annual report 2018 - creg · 6 creg annual report 2018 1. foreword 2018 was characterised by...

Annual report

Commission for Electricity and Gas Regulation

2018

2018Annual report

Table of contents1. Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

2 Key national legislative developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

2.1. Amending the legal framework for the strategic reserve. . . . . . . . . . . . . . . . 10 2.2. Allocation of past balances of the federal contribution . . . . . . . . . . . . . . . . . 11 2.3. Amending the federal support mechanism for offshore wind energy . . . . . 11 2.4. Procedure for the domain concessions for the offshore installations of

electricity transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 2.5. Amending the technical regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

3 The electricity market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

3.1. Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 3.1.1. Electricity generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 3.1.1.1. Electricity generation licences . . . . . . . . . . . . . . . . . . . . . . . . . . .14 3.1.1.2. Electricity generation in the North Sea. . . . . . . . . . . . . . . . . . . . .14 3.1.1.3. Analysis of the support for offshore wind energy. . . . . . . . . . . . .16 3.1.1.4. Commissioning of the Modular Offshore Grid . . . . . . . . . . . . . . .16 3.1.2. Electricity supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3.1.2.1. Supplying customers connected to the transmission system . . . 17 3.1.2.2. Price caps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 3.1.2.3. Trends in and fundamentals of electricity prices . . . . . . . . . . . . .18 3.1.3. Transmission and distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 3.1.3.1. Renewal of the designation, unbundling and certification of the

transmission system operator . . . . . . . . . . . . . . . . . . . . . . . . . . .19 3.1.3.2. Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 3.1.3.3. The closed industrial networks and the traction power network .19 3.1.3.4. Technical operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 3.1.3.5. System tariffs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 3.1.4. Cross-border issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28 3.1.4.1. Access to cross-border infrastructure. . . . . . . . . . . . . . . . . . . . . .28

3.1.4.2. Correlation of the development plan for the transmission system with the development plan for the European network . .32 3.1.4.3. Flow-based market coupling. . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 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 3.1.4.6 The System Operating Policy regarding compensation between

Elia and Nemo Link. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 3.1.4.7. The results of the day-ahead market in November 2017 . . . . . . .35 3.1.4.8. The day-ahead wholesale market from 1 to 7 October 2018 . .35 3.1.4.9. Setting up and storing the common network models . . . . . . . . .36 3.1.4.10. Determining the synchronous zone of continental Europe . .36 3.2. Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 3.2.1. Monitoring of wholesale and retail prices . . . . . . . . . . . . . . . . . . . . . . . . .36 3.2.1.1. CREG studies conducted in 2018 . . . . . . . . . . . . . . . . . . . . . . . . .36 3.2.1.2. Monitoring energy market prices for households and small-scale professional users . . . . . . . . . . . . . . . . . . . . . . . . . . .40 3.2.2. Monitoring of market transparency and openness . . . . . . . . . . . . . . . . . .44 3.2.2.1. Electrical power demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 3.2.2.2. Market share of wholesale generation . . . . . . . . . . . . . . . . . . . .45 3.2.2.3. Energy exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 3.2.2.4. Transparency, REMIT and financial instruments . . . . . . . . . . . . .49 3.2.2.5. Charter of best practices for electricity and gas price comparison websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 3.3. Consumer protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 3.4. Security of supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51 3.4.1. Monitoring the balance between supply and demand . . . . . . . . . . . . . . .51 3.4.2. Verifying the development plan for the transmission system . . . . . . . . .52 3.4.3. Operational security of the grid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52 3.4.4. Investment in cross-border interconnections . . . . . . . . . . . . . . . . . . . . . .53 3.4.5. Measures to cover peak demand and deal with shortfalls . . . . . . . . . . . .54 3.4.5.1. Strategic reserve: winter periods 2018-2019-2020 . . . . . . . . . . .54 3.4.5.2. Access to demand management . . . . . . . . . . . . . . . . . . . . . . . . .55 3.4.5.3. Security of electricity supply for winter 2018-2019 . . . . . . . . . . .56

2 CREG Annual report 2018

4 The natural gas market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57

4.1. Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 4.1.1. Natural gas supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 4.1.1.1. Federal natural gas supply licences . . . . . . . . . . . . . . . . . . . . . . . .58 4.1.1.2. Price caps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 4.1.1.3. Trends in and fundamentals of the natural gas price . . . . . . . . . .59 4.1.2. Transmission and distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 4.1.2.1. Unbundling and certification of the transmission system operator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 4.1.2.2. Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60 4.1.2.3. Technical operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 4.1.2.4. System and LNG tariffs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 4.1.3. Cross-border issues and market integration . . . . . . . . . . . . . . . . . . . . . . .65 4.1.3.1. Access to cross-border infrastructure. . . . . . . . . . . . . . . . . . . . . .65 4.1.3.2. Correlation between the investment plan for the transmission network and the development plan for the European network . . 65 4.1.3.3. Market integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 4.2. Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 4.2.1. Monitoring of wholesale and retail prices . . . . . . . . . . . . . . . . . . . . . . . . .67 4.2.1.1. CREG studies conducted in 2018 . . . . . . . . . . . . . . . . . . . . .67 4.2.1.2. Monitoring energy market prices for households and small professional users. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 4.2.2. Monitoring of market transparency and openness . . . . . . . . . . . . . . . . . .67 4.3. Consumer protection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68 4.4. Security of supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68 4.4.1. Monitoring the balance between supply and demand . . . . . . . . . . . . . . .68 4.4.2. Monitoring TSO investment plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71 4.4.3. Forecasts on future demand, available reserves and additional capacity. 72 4.4.4. Covering peak offtake . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73

5. The CREG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75

5.1. CREG's Board of Directors and staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76 5.2. Gas and Electricity Advisory Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78 5.3. General policy plan, comparative report on the objectives and achievements of the CREG, and the memorandum of the CREG for the attention of the federal elections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80 5.4. Handling questions and complaints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80 5.5. Presentations made by the CREG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81 5.6. The CREG and other authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85 5.6.1. The CREG and the European Commission . . . . . . . . . . . . . . . . . . . . . . . .85 5.6.2. The CREG within ACER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85 5.6.3. The CREG within CEER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88 5.6.4. European Gas Regulatory Forum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91 5.6.5. European Electricity Regulatory Forum . . . . . . . . . . . . . . . . . . . . . . . . . .91 5.6.6. Citizens' Energy Forum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92 5.6.7. Energy Infrastructure Forum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92 5.6.8. The CREG and the other national regulators . . . . . . . . . . . . . . . . . . . . . .92 5.6.9. The CREG and the FSMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93 5.6.10. The CREG and Parliament . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93 5.6.11. The CREG and the regional regulators . . . . . . . . . . . . . . . . . . . . . . . . . .93 5.6.12. The CREG and the competition authorities . . . . . . . . . . . . . . . . . . . . . . .94 5.6.13. The CREG and Belgian universities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95 5.7. The finances of the CREG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95 5.7.1. Federal contribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95 5.7.2. Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97 5.7.3. Accounts 2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99 5.7.4. Auditor’s report on the annual accounts of the Commission for Electricity and Gas Regulation (CREG) for the year ended 31 December 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 5.8. List of acts drawn up by CREG in 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

CREG Annual report 2018 3


LIST OF TABLES

1 Energy offtake by customers connected to the federal transmission system. . . . . . . . . . . . . . . . . . . . 172 Average unweighted imbalance tariff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233 Trends in the tariff burden (not including connection, PSO tariffs, surcharges and VAT) for users of the transmission system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264 Average export and import capacity and average net nomination per year . . . . . . . . . . . . . . . . . . . . . 296 Wholesale market shares in electricity generation capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457 Wholesale market shares in power generated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458 Elia grid load (energy and peak capacity) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 519 Breakdown by plant type of installed capacity connected to the Elia grid . . . . . . . . . . . . . . . . . . . . . . . 51

10 Breakdown by primary energy type of electricity generated in 2018 by plants located on sites connected to the Elia grid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5211 Companies active in 2018 on the Belgian market for transmitting natural gas. . . . . . . . . . . . . . . . . . . . 5812 Breakdown of Belgian natural gas demand by user segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6813 Directorates and staff of the CREG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7714 Members of the Gas and Electricity Advisory Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7915 Overview of presentations made by members of the CREG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8116 Summary of the 2018 budget accounts in expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10017 Summary of the 2018 budget accounts in revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10018 Summary of the 2018 budget accounts in expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10119 Balance sheet as of 31 December 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

