a give action was not complaint or question. out the objectives which the CREG will be pursuing in 2019 completed, or only partially. It is provided as an annex to the with due observance of its legal duties and in the context of CREG's Annual Report. In addition, in March 2018, the CREG submitted to the Federal the strategic guidelines defined by the federal Parliament and Energy Mediation Service its statistics on the complaints the federal Government in the area of energy. Each specific In November 2018, the CREG also drew up a memorandum it received in 2017, in the context of its annual reporting objective is described in detail, as are the resulting activities for the federal elections in May 2019. In it, the CREG proposes obligations to the European Commission. Of the 791 queries for the year 2019, with a list of deliverables and an indicative regulatory initiatives to protect consumers, promote the and complaints received by the CREG in 2017, 131 were implementation date. energy transition and ensure the proper functioning of the complaints (here the CREG regards any form of dissatisfaction electricity and gas markets. as a complaint) that fell within the CREG's remit. They related The policy plan accompanies the CREG's draft budget for primarily to the CREG Scan. the year 2019. Both documents have been submitted to the 5.4. Handling questions and complaints President of the Chamber of Representatives and to the Chair Finally, in 2018, no use was made of the possibility for anyone of the Commission for Economy, Scientific Policy, Education, The CREG continued to handle the questions and complaints who considers that they have been disadvantaged by a CREG National Scientific and Cultural Institutions, the Self-employed raised by consumers, businesses in the sector, lawyers, decision to ask the CREG to review their case, and the Dispute and Agriculture (hereinafter: the Economic Commission), consultants, researchers, students, administrations, federal Resolution Chamber,161 a body of the CREG, could not yet start and presented during a CREG hearing before the Economic and regional mediation services or international authorities on work in 2018, in the absence of a decision on the appointment Commission on 4 December 2018. a voluntary basis in 2018. of its members.
159 Note (Z)1851: general policy note for 2019. 160 Comparative report (Z)1728 of 26 April 2018 of the objectives formulated in the CREG's general policy note and the accomplishments of the year 2017. 161 The Dispute Resolution Chamber is called upon to resolve disputes between system operators and users as regards the obligations imposed on TSOs, DSOs and the operators of closed industrial systems, with the exception of disputes over contractual rights and obligations.
80 CREG Annual report 2018 5. The CREG
5.5. Presentations made by the CREG
Table 15: Overview of presentations made by members of the CREG in 2018
ORGANIZING BODY EVENT TITLE OF THE PRESENTATION DATE Conseil consultatif - Adviesraad GT fonctionnement du marché - électricité Étude 1694 relative à la fourniture d’électricité des grands clients industriels en Belgique en 2016 17/01 Study 1687 - Function-ing and design of the Central West European day-ahead flow based market coupling - Impact of TSOs Discretionary Actions Studie 1628 over de winstgevendheid van de bestaande STEG-centrales in België Conseil consultatif - Adviesraad GT Composants des prix Adaptation de la charte de bonnes pratiques pour la comparaison des prix en ligne pour l’électricité et le 29/01 gaz: rapport de la consultation publique - évolution Aanpassing van het charter voor goede praktijken voor online prijsvergelijking voor elektriciteit en gas: verslag openbare raadpleging - evolutie CREG/EGC Meeting EGC (régulateur japonais) LNG Regulation in Belgium 29/01 Febeliec Energy Forum 2018 Flow-based-market cou-pling and Clean Energy Package: where are we going? 30/01 Flexibility - why we needed new rules Federal transmission tariff methodology in the energy transition Public Utilities Commission (PUC Latvia) Workshop on Gas Market Belux Market Integration 31/01 CEER REMIT Training Practical surveillance and investigation cases carried out by national regulators 7/02 CREG - Belgium CREG/Energyville Visite Energyville Reactie op Elia-studie “Electricity scenario’s for Belgium towards 2050” 7/02 CEER ISR TF Decision CREG (B)1716 on Functioning Rules Strategic Reserve 8/02 CREG/Tokyo Gas Meeting Tokyo Gas LNG Regulation in Belgium 14/02 Conseil consultatif - Adviesraad GT fonctionnement du marché - électricité Note 1707 on an ex-tended analysis of the capacity remuneration in scarcity conditions 16/02 Nota 1719 over de opvallende evoluties op de Belgische groothandelsmarkten voor elektriciteit en aardgas in 2017 / Note relative aux évolutions marquantes sur les marchés de gros belges de l’électricité et du gaz naturel en 2017 SRBE-KBVE Journée d’étude : Avoir ou ne plus avoir de Solutions and cost to avoid load interruption 22/02 l’électricité: Coût, conséquences et prévention de la défaillance / Studiedag : Een kink in de kabel: Kostprijs, gevolgen en voorzorgen CEER Specialised Legal training on evolving European Regulators’ Forum (ERF) Regulatory challenges 27/02 regulatory processes in European Energy NEMOs Regulatory framework and challenges 28/02 policy Conseil consultatif - Adviesraad Réunion plénière Status of Clean Energy Package process 28/02 ETRC 8th annual ETRC summit REMIT, Financial Regulation and Transparency - CREG Study with the Market Participants 6/03 CEER FSR-CEER Joint Training Energy Regulation Explained 12/03 Introduction to Fundamentals of Energy Regulation 16/03 Tariff Setting Method
CREG Annual report 2018 81 5. The CREG
ORGANIZING BODY EVENT TITLE OF THE PRESENTATION DATE SRBE-KBVE Journée d'étude : Implémentation des EU connection and operation Network codes: creg’s role 21/03 Network Codes européens dans notre région, Joining forces on the implementation of network codes - The role of National Regula-tory Authorities en Belgique impositions aux installations existantes / Studiedag : Implementatie van de Europese netwerkcodes in onze regio, in België en voorschriften voor bestaande installaties Meeting Elia - CREG Scenario “Energiepact” Nood aan nieuwe gascentrales ? 26/03 Meeting CREG - Fluxys Toekomstige rol van gas in elektriciteitssector 28/03 Réunion avec le Conseil d'Administration de Fluxys Gestionnaire de réseau de distribution Recontre dans le cadre de la compétence de la Modifications légales et réglementaires relatives à la cotisation fédérale électricité - Soldes des GRD / 30/03 flamands et wallons CREG de contrôler et approuver les soldes de Wettelijke en reglementaire wijzigingen betreffende de federale bijdrage elektriciteit - Saldi van de DNB’s la cotisation fédérale des GRD du passé Conseil consultatif - Adviesraad GT Security of Supply An analysis of the new data from Elia regarding Security of Supply (adequacy) 17/04 Association pour la Mobilité Propre, Électrique L’essor de la mobilité électrique en Belgique et Impact of mass introduction of electric vehicles 19/04 et Responsable (AMPERes) en Europe CEER Specialised training on wholesale and retail Wholesale market functioning and monitoring : approach at CREG with regard to the Belgian situation 20/04 market monitoring and case study on market abuse ULg - Montefiore Institute Energy markets - Lesson 9 Étude sur les moyens à mettre en œuvre pour faciliter l’accès à la gestion de la demande en Belgique 20/04 ACER - CEER Future Policy TF Bilateral trade, redispatching and a zonal market coupling 24/04 UCL Mons / USL-B Recyclages en droit - 4L Promotion des énergies renouvelables 26/04 CREG Workshop on Transparency CREG Study - what's next ? 15/05 Tariff methodology applicable to the electricity TSO during the 2020-2023 period : new data quality incentive Public consultation and CREG's observations The REMIT Case Validity tests ELIA-ENTSOE & FLUXYS-ENTSOG Pentalateraal forum SG1 meeting CWE NRAs update on CWE FB market coupling 17/05 Formation Administration communale Changement de fournisseurs d’électricité Changement de fournisseurs d’électricité 23/05 Honnelles CEER Specialised Training on Implementation of Capacity Allocation and Congestion Management GLs 24/05 Electricity Network Codes and Guidelines FLUX 50 Energy transition: next steps? Missing money' in de elektriciteitsmarkt 25/05 BADGE Formation BADGE - Régulation de l’énergie Ouverture à la concurrence du secteur de l'électricité dans les pays africains : session C – articulation de 30/05 la régulation avec les politiques publiques - les tarifs sociaux en pratique - Le cas de la Belgique Fluxys Fluxys - CREG seminarie Future role of gas: Decarbonisation 31/05 Méthodologie tarifaire gaz 2020-2023 : incitants 1/06 BADGE Formation BADGE-Régulation de l’énergie Ouverture à la concurrence du secteur de l'électricité dans les pays africains – Table ronde : réformes 4/06 électriques et construction des marchés régionaux
82 CREG Annual report 2018 5. The CREG
ORGANIZING BODY EVENT TITLE OF THE PRESENTATION DATE Conseil consultatif - Adviesraad GT composantes de prix Studie 1736 over de rendabiliteit van aardgas gebruikt als brandstof voor wagens (CNG of Compressed 11/06 Natural Gas) / Étude 1736 sur la rentabilité du gaz naturel utilisé comme carburant pour les voitures (CNG of Compressed Natural Gas) Studie 1738 betreffende de componenten van de elektriciteits- en aardgasprijzen / Étude 1738 sur les composantes des prix de l’électricité et du gaz naturel FORBEG GT électricité Increasing wind capacity and peak power capacity connected to the DSO-grid 12/06 EUROPOWER STAGE V SEMINAR Potential Role of Local Emergency Power Generator Sets in Safeguarding Network Adequacy 13/06 CREG FBMC workshop Congestion management: flow-based market coupling: success, failure & future 14/06 Impact of TSOs Discretionary Actions on the functioning and design of the Central West European day- ahead flow based market cou-pling CEER Gas WG Status Review on the Supply Standard Application 26/06 FLORENCE SCHOOL OF REGULATION Young Research Seminar 2018 Do we need a new tar-get model to support the ongoing decentralization of the electricity market 3/07 RegulaE.Fr Atelier de travail n° 3 Session 4 : le coût et le financement de la digitalisation - Les meilleures pratiques européennes 11/07 Session 7 : l'impact des changement technologiques et énergétiques sur le consommateur - La question 12/07 des tarifs sociaux Conseil consultatif - Adviesraad GT fonctionnement du marché - gaz Studie over de aardgaslevering aan grote industriële klanten in België in 2017 3/09 Nota 1803 over het netevenwicht op de Belux aardgasmarkt tijdens de koudegolf van februari-maart 2018 Étude 1781 relative aux prix pratiqués sur le marché belge du gaz naturel en 2017 Conseil consultatif - Adviesraad GT fonctionnement du marché - électricité Note 1715 on review of the day-ahead market results in November 2017 5/09 Transfert d’énergie/Mise en œuvre de la loi FORBEG GT tarification Arrêtés CREG fixant les méthodologies tarifaires pour la période régulatoire 2020-2023 pour le réseau 17/09 de transport de gaz naturel, l’installation de stockage de gaz naturel et l’installation de GNL et le réseau de transport de l’électricité et pour les réseaux d’électricité ayant une fonction de transport / CREG besluiten tot vaststelling van de tariefmethodologieën voor de regulatoire periode 2020-2023 voor het vervoersnet van aardgas, de opslaginstallatie van aardgas en de LNG-installatie en het transmissienet voor elektriciteit en de elektriciteitsnetten met een transmissiefunctie Décisions relatives à la détermination du montant de cotisation fédérale électricité à réaffecter par les gestionnaires de réseau de distribution pour la période du 1er janvier 2009 au 31 décembre 2017 / Beslissingen over de vaststelling van het door de distributienetbeheerders toe te wijzen bedrag aan federale bijdrage elektriciteit voor de periode 1 januari 2009 tot 31 december 2017 Charter voor goede informatieverschaffing bij de prijsvergelijking van elektriciteit en gas CREG Federatie van OCMW's - Fédération des CPAS Fondsen gas en elektriciteit - Fonds gaz et électricité 17/09 Conseil consultatif - Adviesraad GT fonctionnement du marché - électricité Study 1734 on the functioning and price evolution of the Belgian wholesale electricity market - monitoring 20/09 report 2017 REMIT werkgroep MMSC17 Capacity withholding – Example and lessons learned 26/09 Assessment of data quality – The ENTSO-E Translucency Platform 27/09 CHAMBRE DES REPRÉSENTANTS Commission de l'Économie Maatregelen om op korte termijn de capaciteit te verhogen 2/10 Évolution des prix de l'électricité / Evolutie van de elektriciteitsprijzen
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ORGANIZING BODY EVENT TITLE OF THE PRESENTATION DATE Conseil consultatif - Adviesraad GT Security of Supply Mesures visant à augmenter à court terme la capacité 16/10 Platts 12th European Gas & LNG Summit London Study 1736 on the rentability of natural gas as a fuel for cars (CNG or Compressed Natural Gas) 18/10 Conseil consultatif - Adviesraad GT énergies renouvelables Décision 1788 relative à la fixation du montant visant à couvrir la totalité des coûts pour le raccordement 19/10 au Modular Offshore Grid pour la concession domaniale Northwester 2 / Beslissing 1788 over de vastlegging van het bedrag ter dekking van de totale kosten voor de aansluiting op het Modular Offshore Grid voor de domeinconcessie Northwester 2 CEER Gas Coordination group Status Review on Application of the Supply Standard 19/10 RegulaE.Fr Atelier de Travail n°4 La construction des tarifs de transport : la Belgique 14/11 ENERGIAVIRASTO, Finnish Energy Authority 8TH Baltic Gas Market Forum Belux Market Integration 15/11 CEER LAC EPU workshop Ofgem, London CEP unbundling related rules on storage and electro-mobility network integration 20/11 COMEOS Stijgende energieprijzen en een mogelijke Prijsevolutie op de energiebeurzen: trends en drivers 21/11 stroomafschakeling… Wat nu? SRBE - KBVE Journée d'étude: Transition énergétique, Faut-il encore des mécanismes de soutien et faut-il changer le design des marchés de l’électricité pour 27/11 Quoi de neuf ? En Belgique et ses régions ? / réussir la transition énergétique ? Studiedag: Energietransitie, Wat is nieuw ? In België en zijn gewesten ? Conseil consultatif - Adviesraad GT fonctionnement du marché - électricité Decision 1814 on the updated CWE FBMC approval package following the introduction of the German- 30/11 Austrian border and the introduction of the 20% minRAM measure Note 1847 sur le marché de gros journalier belge pour l’électricité du 1er au 7 octobre 2018 CEER Legal WG Study Visit to CEER Southern African Power Pool 3/12 FORBEG TF Smart meters aFRR, mFRR et Transfert d’énergie 4/12 CHAMBRE DES REPRÉSENTANTS Audition Begroting en Algemene beleidsnota 2019 / Budget et note de politique générale 2019 4/12 Conseil consultatif - Adviesraad GT fonctionnement du marché - électricité Advies 1802 ontwikkelingsplan Elia 10/12 CEER CACM TF - FP TF workshop The governance of power exchanges: competition or regulation? 20/12
84 CREG Annual report 2018 5. The CREG
5.6. The CREG and other authorities In its role as a member of the CEER, the CREG also, as 5.6.2. The CREG within ACER in previous years, provided assistance in a number of 5.6.1. The CREG and the European Commission consultations and reports for the benefit of the European ACER (the Agency for the Cooperation of Energy Regulators) commission (see point 5.6.3 of this report). was created by the third energy package in order to encourage In 2018, the CREG took part, either directly or indirectly, the completion of the interior energy market, both for electricity in the work of the European Commission, for example by In a similar vein to these activities, the CREG also actively and for natural gas. participating in the Seminar on Managing European and participated in the forums chaired by the European National Agendas on Energy Regulation, the Conference on Commission, including the European Gas Regulatory Forum, The three objectives that it formulated based on the drawn-up the European Network Codes and the high-level debates on the European Electricity Regulatory Forum, the Citizens' legislation concern: the state of play and future of regulation in electricity markets Energy Forum and the Energy Infrastructure Forum (see points - a more competitive integrated market offering more choice and infrastructures. 5.6.4 to 5.6.7 below). to consumers; - an efficient energy infrastructure in which the free circulation It also followed the work of the European Commission's High The CREG also submitted the 2017 National Report from of energy beyond borders and the transmission of new energy Level Group on North Seas Energy Cooperation, on offshore Belgium to the European Commission and ACER.162 This was sources are guaranteed, thereby improving security of supply developments for the electricity infrastructure. In particular, in drafted in close collaboration with the regional regulators for the companies of the European Union and consumers; collaboration with the FPS Economy, it actively participated in (BRUGEL, CWaPE and VREG) and the Federal Energy - a controlled and transparent energy market in which the work of the North Seas Energy Cooperation Support Group Mediation Service, and includes the measures taken and the consumers pay a price which is guaranteed to be fair and 2 and the North Seas Energy Cooperation UK-BE-NL Cluster. results obtained within the framework of the legal missions of reflect costs, and in which abuse is prevented. In this context, a proposal to amend a recital of the Electricity these authorities. Regulation was discussed in the context of the new texts ACER developed activities for each of these objectives in 2018, of the Clean Energy Package, in view of the development of Finally, if it has been informed, the CREG responds to according to the challenges presented by the energy market. hybrid offshore electricity infrastructure. This amendment was various questionnaires in the context of the harmonisation For example, as regards the further development of a future- presented with the support of a number of Member States, and integration of the European gas and electricity markets. proof European energy market, the main key issues and the including Belgium, and included in the final text proposal of the In 2018, these included the following themes: Information associated regulatory challenges identified in the European new electricity regulation. request concerning the implementation of several provisions of Commission's 'Clean energy for all Europeans' legislative Directive 2012/27/EU of 25 October 2012 on energy efficiency, package, published on 30 November 2016, were discussed The CREG assumed its consultative role by assisting the Questionnaire on the general implementation of Art. 13 of on various occasions. However, these new provisions will not government at the various meetings chaired by the European Regulation 347/2013 and past recorded and future planned enter into force before January 2020. As a result, there was no Commission: meetings to follow up and approve European investments, Questionnaire on project incentive decisions formal adjustment to the functioning of ACER in 2018. network codes (see point 5.6.2 of this report), meetings of and Questionnaire for a study on energy communities for the the Gas Coordination Group relating to security of supply and European Commission. Together with the CREG and all other national energy development of the gas infrastructure in the European interest, regulators in the European Union, ACER welcomes the efforts and meetings of the Electricity Coordination Group relating to of the European Commission to promote the integration of security of supply for electricity, development of the electricity renewable sources into the market, and maximise the use of interconnections and cybersecurity. cross-border interconnection capacity through more flexible
162 National Report Belgium 2018 to the European Commission and ACER, 12 July 2018: https://www.ceer.eu/documents/104400/6319351/C18_NR_Belgium-NL.pdf/34ee0c08-291f-f681-cb62-1424675e1f81.
