There are mainly two reasons to explain the high energy prices in Belgium.

Firstly, there is the lack of competition, which makes Belgian prices structurally higher vis-a-vis the neighbouring countries. Electrabel Customer Solutions, a subsidiary of Electrabel, has a market share of 65% on the electricity market and 68% on the natural gas market. One of the most important reasons for this is that Electrabel has a very important share of the production capacity in Belgium (over 80%), thanks to its nuclear plants.

Secondly, we should look at the political structure of the energy market in Belgium. A large part of the energy bill (about 35 to 40%) is a remuneration for the transmission system operator, which are Eandis and Infrax (Flanders), Sibelga (Brussels) and Ores (Wallonia). The largest shareholders of these institutions are the cities and communities in Belgium. Hence it is not remarkable that the legislation is crafted in a particular manner: to benefit these local entities. The Electricity and Gas Regulation Commission (CREG) recently calculated that each year, about 115 million euro is paid in excess to these institutions.

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