LIST OF FIGURES

1 Change in offshore wind power installed capacity per wind farm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 Net generation of offshore green electricity per wind farm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 Average unweighted imbalance tariff and BELPEX DAM price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244 Availability and use of interconnection capacity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295 Impact of the guaranteed availability of 20% of the thermal capacity of the critical branches on trade between different bidding zones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316 Daily congestion rents from market coupling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327 Monthly trends in the price of electricity for a standard household customer . . . . . . . . . . . . . . . . . . . . . 438 Monthly trends in the price of natural gas for a standard household customer . . . . . . . . . . . . . . . . . . . . 439 Monthly trends in the price of electricity for SMEs and the self-employed . . . . . . . . . . . . . . . . . . . . . . . 43

10 Monthly trends in the price of natural gas for SMEs and the self-employed. . . . . . . . . . . . . . . . . . . . . . . 4311 Average monthly load on the Elia grid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4412 Average monthly prices of the daily market for delivery of electricity in the countries of the CWE region. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4713 Average annual prices of the daily market for the supply of electricity in the countries of the CWE region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4714 Average monthly strength of the Epex Spot Belgium market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4815 Energy traded and average price on the intraday exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4816 Comparison of wholesale prices for short-term and long-term contracts . . . . . . . . . . . . . . . . . . . . . . . . . 4917 Changes in the maximum physical load for the interconnections with France and the Netherlands. . . . 5218 Fluxys Belgium's tariff trends for natural gas transmission (entry/exit tariffs for H-gas) . . . . . . . . . . . . . . 6419 Net natural gas transactions between the ZTP* Belgian natural gas market (Belux) and the markets in the neighbouring countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6620 Average annual natural gas price on the day-ahead and year-ahead markets . . . . . . . . . . . . . . . . . . . . . . 6621 Distribution of Belgian H-gas and L-gas demand by user segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6822 Evolution of natural gas consumption per user segment corrected for climate variations . . . . . . . . . . . . 6923 Breakdown of incoming natural gas by entry zone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7024 Composition of the average supply portfolio of suppliers operating in Belgium . . . . . . . . . . . . . . . . . . . 7025 Composition of the average supply portfolio for the Belgian natural gas market. . . . . . . . . . . . . . . . . . . . 7026 Market shares of supply companies in the transmission network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7127 Forecast for demand for natural gas in Belgium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7228 Breakdown of the peak offtake by user segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7329 Breakdown of the sources of natural gas to cover the peak offtake. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73


1. Foreword

Foreword

1


1. Foreword

2018 was characterised by various changes, not least the upheavals in the energy markets: the extended shutdown of several nuclear reactors, the announcement of impending power shortages during the winter, the cessation of the activities of several electricity and natural gas suppliers, significant price developments for electricity, natural gas and CO2, progress in the procedure for adopting the draft laws of the Clean Energy Package, problems with the reimbursement of the generation capacity, etc.

The CREG closely followed the continually changing and sometimes unpredictable events in the energy sector, as well as the repercussions for the Belgian energy markets and customers, through various brainstorming exercises. This was often prompted by pro-active consultation with the various market players or competent authorities, without compromising its objectivity and independence.

Regarding the functioning of the markets and their contribution to security of supply, the CREG formulated a number of recommendations and opinions aimed, inter alia, at increasing not only the generation capacity of electricity in Belgium, but also the import capacity, by implementing a more efficient coupling of the electricity markets (Flow-based Market Coupling) in close cooperation with neighbouring countries. The European process of reflection on building an integrated energy market, in which the CREG actively participates within the CEER and ACER, has been continued,

in order to identify possible anomalies, anticipate changes and determine common operating rules.

In the same vein and in close cooperation with the various parties involved, the CREG regularly sought information on the developments linked to the specific context of Brexit, in order to anticipate the impact of the exit conditions of the United Kingdom, in particular in the context of the IUK interconnection, the Nemo Link interconnection and the coupling between the British market and the markets of the Central-West-European region.

The CREG remains vigilant in protecting the interests of Belgian consumers, both large-scale and small-scale, and as part of its regular monitoring has closely followed the trends in electricity and natural gas prices, including the impact of the unavailability of nuclear power stations on prices, and the impact of prices on the competitiveness of electricity-intensive businesses in particular. Where necessary, this analysis was followed by recommendations or, as may have been the case, proposals for corrective measures, without incurring additional costs for the federal budget, without jeopardising the competitiveness of SMEs and without undermining the purchasing power of households. We also focused on the competitive dynamics of the retail markets in 2018, a year which, for the first time since 2003, was characterised by a drop in the number of active suppliers, who were confronted with

the consequences of a wave of consolidations initiated in the sector since 2016. The competitive development of the wholesale and retail markets remains one of the main priorities of the CREG, in the general interest and in the interest of Belgian consumers.

Through its initiatives and innovative actions, including the CREG SCAN tool, which was consulted more than 387,000 times in 2018, the CREG also aims to ensure that all consumers can benefit from clear and sufficient illuminating information according to their own specific needs. This information must enable them to be proactive and make informed choices in the liberalised energy market, and take full advantage of the opportunities offered by technological innovation and digital development. Indeed, the reality on the ground shows, for example, that almost 18% and 13% of electricity and natural gas consumers respectively have never switched to another electricity or natural gas supplier, despite the fact that the energy markets were liberalised more than ten years ago and that energy is a basic need that directly affects the daily lives of consumers.

2018 was also characterised by various legal developments at the national level relating to the amendment of the legal framework for the strategic reserve, the allocation of the past balances of the federal contribution, the amendment of the federal mechanism for supporting offshore wind energy, and the procedures for domain concessions for the


1. Foreword

offshore electricity transmission installations. Thanks to the know-how of its highly qualified staff, the CREG has made a substantial contribution to the preparatory work on these energy-related issues, which are extremely complex from a technical, economic and legal perspective. In the context of this process and pursuant to the powers entrusted to it, the CREG has made efforts to promote, at its level, an appropriate and balanced regulation that reflects the reality on the ground as much as possible and provides a solution to future challenges.

This same objective is reflected in all the acts approved by the CREG in 2018, which are described in more detail in this activity report.

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 role of the CREG need to be significantly reinforced.

In this context, the CREG will ensure, as it did in the past, that its actions fit within the framework of efficient and effective management of the resources at its disposal, in the name of corporate social responsibility towards consumers, without prejudice to its independence and the smooth implementation of the legal tasks entrusted to it, which will undoubtedly have an even wider scope in the future.

I would like to conclude this foreword by thanking Mrs Marie-Pierre Fauconnier for the professionalism and dynamism she showed during her mandate as Chairwoman of the Board of Directors up to November 2018.

I wish you pleasant reading.

Koen LocquetActing Chairman of the Board of Directors February 2019


2. Key national legislative developments

Key national legislative developments

2



2.1. Amending the legal framework for the strategic reserve

The Law of 30 July 20181 amended the Law of 29 April 1999 on the organisation of the electricity market (hereinafter the 'Electricity Act') in order, firstly, to adapt the legal framework for the strategic reserve, and secondly, to adapt the conditions for withdrawal from and return to the market for electricity generation facilities.

These amendments follow on from the commitments entered into by the Belgian State regarding the notification procedure for the strategic reserve to the European Commission pursuant to Articles 107 and 108 of the Treaty on the Functioning of the European Union and approved by the decision of the European Commission of 7 February 2018.2

The above-mentioned Law of 30 July 2018 starts by extending the notification obligation for operators in the event that electricity generation installations are decommissioned: this obligation now relates to the temporary or permanent decommissioning of any installation with an installed capacity of 5 MW or more, but also to the temporary or permanent structural reduction of the installed capacity by 5 MW or more. The law stipulates that a definitive decommissioning, once it has become effective, will make it impossible to generate electricity, except in the context of the strategic reserve and the provision of a black-start service.

This law also lays down the conditions for the return to the market of generation units that have notified of a temporary decommissioning or a reduction in capacity, whereby a unit that has notified of a permanent decommissioning will no longer be able to return to the market in the future. The return date to the

market will depend on the date that such return was notified, and whether or not the unit in question is included in the strategic reserve, on the understanding that a return to the market cannot disrupt either the calculation of strategic reserve needs, or any ongoing calls to tender.

The provisions of the Electricity Act relating to the strategic reserve were also comprehensively amended by this Law of 30 July 2018.

As regards the preceding analyses, the intention is now for the electricity transmission system operator to consult users of the grid and the CREG on any change in the basic assumptions and methodology used to analyse the national security of the supply situation for the next winter period.

If it proves necessary to set up a strategic reserve, this can now only be set up for one year; the Law of 30 July 2018 has therefore eliminated the possibility of setting up a strategic reserve for a period of up to three years. The volume of the strategic reserve for the next winter period will be calculated by ministerial decree, by 15 January at the latest, but the Law of 30 July 2018 introduced the possibility for the Minister to revise this volume, upwards or downwards, on the basis of the circumstances relating to security of supply. This adjustment must be made no later than 1 September prior to the start of the winter period.