CREG Annual report 2018 85 5. The CREG
price signals. In this regard, calls are made to avoid overly between supervisory authorities remains a key element in this may be an impediment to the proper functioning of the entry/ prescriptive rules that could stifle the market and innovative respect. exit system. This analysis will be continued in 2019. initiatives. In addition to these future-oriented structural and strategic The GWG also followed up the public consultation on the tariff Of greater concern to the CREG is the impact and level of reforms, work on the creation of the integrated energy market methodology by the various Member States. regional regulatory supervision. While confirming that the continued in 2018. Within the Agency, the CREG collaborated local specificities of energy markets need to be taken into in the preparation and implementation of the technical n The Electricity Working Group account, consistency between regional developments also documents necessary in this regard. needs to be monitored in order to achieve a well-functioning The ACER EWG is made up of the following task forces (TF): EU-wide internal energy market. Adequate regional regulatory n The Gas Working Group oversight, including with regards to other EU organisations - CACM TF, which is responsible for the introduction of the – including the European Network of Transmission System The CREG is closely involved in ACER's Gas Working Group, network code CACM (Capacity Allocation and Congestion Operators (ENTSO), the future Distribution System Operators and acts as vice-chair. Management); (DSO) body and the Nominated Electricity Market Operators - FP TF, which is responsible for developing the Future Policy (NEMOs) – will be one of the focal points that ACER will need In 2018, the activities of the various task forces were further (FP) of the electricity market; to shape in the coming years. monitored with regard to the implementation of the various - FCA TF, which is responsible for implementing the network network codes and the monitoring of the natural gas market. code FCA (Forward Capacity Allocation) as regards long-term In addition, the issuing of opinions supported the further Particular attention was given to the recent developments transmission capacity allocation; development of an efficient energy infrastructure. For example, concerning the European Gas Directive on the regulation of - BAL TF (BALancing), which is responsible for matters relating for the first time, the ENTSOs, both for electricity and natural natural gas connections with third countries (non-EU member to the balancing of the control area; gas, were able to consult each other in order to draw up their states) and the Clean Energy Package regarding the transition - INF TF (INFrastructure), which is responsible for matters scenarios, which form the basis of their ten-year network towards a carbon-free natural gas system. related to the development of the network and the 10-year development plan. Similarly, ACER, in consultation with the plan of ENTSO-E; CREG and the other national energy regulators, considered The GWG has approved reports on, inter alia, incentives for - SOGC TF (System Operation and Grid Connection), which is the outcome of the consultation launched by the European high-risk investment projects, cross-border cost allocation responsible for questions relating to system operation and Commission in 2018 with a view to drawing up a new list of for projects of common interest (PCI) and the evaluation of grid connection. projects of common interest. ENTSOG's European investment plan. The CREG jointly leads the task forces CACM, FCA and FP Finally, ACER has intensified its supervision to ensure The GWG also approved the ACER Market Monitoring Report workstreams. transparency and integrity in the energy markets. Three 2017 on the wholesale market. Interoperability, in particular as years of experience, since the start of data reporting by the regards data exchange at cross-border interconnection points In 2018, the EWG focused its activities on implementing the stakeholders involved, was discussed in the first Energy and storage facilities, was also addressed by the GWG. CACM and FCA network codes. This required a large number Market Integrity and Transparency Forum. The CREG is also of coordinated decisions at European level or at regional making every effort to continue to instil confidence in the The GWG also focused on the supply of conditional level.163 These coordinated decisions demand substantial work trade in electricity and natural gas. It does this partly on its transmission capacity in the Member States as an alternative and follow a very formal process described in the network own initiative and partly at the request of ACER. Cooperation to fixed transmission capacity, and the extent to which there code. These decisions are shown in point 3.1.4.5 of this report.
163 As the regulatory body for Elia, the CREG is one of the regional groupings of regulatory authorities of the Core and Channel regions.
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The ACER EWG also played a coordinating role in producing a complement to the ACER Guidance, four orientation papers During the meetings with ACER, the national regulatory the annual ACER market monitoring report, and the first report containing more detailed information on specific practices authorities also exchange experience on suspected cases of on the monitoring of the implementation of the FCA and that constitute market abuse were prepared and discussed market abuse in the respective countries. For Belgium, various CACM network codes. within the working group, in accordance with Article 5 of cross-border cases are discussed within ACER-led research REMIT: "Wash trade", "Transmission capacity hoarding in the groups to ensure coordination between the different national n The Market Integrity and Transparency Working Group interconnectors", "Electricity generation capacity withholding" regulatory authorities involved. and "Layering". The aim of these papers is to share ideas on Additional monitoring tasks were carried out within ACER's the general framework of the analysis to be used to determine n Legal Experts Network third objective, namely the implementation of the REMIT whether specific conduct may be in violation of REMIT. They Regulation.164 Since 2015, data has been collected in will be updated as necessary to take account of the evolution On 6 December 2017, the Legal Experts Network (hereinafter: accordance with this Regulation. The MIT WG is responsible of the negotiation strategies. LEN) was set up within ACER. The LEN is a network made up for the implementation of REMIT. of legal experts from ACER and from the national regulatory For the purposes of sharing information between ACER authorities (hereinafter: NRAs). The aim of the LEN is to The activities of the working group in 2018 focused on the and other authorities (financial regulators, competition provide expert support and advice on technical-legal issues to quality of the data reported to ACER, the supervision of the authorities, etc.), the modalities for confidential information ACER, the BoR and the ACER working groups. In 2018, the markets and the conduct of market players, the publication in the context of REMIT were included in an interpretative LEN issued opinions on various issues. of inside information, the sharing of information with other document of Article 17.4 of the Regulation. The document authorities (financial regulators, competition authorities, etc.), was endorsed in early 2018, but may be revised in the event For example, the question of whether ACER is authorised to and the analysis of the specific characteristics of the energy of significant changes in relations with the various regulators take decisions in English in respect of a natural or legal person market compared to the financial market, taking into account or developments in the exchange of information between whose official language is not English was examined. The LEN new financial regulations. regulators in the broad sense. Panel concluded that Regulation No 1 of 1958 determining the languages to be used by the European Economic Community As part of efforts to improve the data ACER collects, the As regards the publication of inside information, ACER sent does not oblige ACER to use the official language of the information manuals for providing information are being revised a letter to the market players in May 2018 regarding the Member State in which the addressee of the decision is to specify exactly which information the market players have publication of inside information and its content distributed situated, provided that the addressee has submitted a clear to provide. The work on the quality of the data is discussed through the insider publication platforms. In 2018, the working and explicit language waiver and that the ACER decision is not with the Supervision and Market Conduct department, so that group was tasked with producing a state of play of the current a document of general application. it corresponds to the analysis needs of the market to detect situation of published inside information, and the problems market abuse. experienced. Based on this, ACER's guidelines and manual of Subsequently, the LEN Panel also provided legal advice with procedures will be reviewed in 2019. regard to the application of Commission Regulation (EU) In order to monitor the markets and supervise the conduct 2016/1719 of 26 September 2016 establishing a guideline on of the market players, ACER has developed a computerised As regards the analysis of the specific features of the energy forward capacity (FCA GL), specifically regarding Article 30 (7) monitoring system that includes coordinated alarms to filter the market compared to the financial market, various issues were juncto 4 (6) and 4 (7) of the FCA GL. The LEN Panel concluded REMIT data, in order to detect suspicious commercial actions addressed following the entry into force of a new financial that Transmission System Operators (TSOs) exempted by their for all European wholesale energy markets. The alarms are regulation (MiFID II). A note on the 'commodity product' was NRA to apply long-term transmission rights (LTTR) in a bidding discussed and shared with the national regulatory authorities. As drawn up in 2018 and is expected to be finalised in 2019. zone do not need to submit a proposal of general conditions
164 Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency.
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and methodologies for the introduction of LTTR to their NRA All these questionnaires were used as a basis to write reports, and one Incentives Regulation and Efficiency Benchmarking for approval. status reviews, position papers and other documents issued workstream (IRB TF) responsible for collecting and exchanging by ACER. They not only give a detailed description of the essential information between NRAs in order to implement In addition, the LEN Panel also examined the possibility of differences and similarities between the Member States, tariff and efficient monitoring of TSOs. integrating the three Common Grid Model methodologies into but also provide information on the degree of application of a single document, in accordance with Articles 67 (1) and 70 European legislation in each Member State. The European The CREG jointly manages the FP WS. In 2018, contributions of Regulation (EC) No 2017/1485 (GL), Article 18 of Regulation Commission, for its part, uses these documents as the basis were made, inter alia, to the preparation of several White 2016/1719 (FCA GL) and Article 17 of Regulation 2015/1222 for the creation of legal initiatives. Papers published by the CEER in response to the work of the (CACM GL). The LEN concluded that from a European European Commission on the proposals of the 'Clean energy perspective, it is possible to adopt a single consolidated CGM 5.6.3. The CREG within CEER for all Europeans' package. The White Papers in question relate, methodology on the basis of three different legal bases (SO inter alia, to the integration of renewable energy sources GL – FCA GL – CACM GL). In its role as a founding member of CEER (Council of European into the market, to facilitating flexibility, the compensation Energy Regulators), the CREG also takes an active part in mechanisms as regards capacity, and issues relating to the Finally, at the end of 2018, two LEN opinions were still pending. the discussions, deliberations and decisions of the CEER's suitability of the system and the formation of efficient market- The first LEN opinion examines the conditions under which General Assembly, which met nine times in 2018. based electricity prices. a TSO activity may be transferred to a third entity, whether or not it is a certified TSO. The second LEN opinion examines Since May 2015, Mrs Marie-Pierre Fauconnier, the resigning Within the IRB WS, the CREG contributes to the annual whether the compliance programme of Balansys NV meets Chairwoman of the CREG's Board of Directors, has acted as drafting of the Regulatory Frameworks Report (formerly the the requirements of Article 7 (4) of Directive 73/2009/EC. The Vice-Chair of CEER. Given that Mrs Fauconnier offered up her Investment Conditions Report), which gives a comprehensive final versions of both opinions are expected during the first mandate in the second half of 2018, she was replaced by Mr picture of the investment conditions of the transmission system half of 2019. Wolfgang Urbantschitsch, Executive Director of the Austrian operators in Europe on the one hand, and the activities as part Energy Regulator E-Control. of the TSO Efficiency Benchmark on the other. Building on the n Questionnaires preparations made in 2017 to launch the next TSO Efficiency The CREG actively took part in the working group meetings Benchmark cycle, in 2018 the CREG decided to participate in Finally, the CREG actively contributed to the creation of ACER of the CEER (and of the task forces and workstreams set up this exercise. CEER is in charge of this project (ACM takes care questionnaires and responded to them within the framework within these different working groups) as a Chair, Co-Chair, or of operations on behalf of CEER), for which the contract with of the harmonisation and integration of the European gas member. the consultant was concluded in November 2017. and electricity markets. In 2018, these included the following themes: "Questionnaire on Retail and Wholesale Markets n The Electricity Working Group n The Gas Working Group Monitoring", "Questionnaire on derogation requirements of the NC RfG", "Questionnaire on Incentives and investments", The Electricity Working Group (EWG) of the CEER focuses on The Gas Working Group (GWG) of the European energy "Survey on the value of electricity supply for residential and matters related to the European electricity systems, security regulators handles questions relating to the European gas professional users" and "Questionnaire on the national use of supply and sustainable development. transmission systems and the European Union's gas market. of the Ten year network development plan (TYNDP 2018) for The CREG acts as Vice-Chair. The GWG works on the various electricity". The EWG consists of three workstreams: one Sustainable issues in close collaboration with ENTSOG, GSE and GLE, as Development workstream (WS) dealing inter alia with well as with the other market players, and the other working renewable energy issues, one Future Policy worksteam (FP groups of ACER and CEER. WS) responsible for drafting future electricity market rules
88 CREG Annual report 2018 5. The CREG
In 2018, the CEER GWG focused its attention on the following n The Market Integrity and Transparency Working Group participate in competitive and integrated energy markets. actions: In this context, the CRM WG closely monitors consumer The Market Integrity and Transparency Working Group protection, but also strives to ensure that consumers have - Approval of the Status Review on the application of the (MIT WG) handles matters relating to transparency and the sufficient resources (e.g. price comparison tools) to make well- supply standard foreseen in the gas Security of Supply surveillance of energy exchanges, as well as the correlation informed decisions on the energy market. Regulation. This report was published by CEER on 17 between the legislation of the wholesale energy market October 2018. The purpose of this analysis is to gain insight and that of the relevant financial market. As such, the MIT The CRM WG consists of four workstreams (WS) and the into the application of the supply standard at the national WG is tasked with tracking all the measures concerning the Partnership for the Enforcement of European Rights (PEER). level, to identify current ways of application and to share operation of the energy markets and the surveillance of energy The Customer Empowerment Workstream (CEM WS) experiences as reported by the national energy regulators; exchanges in general. This specifically includes the legislative handles aspects related to the retail market, such as billing - Publication of the CEER study 'Future Role of Gas' on 6 proposals and the questions linked to energy exchanges, for to end consumers, handling their complaints, procedures for March 2018. CEER launched a stakeholder consultation with example the decrease of VAT fraud on the energy markets. settling extra-judicial disputes, price comparison tools, and the a view to gathering opinions and insights on the future of the protection of vulnerable energy consumers. natural gas market. Based on this consultation, the CEER's In 2018, the MIT WG focused its attention primarily on: vision will be developed on the future role of gas from a The Innovation and Retail Markets Workstream (IRM WS) regulatory perspective; - the implementation of the REMIT legislation at the national considers questions relating to the proper functioning of the - Follow-up of the recommendations and findings of the CEER level. In order to monitor the national implementation of the retail market, including the introduction of smart meters and study 'Removing LNG Barriers on Gas Markets'. REMIT legislation and provide a tool for comparison, in 2018 the design of the electricity and gas markets. It focuses on a questionnaire was sent to the national regulatory bodies; how to empower consumers thanks to more competition On 24 April 2018, CEER organised a workshop to present and between market players, and how to give them more choice its study on the future role of natural gas from a regulatory - the interaction between financial legislation and REMIT through robust market procedures and tailored services. Its perspective. It also took part in the Madrid Forum of 16-17 legislation. objective is to make energy consumers responsible. October 2018, focusing on the future role of gas and natural gas infrastructure alongside the developments within the n The Regulatory Benchmarking Workstream The Monitoring Customer Empowerment Workstream (MCE European Commission to redraft the legal gas package, with a WS) primarily works on the chapter on consumer protection and view to the energy transition and the sector coupling between The Regulatory Benchmarking Workstream (RBM WS) met the automation of the ACER-CEER annual monitoring report. electricity and gas. four times in 2018 with the main objective of analysing the operating structures of national regulatory authorities. To this The Monitoring Retail Markets Workstream (MRM WS) CEER also launched the following initiatives in 2018: end, a questionnaire was drawn up covering various functional prepares the CEER report on retail market monitoring (with aspects in order to collect all relevant information and serve as CEER working alone) and manages CEER's database of - the drafting of an overview of the regulation of innovations in a basis for the consolidated processing of the responses. national indicators. the gas sector; - the drafting of a report on the gas infrastructure and energy n The Customers and Retail Markets Working Group PEER, on the other hand, is an initiative of the European transition, with an analysis of the investment needs; energy regulators to strengthen the application of the rights - a follow-up of the Madrid Forum of October 2018: CEER The Customers and Retail Markets WG (CRM WG) gives of European consumers through better cooperation between aims to take a leading role in analysing stranded assets and priority to the interests of consumers by promoting consumer the authorities in the European Union. PEER brings together unbundling; responsibility and encouraging the functioning of the retail the bodies that want to protect and/or support European - preparation and follow-up of the EU initiatives on a new market with a view to developing the best possible competition. consumers in a wide range of sectors. These may include data legislative package for gas. Energy consumers must have the possibility to actively protection authorities, consumer associations, ombudsmen,
CREG Annual report 2018 89 5. The CREG
competition authorities and sectoral regulators (e.g. energy, - "CEER Cybersecurity Report on Europe’s Electricity and Furthermore, the work of the LAC in 2018 was dominated by telecommunications, finance, etc.). Gas Sectors" which makes recommendations to close the the following report and activities: gap between the current situation and the optimal situation Finally, in 2018 the CRM WG participated in a number of in terms of cyber security as imagined by the European - The CEER Status Review Report on TSO and DSO Unbundling: workshops and conferences, including the CEER-ECRB165 regulators in the energy sector. this report provides, firstly, an update on the state of Workshop on Consumer Issues, the CEER Annual Customer implementation of the unbundling rules for transmission and Conference and the Workshop on Retail Energy Market Self- n Legal Affairs Committee distribution system operators, contained in the third energy Assessment, and the Dublin Forum. package, with a specific focus on new developments since As a successor to the former Legal Task Force (LTF), the Legal 2015. The issues studied included cases and reasons for n The Distribution Systems Working Group Affairs Committee (LAC) was set up within CEER, which, reopening certification, branding, financial independence in under the new structure, will be directly responsible for and terms of resources and personnel, compliance programmes The Distribution Systems Working Group (DS WG) deals with report to CEER General Assembly. and compliance managers, investments, TSO joint ventures and potential developments and changes in the energy distribution joint undertakings. Secondly, the report already provides a link to sector, the consequences for the regulatory framework, and The LAC, which started its activities at the beginning of 2018, changes and new unbundling-related provisions contained in the matters related to the current and future activities of the gives opinions on the legal and institutional aspects of the Clean Energy Package, such as new provisions concerning the distribution system operators, namely the quality of electricity implementation of the third energy package, as well as on delegation of TSO tasks, ownership of energy storage by DSOs and natural gas supply, cyber security, smart networks and developments in the various legislative texts of the new Clean and TSOs, new DSO tasks concerning the use of flexibility, flexibility in the operation of the distribution systems. Energy Package. The LAC also provides specific legal support to integration of electromobility in the network, data management, other CEER working groups and task forces in carrying out their etc. (on this point, the report will have to be further updated in In 2018, the DS WG completed and published the following tasks, at their request. In addition, the LAC also handles specific 2019). four documents: legal questions raised by national regulators with regard to the - Follow-up of the organisation of the two-day CEER Specialised implementation of provisions of European legislation. Legal Training on Evolving Regulatory Processes in European - "Incentives Schemes for Regulating Distribution System Energy Policy which was held in February 2018. The CREG Operators, including for innovation A CEER Conclusions For example, in 2018, a number of ad hoc legal questions played an active role in the organisation of this training. Paper" containing the conclusions of CEER following the submitted by the CEER working groups on the CACM - Organisation of a joint LAC-EPU workshop on the Clean Energy public consultation on incentives for better regulation of were addressed, as were a number of specific questions Package in November 2018 (CEP: Final Negotiations and distribution system operators and for innovation; from national regulators, including the issue of indirect grid Implementation Preparation). - "Distribution Systems Working Group Flexibility Use at connections following a specific case submitted by a national Distribution Level A CEER Conclusions Paper" containing regulator, and a question that gave rise to the new RAPEX n International Relations Group the conclusions of CEER following the public consultation project (which will continue to be implemented in cooperation on the guidelines on good practice for the use of flexibility with the CRM working group). The LAC also addressed a The International Relations Group (IRG) is the group within at distribution level; number of questions in 2018 regarding the legal analysis CEER responsible for forging and maintaining links with its - "CEER Benchmarking Report 6.1 on the Continuity of of specific provisions contained in the different versions of counterparts in third-party countries and with international Electricity and Gas Supply" containing an update of the key a number of texts that form part of the new Clean Energy institutions in the energy regulation sector. The primary data on security of electricity and natural gas supply from Package, providing input to other CEER working groups and objective of creating the international network is to exchange the sixth CEER report published in 2016; and the General Assembly. good regulatory practices throughout the world, with a view to
