Federal Parliament approves measure to reduce electricity bill burden on energy-intensive firms

Currently, Belgian companies with high electricity consumption pay significantly more than their counterparts in neighbouring countries. This puts them at a competitive disadvantage. The aim of the energy standard is to address this while also drawing industry into the energy transition.

The energy standard entails a structural reduction in electricity transmission tariffs and temporary support through the European Clean Industrial State Aid Framework (CISAF). ​In exchange for investment in projects focused on on decarbonisation, energy efficiency and demand flexibility, companies could receive a targeted discount of up to 50% on the energy component of their electricity bill

A budget of almost 1 billion euro has been set aside for the measure between now and the end of the current legislature. Eligible companies and sectors will be identified on the basis of their consumption profile.

The Federal Energy Minister Mathieu Bihet (Francophone liberal) said on Thursday that "An energy standard has been under discussion for 15 years. This government is taking its responsibility by finally introducing an ambitious and legally robust mechanism to protect the competitiveness of our businesses."

The business federations VBO and Voka reacted positively but stressed that speed of implementation is essential. VBO Chief Executive Pieter Timmermans called on "the Federal Government and the regions, each within their respective remits, to maintain an ambitious pace on this issue."

Voka recommends that priority be given to companies with an annual consumption of up to 25 gigawatt hours, as they face the highest excise duty burden. It also urged that any remaining budget within the energy standard be transferred to the regions as quickly as possible via burden-sharing, and that the tariff methodology be revised without delay.