The Law of 30 July 2018 also amends the conditions for participating in the procedure for setting up the strategic reserve, by allowing operators of emergency power groups that can work in islanding3 to participate, and by clarifying the generation units that must participate, under penalty of an administrative fine.

The procedure for assessing whether tenders are manifestly unreasonable and, where appropriate, for imposing prices and volumes has also been comprehensively revised. The following in particular can be highlighted: (i) the obligation imposed on the CREG to publish, no later than the day of the launch of the procedure to set up the strategic reserve, the criteria against which the manifestly unreasonable nature of the tenders will be assessed; (ii) the possibility offered to the CREG going forward, in the context of its analysis, of asking tenderers in the strategic reserve to submit all the information relating to their tenders within a period of seven days; (iii) the possibility for the Directorate-General for Energy of the FPS Economy, SMEs, Self-employed and Energy (hereinafter the "Directorate-General for Energy") to participate as observers in the preparatory work for the 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 price of the tenders considered manifestly unreasonable can be regarded as reasonable; (v) the power of the King to determine a procedure whereby a price imposed for the supply of the strategic reserve by candidates who have submitted an offer deemed manifestly unreasonable can be determined by ministerial decree (this procedure was laid down in the Royal Decree of 13 November 20184).

Finally, it should be noted that the Law of 30 July 2018 contains a number of provisions aimed at specifying the framework within which studies regarding the security of supply must or may be carried out by the transmission system operator. On the one hand, the law now requires the system operator to perform, every two years, an analysis of the needs of the Belgian electricity system in terms of the country's adequacy and flexibility for the next ten 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).



as the methodology used, are determined in collaboration with the Directorate-General for Energy and the Federal Planning Bureau and in consultation with the CREG (Art. 7bis, § 4bis of the Electricity Act). On the other hand, and in addition to the periodic analyses stipulated by the law, a new article 7decies allows the Minister for Energy to request the system operator to carry out all necessary studies regarding the adequacy of the Belgian electricity system. All analyses and studies in this area must now be published, specifically on the website of the Directorate-General for Energy.

2.2. Allocation of past balances of the federal contribution

The Law of 18 March 20185 introduced a new paragraph 4 in Article 21bis of the Electricity Act, which introduces a federal contribution intended to finance certain public service obligations and the costs associated with regulating the electricity market. This adjustment is designed to make it possible to allocate the surpluses of the federal contribution paid between 2009 and 2017 by end customers connected to the distribution system.

To ensure that the federal contribution can cover its needs, only the quantity of electricity passing through the transmission system is taken into account. Based on this, the unit value of the federal contribution is calculated, i.e. the amount that each end customer must pay for each MWh they draw from the grid. However, with the increase in decentralised generation, it became clear that the number of MWh invoiced to end customers was larger than the quantity of electricity passing through the transmission system, which was used as a basis for calculating the amount needed to cover costs by the federal

contribution, meaning that the distribution system operators, who invoice the federal contribution via the suppliers to end customers, collected too much in federal contributions between 2009 and 2017, which needs to be redistributed.

In view of the different practices applied by the various distribution system operators in this respect, the above-mentioned Law of 18 March 2018 stipulates that if the amount of the federal contribution invoiced by a distribution system operator exceeds the amount invoiced to it by the transmission system operator, the difference is allocated by the distribution system operator on the basis of the annual settlements approved by the CREG.

For the years 2018 and subsequent years, the Royal Decree of 24 March 2003 laying down the detailed rules on the federal contribution to the financing of certain public service obligations and the costs associated with the regulation and control of the electricity market, was already amended in 2017 in order to take account of decentralised electricity generation in the context of determining the invoiced amounts of the federal contribution (see Annual Report 2017, page 88).

2.3. Amending the federal support mechanism for offshore wind energy

Through the Royal Decree of 17 August 2018 amending the Royal Decree of 16 July 2002 on the establishment of mechanisms to promote electricity generated from renewable energy sources (Belgian Official Journal of 27 August 2018), the King wanted to determine the procedures to support the concession holders 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.

at the end of October 2017 between the federal government and these domain concession holders, the CREG was tasked with drawing up a proposal for a Royal Decree, which it submitted on 16 April 2018.7 The preliminary draft decree was submitted to the European Commission and a decision to approve it was taken on 27 September 2018.8

In essence, the main changes compared to the previous support mechanism (see Annual Report 2017, page 11) are as follows:- Levelised Cost of Energy (LCOE) set at €79/MWh, whereby the rest of the formula for determining the minimum purchase price for green certificates remains unchanged;

- Mandatory purchase of green certificates for a quantity of electricity which must be determined by ministerial decree, corresponding to 63,000 full load hours and for a maximum period of 17 years from the commissioning of each installation, and in any case until 31 December 2037, except in cases of force majeure;

- Determination of a mechanism of monthly advances, for which the amount is determined in advance by the CREG on the basis of an estimated minimum price and generation volume;

- During the first five years of operation, an additional annual advance is granted if actual generation is lower than estimated (this is to guarantee the revenues of concession holders for the period, in accordance with the agreement);

- Introduction of a settlement system by the CREG to ensure that the support received corresponds to actual generation and the minimum price observed at the time of generation;

- However, for the first five years of operation, one settlement is made at the end of the period and the reimbursement of the excess is carried over to the end of the support period.



2.4. Procedure for the domain concessions for the offshore installations of electricity transmission

Pursuant to Article 13/1 of the Electricity Act, on 1 March 2018 the King approved a decree on the conditions and procedure for the granting of domain concessions to the system operator for the construction and operation of installations for the transmission of electricity, in maritime areas over which Belgium can exercise jurisdiction in accordance with international maritime law (Belgian Official Journal of 8 March 2018). The draft Royal Decree was the subject of two opinions issued by the CREG on 7 July 2016 and 7 September 2017 (see Annual Report 2016, page 14 and Annual Report 2017, page 14).

In the first chapter, the Royal Decree of 1 March 2018 sets out the criteria for granting domain concessions, the requirements for submitting the application, the procedure for processing concession applications and for granting or refusing a concession, the obligations of the concession holder, the conditions for modifying and renewing the concession and the cases for terminating the concession.

Following the amendment of the Electricity Act of 13 July 2017, aimed at establishing a legal framework for the Modular Offshore Grid ('MOG') (see Annual Report 2017, page 10), the Royal Decree of 1 March 2018 also provides the conditions for the transfer, to the transmission system operator, of the administrative permits granted to domain concession holders

for the generation of electricity in maritime areas in which Belgium can exercise jurisdiction, with a view to the entry into force of the MOG. This concerns the authorisation for the laying of cables and the authorisations and licences to carry out certain activities in maritime areas.

Finally, the Royal Decree of 1 March 2018 also contains a chapter regarding the declarations of public utility, in order to grant the transmission system operator the right to place electricity transmission installations in the perimeter of a domain concession for the generation of offshore electricity, or to make direct use of the installations of such a concession holder in order to install transmission installations there. In accordance with Article 24 of the Decision of 1 March 2018, the declaration of public utility provides a statutory easement of public utility. It should also be highlighted that a declaration of public utility is not the only possible way of authorising the system operator to use the domain concession granted to a producer of offshore electricity or of this producer's installations: these modalities can be provided for by a simple agreement between the parties, of which a copy must be sent to the Directorate-General for Energy (cf. Art. 3, §2, 8° of the Decision of 1 March 2018).

2.5. Amending the technical regulations

The Royal Decree of 12 December 20189 amends the provisions of the Royal Decree of 19 December 2002 containing technical regulations for the management of the electricity transmission system and access to it, which relates to the Rescue Code and

the Restoration Code. This Royal Decree was drawn up in the context of the implementation of Commission Regulation (EU) 2017/2196 of 24 November 2017 establishing a network code on electricity emergency and restoration.

In accordance with Article 11 of the Electricity Act, the draft Royal Decree was submitted to the CREG for its opinion, which was given on 11 October 2018.10

From now on, the protection and restoration plans (instead of the rescue code and the restoration code) will be submitted by the transmission system operator for approval by the Minister for Energy, after the opinion of the CREG. If there is no approval, the system operator must submit a new proposal. Previously, the protection and restoration codes were simply drawn up by the system operator.

The Royal Decree of 12 December 2018 also introduces a new Article 315/1 into the technical regulations, which also tasks the Minister for Energy with approving a number of instruments (for example, the "procedures governing the role of the contractual providers of protection services"), thereby implementing the possibility offered by the above-mentioned Regulation 2017/2196 to grant such authorisation power to an entity other than the national regulatory body.

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.


3. The electricity market

The electricity market

3



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.