165 Energy Community Regulatory Board.
90 CREG Annual report 2018 5. The CREG optimising the provision of specific opinions on the matter to "CEER Strategy support to NRAs: operational support to CEER The potential challenges for gas in the energy transition lie in governments. 3D strategy", "Questionnaire on ways to Foster LNG markets in the development and use of renewable and decarbonised gas, Europe", "Questionnaire on National indicators 2017: electricity, such as hydrogen. In this context, the CREG, together with In its capacity as Chair of IRG, the CREG, with the support gas, consumers", "Questionnaire on the NRA organisational the other regulators within CEER, has clarified its position: on of the CEER secretariat, ensured during the first months of setup", "Questionnaire on work items for the international group", the one hand, barriers that hinder innovative developments 2018 that the European representation at the World Forum on "Survey on gas regulatory challenges", "Questionnaire on CEER must be removed, but on the other hand, the competition Energy Regulation in Cancún (Mexico) was given the highest work program 2019 – online resource poll", "Questionnaire on and unbundling rules must be respected by the operators. possible profile. Recognition was mainly received for the target organization and REMIT implementation", "Questionnaire This will all lead to an adaptation of the existing natural gas Women in Energy programme, which is gaining worldwide for RES Status review 2018", "Questionnaire on Aggregation of legislation, similar to what was launched by the European acclaim under the leadership of CEER. For the forum, the Interruptions" and "Questionnaire on the self assessment of Commission on 30 November 2016 via the 'Clean energy CREG assisted in the technical organisation of the panel with Retail market". for all Europeans' communication. To support this, specific the subject 'Finding the right mix: grid solutions in the 21st gas studies have already been launched, the results of which century', and guided the discussion held in this panel in the All these questionnaires were used as a basis to write reports, will be discussed further at the Forum in the course of 2019. right direction. status reviews, position papers and other documents from the The adaptation of gas legislation relates to an upgrade of the CEER, ACER and the European Commission. They not only give regulated framework, an adaptation to the new challenges Finally, following the strategy developed within IRG in 2017, a detailed description of the differences and similarities between such as decarbonisation and the alignment of legal texts with a cooperation agreement was signed on 12 December 2018 the Member States, but also provide information on the degree the new electricity legislation. between CEER, the Energy Community Regulatory Board of application of European legislation in each Member State. The (ECRB) and the Mediterranean Energy Regulators (MedReg). European Commission, for its part, uses these documents as 5.6.5. European Electricity Regulatory Forum This will strengthen regulatory cooperation between energy the basis for the creation of legal initiatives. regulators across Europe to the Mediterranean Sea, South- The European Electricity Regulatory Forum, also known as the East Europe and the Black Sea. It is a logical step forward for 5.6.4. European Gas Regulatory Forum Florence Forum, serves as a platform for consultation on the all organisations concerned towards greater pan-European development of the internal electricity market in Europe. The integration. The European Gas Regulatory Forum, also known as the Member States, the European regulators (including the CREG) Madrid Forum, serves as a platform for consultation on the and all other European market stakeholders take part in it, With the signing of this agreement, the CREG drew its development of the internal natural gas market in Europe. under the presidency of the European Commission. The 33rd chairmanship of the IRG to a close, and will continue to The Member States, the European regulators (including the Forum meeting was held on 30 and 31 May 2018. participate in the work of the group as a full member. CREG) and all other European market stakeholders take part in it, under the presidency of the European Commission. The The meeting took place at a time when the discussions are n Questionnaires 31st Forum meeting was held on 16 and 17 October 2018. entering a final phase regarding the European Commission's proposals set out in the 'Clean energy for all Europeans' Finally, the CREG actively contributed to the creation of the This forum focused specifically on addressing the role of gas communication of 30 November 2016. The forum is therefore CEER questionnaires and responded to them within the within the decarbonisation objectives of the energy mix in taking a wait-and-see attitude, firstly by discussing a number framework of the harmonisation and integration of the European Europe. Now that the climate debate is focused on reducing of elements that are the subject of the debate, but secondly by gas and electricity markets. In 2018, the questionnaires focused CO2 emissions, the need for a long-term strategy for the making an attempt to look further into the future. in particular on the following issues: "Questionnaire on TSO decarbonisation of gas is also becoming clear. This strategy and DSO unbundling", "Questionnaire on NRA training needs", will need to focus on sectoral linkage and integration.
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Representatives of the various stakeholders took the European consumer rights, the so-called 'new deal' for the solidarity). Based on common scenarios, the electricity and opportunity to express their positions. It gave a clear picture consumer, on the other. gas operators are drafting future development plans. However, of which aspects need to be further clarified regarding the in the near future, the CREG and the other regulators hope to electricity directive and regulation. As regards the organisation Regarding the first issue, the discussion focused on the level receive plans drawn up on the basis of an integrated model, i.e. of the market functioning, this primarily concerns aspects of consumer involvement in the transition within the energy including a joint simulation calculation, in which the outcome relating to the maximum supply of cross-border capacity, the world, and how this can be better facilitated. Projects are can be assessed in numerical terms. process of revising the bidding zones, the efficient use of starting to show the potential of systems in which consumers congestion income, the coordination of national, regional and/ play a key role. The existing system is generally experienced as It is already clear that gas will continue to play an important role or European adequacy studies, the reduction of CO2 emissions an additional burden. To this end, a stable framework needs to in the energy transition. A purely electricity-based consumption as a condition for generation units to benefit from State aid, be established that offers equal opportunities for all, promotes market is not considered possible, taking into account the the establishment of the DSO entity and the extension of the efficiency and allows dynamic action. seasonal flexibility needed within the energy sector. In this competences of the regional centres. Regarding consumer- regard, operators are asking to be able to participate actively, related issues, the debate revolves around maintaining Digitisation and a changing world demand an adaptation but their role in this process remains an open question. This regulated prices and the issue of compensation in relation to of general consumer rights. Modernisation, clarification, discussion and its impact on the unbundling aspects, together demand management. awareness-raising and simplification are the key words. The with the call to avoid stranded assets, should not be ducked. European Commission's new proposals work horizontally The future will clearly depend on the outcome of the across all sectors, but will also be relevant for the energy sector, 5.6.8. The CREG and the other national regulators negotiations on the new European legal texts. One discussion e.g. on 'door-to-door' sales, on price comparison websites and point that has not yet been addressed is the role of the on the possibility of class action initiatives. In 2018, the CREG continued to maintain good contacts with Nominated Electricity Markets Operators (NEMOs) and the its regulatory counterparts in other countries. Specifically, with future supervisory structure. In principle, the NEMOs are 5.6.7. Energy Infrastructure Forum respect to neighbouring countries, it ensured that a dialogue competitive entities, but for the market coupling functions was started at the highest level to explore areas of collaboration. they perform, there is clearly no competition in evidence. The The fourth Energy Infrastructure Forum was held in search for a suitable framework has started. Copenhagen on 24 and 25 May 2018. Under the chairmanship A meeting in the first half of 2018 with the chairman of the CRE, of the European Commission, this recent Forum brings the French regulator, also led to participation in the 'Comité 5.6.6. Citizens' Energy Forum together the main market players around the theme of de prospective' in France. At this committee, the regulator 'infrastructure'. These parties include the members of the entered into dialogue with more than 80 stakeholders on the At the Citizens' Energy Forum, which for the first time was held regional groups which were set up for several privileged future of the energy sector. in Dublin, the European Commission places active and involved corridors which are essential for EU supply (Member States, consumers at the heart of a competitive, efficient and fair retail system operators, regulators and project promoters), together The good relationship resulted in the further development of market. At the forum, in a number of working group sessions, with representatives of several European institutions (the Regulae.fr as an international network for French-speaking consumer organisations and local market players discuss with European Parliament, the Committee of the Regions and the energy regulators. The CREG helped organise the third representatives of various member states, regulators (including Economic and Social Committee) and European organisations workshop, which was held from 11 to 13 July in Montreal, the CREG) and the main European stakeholders. (NGOs, ENTSO-E, ENTSO-G, ACER, INEA and the EIB). at the invitation of the 'Régie de l'énergie du Quebec'. The general assembly and the fourth workshop was held on 13 and At this tenth edition, which was held on 20 and 21 September The discussion at this forum was dominated by cooperation 14 November in Dakar, Senegal. 2018, the 'Clean energy for all Europeans' legislative package between the sectors (electricity and gas), between the was further discussed on the one hand, and the additional wholesale and retail branches (transmission and distribution) A similar debate in the Netherlands was attended at the fifth proposals of the European Commission to strengthen and between the different Member States (cross-border anniversary conference of the ACM, the Dutch regulator. The
92 CREG Annual report 2018 5. The CREG focus there was more on the role of the energy consumer in 5.6.9. The CREG and the FSMA 5.6.11. The CREG and the regional regulators the transition, and the influence of innovative techniques on consumer behaviour. The collaboration protocol between the CREG and the Financial The CREG's informal collaboration with the three regional Services and Markets Authority (FSMA) was approved by their regulators (BRUGEL, CWaPE and VREG) continued in 2018 In addition to maintaining these direct bilateral contacts with respective Board of Directorss in December 2016. This protocol within Forbeg. Six plenary sessions were held. CWaPE acted neighbouring colleagues, in 2018 the CREG also answered lays down the conditions for the collaboration between as Chair in the first semester and the VREG in the second questions on various topics coming from the Dutch, Cypriot, the two authorities as regards the exchange of information semester. The CREG chaired the 'Information Exchange', French, Irish, British, Austrian, Portuguese, Bulgarian, and expertise, to ensure the integrity and transparency of 'Europe' and 'Distribution System' working groups. Hungarian, Lithuanian, Greek, Latvian, and Japanese regulators the energy markets. This protocol is crucial, since there is or regulatory authorities. increasing interaction between the REMIT Regulation and the In 2018, the 'Information Exchange' working group continued financial domain. its work on drafting the joint annual publication of the four Above all, 2018 was marked by the further development of regulators on the evolution of the Belgian energy market.166 regional and European cooperation between regulators in In 2018, in application of this protocol, the CREG continued Based on a statistical overview of the electricity and natural implementing the European network codes and guidelines for its approach to understanding the financial markets, with gas markets, the regulators aim to present the evolution of electricity. For example, 16 decisions were taken within the its study of 16 October 2017 on the application of European these markets and of competition in Belgium. New insights European Regulators Forum, which was set up to meet to the and Belgian legislation in the context of the transparency of resulted in a better textual presentation of the document. The obligation for all national energy regulators in the European the Belgian wholesale electricity and natural gas markets, by working group is also responsible for responding to ACER and Union to take joint decisions (the all NRA decisions) on joint inviting the FSMA to the workshop of 15 May 2018 on the CEER questionnaires. The working group also followed up proposals from all of the transmission system operators, the "role of market players in achieving a more efficient market on the ACER Monitoring Report, with the result that data was all TSO proposals. In three of these cases, unanimity could not the basis of European legislation on transparency, REMIT and collected from the four regulators, with a view to providing a be achieved and the decision was referred to ACER. financial instruments". full set of indicators for Belgium.
At regional level, for the further development of the harmonised 5.6.10. The CREG and Parliament The 'Europe' working group met three times in 2018. This working short- and long-term capacity allocation rules, the CREG is part group provides a formal framework that enables the CREG to of the "Core" region and, since the certification of the Nemo Over the years, the CREG has built an excellent relationship perform its tasks as national regulator and represent Belgium Link Ltd in the United Kingdom, also part of the "Channel" with the Parliament, more specifically with the Economic within CEER and ACER. This working group concentrates on region. As such, in 2018, a total of eleven joint decisions were Commission. In particular, the CREG complied with requests the optimal general workflow of European dossiers between taken in which only the case relating to the capacity calculation for a hearing from this committee and, on the basis of a the various working groups that are part of Forbeg and the four methodology for the Day Ahead and Intraday time zone in the detailed explanation (see also point 5.7.2. of this report), its regulators themselves. As in previous years, the focus was "Core" region turned out to need referral to ACER. In addition, budget was adopted unanimously. Whenever the CREG was on the topics discussed at the various European forums, the the CREG also participated in one joint regional decision invited by the Economic Commission to give an explanation, General Assembly within CEER and the Board of Regulators implementing Commission Regulation (EU) 2017/2195 of it was thanked by members of Parliament for the high within ACER. The new market design for electricity, as set out in 23 November 2017 establishing a guideline on electricity level of expertise provided. In conclusion, it can be stated the 'Clean Energy for All Europeans' communication published balancing, and two joint decisions implementing Commission that the CREG strictly complies with its legal obligations as by the European Commission, which was the subject of three- Regulation (EU) 2017/1485 of 2 August 2017 establishing a regards providing information to Parliament about the funds way discussions at European level in the course of 2018, was guideline on electricity transmission system operation. it manages. the common thread that was touched upon in all meetings.
166 Joint report on the development of the electricity and natural gas markets in Belgium - Year 2017, 16 July 2017.
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The Distribution Systems Working Group (DS WG) aims to of tariff cases. In 2018, this working group also handled a n Merger case INEOS – RWE Generation Belgium NV (CHP inform the regional regulators of the activities of the CEER DS number of specific cases: the federal contribution balances for Inesco) WG, present the documents that are on the agenda to the 2009-2017, drafting an energy standard, and drafting rules to regional regulators so that these can submit comments on facilitate energy transmission. Pursuant to Article 5 of the above-mentioned Royal Decree of these documents, thereby improving the information exchange 3 December 2017, on 28 August 2018 the CREG replied to an between the Belgian and the European regulators. In 2018, the The CREG participates as an observer in the 'Emergency initial request for information from the BMA on the acquisition of working group convened nine times and continued discussions supplier arrangements' working group. The aim of this working exclusive control of RWE Generation Belgium NV by INEOS NV. on the work of CEER DS WG (see point 5.6.3. of this report). group is to draw up an emergency supply arrangement for suppliers who are active on the distribution systems. A first n CREG report on the relationship between costs and prices In addition, the CREG participated in the other Forbeg working document containing analyses and recommendations was on the Belgian natural gas market in 2017 groups on 'Gas', 'Electricity', 'Tariffs', and 'Emergency supplier published for public consultation in 2018. In 2019, the analyses arrangements'. and recommendations will be further specified on the basis of As part of its role to permanently monitor the gas market, the feedback from the consultation. CREG issued a report on the relationship between costs and For the 'gas' working group, the chairmanship was transferred prices on the Belgian natural gas market in 2017167 and submitted from the CREG to the CWaPE. However, the CREG will 5.6.12. The CREG and the competition authorities this to the Belgian Competition Authority in particular. continue its efforts to monitor the gas issues within this Belgian framework. In 2018, in addition to the already implemented A. Cooperation with the Competition authority at national level B. Cooperation with the Competition authority at European L/H-gas conversion, the further future evolution within the gas level sector was also discussed. The development of new legislation n General collaboration between the CREG and the Belgian on biomethane production and the call to develop a register of Competition Authority n CREG Study (F)1687 on the Functioning and design of the guarantees of origin were reviewed. Central West European day-ahead flow based market cou- The general collaboration between the CREG and the Belgian pling for electricity: Impact of TSOs Discretionary Actions The 'Electricity' working group convened five times in 2018 and Competition Authority (BMA) was formalised at the end of continued discussions on the following issues in particular: the 2017 via Royal Decree, which governs, among other things, By letter of 25 January 2018, the CREG submitted its study exemption process from the European network codes, emerging the consultation between the two bodies, the exchange of 1687 of 21 December 2017 (see Annual Report 2017, pp. 30 technologies, the general requirements of the European RfG (sometimes confidential) information and the cooperation and 40) to the Director-General of DG Competition of the and DCC network codes, the adaptation process of the KORRR, procedures. Pursuant to this Royal Decree, more systematic European Commission, in order to express its concerns in this the amendments to the ARP contract, the utility of emergency cooperation between the CREG and the BMA was established respect, including with regard to the legislative developments generators for security of supply and the new federal technical in 2018, in particular in the form of a first meeting for in the Clean Energy Package, and to inform them about the regulation for the transmission network. consultation and the general exchange of information between developments in the negotiations between the CWE regulators the two bodies. with regard to this issue. The 'Tariffs' working group meets on average twice a year. Through this working group, experts from the four energy Informal contacts between the CREG and the BMA also n Case AT.40461 "DK/DE Interconnector" regulators inform each other of the most important trends in took place in 2018, as well as formal contacts for the matters the development of new tariff methodologies and the handling mentioned above. Following an invitation by the DG Competition, by letter of 3 May 2018 the CREG submitted its comments in the antitrust case AT.40461 concerning the commitments offered by TenneT
167 Report (RA)1804 of 19 July 2018 on the relationship between costs and prices on the Belgian natural gas market in 2017.
94 CREG Annual report 2018 5. The CREG to increase capacity of the electricity interconnector between 5.6.13. The CREG and Belgian universities Denmark and Germany. In December 2018, in accordance with the regulations,169 the In the framework of its strategic objectives, the CREG CREG calculated and published the unit surcharges of the various On 7 December 2018, the European Commission took a regularly works together with Belgian universities, by components of the federal electricity and gas contribution to be decision in this case, making the commitments offered by the participating in colloquia and scientific activities. applied from 1 January to 31 December 2019. German grid operator TenneT legally binding. Since 2015, it has also awarded an annual prize for the most A. Federal natural gas contribution n European decisions on the Belgian offshore wind farms Nor- innovative Master's thesis based around energy. In this way, thwester 2, Mermaid and Seastar the CREG aims to support and encourage developments Each quarter, the natural gas transmission system operator in the energy sector. Each winner receives €2,500 and the (Fluxys Belgium) and the operators of a direct line170 have to In mid-2018, the European Commission adopted decisions to possibility of undertaking an internship at the CREG. pay the federal contribution for which they had previously approve two merger cases concerning changes in control in billed their customers to the CREG. In 2018, these companies Belgian offshore wind farms: On 19 April 2018, the two winners for 2017 and their also directly financed the CREG fund, the social energy fund, promoters were invited by the CREG to receive their prize. and the protected clients fund. 1) Case M.8855 Otary/Eneco/Electrabel/JV: This case The winners are, for the Flemish Community: Nadia Wiesé concerned a restructuring of the ownership of the Mermaid of the University of Antwerp for her thesis entitled "Peak For their part, the natural gas companies that offered their and Seastar wind farms, through the creation of a joint shaving by means of energy storage in lead-acid batteries at customers discounts (degressivity and exemptions) submit venture between Otary RS NV, Eneco Wind Belgium NV and the residential level, with integrated solar panels and wind their applications for reimbursement to the CREG on a Electrabel NV. With regard to this case, the CREG answered turbine" and for the French Community: Bilal Ghomraoui of quarterly basis (see below). a number of informal questions put to it by DG Competition. the Université Libre de Bruxelles for his thesis entitled "Load The merger of Mermaid THV and Seastar NV was approved flexibility benefits for the distribution network: technical and • Financing the funds by the EC on 5 July 2018. economical analysis of a Brussels case study". The expected annual amounts of the federal contribution are 2) Case M.8970 - Sumitomo / Parkwind / Northwester 2: On 5.7. The finances of the CREG made up of the basic amount for each fund for the current 30 July 2018, the European Commission adopted a non- year as well as any possible supplements destined to take opposition decision in this case concerning a change of 5.7.1. Federal contribution account of the previous years' shortfall/surplus and cover the control at the Belgian offshore wind farm Northwester 2. various exemptions. The federal contribution is a levy on the amount of electricity and natural gas consumed in Belgium.168 This contribution Overall, revenue from the federal natural gas contribution in finances various funds managed by the CREG (see point 2018 was 11.17% higher than the expected amounts. 5.7.2 of this report).
168 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 exempted. 169 In particular: (1) Royal Decree of 19 December 2018 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 and setting the amounts envisaged for the financing of the nuclear liabilities BP1 and BP2 for the period 2019-2023 (Belgian Official Journal of 28 December 2018). This Royal Decree sets the amount earmarked for the greenhouse gas fund, for 2019, at 0 euros and extends the freezing of the amount earmarked for the social energy fund, as well as the amount earmarked for the denuclearisation fund. In this context, the CREG submitted to the Minister for Energy its opinion (A)1873 on the draft of this Royal Decree and (2) the Royal Decree of 21 December 2018 determining the amounts for 2019 of the funds earmarked to finance the actual costs resulting from the application of maximum prices for electricity and natural gas supply to protected residential customers (Belgian Official Journal of 31 December 2018). 170 On 31 December 2018, Wingas was the only operator of a direct connection in Belgium.