3.1. Regulation

3.1.1. Electricity generation

3.1.1.1. Electricity generation licences

The construction of installations for electricity generation is subject to the prior granting of an individual permit issued by the Federal Minister for Energy on the advice of the CREG. In this context, the CREG issued five opinions in 2018, of which all five were favourable.11

A ministerial decree of 19 September 2018, published in the Belgian Official Journal of 7 December 2018, grants an individual permit for the construction of a photovoltaic installation for the generation of electricity with a capacity of 75 MW to Kristal Solar Park NV, within the territory of the city of Lommel.

On the other hand, the construction of new Belgian production installations with a net developable capacity of less than or equal to 25 MWe does not require prior ministerial approval, but it is

subject to an obligation of prior notification to the CREG and to the federal Energy Minister or their delegate. In 2018, the CREG received 23 such notifications.

3.1.1.2. Electricity generation in the North Sea

A. Domain concessions for offshore wind energy

During the course of 2018, at the request of the Directorate-General for Energy, the CREG issued five opinions on requests to modify the domain concessions for the construction and operation of installations for the generation of electricity from wind energy in maritime areas.12

At the start of July 2018, at the request of the Directorate-General for Energy, the CREG issued a positive opinion on the transfer of the domain concession from the joint venture Mermaid to Seastar NV.13 By ministerial decree of 18 July 2018 (Belgian Official Journal of 13 August 2018), the domain concession initially granted to the joint venture Mermaid was transferred to Seastar NV.

B. Green certificates, certificates of guarantee of origin and guarantees of origin

• Applications submitted to the CREG

On 19 July 2018, the CREG approved the proposal for a contract for the purchase of green certificates between Elia and Rentel. The obligation to purchase green certificates for electricity generated by offshore wind energy is the object of a contract between the domain concession holder and the system operator.14

Subsequently, on 20 September and 25 October 2018, the CREG approved the applications of Rentel to grant green certificates for electricity generation from the 309 MW offshore wind farm.15 The wind turbines in question meet the conditions for the granting of green certificates for the net generated electricity from the date on which the respective certificates of guarantee of origin for each wind turbine are signed.



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.

In addition, in its decisions of 28 June, 11 October, 8 November and 26 November 2018, the CREG set the minimum price for the green certificates issued for the electricity generated by the installations in the domain concessions of Rentel, Northwester 2, Norther, Mermaid and Seastar16 respectively. In this regard, the CREG examined whether there was a difference between the price of electricity in the contract and an average nominal price that is equal to 90% of the reference price for electricity.

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 The inspection body is responsible for issuing the certificate of guarantee of origin for offshore wind energy generation installations, and for carrying out periodic inspections, at least annually, of conformity of the data included in the guarantee of origin certificate.

• Change in installed capacity in generated offshore wind and green energy

The total installed capacity of offshore wind turbines increased by 308.7 MW in 2018, to 1,186.8 MW. The change in installed capacity since April 2009 is shown in Figure 1.

This increase can be attributed to the completion of the Rentel wind farm on Bligh Bank.

In 2018, all offshore wind farms combined injected 3,305 GWh into the transmission system.

Figure 1: Change in offshore wind power installed capacity per wind farm between April 2009 and December 2018 (Source: CREG)

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Net electricity generation (prior to transformation) from all certified offshore wind farms reached 3,391 GWh in 2018, an increase of almost 18.4% compared to net generation in 2017 (2,864 GWh). This increase is almost entirely due to the commissioning of the Rentel wind farm.

The net monthly generation per domain concession holder is shown in Figure 2. The average load factor in 2018 (generation divided by installed capacity) ranges from a minimum of 15% in July to a maximum of 63% in February.

CREG issues one green certificate per net MWh generated. The green certificates issued for the net generation in 2018 of the four operational offshore wind farms represent an amount of €350,247,917 (compared to €294,722,159 in 2017). The unit cost of subsidising offshore activities via green certificates rose slightly in 2018 to €103.3/MWh, compared with €102.9/MWh in 2017.



C. Guarantees of Origin

The CREG continued to manage the guarantees of origin database in 2018. Via this database, producers of offshore wind energy are issued guarantees of origin, which allow them to export to other European markets. To this end, the CREG has remained an active member of the Association of Issuing Bodies (AIB), an association that manages the hub through which most European databases are connected to each other. In March, the CREG hosted the first general meeting of the year. At the general meeting in September, the AIB approved the audit of the CREG registry. At the technical level, the switch was made to the v71 system. An

account was also opened for Rentel, the new wind farm that became operational in 2018.

3.1.1.3. Analysis of the support for offshore wind energy

In the context of the principle note 'Tendering offshore wind farms from 2020', which was approved by the Council of Ministers on 31 August 2018, the CREG carried out an analysis of the design of the support mechanism and the organisation of tendering in the Belgian context.

The note describes the evolution of the support mechanisms for offshore in Belgium and raises a number of concerns

about their use. Furthermore, an overview is given of the procedures for determining the support and the design of the future support mechanism is discussed in more detail. Finally, various important aspects of the competitive tendering process are discussed.18

3.1.1.4. Commissioning of the Modular Offshore Grid

On 1 March 2018, the Royal Decree was promulgated on the conditions and the procedure for the granting of domain concessions to the system operator for the construction and operation of electricity transmission facilities in the maritime areas over which Belgium has jurisdiction under international maritime law (see point 2.4 of this report). In May 2018, at the request of the Directorate-General for Energy, the CREG issued an opinion on the request from Elia Asset NV with a view to granting such a domain concession. The CREG issued a positive opinion, with a double suspensive condition.19 By Royal Decree of 8 July 2018 (Belgian Official Journal of 20 July 2018), Elia Asset NV was granted a domain concession for the construction and operation of electricity transmission facilities in the maritime areas south of Lodewijkbank.

In accordance with Article 7, §2, paragraph 4 of the Electricity Act, the CREG took various decisions on the amount to cover the total costs of the connection to the Modular Offshore Grid ("MOG") for the offshore wind farms Northwester 220, Mermaid21 and Seastar22. To cover all the financing costs of the installations connected to the Modular Offshore Grid, the CREG decided that the LCOE of Northwester 2 needed to be increased by €12.67/MWh, that of Mermaid by €12.70/MWh 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.

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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).

In 2018, the CREG submitted five proposals for the granting of a permit to the Minister for Energy, in response to requests from Eneco Belgium NV, Eni Gas & Power NV, Statkraft Markets GmbH, Lampiris NV and Aspiravi Energy NV.25

During the course of 2018, the Minister for Energy granted an individual permit for the supply of electricity to Powerhouse BV26, Eneco Belgium BV27, Eni Gas & Power NV28, Statkraft Markets GmbH29, Lampiris NV30 and Aspiravi Energy NV.31

Table 1: Energy offtake by customers connected to the federal transmission system, 2007 to 2018 inclusive (Sources: Elia, CREG)

Suppliers Electrabel NV Other suppliers Total

Access points at01/01/2018 37 50 83*31/12/2018 39 51 86*

Energy offtake (GWh)

2007 12,469 (87.7%) 1,743 (12.3%) 14,2112008 11,470 (84.0%) 2,183 (16.0%) 13,6542009 10,807 (87.6%) 1,526 (12.4%) 12,3332010 12,163 (88.7%) 1,551 (11.3%) 13,7142011 11,693 (90.2%) 1,265 (9.8%) 12,9582012 8,247 (67.0%) 4,069 (33.0%) 12,3162013 7,484 (57.6%) 5,519 (42.4%) 13,0042014 8,598 (62.6%) 5,130 (37.4%) 13,7282015 6,465 (50.6%) 6,318 (49.4%) 12,7832016 4,133 (37.8%) 6,787 (62.2%) 10,9202017 4,947 (43.7%) 6,362 (56.3%) 11,3092018 7,278 (62.1%) 4,442 (37.9%) 11,720

* 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 the total number of access points of all suppliers.

In addition, in accordance with Article 6/2, §1 of the Electricity Act, the CREG submitted a proposal for a Royal Decree to the Minister for Energy in order to set a deadline for the implementation of each part of the MOG and to determine the remuneration system for domain concession holders in the event of the unavailability of the MOG.23 At the request of the Minister for Energy, this proposal amends an earlier proposal that was sent to the Minister on 10 November 2017 (see Annual Report 2017, page 10).

3.1.2. Electricity supply

3.1.2.1. Supplying customers connected to the transmission system

The following table shows the market share of Electrabel and other suppliers regarding net electricity supply24 to major industrial customers connected to the federal transmission system (voltage above 70 kV).

Compared to 2017, the total volume of energy offtake in 2018 by final customers of the transmission system increased by 3.6% (410.9 GWh). After a period of decline, with the low point in 2016, consumption on the transmission system has increased over the past two years.

According to an initial estimate, Electrabel's market share of the transmission system in 2018 would be 62.1%, a level that is rising sharply. Electrabel's market share is recovering

and returning to its 2014 level. In 2018, Electrabel's number of access points remained lower than that of other suppliers, indicating that the average customer of Electrabel is larger than the average customer of other suppliers.

Federal permits for electricity supply to customers connected directly to the transmission system are granted by the Minister for Energy at the proposal of the CREG for a period of five years.



3.1.2.2. Price caps

• For unprotected customers whose supply contract has been terminated

The maximum prices applicable by the distribution system operators to unprotected customers whose supply contract has been terminated (also termed 'dropped customers') are calculated every six months by the distribution system operators and verified by the CREG. They are calculated as follows: price of energy + transmission + distribution + margin.

The CREG is also responsible for monitoring the procedure for calculating the margin.

• For protected household consumers on low incomes or in precarious situations

In accordance with current legislation, the CREG calculated and published the social tariffs applicable from 1 February 2018 to 31 July 2018 and from 1 August 2018 to 31 January 2019 for the supply of electricity to protected household consumers on low incomes or in precarious situations.

The social price cap for the supply of electricity for the period from 1 February 2018 to 31 July 2018 was:- 14.284 euro cent/kWh (€0.14284/kWh) for the single tariff;- 15.102 euro cent/kWh (€0.15102/kWh) for the dual tariff (peak

times);- 11.187 euro cent/kWh (€0.11187/kWh) for the dual tariff (off-

peak times);- 8.288 euro cent/kWh (€0.08288/kWh) for the night-only tariff.

The social price cap for the supply of electricity for the period from 1 August 2018 to 31 January 2019 was:- 14.579 euro cent/kWh (€0.14579/kWh) for the single tariff;- 15.363 euro cent/kWh (€0.15363/kWh) for the dual tariff

(peak times);- 11.550 euro cent/kWh (€0.11550/kWh) for the dual tariff (off-

peak times);- 8.753 euro cent/kWh (€0.08753/kWh) for the night-only tariff.

These tariffs are expressed without VAT, the federal contribution, the connection fee (Wallonia) and the contribution to the energy fund (Flanders). However, the transmission and distribution system tariffs are included.

The CREG also evaluated the amount necessary to finance the protected customers’ electricity fund, which is the basis of calculation of the protected customer component of the federal contribution (see point 5.7.2. of this report).

To this end, and as part of protected customer reimbursements, the CREG publishes the 'reference energy' components for electricity and natural gas twice a year for suppliers and distribution system operators.

3.1.2.3. Trends in and fundamentals of electricity prices

In 2018, the CREG continued its monthly publication of a dashboard informing stakeholders of the important developments in the factors influencing electricity prices.

In the wholesale market, the CREG primarily monitors the changes in a number of key parameters in the setting of the electricity and natural gas prices in the Belgian exchange and neighbouring exchanges (Germany, France and the Netherlands).

For the retail market, the CREG shows, per region, the trends of the all-in price of electricity and natural gas in Belgium, for:- Residential DC electricity customers (3,500 kWh/year, single-

rate meter)- Residential T2 natural gas customers (23,260 kWh/year)- Social customers- Dropped customers- SMEs electricity (50,000 kWh/year, single-rate meter) and- SMEs natural gas (100,000 kWh/year)

The CREG also compares the average all-in price of electricity and natural gas charged in Belgium and the neighbouring countries (Germany, France, the Netherlands and the United Kingdom) to residential DC electricity customers, T2 natural gas customers and SMEs for electricity and natural gas.

Furthermore, every six months the CREG publishes a separate note with the results of the international comparison of energy prices between Belgium and the neighbouring countries (Germany, France, the Netherlands and the United Kingdom). The graphs published by the CREG in this context provide an overview of the various components of the average annual energy bill in the five countries, both for household consumers and for SMEs.

The following are some of the trends observed in 2018 for electricity:- At the beginning of 2018, both the distribution tariffs and the transmission tariffs were modified.

- In the neighbouring countries, no new surcharge was introduced in 2018; existing system tariffs and surcharges, however, were adjusted, as is the case every year.



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.

3.1.3. Transmission and distribution

3.1.3.1. Renewal of the designation, unbundling and certification of the transmission system operator

Following a request for an opinion from the Federal Minister for Energy, on 20 December 2018 the CREG issued a positive opinion on the request for the renewal of the designation of Elia System Operator NV as operator of the transmission system for electricity.32

The interconnector Nemo Link Ltd was certified on 19 February 2018 by the British regulator Ofgem, in the context of the ownership unbundling model, following a positive opinion from the European Commission on 7 February 2018, and was designated by the UK Secretary of State as operator of this infrastructure.

This undersea electricity interconnector between Belgium and the United Kingdom is a joint venture between the Belgian system operator Elia and the British system operator National Grid, and was officially inaugurated on 5 December 2018.

Nemo Link Ltd was designated operator of the British part of the interconnection, while Elia System Operator NV was designated as operator of the Belgian part, in accordance with the Belgian Electricity Act. The CREG closely monitored the certification by Ofgem, its British counterpart, and examined the possible consequences for the certification of Elia System Operator NV. Based on the information provided by Elia to the CREG, on the one hand, and the decision by Ofgem to certify Nemo Link (and the positive opinion of the European Commission), on the other, the Board of Directors of the CREG concluded that this joint venture and the operation of this new interconnector did

not require a revision of the original certification of Elia System Operator NV, and therefore did not require the launch of a (new) certification procedure.

In addition, in accordance with its powers of monitoring compliance with unbundling requirements by the transmission system operator, in 2018 the CREG also monitored various modifications published in connection with the mandates/functions/activities exercised by six directors of Elia System Operator and Elia Asset, in addition to their mandates as directors of Elia System Operator and Elia Asset (see also point 3.1.3.2 below).

3.1.3.2. Corporate governance

The CREG took cognizance of the 2017 activity report of the Corporate Governance Committee of Elia System Operator and Elia Asset in the framework of the monitoring of the application of Articles 9 and 9ter of the Electricity Act and the evaluation of its effectiveness in relation to the objectives of independence and impartiality of the transmission system operator. The CREG asked Elia System Operator to update the composition and internal rules of the advisory committees set up within the Board of Directors, including the newly created Strategic Committee.

The CREG also took cognizance of the report of the compliance officer on compliance with the programme of commitments by Elia System Operator and Elia Asset employees in 2017. The purpose of this programme of commitments is to prevent any discrimination between system users and/or categories of system users.

Finally, in accordance with its powers of monitoring compliance with the Electricity Act, the CREG examined the modifications

announced in connection with the mandates/functions/activities exercised by the directors of Elia System Operator and Elia Asset (see also section 3.1.3.1).

3.1.3.3. The closed industrial networks and the traction power network

On the proposal of the Directorate-General of Energy, and after receiving the opinion from the CREG and the system operator, the Minister for Energy may confer the title of closed industrial network operator, for the part operated at a rated voltage exceeding 70 kV, to a natural or legal person owning a network or having right of use thereof and who has requested that title in accordance with the Electricity Act. Under the same procedure, the Minister may recognise the network as a closed industrial network provided that the regions involved have an opportunity to issue an opinion within sixty days. On 20 December 2018 the Minister for Energy granted such a title, and recognition to five companies and networks.

3.1.3.4. Technical operation

A. Draft amendment of the technical regulations

The Third Energy Package introduced the "European network codes" to develop and enhance the European electricity market.

Since 2015, eight network codes and guidelines have been adopted at European level.

On 17 May 2018, following official consultation, Elia submitted its proposal to amend the federal technical regulations and its proposal for general requirements in terms of compliance with the FPS Economy and the regulators. In particular, these



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.

proposals aim to implement the European network codes RfG33, DCC34 and HVDC35 and to align the text of the federal technical regulations with the eight European network codes and guidelines in the Belgian context. Elia's proposal of 17 May 2018 came about following two years of intensive consultation with market players.

At the start of August 2018, the federal minister responsible for energy asked the CREG to give an opinion on a draft new federal technical regulation to replace the current federal technical regulations established by Royal Decree of 19 December 2002. The CREG issued its opinion on 28 September 2018.36 The CREG noted that this draft royal decree for opinion underwent substantial corrections as a result of the informal cooperation between the departments of the CREG and the Directorate-General for Energy that preceded it. In this opinion, the CREG highlights a number of possible additional improvements to the text. In addition, the CREG recommends that, one year after the entry into force of the new federal technical regulations, the provisions should be evaluated in consultation with stakeholders and revised where necessary, given the length and complexity of this new regulatory text. The new federal technical regulations are normally scheduled for spring 2019.

Pending this completely new regulation, the Directorate-General for Energy requested a second opinion from the CREG in September 2018 in the context of a one-off amendment to the current federal technical regulations of 19 December 2002, specifically to give the federal Minister for Energy the power, following an opinion from the CREG, among others, to approve the system protection plan, the restoration plan, the list of the main system users and the measures to be taken, the list of the main high priority system users and the procedures and conditions for disconnecting and reactivating them, as well as the test plan referred to in the European network code E&R.37

On 11 October 2018, the CREG issued an opinion on the matter.38 The resulting Royal Decree was promulgated on 12 December 201839 and entered into force on the same day (see also point 2.5 of this report).