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• Exemptions and degressivity Of the €16,500,000 that the CREG requested from the FPS year as well as any possible supplements destined to take Finance in 2018 to pay off all its requests for reimbursement of account of the previous years' shortfall/surplus and cover the The complete federal contribution was invoiced by Fluxys the degressivity, €799,412 was ultimately not used. This sum exemptions enjoyed by the international institutions. Belgium to the natural gas companies, but these natural gas will then be deducted by the FPS Finance from the amount companies cannot recover the full amount from their end requested by the CREG in 2018. Overall, the revenue from the federal contribution for electricity customers, since some benefit from a reduction (degressivity) in 2018 for all the funds combined was nearly 1% lower than or even an exemption. The legislation specifies in this context • Irrecoverables the expected amounts. This difference is negative despite the that they can ask CREG every quarter to repay the difference absence of an implementing decree for the legal exemption between the federal contribution they paid to Fluxys Belgium In 2018, the legal flat-rate increase of 0.7% earmarked to cover that should have been granted to storage facilities since 1 and what they received from their customers. natural gas companies against federal contributions that they January 2018,171 whereas the CREG had anticipated this have been unable to recover from their customers due to non- exemption when calculating the federal contribution for 2018, For example, in 2018, the CREG reimbursed natural payment, generated an amount of €188,378, which, at the end which should have led to higher federal contribution revenues. gas companies a total of €15,852,450 on the one hand, of the year, was distributed between the funds financed by the corresponding to the exemption from the federal contributions federal natural gas contribution. Since 1 January 2018,172 the DSOs have invoiced the federal for natural gas destined for the generation of electricity contribution to electricity by using the values published by injected into the system (electricity power plants and quality B. The federal electricity contribution the CREG without changing them, on all the quantities of cogeneration units), and €225,342 on the other, which electricity they have transported, including decentralised corresponds to the exemption from the federal contribution The electricity transmission system operator (Elia System generation injected directly into their systems. The total granted to the international institutions. These reimbursements Operator) pays the contribution it has billed to its customers quantities delivered to end customers could therefore exceed were made using the available means in the various funds. the previous quarter to the CREG on a quarterly basis. In 2018 the quantities purchased from the transmission system and Elia financed the CREG funds, the social energy fund, the invoiced by Elia. Any overpayments generated in 2018 will be The same natural gas companies also made degressivity denuclearisation fund and the protected customers fund. Due regularised in 2019 together with the CREG, which will take reimbursement applications totalling €11,148,168. Additionally, to the emptying of the greenhouse gas fund (see point 5.7.2.D them into account when calculating the unit values of the an amount of €1,727,248 in federal contributions, not paid to below), Elia did not make any contribution to this fund in 2018. federal contribution for 2020. the CREG by the direct pipeline operator due to the granting of degressivity measures to their customers, was requested For their part, the electricity companies that offered their Finally, in accordance with the legislation173 and on the basis from the FPS Finance to be split between the various funds. customers discounts (degressivity and exemption) submit their of the decisions of 14 June and 18 October 2018, the CREG applications for reimbursement to the CREG on a quarterly determined the amount of the federal contribution for the Finally, six end customers with a consumption location basis (see below). period from 1 January 2009 to 31 December 2017 that the for which a separate bill was issued by different suppliers DSOs must reimburse to their customers (see point 3.1.3.5.B submitted an application to the CREG for adjustment based • Financing the funds of this report). on the degressivity measure from which they had benefited in 2017. In total, the CREG reimbursed €2,825,172 to them. The expected annual amounts of the federal contribution are made up of the basic amount for each fund for the current
171 Should be deleted. Already on previous page. 172 Royal Decree of 31 October 2017 modifying the Royal Decree of 24 March 2003 fixing the detailed rules on the federal contribution destined for the financing of certain public service obligations and of the costs associated with the regulation and control of the electricity market (Belgian Official Journal of 24 November 2017). 173 Law of 18 March 2018 amending the Law of 29 April 1999 on the organisation of the electricity market with regard to the detailed rules on the federal contribution to the financing of certain public service obligations and of the costs associated with the regulation and control of the electricity market (Belgian Official Journal of 3 April 2018)..
96 CREG Annual report 2018 5. The CREG
• Exemptions and degressivity • Irrecoverables not used and will be deducted by the FPS Finance from the amount requested by the CREG in 2019. Electricity companies were charged the full federal contribution In 2018, the legal flat-rate increase of 0.7% earmarked to cover by Elia and the distribution system operators, while they cannot electricity companies against federal contributions that they 5.7.2. Funds recover the full amount from their end customers since some have been unable to recover from their customers in previous benefit from a reduction (degressivity) or even an exemption years due to non-payment, generated an amount of €220,664, A. The CREG Fund from it, as is the case for the international institutions. In this which, at the end of the year, was distributed between the context, the legislation provides that they can request from funds financed by the federal electricity contribution. At its plenary session of 18 December 2017, the Chamber the CREG every quarter a refund of the difference between of Representatives set the amount intended for the partial the federal contribution paid to Elia and the distribution system Finally, given that the amounts of the irrecoverables must financing of the operating costs of the CREG for 2018 at operators and what they have received from their customers. be certified by an auditor or accountant,174 several electricity €14,952,254. companies have not been regularised. In 2018, the CREG repaid a total of €1,605,469 in federal This decision was taken in response to a proposal by the contributions to the electricity companies that they were unable C. Offshore surcharge CREG's Board of Directors to keep its 2018 budget at the to invoice to international institutions using the resources same level as the 2011 budget. available in the various funds. They were repaid €26,727,756 This surcharge levied by Elia to its end customers and electricity in the context of reductions (degressivity) granted to their companies, who then pass it on to their own customers, is However, in order to calculate the unit value of the CREG customers. This amount includes the request for regularisation intended to offset the costs borne by Elia due to its obligation surcharge, this amount was supplemented by €31,850 and of a final customer with a consumption location for which a to purchase the green certificates granted to electricity €11,077 in order to repay to the electricity and natural gas separate invoice was issued by different suppliers. generation in the North Sea. companies the exemptions that they had to grant to the international institutions. On the other hand, the electricity and Additionally, an amount of €44,539,352 in federal contributions, The CREG is responsible for reimbursing Elia and the electricity natural gas profits for the 2016 financial year were deducted not paid to the FPS Finance by Elia due to the granting of companies who granted their customers degressivity on this from the amount to be covered by the federal contribution, in degressivity measures to some of their customers, was surcharge.175 In 2018, the CREG reimbursed them €39,088,109 order to be reimbursed to the end customers.176 requested to be split between the various electricity funds. and €67,160,894 respectively, on top of which are the requests of two end customers with a consumption site whose The CREG accounts for 2018 are set out in detail in In 2018, the FPS Finance made an advance of €73,250,000 invoicing is carried out separately by different suppliers. These point 5.7.3 below. available to the CREG to cover the applications for two end customers also submitted an application to adjust reimbursement of the degressivity. An amount of €1,982,892 the degressivity applicable to the offshore surcharge from B. Social Energy Fund was ultimately not used and will be deducted by the FPS which they benefited in 2017. They were reimbursed a total of Finance from the amount requested by the CREG in 2019. €378,294 in offshore degressivity. For 2018177 a total of €52,890,292 (€30,750,170 from the electricity sector and €22,140,122 from the natural gas sector) In 2018, the FPS Finance made an advance of €112,750,000 was set aside to help the public centres for social welfare with available to the CREG to cover all applications for their task of providing guidance and financial social support in reimbursement. An amount of €6,122,703 was ultimately the area of energy.
174 See the above-mentioned Royal Decree of 31 October 2017. 175 On 18 January 2018, at the request of the Minister for Energy, the CREG carried out a study on a proposal for the reform of the mechanism for the degressivity of the federal contribution and the offshore surcharge (more details under the title "Offshore surcharge", point 3.1.3.5.A, b) of this report). 176 See Annual Report 2016, point 5.9.3. 177 The freeze on amounts has been extended for 2018 by the Royal Decree of 21 December 2017 amending the Royal Decree of 24 March 2003 and the Royal Decree of 2 April 2014 (Belgian Official Journal of 29 December 2017). This Royal Decree was confirmed by the Law of 21 December 2018 ratifying various royal decrees adopted pursuant to the Law of 29 April 1999 on the organisation of the electricity market and the Law of 12 April 1965 on the transport of gaseous and other products by pipeline (Belgian Official Journal of 31 December 2018).
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This amount, to be covered by the federal contribution, is In 2018, a total net income of €70,468,924 was recorded in On 31 December 2018, the assets of the fund totalled supplemented by €100,369 and €64,340 respectively in the fund. €44,084,002. order to reimburse the international institutions. In addition, €1,500,000 is added and €5,000,000 deducted in order to The CREG made repayments of exemptions granted to • Kyoto JI/CDM Fund correct the distribution of the financing of the fund between international institutions and regularised certain amounts from the electricity and natural gas sectors. the past for a total of €492,127. The Kyoto Joint Implementation/Clean Development Mechanism fund, which is also managed by the CREG, In the end, in 2018 a total net revenue of €2,150,937 for In addition to the 2017 balance, which could not be paid in time collects the amounts originating from the greenhouse gas electricity and -€396,737 was recorded was recorded in this due to a lack of revenue, the CREG was able to pay the full fund specifically allocated to the financing of greenhouse gas fund. amount for 2018 to ONDRAF/NIRAS this year. reduction projects that allow Belgium to achieve its objectives under the Kyoto Protocol. In addition to the transfer of the fourth payment for 2017 On 31 December 2018, the assets of the fund totalled (€13,219,207) to the PCSWs, the cash balance of the fund €270,074. In 2018, the FPS Environment did not use the fund to purchase allowed for the full payment of the first three amounts for CO2 emission credits. 2018, requested by the FPS Social Integration (€39,667,719). D. Greenhouse Gas Fund On 31 December 2018, the assets of the fund totalled On 31 December 2018, the assets of the fund totalled Despite the lack of revenue in the greenhouse gas fund180 and €14,972,767. €27,436,625. As such, the CREG will be able to pay the full thanks to the resources that are still available in the fund, the fourth instalment for 2018 to the PCSWs at the end of January legal flat-rate amount of €3,600,000 for the year 2018 was paid E. The protected customers funds for electricity and natural 2019. into the organic budget fund of the FPS Environment for the gas financing of the federal policy for the reduction of greenhouse C. Denuclearisation Fund gas emissions. For the year 2018181 the needs of these funds totalled €113,000,000 for electricity and €50,300,000 for natural gas, This fund is financed exclusively by the federal contribution In addition, the greenhouse gas fund also pre-financed, to which €113,710 and €152,102 must be added, respectively, charged by the electricity sector. It needed to be €69,000,000178 through quarterly instalments the €14,490,000 corresponding for the reimbursement of the international institutions. for the year 2018, to which was added €220,601 to offset the to the VAT due on the annual amount intended for ONDRAF/ exemption for the international institutions. As from 2019, the NIRAS. The VAT authorities refunded the CREG for the amount A net total revenue of €12,461,274 was recorded for the annual amount earmarked for ONDRAF/NIRAS will remain at of these quarterly advances. electricity fund. For natural gas a net total revenue of €69,000,000.179 -€5,570,487 was recorded.
178 Royal Decree of 26 January 2014 setting the amounts required for the financing of BP1 and BP2 nuclear liabilities for the period 2014-2018, in implementation of Article 3, paragraph 2 of the Royal Decree of 24 March 2003 setting the federal contribution modalities for the financing of certain public service obligations and costs associated with the regulation and control of the electricity market (Belgian Official Journal of 3 February 2014). 179 Above-mentioned Royal Decree of 19 December 2018. 180 The above-mentioned Royal Decree of 21 December 2017 sets the amount to be used to feed this fund for the year 2018 at €0. 181 Royal Decree of 25 December 2017 determining the amounts for 2018 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 Journal of 29 December 2017). This Royal Decree was confirmed by the above-mentioned law of 21 December 2018.
98 CREG Annual report 2018 5. The CREG
In 2018 the reimbursements for the sector's companies who 5.7.3. Accounts 2018 hand, the costs of legal assistance increased as a result of supplied the protected household customers at the social the various writs of summons that the CREG had to deal tariff in 2017 amounted to €101,627,192 for electricity and The actual amounts for the federal contribution for electricity with. General costs, on the other hand, increased by 3.2%, €69,671,726 for natural gas. Thanks to the measure taken to (€10,321,884) and for the federal contribution for natural mainly due to the costs of the building (rent, rental charges increase the resources available in the electricity protected gas (€5,591,331) were higher than the expected amounts, and parking) and taxes. Finally, amortisations decreased by customers fund, all companies were reimbursed in October in respectively 1.5% and 20.6%. The amounts for the distribution 5.6% compared to 2017. accordance with the regulations. of electricity and natural gas irrecoverables, the fees for applications to obtain an individual supply permit for natural The result of this is that the 2018 financial year ends with an On 31 December 2018 the assets of the two funds totalled gas and miscellaneous and exceptional revenue and financial overall surplus of revenue received by the CREG compared to €31,426,688 for electricity and €36,632,804 for natural gas. revenue are added. its expenses, amounting to €1,219,268. This amount is divided between a surplus of €171,758 for the electricity sector and a F. The fund for flat-rate reductions for natural gas and electricity The income from the irrecoverables and the supply permits are surplus of €1,047,510 for the natural gas sector. heating directly linked to the revenue from the electricity and natural gas sectors. Of the miscellaneous, exceptional and financial Given that the electricity and natural gas reserves were fully This fund, also known as the heating premium fund, has revenue, 69% comes from the electricity sector and 31% from replenished in 2016, the 2018 profits for the electricity and been abolished from the Electricity Act, but remains included the natural gas sector. natural gas sectors will, in accordance with Article 11, §4, final in Article 3, §6 of the above-mentioned Royal Decree of 24 paragraph of the Royal Decree of 24 March 2003 and Article March 2003. However, in 2018, no amount was called up and Total revenue of €66,446, divided between the electricity 17, last paragraph of the Royal Decree of 2 April 2014, be no regularisation for the past was made. sector (€34,545) and the natural gas sector (€31,901) is reimbursed in full to the end customers. To this end, these will therefore added to the above-mentioned amounts from the be deducted during the next calculation of the CREG surcharge On 31 December 2018 the assets of the fund amounted federal contribution for electricity and natural gas. for electricity and natural gas (2020 surcharge, calculated in to €24,404,014 split up into €16,810,476 for electricity and December 2019) from the amount. €7,593,538 for natural gas. As long as no legal allocation of The total revenue for the electricity sector therefore amounts the balance of the fund is defined, the CREG will continue to to €10,356,429. For its part, the total revenue of the natural As of 31 December 2018 the balance sheet total consolidated manage it, in particular as regards possible adjustments of gas sector amounts to €5,623,232. This corresponds to total with the funds was €200,970,339. previous amounts. revenues of €15,979,661. Since 1 January 2013, the CREG has organised its bookkeeping G. Fund to offset the loss of income suffered by the The total expenditure of the CREG for the financial year 2018 in accordance with the principles laid down in the law of 22 May municipalities amounted to €14,760,393, a decline of 1.6% compared to 2016. 2003 on the organisation of the budget and accounts of the federal State, and following the accounting schedule set out by The fund, which has been completely inactive for several years, The subtotal of personnel costs fell overall by 1.2% compared the Royal Decree of 10 November 2009 setting the accounting had an unchanged balance of €578,691 on 31 December 2018, to 2017. schedule applicable to the federal State, communities, which corresponds to the interest received since 2005. As long regions and the common community commission. Although as no legal allocation of the balance of the fund is available, it The subtotal of operating expenses decreased overall by a postponement means that this law will not come into effect cannot be closed and the CREG will continue to manage it. 3.2% compared to 2017, primarily as a result of the decrease until 1 January 2019, the CREG has continued to use this in costs for external experts to, e.g., carry out studies, for method of accounting. the communication service and translations. On the other
CREG Annual report 2018 99 5. The CREG
The following tables provide a summary of the budget accounts outstanding differentiated appropriations as of 31 December for expenditure and revenue. 2018 amounted to €760,076. All these differentiated appropriations will affect the general accounting results when Table 16: Summary of the 2018 budget accounts in expenditure (€) they are cleared/covered. (Source: CREG) Table 17: Summary of the 2018 budget accounts in revenue (€) Budget 14,952,254 (Source: CREG) Commitments 14,938,438 Clearances 14,448,395 Budget 13,597,504 Differentiated appropriations 490,043 Entitlements 14,760,920 Clearances 14,760,920
The CREG budget for 2018 was set at €14,952,254. Commitments for a total amount of €14,938,438 therefore Overall, the CREG's revenue for 2018 was 8.6% higher than correspond to 99.91% of the budget. expected.