B. Connection and access

On 21 March 2018, the CREG received a request from Elia for approval to amend the general terms and conditions of the Access Responsible Party contract (ARP contract). These amendments primarily relate to the implementation of the first phase of the energy transfer via a Flexibility Service Provider (FSP), as well as the case of activity of multiple NEMOs in Belgium. They also contain a number of additional

amendments to maintain consistency with the current situation of the Belgian and European system. In its decision, the CREG approves the proposed amendments to the ARP contract, with some additional requests and suggestions for this approval.40

In June 2018, the CREG received a request from Elia for approval to amend the general terms and conditions of the Access Responsible Party contract (ARP contract). The proposed amendments primarily relate to the inclusion of conditions relating to the future offshore interconnection between Belgium and the UK, and the adjustments relating to the use of the baseline for the Strategic Demand Reserves. The CREG decided to approve the proposed amendments.41

In October 2018, the CREG received a request from Elia to approve the amendments to the general terms and conditions of the Access Responsible Party contract (ARP contract). These amendments are necessary to adapt the ARP contract to the extension of the energy transfer for the tertiary reserve markets reserved for the non-CIPU and SDR units and to improve data exchange and automation. The CREG decided to approve the proposed amendments.42

Finally, as regards 2018, we need to mention the announcement on 25 June by Anode-Energie E&E of the suspension of its



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.

activities as Access Responsible Party (ARP) on 27 June 2018. The CREG worked actively with Elia, the regional regulators, the distribution system operators and the suppliers of which Energie E&E was the ARP, in order to limit the consequences of this suspension of activities.

Energie E&E fulfilled three roles: a pioneer role in an ARP pool, the role of ARP in the strict sense for twelve suppliers and the role of energy consumer for these twelve suppliers. The joint action of the above-mentioned actors made it possible to find a solution to enable the suppliers to change ARP, meaning that their activities are not compromised and there is no cascade effect. In addition, in the context of the application of the ARP contract, the CREG ensures that Elia takes all necessary measures to limit the financial impact of unbalanced tariffs on revenues.

C. Balancing and ancillary services

• Reserve capacity

Elia must evaluate and determine the primary, secondary and tertiary reserve capacity that contributes to ensuring the security, reliability and efficacy of the transmission system in the control area. It must send its method of evaluation and the outcome to the CREG for approval.

In August 2018, Elia submitted a request for approval of the method of evaluation and determination of the primary, secondary and tertiary reserve capacity for 2019 to the CREG.

The proposed developments relate to:- updating the data used in the analyses;- ruling out the risk of an offshore storm from the calculation of

blackouts of generation units;- including Nemo Link in the calculation of the forced

shutdowns after commissioning at the beginning of 2019;- applying a confidence level of 99.0%, which is the minimum

value specified by the SOGL regulations;- verifying compliance with the SOGL regulations concerning

the use of a method to reduce the FRR balancing capacity to be contracted;

- removing the reserve requirement from a single ARP and distinguishing between the 'standard system' and the 'global system';

- implementing the assumption of 100% availability for aFRR and mFRR balancing capacity;

- introducing a dynamic method for dimensioning downward FRR needs in accordance with the European SOGL regulations, and of a method for translating downward FRR needs into downward FRR resources.

Following public consultation with the market players, the CREG approved Elia's proposal.43

• Price bids and volumes for ancillary services To ensure the safety, reliability and efficiency of the transmission network, Elia needs to have access to a certain volume of ancillary services at its disposal, on a permanent basis. The procedures in this respect are specified in the technical regulations of 19 December 2002 on the management of the transmission system and access to it.

Under the impetus of the CREG, Elia has made significant efforts in recent years to develop the ancillary services market, in particular for reserve capacity, to reduce prices. For example, Elia organised weekly auctions (FCR44 and aFRR45) and monthly auctions (mFRR46), which allowed more economic operators to participate in the tendering procedures. Since 1 August 2016, Elia has also contracted part of the primary adjustment capacities via a regional auction platform that is also accessible in Germany, Austria, the Netherlands, France and Switzerland.

However, it was clear once again that it is difficult to purchase certain services for the necessary volumes and at reasonable prices. In accordance with Article 12quinquies of the Electricity Act, Royal Decrees imposing price and volume conditions needed to be regularly enacted to ensure the provision of the 'black start service' and the voltage and reactive energy control services for a reasonable price.

Furthermore, in order to keep increases in the costs of ancillary services at a reasonable level, the Electricity Act requires Elia to submit annual reports to the CREG on proposed prices for the supply of ancillary services. The CREG then gives an indication of whether the proposed prices are manifestly unreasonable, and will justify its opinion.

In 2018, the CREG received reports from Elia for tertiary control services, voltage and reactive capacity, as well as for the 'black start'. In its report on the tenders for the black-start47 service, the CREG considered this time that no tender was manifestly unreasonable. On the other hand, in its report on the control service, voltage and reactive capacity,48 the CREG established that the prices of certain selected offers, for each



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.

of these services, were manifestly unreasonable. Accordingly, the Minister for Energy drew up draft Royal Decrees to impose price and volume conditions on the producers concerned and submitted them to the CREG for approval.49

Based on assumptions about the availability and use to be made of ancillary services in 2019, the cost difference between the tenders selected by Elia and the tenders ultimately selected, adapted following the above-mentioned royal decrees promulgated on 20 December, would be around €1 million.

In 2018, weekly auctions were held for primary and secondary control services and weekly reports had to be drawn up by Elia. The CREG noted that, at a constant volume, there was a significant reduction in costs compared with 2017 (-30%). However, this drop could have been larger without the price increase from week 41 onwards (+20% compared to the same period in 2017).

As regards the tertiary reserve, the CREG notes the elimination of the product R3 ICH and the purchase of the entire volume (830 MW) via monthly auctions. The unit costs of the tertiary regulatory capacity increased slightly (+10%) until September 2018 compared to the same period in 2017. However, in the period from October to December, the average price in 2018 was nine times higher than in 2017. In short, over the year as a whole, the average unit cost of tertiary regulatory capacity in 2018 more than tripled compared with 2017.

This change in the prices of the reserve capacity is due, at least in part, to the adequacy problems that arose at the end of the year.

• Balancing

The transmission system operator is responsible for monitoring, maintaining and, if need be, re-establishing the balance between supply and demand for electricity in the control area, inter alia as a result of possible individual imbalances caused by the various Access Responsible Parties. Elia is required to submit a proposal for the market operating rules for offsetting 15-minute imbalances to the CREG for approval.

In November 2017, Elia submitted a proposal for amendment to the market’s operating rules regarding the offsetting of 15-minute imbalances. The proposed developments primarily relate to the conditions for the participation of non-CIPU technical units in the non-reserved tertiary reserve. Following public consultation with the market players, the CREG approved Elia's proposal.50

In July 2018, Elia submitted a proposal for amendment to the market’s operating rules regarding the offsetting of 15-minute imbalances. In addition to several clarifications, the proposed developments relate to the introduction of a price for the offer to activate the reserved tertiary reserve via non-CIPU technical units, changes to the price cap for the activation of the upward tertiary reserves and changes to the techno-economic merit order for the activation of adjustment capacity. Following public consultation with the market players, the CREG approved Elia's proposal.51 These rules entered into force on 1 December 2018.

In October 2018, Elia submitted two proposals for amendment to the market’s operating rules regarding the offsetting of 15-minute imbalances.

The developments proposed in the first proposal relate to the conditions for participation in the unreserved tertiary adjustment capacity of the non-CIPU technical units which are unable to activate the required capacity within 15 minutes, changes relating to the definition of the rising marginal price in the event of activation of a tertiary offer via a CIPU technique in the event of downtime, with a start-up time of more than 15 minutes and how the unit start-up cost as defined in the CIPU contract is integrated into the activation price, clarification of the price caps applicable to the prices of adjustment capacity offers, and changes relating to the techno-economic merit order of the activation of the adjustment capacity. The CREG approved Elia's proposal.52 These rules entered into force on 5 November 2018 and remained in force until 30 November 2018.

The developments proposed in the second proposal relate to the conditions for participation in the unreserved tertiary adjustment capacity of the non-CIPU technical units which are unable to activate the required capacity within 15 minutes, clarifications relating to the definition of the rising marginal price in the event of activation of a tertiary offer via a CIPU technique in the event of downtime, with a start-up time of more than 15 minutes and how the unit start-up cost as defined in the CIPU contract is integrated into the activation price, and changes relating to the techno-economic merit order of the activation of the adjustment capacity. The CREG approved Elia's proposal.53 These rules entered into force on 1 December 2018.



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.

• Exchange and purchase of balancing capacity for the frequency containment reserves

In October 2018, the CREG received a request for approval from Elia and the transmission system operators in the region where balancing capacity for frequency containment reserves is purchased, for common and harmonised rules and processes for the exchange and purchase of balancing capacity for frequency containment reserves.

In consultation with the other regulatory authorities concerned, the CREG decided to approve the proposal.54

In October 2018, the CREG received another request for approval from Elia and the transmission system operators in the region where balancing capacity for frequency containment reserves is purchased. This request for approval relates to the proposal 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.

In consultation with the other regulatory authorities concerned, the CREG decided to approve the proposal.55

• Purchase of balancing capacity for the frequency restoration reserves

In November 2018, the CREG received a request from Elia for approval of the exemption from the obligation to purchase upward and downward balancing capacity separately for the frequency restoration reserves with automatic activation.

The CREG decided to approve the proposal.56

• Valorisation of the generation reserves necessary for the security of the system

In 2018, the CREG continued its work to valorise the scarce generation reserves. A third study on the design of a scarcity pricing mechanism is ongoing and is expected to be completed in early 2019.

• Volumes activated and concentration of bids

In 2018, activations to offset imbalances in the control area fell by 0.1% compared to 2017, totalling 1,092 GWh. The proportion of secondary reserves in these activations reached 46.0% in 2018, compared with 46.3% in 2017 and 46.7% in 2016. This slight decrease is mainly due to the strong increase in the tertiary reserve, which is more than offset by the decrease in the activation of other resources, mainly those of the IGCC, which amounted to 401 GWh in 2018 compared to 427 GWh in 2017.

In 2018, there was an upward activation of 0 MWh and a downward activation of 500 MWh of reserves located abroad by the transmission system operators, while these activations amounted to 3,050 and 2,950 MWh respectively in 2017 (Source: Elia data).

The HHI index for the reserves bid for CIPU units was 3,964 in 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 for all bids for all technologies combined. Eight companies submitted bids for CIPU units (two more than in 2017), 11 for non-CIPU units and 16 for all technologies combined. The slight increase in the HHI index for CIPU units in 2018 is explained by a slight increase in the share of the second largest player EDF Luminus, offset by a decrease in the share of Engie-Electrabel and smaller players.

• Price of offsetting individual imbalances

The imbalance tariff is based on the principle of a single marginal price which takes account of the imbalance of the Access Responsible Party and the direction of the imbalance in the control area.

Table 2 gives an overview of the trend in the average tariff (unweighted) for positive imbalances (injection > offtake) and for negative imbalances (injection < offtake) of the Access Responsible Parties for the period 2007-2018.

Table 2: Average unweighted imbalance tariff during the period 2007-2018 (Source: Elia data)

€/MWh 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

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

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



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.

Figure 3 can be used to compare these average prices with the trend in average prices on the BELPEX/EPEX SPOT day-ahead market over the same period.

D. Time taken by the transmission system operator to carry out connections and repairs

In 2018, the AIT (Average Interruption Time) on the federal transmission system was 18 minutes 19 seconds (compared to 0 minutes 44 seconds in 2017) and the AID (Average

Interruption Duration) was 2 hours 13 minutes 04 seconds (compared to 8 minutes 13 seconds in 2014).

There were 59 incidents on the transmission system in 2018 (42 in 2017). As the transmission system is configured as a grid, such incidents do not usually result in customer supply interruptions. In 58% of cases, automatic reconnection was attempted. These attempts were successful in 70% of cases on the 380 kV and 220 kV systems, and in 83% of cases on the 150 kV network.

In 12 cases, a connection to the federal transmission system was unavailable for more than 24 hours. These connections were unavailable between 1 day and 17 hours, and for more than 187 days (on 31 December 2018 the connection was still unavailable).

Based on these indicators, the availability of the transmission system in 2018 was significantly lower than in previous years.

3.1.3.5. System tariffs

A. The transmission system

a) Tariff methodology

n Regulatory period 2016-2019

In 2018, the CREG needed to adapt the hitherto applicable 2016-2019 tariff methodology, firstly by introducing a legal 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 generation resources.

The amending decree adopted on 29 March 2018,57 following a public consultation, came into force on 18 May 2018, immediately after the CREG had received the express approval of the transmission system operator, Elia System Operator (Elia), as referred to in Article 12, §4 of the Electricity Act, and the approval of the European Commission with regard to the provisions relating to electricity storage.

Injection > offtake Injection < offtake Belpex DAM

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Figure 3: Average unweighted imbalance tariff and BELPEX DAM price during the period 2007-2018 (Sources: Elia and BELPEX/EPEX

SPOT data)

0

10

20

30

40

50

60

70

80

90

€/M

Wh



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.

Finally, since the tariff methodology came into force on 1 January 2016, a significant part of Elia's remuneration now depends on whether a number of objectives, set by the CREG during the course of the regulatory period, have been achieved.The CREG took three decisions in this respect in 2018.

On 5 January and 28 June 2018, the CREG established the objectives to be achieved by Elia in 2018 and 2019 in the context of the incentive subject to the CREG's discretion, as referred to in Article 27 of the tariff methodology 2016-2019.58 The incentive for 2019 aims in particular to promote adequacy between supply and demand.

On 20 December 2018, the CREG also took a decision in this context on the objectives to be achieved by Elia in 2019 as part of the incentive for the measured increase in the interconnection capacity made available in the Belgian control area.59

n Regulatory period 2020-2023

To ensure consistency with the tariff methodology applicable during the regulatory period 2020-2023 for the natural gas transmission system, the natural gas storage facility and the LNG facility (see point 4.1.2.4 of this report), the CREG also anticipated the procedure for the tariff methodology for the electricity transmission system and for the electricity grids with a transmission function.

Laying down the tariff methodology for the above-mentioned regulatory period 2020-2023 required a relatively long process.On 6 February 2018, Elia and the CREG concluded an agreement on the procedure which forms the basis of the

tariff methodology process and which sets out the procedure to be followed to specify the tariff methodology 2020-2023 for the electricity transmission system and the electricity grids with a transmission function, or the adjustment of the tariff methodology in force at the time of signing the agreement. The agreement also lays down the procedure for approving tariff proposals and tariff modifications. Finally, it also stipulates that the decision on the tariff proposal for 2020-2023 must be brought forward to the beginning of November 2019.

On 19 April 2018, a consultation meeting was organised between the CREG and Elia to prepare for the public consultation on the new tariff methodology 2020-2023.

The above-mentioned public consultation of the CREG on the draft decision establishing the tariff methodology ran from 2 to 29 May 2018. The CREG received 3 responses (from ENGIE, FEBEG and FEBELIEC) which were summarised and assessed in a report on the public consultation.60

On 7 June 2018, the CREG submitted its amended draft decision, based on these responses, setting out the tariff methodology to the Chamber of Representatives, which did not have any remarks in this respect.

The CREG adopted the final decision setting out the tariff methodology for the regulatory period 2020-2023 on 28 June 2018.61

This methodology is based on proven principles, which have been refined and supplemented. The regulation is intended to strike the right balance between the quality of the services provided on the one hand, and the prices borne by end

customers and grid users on the other. Elia will use this methodology to submit its tariff proposal. The tariffs will be announced in the course of 2019.

b) Tariff evolution

As detailed in the Annual Report 2015, on 3 December 2015 the CREG approved Elia's tariff proposal for the regulatory period 2016-2019.

However, in order to verify proportionality, non-discriminatory application and compliance with the tariff evolution rules laid down, the tariffs relating to the implementation of public service obligations and the surcharges will be subject to an annual review.

Four tariff modifications were approved in 2018.

On 14 June 2018, the CREG approved Elia's amended proposal on its contribution to the costs of the NEMOs designated in Belgium for establishing, modifying and implementing uniform day-ahead and intraday coupling (see point 3.1.4.5 of this report).

In the context of the commitments made by the Belgian State vis-à-vis the European Commission during the process of notifying the strategic reserve mechanism in the area of State aid, on 28 June 2018 the CREG approved the request for approval of the updated tariff proposal with a view to amending, as from 1 November 2018, the tariff for maintaining and restoring the individual balance of the access responsible parties, submitted by Elia System Operator NV. This relates to an update of the tariff which is set administratively if the strategic reserve is activated.62



By decision of 25 October 2018,63 the CREG approved the request submitted by Elia for approval of the updated tariff proposal relating to certain tariffs for public service obligations and surcharges applicable from 1 January 2019, with the exception of the tariff relating to the strategic reserve.