Differentiated appropriations from previous years still open at the end of the financial year 2018 amounted to €270,033 (ICT infrastructure, studies, legal advice, recruitment, communication service and training). With €490,043 of differentiated appropriations for the financial year 2018, all
100 CREG Annual report 2018 5. The CREG
Table 18: Summary of the 2018 budget accounts in expenditure (€) (Source: CREG)
2018 2017 Personnel costs 12 183,030 12 334,198 Salaries and charges 11,970,924 11,846,061 Variation provisions for indemnities for outgoing Members of the Board of Directors -70.218 117,589 Variation in provisions for holiday bonuses -74,386 9,219 Temporary staff 0 0 Recruitment costs 16,852 4,120 Training, seminars 66,755 61,019 Leasing, company cars 273,104 296,189 Bodies 29,567 24,115 Remuneration of Gas and Electricity Advisory Board 29,567 24,115 "Personnel costs" sub-total 12,212,597 12,358,313 External experts 462,127 582,014 External studies 151,190 240,775 Communication service 54,678 167,713 Translators, Auditor, Social Secretariat 104,428 117,914 Legal fees relating to lawsuits 151,831 55,612 General costs 1,870,342 1,812,759 Rent and charges for premises 828,560 778,065 Parking facilities 70,676 66,542 Building maintenance and security 125,821 135,191 Equipment maintenance and servicing 145,745 145,696 Documentation 142,129 136,104 Telephone, post, Internet 40,578 38,411 Office supplies 7,334 11,802 Meetings and representation costs 94,586 98,641 Travel expenses (including abroad) 71,416 75,235 Membership of associations 44,051 43,330 Insurance, taxes and sundry costs 299,448 284,462 Amortisations 208,939 217,294 Depreciation on tangible fixed assets 208,939 217,294 Financial costs 6,388 17,165 Other 6,388 6,473 Transfer to irrecoverable funds and federal contributions 0 10,692 "Other operating costs" sub-total 2,547,796 2,629,233 TOTAL CHARGES 14,760,393 14,987,545 Income (surcharges and fees) 14,725,017 14,554,291 Federal contribution electricity and natural gas 15,913,215 15,906,026 Transfer of irrecoverable funds - natural gas and electricity 19,069 6,280 Gas suppliers' adjustment, year n-1 0 0 CREG adjustment - electricity, year n -171,758 -295,069 CREG adjustment - natural gas, year n -1,047,510 -1,077,945 Other fees 12,000 15,000 Financial income 58 439 Income from current assets 58 436 Other financial income 0 3 Extraordinary income 35,318 432,815 Other extraordinary income 35,318 432,815 TOTAL INCOME 14,760,393 14,987,545 RESULT FOR THE FINANCIAL YEAR 0 0
CREG Annual report 2018 101 5. The CREG
Table 19: Balance sheet as of 31 December 2018 (€) (Source: CREG)
ASSETS 2018 2017 FIXED ASSETS Intangible and tangible fixed assets 311,277 310,233 Building refurbishment 94,537 93,849 Furniture and vehicles 58,976 54,671 IT and telephone equipment 157,764 161,713 Financial fixed assets 295 295 Various guarantees 295 295 CURRENT ASSETS Amounts receivable within one year 614,210 248,409 Trade receivables 19,996 7,780 Other amounts receivable 0 -15 Funds receivables 594,214 240,644 Cash at bank and in hand 199,651,041 189,421,768 The CREG Fund 8,807,195 9,123,471 Social Energy Fund 27,356,045 25,683,077 Greenhouse Gas Fund 44,084,002 47,683,911 Denuclearisation Fund 203,243 9,166 Kyoto JI/CDM Fund 14,972,767 14,972,767 Protected Customers Fund - Electricity 31,315,679 20,584,033 Protected Customers Fund - Natural Gas 36,501,251 43,061,597 Municipalities Fund 578,691 578,691 Heating Grant Fund 24,404,014 24,404,014 Federal Contribution Fund 18 0 Electricity Degressivity Fund 2,729,870 863,730 Offshore Degressivity Fund 7,060,929 58,857 Natural Gas Degressivity Fund 1,106,797 2,189,951 Irrecoverable Fund - Electricity 367,744 122,930 Irrecoverable Fund - Natural Gas 161,213 84,486 Cash 1,584 1,087 Accruals 393,515 393,968 TOTAL ASSETS 200,970,339 190,374,672
102 CREG Annual report 2018 5. The CREG
LIABILITIES 2018 2017 EQUITY Profit brought forward 1,314,222 1,314,222 CREG sector reserve 2,242,838 2,242,838 Electricity 1,547,558 1,547,558 Gas 695,280 695,280 PROVISIONS Compensation for outgoing members of the Board of Directors 471,767 541,985 Other provisions 0 0 AMOUNTS PAYABLE Amounts payable within one year 5,505,036 5,737,774 Trade debts 2,964,933 3,120,355 Taxes, salaries and social charges payable 2,540,103 2,617,420 Various debts 191,436,476 180,537,853 Social Energy Fund 27,436,625 25,720,871 Greenhouse Gas Fund 44,074,002 47,683,970 Denuclearisation Fund 270,074 9,391 Kyoto JI/CDM Fund 14,972,767 14,972,767 Protected Customers Fund - Electricity 31,426,688 20,584,033 Protected Customers Fund - Natural Gas 36,632,804 43,135,446 Municipalities Fund 578,691 578,691 Heating Grant Fund 24,404,014 24,404,014 Federal Contribution Fund 18 0 Electricity Degressivity Fund 2,729,870 863,730 Offshore Degressivity Fund 7,060,929 58,857 Natural Gas Degressivity Fund 1,106,797 2,189,951 Irrecoverable Fund - Electricity 517,578 218,085 Irrecoverable Fund - Natural Gas 215,620 118,047
Deferrals and accruals 0 0 TOTAL LIABILITIES 200,970,339 190,374,672
CREG Annual report 2018 103 5. The CREG
5.7.4. Auditor’s report on the annual accounts of the Basis for unqualified opinion Responsibilities of the auditor for the audit of the annual Commission for Electricity and Gas Regulation We have conducted our audit in accordance with International accounts (CREG) for the year ended 31 December 2018 Standards on Auditing (ISAs) as applicable in Belgium. Our Our objectives are to obtain reasonable assurance about responsibilities under those standards are further described whether the annual accounts as a whole are free from In accordance with the assignment entrusted to us by the in the section “Responsibilities of the auditor for the audit of material misstatement, whether due to fraud or error, and to Management Board pursuant to Article 31, §1 of the internal the annual accounts” of our report. We have complied with issue an auditor’s report that includes our opinion. Reasonable rules dated 4th December 2015 of the Commission for all the ethical requirements that are relevant to the audit assurance is a high level of assurance, but is not a guarantee Electricity and Gas Regulation (in short “the Commission”), we of annual accounts in Belgium, including those relating to that an audit conducted in accordance with ISAs will always hereby present our statutory auditor’s report. It includes our independence. detect a material misstatement when it exists. Misstatements report on the audit of the annual accounts as well as our report can arise from fraud or error and are considered material if, on the other legal and regulatory requirements. These reports We have obtained from the Management Board and individually or in the aggregate, they could reasonably be form part of an integrated whole and are indivisible. Commission officials the explanations and information expected to influence the economic decisions of users taken necessary for performing our audit. on the basis of these annual accounts. We were appointed in our capacity as auditors by the Management Board on 9 March 2018. We have performed We believe that the audit evidence we have obtained is As part of an audit in accordance with ISAs, we exercise the legal audit of the Commission’s annual accounts for 19 sufficient and appropriate to provide a basis for our opinion. professional judgment and maintain professional skepticism consecutive years. throughout the audit. We also: Responsibilities of the Management Board for the Report on the audit of the annual accounts annual accounts • identify and assess the risks of material misstatements of The Management Board is responsible for the preparation of the annual accounts, whether due to fraud or error, design Unqualified opinion annual accounts that give a true and fair view in accordance and perform audit procedures responsive to those risks, We have audited the annual accounts of the Commission, with the financial reporting framework applicable in Belgium, and obtain audit evidence that is sufficient and appropriate which comprise the balance sheet as at 31 December 2018 and for such internal control as the Management Board to provide a basis for our opinion. The risks of not detecting and the profit and loss account for the year then ended. The determines is necessary to enable the preparation of annual a material misstatement resulting from fraud is higher than balance sheet total amounts to 200,970,339 EUR and the accounts that are free from material misstatement, whether for one resulting from error, as fraud may involve collusion, profit and loss account stands at 0 EUR, in accordance with the due to fraud or error. forgery, intentional omissions, misrepresentations or Royal Decrees of 24 March 2003 and of 2 April 2014 relating override of internal control; to the financing of the Commission, with the total income and In preparing the annual accounts, the Management Board • obtain an understanding of internal control relevant to charges standing at 14,760,393 EUR. is responsible for assessing the Commission’s ability to the audit in order to design audit procedures that are continue as a going concern, disclosing, as applicable, appropriate in the circumstances, but not for the purpose In our opinion, the annual accounts give a true and fair view matters related to going concern and using the going of expressing an opinion on the effectiveness of the entity’s of the Commission’s net equity and financial position as at concern basis of accounting unless the Management Board internal control; 31 December 2018, as well as of its results for the year then has no realistic alternative but to do so. • evaluate the appropriateness of accounting policies used ended, in accordance with the financial reporting framework and the reasonableness of accounting estimates and applicable in Belgium. related disclosures made by the Management Board;
104 CREG Annual report 2018 5. The CREG
• conclude on the appropriateness of the Management Responsibilities of the auditor with the Royal Decree of 10 November 2009 fixing the chart Board’s use of the going concern basis of accounting, and, In the context of our mandate and in accordance with of accounts applicable to the federal State, Communities, based on the audit evidence obtained, whether a material the additional standard to the International Standards on Regions and the Joint Community Commission. uncertainty exists related to events of conditions that Auditing (ISAs) applicable in Belgium (as revised in 2018), our may cast significant doubt on the Commission’s ability to responsibility is to verify, in all material aspects, the other continue as a going concern. If we conclude that a material information contained in the annual report, as well as the • As at 31 December 2018, the Commission has entered uncertainty exists, we are required to draw attention in legality, with respect to the “Gas” Act, the “Electricity” Act into commitments for an amount of 760,076 EUR. These our auditor’s report to the related disclosures in the annual as well as their implementing decrees, of the operations to commitments do not appear in the accounts as they don’t accounts or, if such disclosures are inadequate, to modify recognize in the accounts, and to report on these matters. constitute debts. our opinion. Our conclusions are based on audit evidence obtained up to the date of our auditor’s report. However, Aspects concerning the other information contained in the • We have not noted any breaches of the “Electricity” and future events or conditions may cause the Commission to annual report “Gas” Acts or their implementing decrees as regards cease to continue as a going concern; In the context of our audit of the annual accounts, we are transactions booked in the accounts of the Commission. • evaluate the overall presentation, structure and content of also responsible for considering, in particular based on the the annual accounts, including disclosures, and whether knowledge we have obtained during the audit, whether the the annual accounts reflect the underlying transactions and information disclosed in the annual report under the title events in a true and fair view. “CREG finances” contains any material misstatement, i.e. Brussels, 19 February 2019 any information which is inadequately disclosed or otherwise We communicate with the Management Board regarding, misleading. Based on the procedures we have performed, among other matters, the planned scope and timing of the there are no material misstatements we have to report to you. audit and significant audit findings, including any significant deficiencies in internal control that we identify during our We do not express any form of assurance whatsoever on the audit. annual report.
Report on the other legal and regulatory requirements Statement related to independence Our audit firm did not provide services which are incompatible Christian SCHMETZ Responsibilities of the Management Board with the legal audit of the Commission’s annual accounts, as Auditor The Management Board is responsible for the preparation defined by the “Electricity” Act, and we remained independent and the content of the additional information contained in the of the Commission during the terms of our mandate. annual report, as well as for the compliance with the legal and regulatory requirements regarding the bookkeeping of Other statements the Commission and the compliance with the law of 12 April 1965 on the transmission of gaseous and other products • Without prejudice to formal aspects of minor importance, the by pipeline (the “Gas” Act), the law of 29 April 1999 on the accounting records were maintained in accordance with the organization of the electricity market (the “Electricity” Act) general rules of the law of 22 May 2003 on the organization and their implementing decrees. of the budget and the accounting of the federal State and
CREG Annual report 2018 105 5. The CREG
5.8. List of acts drawn up by CREG in 2018
(B)656G/36 ● Décision sur le rapport tarifaire adapté incluant les soldes introduit par la sa Fluxys Belgium concernant l’exercice d’exploitation 2017 12.07.2018 Beslissing over het aangepast tariefverslag met inbegrip van de saldi ingediend door Fluxys Belgium nv met betrekking tot het boekjaar 2017 (B)656G/38 ● Décision sur la redevance d’équilibrage à des fins de neutralité et la valeur du petit ajustement 25.10.2018 Beslissing over de neutraliteitsheffing voor balancering en de waarde van de kleine aanpassing (B)657G/14 ● Décision sur le rapport tarifaire adapté incluant les soldes introduit par la SA Fluxys LNG concernant l’exercice d’exploitation 2017 12.07.2018 Beslissing over het aangepast tariefverslag met inbegrip van de saldi ingediend door de NV Fluxys LNG voor het exploitatiejaar 2017 (B)657G/15 ● Décision sur la proposition tarifaire actualisée de la SA Fluxys LNG pour l’utilisation du terminal méthanier de Zeebrugge 28.06.2018 Beslissing over het geactualiseerd tariefvoorstel van FLUXYS LNG NV voor het gebruik van de LNG-zeeterminal van Zeebrugge (B)658E/49 ● Décision sur la modification d’un des objectifs à atteindre par la SA Elia System Operator en 2018 dans le cadre de l’incitant laissé à la discrétion de la CREG visé à l’article 05.01.2018 27 de la méthodologie tarifaire Beslissing over de wijziging van één van de doelen die Elia System Operator NV in 2018 moet behalen in het kader van de stimulans overgelaten aan het eigen inzicht van de CREG zoals bedoeld in artikel 27 van de tariefmethodologie (B)658E/51 ● Décision relative à la demande d’approbation du rapport tarifaire adapté incluant les soldes introduit par la SA Elia System Operator concernant l’exercice d’exploitation 05.07.2018 2017 Beslissing over de vraag tot goedkeuring van het aangepast tariefverslag met inbegrip van de saldi ingediend door de nv Elia System Operator met betrekking tot het boekjaar 2017 (B)658E/52 ● Décision sur les objectifs à atteindre par Elia en 2019 dans le cadre de l’incitant laissé à la discrétion de la CREG visé à l’article 27 de la méthodologie tarifaire 28.06.2018 Beslissing over de doelen die Elia in 2019 moet behalen in het kader van de stimulans overgelaten aan het eigen inzicht van de CREG zoals bedoeld in artikel 27 van de tariefmethodologie (B)658E/53 ● Décision relative à la demande d’approbation de la proposition tarifaire actualisée en vue d’une modification à partir du er1 novembre 2018 du tarif pour le maintien et la 28.06.2018 restauration de l’équilibre individuel des responsables d’accès, introduite par la SA Elia System Operator Beslissing over de vraag tot goedkeuring van het geactualiseerde tariefvoorstel met het oog op een wijziging vanaf 1 november 2018 van het tarief voor het behoud en herstel van het individueel evenwicht van de toegangsverantwoordelijken, ingediend door de NV Elia System Operator (B)658E/54 ● Décision relative à la demande d’approbation par Elia System Operator du cahier des charges reprenant les critères et modalités du contrôle de l’activité de gestion des 17.09.2018 données de flexibilité de la demande impliquant un transfert d’énergie exercée par le gestionnaire du réseau ainsi que les critères et modalités de sélection de l’auditeur externe Beslissing betreffende de vraag van Elia System Operator tot goedkeuring van het lastenboek met de criteria en modaliteiten van de controle van de uitoefening van de opdracht voor het beheer van vraagflexibiliteitsgegevens met een energieoverdracht door de netbeheerder en van de criteria en modaliteiten voor de keuze van een externe auditor (B)658E/56 ● Décision sur la demande d’approbation de la proposition tarifaire actualisée introduite par la SA Elia System Operator relative aux tarifs pour les obligations de service public 25.10.2018 et aux taxes et surcharges, à l’exception du tarif relatif à la réserve stratégique, d’application à partir du 1er janvier 2019 Beslissing over de vraag tot goedkeuring van het geactualiseerd tariefvoorstel, ingediend door de nv Elia System Operator, met betrekking tot de tarieven voor de openbare diens- tverplichtingen en de taksen en toeslagen, met uitzondering van het tarief voor de strategische reserve, met toepassing vanaf 1 januari 2019 (B)658E/57 ● Décision sur les objectifs à atteindre par la SA Elia System Operator en 2019 dans le cadre de l’incitant à l’intégration du marché visé à l’article 24, § 1er, 2) et § 3 de la 20.12.2018 méthodologie tarifaire Beslissing over de doelstellingen die Elia in 2019 moet behalen in het kader van de stimulans voor de markintegratie zoals bedoeld in artikel 24, § 1, 2) en § 3 van de tariefmethodologie
● Published act.
106 CREG Annual report 2018 5. The CREG
(B)658E/58 ● Décision relative à la demande d’approbation de la proposition tarifaire 2016-2019 actualisée adaptée, soumise par la SA Elia System Operator, visant à permettre la cou- 06.12.2018 verture des coûts liés au Modular Offshore Grid (MOG) Beslissing over de vraag tot goedkeuring van het aangepast geactualiseerd tariefvoorstel 2016-2019, ingediend door de nv Elia System Operator, met het oog op de dekking van de kosten die verband houden met het Modular Offshore Grid (MOG) (B)658E/59 ● Décision relative à la demande d’approbation de la proposition tarifaire actualisée en vue d’une modification à partir du 1er janvier 2019 du tarif pour le financement de 06.12.2018 l’obligation de service publique de la Réserve stratégique, introduite par la SA Elia System Operator Beslissing over de vraag tot goedkeuring van het geactualiseerd tariefvoorstel tot aanpassing vanaf 1 januari 2019 van het tarief voor de financiering van de openbare dienstver- plichting van de strategische reserve, ingediend door de nv Elia System Operator (Z)1109/9 ● Arrêté fixant la méthodologie tarifaire pour le réseau de transport d’électricité et pour les réseaux d’électricité ayant une fonction de transport 29.03.2018 Besluit tot vaststelling van de tariefmethodologie voor het elektriciteitstransmissienet en voor de elektriciteitsnetten met een transmissiefunctie (Z)1109/10 ● Arrêté fixant la méthodologie tarifaire pour le réseau de transport d’électricité et pour les réseaux d’électricité ayant une fonction de transport pour la période régulatoire 28.06.2018 2020-2023 Besluit tot vaststelling van de tariefmethodologie voor het elektriciteits-transmissienet en voor de elektriciteitsnetten met een transmissiefunctie voor de regulatoire periode 2020- 2023 (Z)1110/11 ● Arrêté fixant la méthodologie tarifaire pour le réseau de transport de gaz naturel, l’installation de stockage de gaz naturel et l’installation de GNL pour la période régulatoire 28.06.2018 2020-2023 Besluit tot vaststelling van de tariefmethodologie voor het aardgasvervoersnet, de opslaginstallatie voor aardgas en de LNG-installatie voor de regulatoire periode 2020-2023 (B)1457/1 ● Addenda à la décision (B)1457-CDC-150917 relative à la demande de la SA Fluxys Belgium d’approbation du contrat standard de transport de gaz naturel, du règlement 26.04.2018 d’accès pour le transport de gaz naturel et du programme de transport de gaz naturel modifiés Addendum aan de Beslissing (B)1457-CDC-150917 over de aanvraag van de NV Fluxys Belgium tot goedkeuring van het gewijzigde Standaard Aardgasvervoerscontract, Toegangs- reglement voor aardgasvervoer en Aardgasvervoersprogramma (Z)1664 ● Note - REMIT case N61/2017 11.10.2018 Note - REMIT case N61/2017 (Z)1665 ● Note - REMIT case N17/2016 11.10.2018 Note - REMIT case N17/2016 (B)1691 ● Décision relative à la proposition commune modifiée, formulée par la SA Elia System Operator et tous les gestionnaires de réseau de transport, de méthodologie pour le 21.06.2018 modèle de réseau commun Beslissing over het gemeenschappelijke voorstel van de NV Elia System Operator en alle transmissiesysteembeheerders voor een methodologie voor het gemeenschappelijk netwerkmodel (B)1704 ● Étude pour une proposition de réforme du mécanisme de dégressivité de la cotisation fédérale et de la surcharge offshore 18.01.2018 Studie voor een voorstel tot de hervorming van het mechanisme voor de degressiviteit van de federale bijdrage en de offshore toeslag (Z)1715 ● Note sur les résultats du marché day-ahead en novembre 2017 28.06.2018 Nota over de day-ahead marktresultaten in november 2017 (E)1717 ● Proposition relative à l’octroi d’une autorisation de fourniture d’électricité à Eneco Belgium SA 11.01.2018 Voorstel betreffende de toekenning aan Eneco Belgium NV van een vergunning voor de levering van elektriciteit.
● Published act.
CREG Annual report 2018 107 5. The CREG
(B)1718 ● Arrêté modifiant l’arrêté (Z)141218-CDC-1109/7 fixant la méthodologie tarifaire pour le réseau de transport d’électricité et pour les réseaux d’électricité ayant une fonction 29.03.2018 de transport Besluit tot wijziging van het besluit (Z)141218-CDC-1109/7 tot vaststelling van de tariefmethodologie voor het transmissienet voor elektriciteit en de elektriciteitsnetten met een transmissiefunctie (Z)1719 ● Note relative aux évolutions marquantes sur les marchés de gros belges de l’électricité et du gaz naturel en 2017 25.01.2018 Nota over de opvallende evoluties op de Belgische groothandelsmarkten voor elektriciteit en aardgas in 2017 (E)1720 ● Proposition relative à l’octroi d’une autorisation de fourniture d’électricité à Eni Gas & Power SA 18.01.2018 Voorstel betreffende de toekenning aan Eni Gas & Power NV van een vergunning voor de levering van elektriciteit (Z)1721 ● Note relative à la proposition de « procédure de constitution de la réserve stratégique applicable à l’appel d’offres 2018 » soumise à consultation par la SA Elia System 25.01.2018 Operator Nota over het voorstel van “Procedure voor aanleg van strategische reserve geldig voor de aanbesteding in 2018” dat door de NV Elia System Operator ter consultatie wordt voorgelegd (F)1722 ● Étude sur l’analyse de la méthode de facturation appliquée à la composante énergie électricité et gaz naturel, et des coûts pour les certificats verts et les certificats de 19.04.2018 cogénération pour les clients résidentiels Studie over het in kaart brengen van de toegepaste facturatiemethode van de energiecomponent elektriciteit en aardgas en de kosten voor groenestroom- en warmtekrachtcer- tificaten bij huishoudelijke afnemers (B)1723 ● Décision relative à la demande commune, formulée par Epex Spot Belgium SA, Nord Pool AS et tous les opérateurs du marché de l’électricité désignés, d’approbation des 01.02.2018 produits dont les NEMO peuvent tenir compte dans le processus de couplage unique journalier Beslissing over de gemeenschappelijke goedkeuringsaanvraag van Epex Spot Belgium en Nord Pool AS en alle benoemde elektriciteitsmarktbeheerders voor de producten waar- mee de NEMOs’ rekening kunnen houden bij het eenvormige day-aheadkoppelingsproces (B)1724 ● Décision relative à la demande commune, formulée par Epex Spot Belgium SA, Nord Pool AS et tous les opérateurs du marché de l’électricité désignés, d’approbation des 01.02.2018 produits dont les NEMO peuvent tenir compte dans le processus de couplage unique infra-journalier Beslissing over de gemeenschappelijke goedkeuringsaanvraag van Epex Spot Belgium en Nord Pool AS en alle benoemde elektriciteitsmarktbeheerders voor de producten waar- mee de NEMO’s rekening kunnen houden bij het eenvormige intradaykoppelingsproces (B)1725 ● Décision relative à la demande commune, formulée par Epex Spot Belgium SA, Nord Pool AS et tous les opérateurs du marché de l’électricité désignés, d’approbation 01.02.2018 de la méthodologie en mode dégradé Beslissing over de gemeenschappelijke goedkeuringsaanvraag van Epex Spot Belgium en Nord Pool AS en alle benoemde elektriciteitsmarktbeheerders voor de back-upmethodologie (A)1726 ● Avis relatif à la demande de modification de la concession domaniale octroyée à Northwester 2 SA pour la construction et l’exploitation d’installations de production d’élec- 01.02.2018 tricité à partir des vents dans les espaces marins Advies over de aanvraag tot wijziging van de domeinconcessie voor de bouw en de exploitatie van installaties voor de productie van elektriciteit uit wind in de zeegebieden toe- gekend aan de NV Northwester 2 (E)1727 ● Proposition relative à l’octroi d’une autorisation de fourniture d’électricité à Statkraft Markets GmbH 08.02.2018 Voorstel betreffende de toekenning aan Statkraft Markets GmbH van een vergunning voor de levering van elektriciteit (Z)1728 ● Rapport comparatif des objectifs formulés dans la note de politique générale de la CREG et des réalisations de l’année 2017 26.04.2018 Vergelijkend verslag van de doelstellingen geformuleerd in de algemene beleidsnota van de CREG en van de verwezenlijkingen van het jaar 2017
● Published act.
108 CREG Annual report 2018 5. The CREG
(B)1729 ● Décision relative à la proposition soumise par Interconnector (UK) Limited de contrat d’accès conclu avec IUK, de règlement d’accès d’IUK, de contrat d’utilisateur du 01.03.2018 système, de services de transport de gaz naturel assurés par IUK entre la Grande-Bretagne et la Belgique et de méthode d’enchère implicite et de dérogation aux articles 8, 9, 10, 19 et 37 du règlement (UE) 2017/459 de la Commission du 16 mars 2017 établissant un code de réseau sur les mécanismes d’attribution des capacités dans les systèmes de transport de gaz et abrogeant le règlement (UE) n° 984/2013 Beslissing over het door Interconnector (UK) Limited ingediende voorstel van Toegangsovereenkomst met IUK, Toegangsreglement van IUK, de Systeemgebruikersovereenkomst, de diensten voor het Vervoer van Aardgas verricht door IUK tussen GB en België en de impliciete-veilingsmethode en de afwijking van de artikelen 8, 9, 10, 19 en 37 van de Ve- rordening (EU) 2017/459 van de Commissie van 16 maart 2017 tot vaststelling van een netcode betreffende capaciteitstoewijzingsmechanismen in gastransmissiesystemen en tot intrekking van Verordening (EU) nr. 984/2013 (B)1730 ● Décision relative à la proposition commune modifiée, formulée par la SA Elia System Operator et tous les gestionnaires de réseau de transport appartenant à la région de 22.02.2018 calcul de la capacité Channel, concernant la conception régionale des droits de transport à long terme Beslissing over het gewijzigde gemeenschappelijke voorstel van de NV Elia System Operator en alle transmissiesysteembeheerders van de Channel capaciteitsberekeningsregio voor het regionaal ontwerp inzake langetermijnrechten betreffende transmissie (A)1731 ● Avis relatif à la demande, formulée par la SA Fluxys Belgium, d’autorisation de transport pour une conduite de transport de gaz naturel à haute pression de Maarkedal à 22.02.2018 Ronse Advies over de aanvraag van de NV Fluxys Belgium van een vervoersvergunning voor een hoge druk aardgasvervoersleiding van Maarkedal naar Ronse (B)1732 ● Décision relative à la demande d’approbation de la proposition de la SA Elia System Operator relative à la méthodologie de calcul de la capacité infra-journalière applicable 22.02.2018 aux frontières belges Beslissing over de aanvraag tot goedkeuring van het voorstel van de NV Elia System Operator betreffende de methodologie voor de berekening van de capaciteit in intraday van toepassing op de Belgische grenzen (Z)1733 ● Note sur les données du marché belge du transport de gaz naturel en 2017 - Comparaison avec 2016 15.03.2018 Nota over kerndata voor de vervoersmarkt voor aardgas in België en 2017 - Vergelijking met 2016 (F)1734 ● Étude sur le fonctionnement du marché de gros belge de l’électricité et l’évolution des prix sur ce marché – rapport de suivi 2017 07.06.2018 Studie over de werking van de Belgische groothandelsmarkt voor elektriciteit en de prijsevolutie op deze markt - monitoringrapport 2017 (B)1735 ● 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 19.04.2018 Channel, de règles de nomination pour les programmes d’échange d’électricité entre zones de dépôt des offres Beslissing over de goedkeuringsaanvraag van de NV Elia System Operator voor het voorstel betreffende nominatieregels betreffende schema’s voor de elektriciteitsuitwisseling tussen biedzones (F)1736 ● Étude sur la rentabilité du gaz naturel utilisé en tant que carburant (CNG ou compressed natural gas) pour voitures 29.03.2018 Studie met betrekking tot de rentabiliteit van aardgas gebruikt als brandstof (CNG of compressed natural gas) voor auto's (A)1737 ● Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Eneco Belgium SA 29.03.2018 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Eneco Belgium NV (F)1738 ● Étude sur les composantes des prix de l’électricité et du gaz naturel 29.03.2018 Studie over de componenten van de elektriciteits- en aardgasprijzen (A)1739 ● Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Gazprom Marketing & Trading Limited 29.03.2018 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Gazprom Marketing & Trading Limited
● Published act.
CREG Annual report 2018 109 5. The CREG
(C)1740 ● Proposition d’arrêté royal modifiant l’arrêté du 16 juillet 2002 relatif à l’établissement de mécanismes visant la promotion de l’électricité produite à partir des sources 16.04.2018 d’énergie renouvelables Voorstel tot wijziging van het koninklijk besluit van 16 juli 2002 betreffende de instelling van mechanismen voor de bevordering van elektriciteit opgewekt uit hernieuwbare energiebronnen (B)1741 ● Décision sur les modifications des conditions générales des contrats de responsable d’accès proposées par le gestionnaire du réseau 19.04.2018 Beslissing over de wijzigingen van de algemene voorwaarden van de contracten van toegangsverantwoordelijke, voorgesteld door de netbeheerder (B)1742 ● Décision relative à la proposition adaptée de la SA Elia System Operator portant sur sa participation aux coûts des NEMO désignés en Belgique relatifs à la mise en place, 14.06.2018 la modification et l’exécution du couplage unique journalier et infra-journalier 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 intraday-koppeling (A)1744 ● Avis relatif à la demande, formulée par la SA Fluxys Belgium, d’avenant à l’autorisation de transport 322-259 du 16 janvier 1968 pour le remplacement de la conduite d’ac- 26.04.2018 cès au site de Tessenderlo Chemie dans la Zennestraat à Grimbergen Advies over de aanvraag van de NV Fluxys Belgium voor een bijvoegsel aan de vervoersvergunning 322-259 van 16 januari 1968 voor de vervanging van de toegangsleiding tot de site van Tessenderlo Chemie aan de Zennestraat te Grimbergen. (B)1745 ● 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 26.04.2018 naturel 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 (B)1746 ● Décision relative à la demande d’approbation de la proposition introduite par la SA Balansys de contrat d’équilibrage, de code d’équilibrage et de programme d’équilibrage 26.04.2018 Beslissing over de aanvraag door Balansys NV tot goedkeuring van het balanceringscontract, de balanceringscode en het balanceringsprogramma (B)1747 ● Décision relative à la proposition de la SA Elia System Operator concernant les règles organisant le transfert d’énergie 24.05.2018 Beslissing over het voorstel van de nv Elia System Operator betreffende de regels die de energieoverdracht organiseren (A)1748 ● Avis relatif à la demande de modification de la concession domaniale octroyée, par arrêté ministériel du 12 mai 2015, à la NV Northwester 2 pour la construction et l’exploi- 26.04.2018 tation d’installations de production d’électricité à partir de l’eau, des courants ou des vents dans les espaces marins situés au-dessus du Blighbank Advies over de aanvraag tot wijziging van de domeinconcessie bij ministerieel besluit van 12 mei 2015 toegekend aan Northwester 2 nv voor de bouw en de exploitatie van instal- laties voor de productie van elektriciteit uit water, stromen of winden in de zeegebieden boven de Blighbank (Z)1749 ● Note sur les prix de l’énergie de l’électricité et du gaz naturel pour les clients résidentiels 26.04.2018 Nota over de energieprijzen voor huishoudelijke afnemers van elektriciteit en aardgas (B)1750 ● Décision relative à la demande d’approbation du règlement d’accès GNL modifié pour le terminal GNL de Zeebrugge, du contrat de terminalling de GNL modifié pour les 17.05.2018 services de relivraison de GNL et du programme de terminalling de GNL modifié Beslissing over de aanvraag tot goedkeuring van het gewijzigde LNG toegangsreglement voor de LNG Terminal van Zeebrugge, de gewijzigde LNG Terminalovereenkomst voor LNG Herleveringsdiensten en het gewijzigde LNG Terminalling programma (E)1751 ● Proposition relative à l’octroi d’une autorisation de fourniture d’électricité à Lampiris SA 17.05.2018 Voorstel betreffende de toekenning aan Lampiris SA van een vergunning voor de levering van elektriciteit
● Published act. ● 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.
110 CREG Annual report 2018 5. The CREG
(Z)1752 ● Note sur la réaction à la consultation publique organisée par la SA Elia System Operator au sujet de la méthodologie, des hypothèses et des sources de données pour le 17.05.2018 dimensionnement des volumes de la réserve stratégique pour l’hiver 2019-2020 Nota over de reactie op de openbare raadpleging die de NV Elia System Operator organiseert over de methodologie, hypotheses en gegevensbronnen voor de dimensionering van de volumes voor de strategische reserve voor de winter 2019-2020 (A)1753 ● Avis relatif à la demande de l’ASBL SGS Statutory Services Belgium concernant le renouvellement de l’agrément en tant qu’organisme de contrôle 24.05.2018 Advies over de vraag van de vzw SGS Statutory Services Belgium tot hernieuwing van de erkenning als keuringsinstelling (A)1754 ● Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Ineos Energy Trading Limited 31.05.2018 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Ineos Energy Trading Limited (B)1755 ● Décision relative à la demande d’approbation de la proposition de contrat pour l’achat de certificats verts entre la SA Elia System Operator et la SA Rentel 19.07.2018 Beslissing over de vraag tot goedkeuring van het voorstel van contract voor het aankopen van groenestroomcertificaten tussen de NV Elia System Operator en de NV Rentel (B)1756 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Gaselwest pour la période du 1er janvier 2009 au 31 décembre 2017 14.06.2018 Beslissing over de vaststelling van het door Gaselwest toe te wijzen bedrag aan federale bijdrage elektriciteit voor de periode 1 januari 2009 tot 31 december 2017 (B)1757 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Iverlek pour la période du 1er janvier 2009 au 31 décembre 2017 14.06.2018 Beslissing over de vaststelling van het door Iverlek toe te wijzen bedrag aan federale bijdrage elektriciteit voor de periode 1 januari 2009 tot 31 december 2017 (B)1758 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Iveka pour la période du 1er janvier 2009 au 31 décembre 2017 14.06.2018 Beslissing over de vaststelling van het door Iveka toe te wijzen bedrag aan federale bijdrage voor de periode 1 januari 2009 tot 31 december 2017 (B)1759 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Imea pour la période du 1er janvier 2009 au 31 décembre 2017 14.06.2018 Beslissing over de vaststelling van het door Imea toe te wijzen bedrag aan federale bijdrage voor de periode 1 januari 2009 tot 31 december 2017 (B)1760 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Intergem pour la période du 1er janvier 2009 au 31 décembre 2017 14.06.2018 Beslissing over de vaststelling van het door Intergem toe te wijzen bedrag aan federale bijdrage voor de periode 1 januari 2009 tot 31 december 2017 (B)1761 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Imewo pour la période du 1er janvier 2009 au 31 décembre 2017 14.06.2018 Beslissing over de vaststelling van het door Imewo toe te wijzen bedrag aan federale bijdrage voor de periode 1 januari 2009 tot 31 december 2017 (B)1762 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Sibelgas pour la période du 1er janvier 2009 au 31 décembre 2017 14.06.2018 Beslissing over de vaststelling van het door Sibelgas toe te wijzen bedrag aan federale bijdrage voor de periode 1 januari 2009 tot 31 december 2017 (B)1763 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Inter-Energa pour la période du 1er janvier 2009 au 31 décembre 2017 14.06.2018 Beslissing over de vaststelling van het door Inter-Energa toe te wijzen bedrag aan federale bijdrage voor de periode 1 januari 2009 tot 31 december 2017 (B)1764 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Infrax West pour la période du 1er janvier 2009 au 31 décembre 2017 14.06.2018 Beslissing over de vaststelling van het door Infrax West toe te wijzen bedrag aan federale bijdrage voor de periode 1 januari 2009 tot 31 december 2017 (B)1765 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Iveg pour la période du 1er janvier 2009 au 31 décembre 2017 14.06.2018 Beslissing over de vaststelling van het door Iveg toe te wijzen bedrag aan federale bijdrage voor de periode 1 januari 2009 tot 31 december 2017 (B)1766 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par PBE pour la période du 1er janvier 2009 au 31 décembre 2017 14.06.2018 Beslissing over de vaststelling van het door PBE toe te wijzen bedrag aan federale bijdrage voor de periode 1 januari 2009 tot 31 december 2017
● Published act. ● 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 2018 111 5. The CREG
(A)1767 ● Avis portant sur la demande introduite par la SA Elia Asset en vue de la construction et l’exploitation d’installations pour la transmission d’électricité dans les espaces 24.05.2018 marins sur lesquels la Belgique peut exercer sa juridiction conformément au droit maritime, en l’espèce le Modular Offshore Grid Advies over de aanvraag die Elia Asset nv heeft ingediend voor de bouw en de exploitatie van installaties nodig voor de transmissie van elektriciteit, in de zeegebieden waarin België rechtsmacht kan uitoefenen overeenkomstig het internationaal zeerecht, in casu het Modular Offshore Grid (B)1768 ● Décision finale relative à la fixation du facteur de correction portant sur la 3e période (03.10.2018 – 02.10.2019) pour la détermination du prix minimum des certificats verts 28.06.2018 délivrés pour l’électricité produite par les installations de la concession domaniale de Rentel Beslissing over de vastlegging van de correctiefactor voor de 3de periode (03.10.2018 – 02.10.2019) ter bepaling van de minimumprijs voor de groenestroomcertificaten uitgereikt voor de elektriciteit geproduceerd door de installaties in de domeinconcessie van Rentel (B)1769 ● 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 21.06.2018 Core, d’amendement de la conception régionale des droits de transport à long terme Beslissing over het gemeenschappelijke voorstel van de NV Elia System Operator en alle transmissiesysteembeheerders van de Core capaciteitsberekeningsregio tot wijziging van het regionaal ontwerp inzake langetermijnrechten betreffende transmissie (A)1770 ● 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 répar- 28.06.2018 tition (Doel 3, Doel 4, Tihange 2 et Tihange 3) pour l’année 2017 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 2017 (RA)1771 ● Rapport sur la vérification des revenus et des coûts réels de la centrale nucléaire de Tihange 1 pour la période du er1 janvier 2017 au 31 décembre 2017 conformément à 28.06.2018 la 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 2017 tot 31 december 2017 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)1772 ● Avis sur le caractère manifestement déraisonnable ou non des prix offerts à Elia System Operator SA pour la fourniture de la réserve stratégique en réponse à l’appel 28.06.2018 d’offres de 2018 Advies over het al dan niet manifest onredelijk karakter van de aan Elia System Operator nv aangeboden prijzen voor de levering van de strategische reserve in antwoord op de offerteaanvraag van 2018 (A)1773 ● Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à EDF Luminus SA 14.06.2018 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan EDF Luminus NV (A)1774 ● Avis relatif à la demande de modification de la concession domaniale octroyée, par arrêté ministériel du 20 juillet 2012, à la société momentanée Mermaid pour la construc- 15.06.2018 tion et l’exploitation d’installations de production d’électricité à partir de l’eau, des courants ou des vents dans les espaces marins situés au-dessus du Blighbank Advies over de aanvraag tot wijziging van de domeinconcessie, bij ministerieel besluit van 20 juli 2012, toegekend aan de tijdelijke handelsvennootschap Mermaid voor de bouw en de exploitatie van installaties voor de productie van elektriciteit uit water, stromen of winden in de zeegebieden boven de Blighbank
● Published act. ● 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.
112 CREG Annual report 2018 5. The CREG
(A)1775 ● Avis relatif à la demande de modification de la concession domaniale octroyée, par arrêté ministériel du er1 juin 2012, à l’association commerciale momentanée Seastar 15.06.2018 pour la construction et l’exploitation d’installations de production d’électricité à partir des vents dans les espaces marins situés entre le Lodewijkbank (anciennement Bank zonder Naam) et le Blighbank Advies over de aanvraag tot wijziging van de domeinconcessie, bij ministerieel besluit van 1 juni 2012, toegekend aan de tijdelijke handelsvennootschap Seastar voor de bouw en de exploitatie van installaties voor de productie van elektriciteit uit winden in de zeegebieden tussen de Lodewijkbank (vroeger Bank zonder Naam) en de Blighbank (F)1776 ● Étude sur la fourniture en gaz naturel des grands clients industriels en Belgique 28.06.2018 Studie over de aardgaslevering aan grote industriële klanten in België (A)1777 ● Avis relatif à l’indépendance de madame Anne Leclercq en tant qu’administrateur indépendant de Fluxys Belgium SA 14.06.2018 Advies over de onafhankelijkheid van mevrouw Anne Leclercq als onafhankelijk bestuurder van Fluxys Belgium nv (E)1779 ● Proposition relative à l’octroi d’une autorisation de fourniture d’électricité à la SA Aspiravi Energy 21.06.2018 Voorstel betreffende de toekenning aan Aspiravi Energy nv van een vergunning voor de levering van elektriciteit (F)1781 ● Étude relative aux prix pratiqués sur le marché belge du gaz naturel en 2017 28.06.2018 Studie over de prijzen op de Belgische aardgasmarkt in 2017 (A)1782 ● Avis relatif à la demande de maintien d’une autorisation individuelle de fourniture de gaz naturel à Direct Energie SA 12.07.2018 Advies over de vraag om behoud van een individuele leveringsvergunning voor aardgas aan Direct Energie SA (B)1783 ● Décision relative à la demande d’Interconnector (UK) de dérogation de certains articles du Règlement (UE) 2017/460 de la Commission du 16 mars 2017 établissant un 28.06.2018 code de réseau sur l’harmonisation des structures tarifaires pour le transport du gaz Beslissing betreffende het verzoek van Interconnector (UK) tot ontheffing van de toepassing van bepaalde artikelen van Verordening (EU) 2017/460 van de Commissie van 16 maart 2017 tot vaststelling van een netcode betreffende geharmoniseerde transmissietariefstructuren voor gas (A)1784 ● Avis relatif à la demande de la société momentanée Mermaid de cession à la société anonyme Seastar de la concession domaniale pour la construction et l’exploitation 05.07.2018 d’installations de production d’électricité à partir d’énergie éolienne dans les espaces marins, qui lui a été octroyée par arrêté ministériel du 20 juillet 2012 Advies over de aanvraag door de tijdelijke handelsvennootschap Mermaid tot overdracht aan de naamloze vennootschap Seastar 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 20 juli 2012 (A)1785 ● Avis relatif à la demande de maintien d’une autorisation individuelle de fourniture de gaz naturel à Direct Energie Belgium SA 12.07.2018 Advies over de vraag om behoud van een individuele leveringsvergunning voor aardgas aan Direct Energie Belgium SA (RA)1786 ● Rapport relatif au caractère manifestement déraisonnable ou non des prix offerts à Elia System Operator SA pour la fourniture du service de black start durant la période 05.07.2018 du 1er novembre 2018 au 31 décembre 2020 Verslag betreffende het al dan niet manifest onredelijk karakter van de aan Elia System Operator nv aangeboden prijzen voor de levering van de black-startdienst tijdens de periode van 1 november 2018 tot 31 december 2020 (A)1787 ● Avis relatif à l’octroi d’autorisations individuelles pour la construction d’une installation de production d’électricité (parc solaire) à Lommel par la SA Kristal Solar Park 12.07.2018 Advies betreffende de toekenning van individuele vergunningen voor de bouw van een installatie voor de productie van elektriciteit (zonnepark) in Lommel door de NV Kristal Solar Park (B)1788 ● Décision relative à la fixation du montant visant à couvrir la totalité des coûts du raccordement au Modular Offshore Grid pour la concession domaniale Northwester 2 26.07.2018 Beslissing over de vastlegging van het bedrag ter dekking van de totale kosten van de aansluiting op het Modular Offshore Grid voor de domeinconcessie Northwester 2
● Published act. ● 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 2018 113 5. The CREG
(B)1789 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Sibelga pour la période du 1er janvier 2009 au 31 décembre 2017 18.10.2018 Beslissing over de vaststelling van het door Sibelga toe te wijzen bedrag aan federale bijdrage elektriciteit voor de periode 1 januari 2009 tot 31 december 2017 (B)1790 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Resa pour la période du 1er janvier 2009 au 31 décembre 2017 18.10.2018 Beslissing over de vaststelling van het door Resa toe te wijzen bedrag aan federale bijdrage elektriciteit voor de periode 1 januari 2009 tot 31 december 2017 (B)1791 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Ores Mouscron pour la période du 1er janvier 2009 au 31 décembre 2017 18.10.2018 Beslissing over de vaststelling van het door Ores Mouscron toe te wijzen bedrag aan federale bijdrage elektriciteit voor de periode 1 januari 2009 tot 31 december 2017 (B)1792 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Ores Brabant wallon pour la période du 1er janvier 2009 au 31 décembre 18.10.2018 2017 Beslissing over de vaststelling van het door Ores Brabant wallon toe te wijzen bedrag aan federale bijdrage elektriciteit voor de periode 1 januari 2009 tot 31 december 2017 (B)1793 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Ores Verviers pour la période du 1er janvier 2009 au 31 décembre 2017 18.10.2018 Beslissing over de vaststelling van het door Ores Verviers toe te wijzen bedrag aan federale bijdrage elektriciteit voor de periode 1 januari 2009 tot 31 december 2017 (B)1794 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Ores Luxembourg pour la période du 1er janvier 2009 au 31 décembre 2017 18.10.2018 Beslissing over de vaststelling van het door Ores Luxembourg toe te wijzen bedrag aan federale bijdrage elektriciteit voor de periode 1 januari 2009 tot 31 december 2017 (B)1795 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Ores Est pour la période du 1er janvier 2009 au 31 décembre 2017 18.10.2018 Beslissing over de vaststelling van het door Ores Est toe te wijzen bedrag aan federale bijdrage elektriciteit voor de periode 1 januari 2009 tot 31 december 2017 (B)1796 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Ores Hainaut pour la période du 1er janvier 2009 au 31 décembre 2017 18.10.2018 Beslissing over de vaststelling van het door Ores Hainaut toe te wijzen bedrag aan federale bijdrage elektriciteit voor de periode 1 januari 2009 tot 31 december 2017 (B)1797 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Ores Namur pour la période du 1er janvier 2009 au 31 décembre 2017 18.10.2018 Beslissing over de vaststelling van het door Ores Namur toe te wijzen bedrag aan federale bijdrage elektriciteit voor de periode 1 januari 2009 tot 31 december 2017 (B)1798 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par REW pour la période du 1er janvier 2009 au 31 décembre 2017 18.10.2018 Beslissing over de vaststelling van het door REW toe te wijzen bedrag aan federale bijdrage elektriciteit voor de periode 1 januari 2009 tot 31 december 2017 (B)1799 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Aieg pour la période du 1er janvier 2009 au 31 décembre 2017 18.10.2018 Beslissing over de vaststelling van het door Aieg toe te wijzen bedrag aan federale bijdrage elektriciteit voor de periode 1 januari 2009 tot 31 december 2017 (B)1800 ● Décision relative à la détermination du montant de cotisation fédérale électricité à réaffecter par Aiesh pour la période du 1er janvier 2009 au 31 décembre 2017 18.10.2018 Beslissing over de vaststelling van het door Aiesh toe te wijzen bedrag aan federale bijdrage elektriciteit voor de periode 1 januari 2009 tot 31 december 2017 (C)1801 ● Proposition d’arrêté royal modifiant l’arrêté royal du 16 juillet 2002 relatif à l’établissement de mécanismes visant la promotion de l’électricité produite à partir des sources 19.07.2018 d’énergie renouvelables Voorstel van koninklijk besluit tot wijziging van het koninklijk besluit van 16 juli 2002 betreffende de instelling van mechanismen voor de bevordering van elektriciteit opgewekt uit hernieuwbare energiebronnen (A)1802 ● Avis relatif au projet de plan de développement 2020-2030 de la SA Elia System Operator 12.07.2018 Advies over het ontwerp van ontwikkelingsplan 2020-2030 van de NV ELIA System Operator (Z)1803 ● Note sur l’équilibre du réseau sur le marché du gaz naturel Belux pendant la vague de froid de février-mars 2018 19.07.2018 Nota over de netevenwicht op de Belux aardgasmarkt tijdens de koudegolf van februari-maart 2018
● Published act. ● 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.
114 CREG Annual report 2018 5. The CREG
(RA)1804 ● Rapport relatif à la relation entre les coûts et les prix sur le marché belge du gaz naturel en 2017 19.07.2018 Verslag met betrekking tot de verhouding tussen de kosten en prijzen op de Belgische aardgasmarkt in 2017 (B)1805 ● Décision relative aux modifications des conditions générales des contrats de responsable d’accès proposées par le gestionnaire du réseau 19.07.2018 Beslissing inzake de wijzigingen van de algemene voorwaarden van de contracten van toegangs-verantwoordelijke, voorgesteld door de netbeheerder (B)1806 ● Décision sur la proposition de la SA Elia System Operator concernant l’adaptation des règles de fonctionnement du marché relatif à la compensation des déséquilibres 20.09.2018 quart-horaires – Entrée en vigueur au 01/12/2018 Beslissing over het voorstel van de NV Elia System Operator betreffende de aanpassing van de werkingsregels van de markt voor de compensatie van de kwartieronevenwichten – Inwerkingtreding op 01/12/2018 (B)1807 ● Décision relative à la proposition de la SA Elia System Operator concernant une modification des règles organisant le transfert d’énergie 17.09.2018 Beslissing over het voorstel van Elia System Operator nv betreffende een wijziging van de regels die de energieoverdracht organiseren (B)1808 ● Décision sur la demande d’approbation de la méthode d’évaluation et de la détermination de la puissance de réserve primaire, secondaire et tertiaire pour 2019 18.10.2018 Beslissing over de vraag tot goedkeuring van de evaluatiemethode voor en de bepaling van het primair, secundair en tertiair reservevermogen voor 2019 (A)1809 ● Avis relatif à l’octroi d’autorisations individuelles pour la construction d’une installation de production d’électricité (cogénération) à Kallo par la SA Borealis Kallo 23.08.2018 Advies betreffende de toekenning van individuele vergunningen voor de bouw van een installatie voor de productie van elektriciteit (WKK) in Kallo door de NV Borealis Kallo (B)1810 ● Décision relative à la demande par la société de l’application de la formule de détermination du prix de transfert par défaut pour permettre le transfert d’énergie avec la 20.09.2018 société Beslissing over het verzoek van de onderneming [vertrouwelijk] tot toepassing van de formule voor de bepaling van de standaardoverdrachtsprijs om de energieoverdracht met de onderneming [vertrouwelijk] mogelijk te maken (B)1811 ● Décision relative à la demande par la société de l’application de la formule de détermination du prix de transfert par défaut pour permettre le transfert d’énergie avec la 20.09.2018 société Beslissing over het verzoek van de onderneming [vertrouwelijk] tot toepassing van de formule voor de bepaling van de standaardoverdrachtsprijs om de energieoverdracht met de onderneming [vertrouwelijk] mogelijk te maken (B)1812 ● Décision relative à la demande par la société de l’application de la formule de détermination du prix de transfert par défaut pour permettre le transfert d’énergie avec la 20.09.2018 société Beslissing over het verzoek van de onderneming [vertrouwelijk] tot toepassing van de formule voor de bepaling van de standaardoverdrachtsprijs om de energieoverdracht met de onderneming [vertrouwelijjk] mogelijk te maken (B)1813 ● Décision relative à la demande par la société de l’application de la formule de détermination du prix de transfert par défaut pour permettre le transfert d’énergie avec la 20.09.2018 société Beslissing over het verzoek van de onderneming [vertrouwelijk] tot toepassing van de formule voor de bepaling van de standaardoverdrachtsprijs om de energieoverdracht met de onderneming [vertrouwelijk] mogelijk te maken (B)1814 ● Décision relative à la demande d’approbation, soumise par la SA Elia System Operator, de la proposition commune d’adaptation du CWE FBMC approval package par 30.08.2018 l’introduction de la frontière germano-autrichienne et d’une règle minimale de 20% de RAM Beslissing over de goedkeuringsaanvraag van de NV Elia System Operator voor de aanpassing aan de marktkoppeling in de regio CWE naar aanleiding van de integratie van de Duits-Oostenrijkse biedzonegrens en de integratie van de 20% minimum RAM regel
● Published act. ● 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 2018 115 5. The CREG
(F)1815 ● Étude sur l’offre des sociétés coopératives sur le marché belge de l’électricité 25.10.2018 Studie over het aanbod van coöperatieve vennootschappen op de Belgische elektriciteitsmarkt (A)1816 ● Avis relatif à un projet d’arrêté royal établissant un règlement technique pour la gestion du réseau de transport d’électricité et l’accès à celui-ci et remplaçant l’arrêté royal 28.09.2018 du 19 décembre 2002 établissant un règlement technique pour la gestion du réseau de transport d’électricité et l’accès à celui-ci Advies over een ontwerp van koninklijk besluit houdende een technisch reglement voor het beheer van het transmissienet van elektriciteit en de toegang ertoe en tot vervanging van het koninklijk besluit van 19 december 2002 houdende een technisch reglement voor het beheer van het transmissienet van elektriciteit en de toegang ertoe (B)1817 ● Décision relative à la demande par la société de l’application de la formule de détermination du prix de transfert par défaut pour permettre le transfert d’énergie avec la 04.10.2018 société Beslissing over het verzoek van de onderneming [vertrouwelijk] tot toepassing van de formule voor de bepaling van de standaardoverdrachtsprijs om de energieoverdracht met de onderneming [vertrouwelijk] mogelijk te maken (B)1818 ● Décision relative à la demande par la société de l’application de la formule de détermination du prix de transfert par défaut pour permettre le transfert d’énergie avec la 04.10.2018 société Beslissing over het verzoek van de onderneming [vertrouwelijk] tot toepassing van de formule voor de bepaling van de standaardoverdrachtsprijs om de energieoverdracht met de onderneming [vertrouwelijk] mogelijk te maken (B)1819 ● Décision relative à la demande par la société de l’application de la formule de détermination du prix de transfert par défaut pour permettre le transfert d’énergie avec la 04.10.2018 société Beslissing over het verzoek van de onderneming [vertrouwelijk] tot toepassing van de formule voor de bepaling van de standaardoverdrachtsprijs om de energieoverdracht met de onderneming [vertrouwelijk] mogelijk te maken (RA)1820 ● Rapport relatif à la vérification, pour l’année 2017, de l’engagement pris par l’Etat belge afin d’assurer la compatibilité des mesures notifiées pour la prolongation de la durée 06.09.2018 d’exploitation de Tihange 1, Doel 1 et Doel 2 Rapport betreffende de verificatie, voor het jaar 2017, van de toezegging aangegaan door de Belgische Staat, teneinde de verenigbaarheid van de aangemelde maatregelen voor de levensduurverlenging van Tihange 1, Doel 1 en Doel 2, te verzekeren (B)1821 ● Décision relative à la demande d’octroi, formulée par Rentel, de certificats verts pour l’électricité produite par les éoliennes R_A4, R_A5, R_A6, R_A7, R_B2, R_B3, R_B4, 20.09.2018 R_B6, R_B7, R_C2, R_C3, R_C4, R_C5, R_D2, R_D3, R_D5, R_D6, R_E1, R_E2, R_E3, R_F1, R_F2, R_F4, R_F5, R_G1, R_G2, R_G3 et R_G8 Beslissing over de aanvraag van RENTEL voor toekenning van groenestroomcertificaten voor de elektriciteit opgewekt door de windmolens R_A4, R_A5, R_A6, R_A7, R_B2, R_B3, R_B4, R_B6, R_B7, R_C2, R_C3, R_C4, R_C5, R_D2, R_D3, R_D5, R_D6, R_E1, R_E2, R_E3, R_F1, R_F2, R_F4, R_F5, R_G1, R_G2, R_G3 en R_G8 (F)1822 ● Étude relative aux mécanismes de fixation du prix de l’énergie en vigueur en 2017 au sein des contrats de fourniture d’électricité des grands clients industriels d’Electrabel 11.10.2018 SA Studie over de in 2017 geldende prijsvormingsmechanismen in leveringscontracten voor elektriciteit van de grote industriële afnemers van Electrabel nv (F)1823 ● Étude relative aux mécanismes de fixation du prix de l’énergie en vigueur en 2017 au sein des contrats de fourniture d’électricité des grands clients industriels d’EDF 29.11.2018 Luminus sa Studie over de in 2017 geldende prijsvormingmechanismen in leveringscontracten voor elektriciteit van de grote industriële afnemers van EDF Luminus nv
● Published act. ● 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.
116 CREG Annual report 2018 5. The CREG
(A)1824 ● Avis relatif à la nécessité de renouveler l’autorisation de production individuelle octroyée à la SA T-Power pour la construction d’une installation de production d’électricité 06.09.2018 à Tessenderlo après l’acquisition de l’ensemble des parts par la SA Tessenderlo Group Advies betreffende de noodzaak van vernieuwing van de individuele productievergunning toegekend aan de NV T-Power voor de bouw van een installatie voor de productie van elektriciteit in Tessenderlo na de verwerving van alle aandelen door de NV Tessenderlo Group (B)1825 ● Décision sur la proposition commune, formulée par la SA Elia System Operator et tous les gestionnaires de réseau de transport de la zone synchrone d’Europe continen- 12.09.2018 tale, relative à la détermination des blocs RFP Beslissing over het gemeenschappelijke voorstel van de NV Elia System Operator en alle transmissiesysteembeheerders van de Synchrone zone Continentaal Europa inzake de bepaling van de LFC-blokken (A)1826 ● Avis relatif à la nécessité de renouveler l’autorisation de production individuelle octroyée à la SA RWE Generation Belgium pour la construction d’une installation de pro- 06.09.2018 duction d’électricité à Zwijndrecht après l’acquisition de l’ensemble des parts par INEOS Oxide Limited Advies betreffende de noodzaak van vernieuwing van de individuele productievergunning toegekend aan de NV RWE Generation Belgium voor de bouw van een installatie voor de productie van elektriciteit in Zwijndrecht na de verwerving van alle aandelen door INEOS Oxide Limited (F)1827 ● Étude relative aux achats groupés sur le marché de détail de l’électricité et du gaz naturel 18.10.2018 Studie over groepsaankopen binnen de kleinhandelsmarkt voor elektriciteit en aardgas (A)1828 ● Avis relatif à la nécessité d’un renouvellement d’une autorisation individuelle de la centrale TGV de Marcinelle suite changement de contrôle de Marcinelle Energie SA 17.09.2018 Advies over de noodzaak van een hernieuwing van een individuele vergunning van de STEG-centrale van Marcinelle ten gevolge van de wijziging van controle door Marcinelle Energie nv (B)1829 ● Décision relative à la proposition commune, de la SA Elia System Operator et de tous les gestionnaires de réseau de transport, de méthodologie pour l’élaboration et la 17.09.2018 sauvegarde des modèles de réseaux communs Beslissing over het gemeenschappelijk voorstel van de NV Elia System Operator en alle transmissiesysteembeheerders voor een methodologie voor het opstellen en opslaan van de gemeenschappelijke netwerkmodellen (B)1830 ● Décision relative à la fixation du montant visant à couvrir les coûts totaux de raccordement au Modular Offshore Grid pour la concession domaniale Mermaid 04.10.2018 Beslissing over de vastlegging van het bedrag ter dekking van de totale kosten van de aansluiting op het Modular Offshore Grid voor de domeinconcessie Mermaid (B)1831 ● Décision relative à la fixation du montant visant à couvrir les coûts totaux de raccordement au Modular Offshore Grid pour la concession domaniale Seastar 04.10.2018 Beslissing over de vastlegging van het bedrag ter dekking van de totale kosten van de aansluiting op het Modular Offshore Grid voor de domeinconcessie Seastar (B)1832 ● Décision relative à la demande de fixation du facteur de correction en vue de déterminer le prix minimal des certificats verts délivrés pour l’électricité produite par les 11.10.2018 installations situées dans la concession domaniale de Northwester 2 pour la première période suivant le financial close Beslissing over de aanvraag tot het vastleggen van de correctiefactor ter bepaling van de minimumprijs voor groenestroomcertificaten uitgereikt voor elektriciteit geproduceerd door de installaties gelegen in de domeinconcessie van Northwester 2 voor de eerste periode na financial close (RA)1833 ● 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 en 2019 28.09.2018 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 spanning in 2019
● Published act. ● 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 2018 117 5. The CREG
(B)1834 ● Décision relative à la demande d’octroi, formulée par Rentel, de certificats verts pour l’électricité produite par les éoliennes R_A1, R_A2, R_A3, R_B1, R_B5, R_C1, R_D1, 25.10.2018 R_D4, R_E4, R_F3, R_G4, R_G5, R_G6 et R_G7 Beslissing over de aanvraag van Rentel voor toekenning van groenestroomcertificaten voor de elektriciteit opgewekt door de windmolens R_A1, R_A2, R_A3, R_B1, R_B5, R_C1, R_D1, R_D4, R_E4, R_F3, R_G4, R_G5, R_G6 en R_G7 (Z)1835 ● Note sur les mesures à prendre à court terme concernant le fonctionnement du marché aux fins de la sécurité d’approvisionnement en électricité pour l’hiver 2018-2019 28.09.2018 Nota over de maatregelen op korte termijn inzake marktwerking met het oog op de bevoorradingszekerheid van elektriciteit voor de winter 2018-2019 (A)1836 ● Avis relatif à un projet d’arrêté royal portant des mesures de sauvegarde en cas de crise d’approvisionnement en électricité du pays 27.09.2018 Advies betreffende een ontwerp van koninklijk besluit houdende beschermingsmaatregelen in geval van crisis op ’s lands elektriciteitsbevoorrading (A)1837 ● Avis relatif à un projet d’arrêté royal modifiant l’arrêté royal du 19 décembre 2002 établissant un règlement technique pour la gestion du réseau de transport de l’électricité 11.10.2018 et l’accès à celui-ci Advies over een ontwerp van koninklijk besluit tot wijziging van het koninklijk besluit van 19 december 2002 houdende een technisch reglement voor het beheer van het transmis- sienet van elektriciteit en de toegang ertoe (B)1838 ● Décision relative à la fixation du facteur de correction portant sur la 3e période (14.12.2018 - 13.12.2019) pour la détermination du prix minimum des certificats verts délivrés 08.11.2018 pour l’électricité produite par les installations de la concession domaniale de Norther Beslissing over de vastlegging van de correctiefactor voor de 3de periode (14.12.2018 – 13.12.2019) ter bepaling van de minimumprijs voor de groenestroomcertificaten uitgereikt voor de elektriciteit geproduceerd door de installaties in de domeinconcessie van Norther (B)1839 ● Décision relative à la demande d’approbation, soumise par la SA Elia System Operator, de la System Operating Policy concernant la compensation entre Elia et Nemo Link 08.11.2018 Beslissing over de goedkeuringsaanvraag van de NV SA Elia System Operator voor de System Operating Policy inzake compensatie tussen Elia en Nemo Link (B)1840 ● Décision relative à la demande par la société de l’application de la formule de détermination du prix de transfert par défaut pour permettre le transfert d’énergie avec la 25.10.2018 société Beslissing over het verzoek van de onderneming [vertrouwelijk] tot toepassing van de formule voor de bepaling van de standaardoverdrachtsprijs om de energieoverdracht met de onderneming [vertrouwelijk] mogelijk te maken (A)1841 ● Avis relatif à la demande de la SA Fluxys Belgium d’autorisation de transport pour le raccordement du client industriel Prayon à Puurs 11.10.2018 Advies over de aanvraag van de NV Fluxys Belgium voor een vervoersvergunning voor de aansluiting van de industriële afnemer Prayon te Puurs (A)1842 ● Avis relatif à la demande de la SA Fluxys Belgium d’avenant à l’autorisation de transport A323-4057 du 22 décembre 2016 pour l’implantation de la station de l’autre côté 18.10.2018 du ring de Bruxelles, la modification de la méthode d’exécution à hauteur de l’avenue Arthur Desangré, du R22 et l’adaptation du tracé dans la rue du Witloof Advies over de aanvraag van de NV Fluxys Belgium voor een bijvoegsel aan de vervoersvergunning A323-4057 van 22 december 2016 voor de inplanting van het station aan de andere kant van de Brusselse Ring, de wijziging van de uitvoeringsmethode ter hoogte van de Arthur Dezangrélaan, de R22 en de aanpassing van het tracé in de Witloofstraat (B)1843 ● Décision relative à la demande par la société de l’application de la formule de détermination du prix de transfert par défaut pour permettre le transfert d’énergie avec la 25.10.2018 société Beslissing over het verzoek van de onderneming [vertrouwelijk] tot toepassing van de formule voor de bepaling van de standaardoverdrachtsprijs om de energieoverdracht met de onderneming [vertrouwelijk] mogelijk te maken
● Published act. ● 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.
118 CREG Annual report 2018 5. The CREG
(B)1844 ● Décision relative à la demande par la société de l’application de la formule de détermination du prix de transfert par défaut pour permettre le transfert d’énergie avec la 25.10.2018 société Beslissing over het verzoek van de onderneming [vertrouwelijk] tot toepassing van de formule voor de bepaling van de standaardoverdrachtsprijs om de energieoverdracht met de onderneming [vertrouwelijk] mogelijk te maken (B)1845 ● Décision relative à la demande par la société de l’application de la formule de détermination du prix de transfert par défaut pour permettre le transfert d’énergie avec la 25.10.2018 société Beslissing over het verzoek van de onderneming [vertrouwelijk] tot toepassing van de formule voor de bepaling van de standaardoverdrachtsprijs om de energieoverdracht met de onderneming [vertrouwelijk] mogelijk te maken (B)1846 ● Décision relative à la proposition de formulaire standard de garantie bancaire applicable dans le cadre du transfert d’énergie soumise par la SA Elia System Operator 29.10.2018 Beslissing over het voorstel van standaardformulier voor de bankwaarborg van toepassing in het kader van de energieoverdracht voorgelegd door de NV Elia System Operator (Z)1847 ● Note relative au marché de gros belge en jour moins un pour l’électricité du 1er au 7 octobre 2018, avec en particulier les résultats du marché pour le 3 octobre 2018 15.10.2018 Nota over de Belgische day-ahead groothandelsmarkt voor elektriciteit van 1 tot 7 oktober 2018, met in het bijzonder de marktresultaten voor 3 oktober 2018 (RA)1848 ● Rapport relatif à l’impact sur les prix de l’électricité de l’indisponibilité des centrales nucléaires en Belgique 12.10.2018 Verslag over de impact op de elektriciteitsprijzen van de onbeschikbaarheid van de kerncentrales in België (C)1849 ● 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 29.11.2018 certificats verts en 2019 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 2019 (A)1850 ● Avis relatif à l’indépendance de madame Sabine Colson en tant qu’administrateur indépendant de Fluxys Belgium SA 25.10.2018 Advies over de onafhankelijkheid van mevrouw Sabine Colson als onafhankelijke bestuurder van Fluxys Belgium NV (Z)1851 ● Note de politique générale pour l’année 2019 24.10.2018 Algemene beleidsnota voor het jaar 2019 (A)1852 ● Avis relatif au projet de décret modifiant le décret du 12 avril 2001 relatif à l’organisation du marché régional de l’électricité et au projet d’arrêté du Gouvernement wallon 18.10.2018 modifiant l’arrêté du Gouvernement wallon du 30 novembre 2006 relatif à la promotion de l’électricité produite au moyen de sources renouvelables ou de cogénération Advies over het ontwerp van decreet tot wijziging van het decreet van 12 april 2001 betreffende de organisatie van de gewestelijke elektriciteitsmarkt en het ontwerp van besluit van de Waalse regering tot wijziging van het besluit van de Waalse Regering van 30 november 2006 ter bevordering van elektriciteit opgewekt met behulp van hernieuwbare energiebronnen of warmtekrachtkoppeling (A)1853 ● Avis relatif à deux projets d’arrêté royaux portant des mesures de sauvegarde en cas de crise d’approvisionnement en électricité du pays 18.10.2018 Advies betreffende twee ontwerpen van koninklijke besluiten houdende beschermingsmaatregelen in geval van crisis op ‘s lands elektriciteitsbevoorrading (B)1854 ● Décision sur les modifications des conditions générales des contrats de responsable d’accès proposées par le gestionnaire du réseau 08.11.2018 Beslissing inzake de wijzigingen van de algemene voorwaarden van de contracten van toegangsverantwoordelijke, voorgesteld door de netbeheerder
● Published act. ● 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 2018 119 5. The CREG
(B)1855 ● Décision relative à la demande par la société de l’application de la formule de détermination du prix de transfert par défaut pour permettre le transfert d’énergie avec la 08.11.2018 société Beslissing over het verzoek van de onderneming [vertrouwelijk] tot toepassing van de formule voor de bepaling van de standaardoverdrachtsprijs om de energieoverdracht met de onderneming [vertrouwelijk] mogelijk te maken (B)1856 ● Décision sur la proposition de la SA Elia System Operator concernant l’adaptation des règles de fonctionnement du marché relatif à la compensation des déséquilibres 30.10.2018 quart-horaires – Entrée en vigueur au 05/11/2018 Beslissing over het voorstel van NV Elia System Operator betreffende de aanpassing van de werkingsregels van de markt voor de compensatie van de kwartieronevenwichten – Inwerkingtreding op 05/11/2018 (B)1857 ● Décision sur la proposition de la SA Elia System Operator concernant l’adaptation des règles de fonctionnement du marché relatif à la compensation des déséquilibres 30.10.2018 quart-horaires – Entrée en vigueur au 01/12/2018 Beslissing over het voorstel van NV Elia System Operator betreffende de aanpassing van de marktwerkingsregels voor de compensatie van de kwartieronevenwichten – Inwer- kingtreding op 01.12.2018 (F)1858 ● Étude sur le monitoring annuel des prix du marché de l’électricité et du gaz naturel pour les ménages et les petits consommateurs professionnels 15.11.2018 Studie over de jaarlijkse monitoring van de prijzen op de elektriciteits- en aardgasmarkt voor gezinnen en kleine professionele verbruikers (Z)1859 ● Note - REMIT case N137/2018 15.11.2018 Note - REMIT case N137/2018 (B)1860 ● Décision relative à la demande de fixation du facteur de correction en vue de déterminer le prix minimal des certificats verts délivrés pour l’électricité produite par les 26.11.2018 installations situées dans la concession domaniale de Mermaid pour la première période suivant le financial close Beslissing over de aanvraag tot het vastleggen van de correctiefactor ter bepaling van de minimumprijs voor groenestroomcertificaten uitgereikt voor elektriciteit geproduceerd door de installaties gelegen in de domeinconcessie van Mermaid voor de eerste periode na financial close (B)1861 ● Décision relative à la demande de fixation du facteur de correction en vue de déterminer le prix minimal des certificats verts délivrés pour l’électricité produite par les 26.11.2018 installations situées dans la concession domaniale de Seastar pour la première période suivant le financial close Beslissing over de aanvraag tot het vastleggen van de correctiefactor ter bepaling van de minimumprijs voor groenestroomcertificaten uitgereikt voor elektriciteit geproduceerd door de installaties gelegen in de domeinconcessie van Seastar voor de eerste periode na financial close (A)1862 ● Avis relatif à la demande de prolongation de la concession domaniale octroyée, par arrêté ministériel du 5 octobre 2009, à la SA Norther pour la construction et l’exploitation 15.11.2018 d’installations de production d’électricité à partir des vents dans les espaces marins situés au sud du Thorntonbank Advies over de aanvraag tot verlenging van de domeinconcessie die, bij ministerieel besluit van 5 oktober 2009, werd toegekend aan Norther NV voor de bouw en de exploitatie van installaties voor de productie van elektriciteit uit winden in de zeegebieden ten zuiden van de Thorntonbank (B)1863 ● Décision relative à la demande d’approbation, formulée par la SA Elia System Operator et tous les gestionnaires de réseau de transport de la région de calcul de la capacité 29.11.2018 Channel, de la proposition commune de procédures de repli Beslissing over de goedkeuringsaanvraag van de NV Elia System Operator en alle transmissiesysteembeheerders van de Channel capaciteitsberekeningsregio voor het ge- meenschappelijk voorstel voor de reserveprocedures (B)1866 ● Décision relative à la demande d’approbation, soumise par la SA Elia System Operator, de règles d’allocation de la capacité journalière au moyen d’enchères fictives 29.11.2018 Beslissing over de goedkeuringsaanvraag van de NV Elia System Operator voor de toewijzingsregels van capaciteit in day-ahead middels schaduwveilingen
● Published act. ● 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.
120 CREG Annual report 2018 5. The CREG
(B)1867 ● Décision relative à la demande d’approbation, formulée par la SA Elia System Operator et tous les gestionnaires de réseau de transport de la région de calcul de la capacité 06.12.2018 Channel, d’une proposition modifiée de méthodologies communes de calcul coordonné de la capacité pour les marchés journaliers et infra-journaliers Beslissing (B) 1867 over de goedkeuringsaanvraag van de NV Elia System Operator en alle transmissiesysteembeheerders van de Channel capaciteitsberekeningsregio voor een gewijzigd voorstel voor de gemeenschappelijke gecoördineerde capaciteitsberekeningsmethodologieën voor de day-ahead en intradaymarkten (A)1868 ● Avis relatif à un projet d’arrêté royal portant des mesures de sauvegarde en cas de crise d’approvisionnement en électricité du pays 20.11.2018 Advies betreffende een ontwerp van koninklijk besluit houdende beschermingsmaatregelen in geval van crisis op ‘s lands elektriciteitsbevoorrading (B)1869 ● Décision relative à la demande, formulée par la SA Elia System Operator et tous les gestionnaires de réseau de transport de la région de calcul de la capacité Channel, 29.11.2018 d’application d’une approche fondée sur la capacité de transport nette coordonnée Beslissing over het verzoek van de NV Elia System Operator en alle transmissiesysteembeheerders van de Channel capaciteitsberekeningsregio voor een toepassing van een gecoördineerde nettotransmissiecapaciteitsaanpak (B)1870 ● Décision relative à la demande par la société de l’application de la formule de détermination du prix de transfert par défaut pour permettre le transfert d’énergie avec la 13.12.2018 société Beslissing over het verzoek van de onderneming [vertrouwelijk] tot toepassing van de formule voor de bepaling van de standaardoverdrachtsprijs om de energieoverdracht met de onderneming [vertrouwelijk] mogelijk te maken (F)1871 ● Étude relative à la fourniture d’électricité des grands clients industriels en Belgique en 2017 13.12.2018 Studie over de elektriciteitsbelevering van grote industriële klanten in België in 2017 (A)1872 ● Avis relatif à la nécessité d’un renouvellement d’une autorisation individuelle couvrant l’établissement d’une centrale TGV à Manage suite au changement de contrôle de 06.12.2018 Bali Wind SA Advies betreffende de noodzaak tot vernieuwing van de individuele vergunning voor de oprichting van een TGV centrale in Manage ten gevolge van de controlewijziging van Bali Wind SA (A)1873 ● 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 06.12.2018 certaines 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 et fixant les montants prévus pour le financement des passifs nucléaires BP1 et BP2 pour la période 2019-2023 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 financie- ring 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 en ter vaststelling van de bedragen voorzien voor de financiering van de nucleaire passiva BP1 en BP2 voor de periode 2019-2023 (A)1874 ● Avis relatif à la demande de renouvellement de la désignation de la SA Elia System Operator en tant que gestionnaire du réseau de transport d’électricité 20.12.2018 Advies over de aanvraag tot hernieuwing van de aanwijzing van Elia System Operator NV als beheerder van het transmissienet voor elektriciteit (A)1875 ● Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Getec Energie A.G 13.12.2018 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan Getec Energie A.G
● Published act. ● 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 2018 121 5. The CREG
(A)1876 ● Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à European Energy Pooling BVBA 20.12.2018 Advies over de toekenning van een individuele leveringsvergunning voor aardgas aan European Energy Pooling BVBA (B)1877 ● Décision relative à la demande d’approbation de la proposition, formulée par la SA Elia System Operator, de règles et de processus communs et harmonisés pour l’échange 18.12.2018 et l’acquisition de capacités d’équilibrage pour les réserves de stabilisation de la fréquence Beslissing over de aanvraag tot goedkeuring van het voorstel door de NV Elia System Operator voor gemeenschappelijke en geharmoniseerde regels en processen voor de uitwis- seling en inkoop van balanceringscapaciteit voor frequentiebegrenzingsreserves (B)1878 ● Décision relative à la demande d’approbation de la proposition, formulée par la SA Elia System Operator, d’exemption des gestionnaires de réseau de transport concernés 18.12.2018 d’autoriser les fournisseurs de services d’équilibrage à transférer leurs obligations de fournir des capacités d’équilibrage Beslissing over de aanvraag tot goedkeuring van het voorstel voor de vrijstelling van de NV Elia System Operator voor de vrijstelling van de betrokken transmissiesysteembeheer- ders om aanbieders van balanceringsdiensten toestemming te geven hun verplichtingen om balanceringscapaciteit ter beschikking te stellen, over te dragen (B)1879 ● Décision relative à la demande d’approbation de la proposition, formulée par la SA Elia System Operator, d’exemption de l’obligation d’acquérir séparément de la capacité 18.12.2018 d’équilibrage à la hausse et à la baisse pour les réserves de restauration de la fréquence avec activation automatique Beslissing over de aanvraag tot goedkeuring van het voorstel van de NV Elia System Operator voor de vrijstelling van de verplichting om afzonderlijk opwaartse en neerwaartse balanceringscapaciteit aan te kopen voor de frequentieherstelreserves met automatische activering (F)1880 ● Note sur le mécanisme de soutien à la construction de parcs éoliens offshore après 2020 20.12.2018 Nota over het ondersteuningsmechanisme voor de bouw van offshore windmolenparken na 2020 (A)1881 ● Avis relatif à un projet d’arrêté royal imposant à EDF Luminus SA une obligation de service public couvrant le volume et le prix du service réglage de la tension et de la 13.12.2018 puissance réactive du 1er janvier 2019 au 31 décembre 2019 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 2019 tot en met 31 december 2019 (A)1882 ● Avis relatif à un 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 puis- 13.12.2018 sance réactive du 1er janvier 2019 au 31 décembre 2019 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 2019 tot en met 31 december 2019 (A)1883 ● Avis relatif à un projet d’arrêté royal imposant à RWE Supply & Trading GmbH une obligation de service public couvrant le volume et le prix du service réglage de la tension 13.12.2018 et de la puissance réactive du 1er janvier 2019 au 31 décembre 2019 inclus Advies over een ontwerp van koninklijk besluit houdende oplegging van een openbare dienstverplichting aan RWE Supply & Trading GmbH tot dekking van het volume en de prijs voor de dienst regeling van de spanning en het reactief vermogen vanaf 1 januari 2019 tot en met 31 december 2019 (A)1884 ● Avis relatif à un 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 13.12.2018 réactive du 1er janvier 2019 au 31 décembre 2019 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 2019 tot en met 31 december 2019 (A)1886 ● Avis relatif à un projet d’arrêté royal portant des mesures de sauvegarde en cas de crise d’approvisionnement en électricité du pays 19.12.2018 Advies betreffende een ontwerp van koninklijk besluit houdende beschermingsmaatregelen in geval van crisis op ‘s lands elektriciteitsbevoorrading
● Published act. ● 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.
122 CREG Annual report 2018 Responsible Editor Koen LOCQUET Rue de l’Industrie 26-38 1040 Brussels
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