By decision of 6 December 2018, the CREG approved the adjusted tariff for the public service obligations of the strategic reserve as from 1 January 2019.64

In addition, in the context of the procedures for the public obligation to finance support measures for renewable energy in Wallonia, the CREG was asked to give an opinion 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, for the attention of the Walloon Minister for

Energy. The texts submitted for opinion related to, firstly, the reform of the system of green certificates, and secondly, the proposed solution to sustainably tackle the growing imbalance in the market for green certificates.65

The trend in the tariff burden (not including connection, PSO tariffs, surcharges and VAT) for users of the transmission system is illustrated in the table below.

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.

COST OF NETWORK (USE AND ANCILLARY SERVICES)Standard customers (in €/MWh)

Tariffs2013(1)

Tariffs2014-2015

(2)

Tariffs2016(3)

Tariffs2017(4)

Tariffs2018(5)

Tariffs2019(6)

Averagetariffs

2016-2019(7)

2016- 2019compared to

2014 -2015(8) = (7)/(2)%

By CREG decisionof

658E/2616/05/2013

658E/2616/05/2013

658E/363/12/2015

658E/363/12/2015

658E/363/12/2015

658E/363/12/2015

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



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



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%

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)



EEAG guidelines. The reform proposed by the CREG is intended to improve the competitive position of electricity-intensive customers, primarily the smallest among them, without incurring additional costs for the federal state's budget, without affecting the competitive position of SMEs, and by maintaining the purchasing power of households.66

Pursuant to Article 14sexies of the Royal Decree of 16 July 2002 on the establishment of mechanisms to promote electricity generated from renewable energy sources, a Ministerial Decree of 6 December 2018 (Belgian Official Journal of 11 December 2018), at the CREG's proposal,67 set the amount of the offshore surcharge (or the 'tariff for public service obligations with a view to the financing of federal green certificates') for 2019 at €7.2875/MWh, which is an increase of 41% compared to the surcharge applied in 2018. This increase is due to the full availability of the Rentel wind farm (unlike in 2018) and the commissioning of the Norther wind farm.

c) Balances

By decision of 5 July 2018, the CREG approved the adjusted tariff report, including the operating balances relating to the financial year 2017 submitted by Elia System Operator NV.68 These balances are the result of the differences between the tariff estimates which appear in the initial tariff decision and the figures and quantities actually recorded. The cumulative balance for the years 2015, 2016, 2017 and 2018 is reflected in the tariff base for the period 2020-2023.

B. Distribution systems

• Determination of the amount of the reallocation of the federal contribution for the period from 1 January 2009 to 31 December 2017

Up until now, the calculation for the federal electricity contribution has been based exclusively on the amount of electricity supplied via the transmission system, in accordance with the applicable regulations. Given the increasing share of decentralised electricity generation, it is increasingly common for electricity to be injected into the distribution system, and no longer to pass through the transmission system. The federal contributions relating to this part of electricity generation were nonetheless paid by customers to the distribution system operators, and resulted in balances in the 2009-2017 period.

At the proposal of the CREG, the Electricity Act was amended to organise the reimbursement of these balances to customers connected to the distribution system. In consultation with the regional regulators and distribution system operators, the CREG also made the necessary calculations for Flanders, Brussels and Wallonia. For each distribution system operator, the CREG decided to calculate the exact amount.69 It is then up to the distribution system operators to allocate the total amount of €85 million for Flanders,€14.1 million for Wallonia and €0.1 million for Brussels to end customers according to a timetable drawn up in consultation with the regional regulator in question.

• The offshore surcharge

In a letter dated 19 October 2017, the Federal Minister for Energy asked the CREG to make a proposal on possible changes to the degressivity mechanism, both for the offshore surcharge and for the federal contribution. The Minister clarified that this proposal must be in line with European legislation, in particular the European Commission's EEAG guidelines on State aid for environmental protection and energy for the period 2014-2020. This proposal also had to satisfy the request made to the Minister by the Council of Ministers on 23 March 2017 to (translation) "submit proposals within one year to ensure that (...) the offshore surcharge and the federal contribution are adjusted in such a way that the competitive position of electricity-intensive consumers and SMEs is not affected, and to safeguard the purchasing power of households, without extra costs for the state budget".

The reform proposal of the degressivity mechanism drawn up by the CREG, largely inspired by the European Commission's above-mentioned EEAG guidelines, aims at replacing the current mechanism which supports the largest electricity consumers with a mechanism that supports customers that have been identified as "electricity-intensive". As regards the term 'electricity-intensive customer', the CREG proposes using the broadest possible definition in accordance with the European Commission's EEAG guidelines. As regards the level of aid provided to these 'electricity-intensive customers', the CREG also proposes envisaging the highest possible 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.



Finally, following another legislative amendment it proposed, from 2018 onwards the CREG will be responsible for monitoring this aspect on an annual basis, meaning that balances relating to the federal contribution can no longer be established at the level of the distribution system operators.

• Analysis of the distribution tariffs In its annual study into price components (see also point 3.2.1.1 of this report, "Price components"), the CREG observed the following with regard to distribution tariffs:

- Household customer

Electricity (DC - dual hourly tariff): over the period 2007-2017, the distribution system tariff increased on average by €254.25 (+170.37%) in Flanders, €73.84 (+48.46%) in Wallonia and €51.81 (+36.70%) in Brussels. This is partly due to the higher costs of public service obligations, higher energy costs to offset network losses, and the introduction of multi-year tariffs. In Flanders, the impact of the application of corporate tax on system activities of distribution system operators has also been felt since 2015.

Natural gas (T2): over the period 2007-2017, the distribution system tariff increased on average by €62.45 (+26.97%) in Flanders, €176.73 (+73.36%) in Wallonia and €30.87 (+12.08%) in Brussels. This is due to deficits of past years being carried forward, the increase in public service obligations and the introduction of multi-year tariffs. In Flanders, the impact of the application of corporate tax on system activities of distribution system operators has also been felt since 2015.

- Professional customers

Electricity (Ic1): over the period 2007-2017, the distribution system tariff increased on average by €1,092.74 (+30.48%) in Flanders, €1,676.23 (+39.93%) in Wallonia and €109.30 (+2.02%) in Brussels. This is partly due to the higher costs of public service obligations, higher energy costs to offset network losses, and the introduction of multi-year tariffs. In Flanders, the impact of the application of corporate tax on system activities of distribution system operators has also been felt since 2015.

Natural gas (T4): over the period 2007-2017, the average increase in the distribution network tariff (+€914.28 in Flanders (+16.33 %), + €3,958.64 in Wallonia (+67.46%) and +€1,619.98in Brussels (+25,81%)) is lower, however, since the costs of the public service obligations are mainly allocated to domestic consumers because they are more applicable to them.

3.1.4. Cross-border issues

3.1.4.1. Access to cross-border infrastructure

In 2018, net physical imports into Belgium rose sharply compared to 2017.

Gross imports to Belgium were 21.6 TWh and gross exports were 4.3 TWh, representing a net physical import of 17.3 TWh, compared to just over 6 TWh in 2017. However, Belgium's net physical imports were higher in 2014 (17.6 TWh) and in 2015 (21.0 TWh).

The figure below shows the trends in the monthly average import and export capacity made available to the daily market, and their total net use. This shows that the average monthly values of net exports in 2018 were significantly higher than in 2017. We can see that since May 2015, there are no more values for the available interconnection capacity for imports and exports. On 20 May 2015, the Available Transmission Capacity (ATC) method for calculating interconnection capacity was replaced by the Flow Based Market Coupling (FBMC) method in the Central-West-European (CWE) region, consisting of the borders of the bidding zones Belgium, the Netherlands and France and the zone formed by Germany, Luxembourg and Austria. With the ATC method, the transmission system operators (TSO) determine the available interconnection capacity for imports and exports at each border. This capacity was then allocated to the market through the market coupling mechanism on D-1. In the FBMC method, the calculation is no longer made for each border and for each possible direction of exchange. The available capacities on the system elements taken into account is allocated using a mechanism that favours commercial exchanges that best valorise the available transmission system capacity on the system elements considered. Flow Based Market Coupling combines the information regarding the transmission system, supplied by the various CWE TSOs, with the demand curves offered in the different CWE bidding zones, supplied by the market players. Since a preliminary calculation of the capacity for cross-border imports and exports is no longer available, as from May 2015 the CREG has only had access to the actual interconnection capacity used.



Figure 4: Availability and use of interconnection capacity from 2007 to 2018 (Source: CREG)

FBMC

Average export capacity Average import capacity Average nomination

4,000

3,000

2,000

1,000

0

-1,000

-2,000

-3,000

-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

MW

-2,225

-2,729-3,011

Table 4: Average export and import capacity and average net nomination per year (MW) (Sources: Elia data, CREG calculations)

Year Average export capacity Average import capacity Net average export nomination2007 2,317 -3,908 -7112008 2,242 -3,882 -1,2122009 2,460 -3,877 3162010 2,558 -4,023 232011 2,791 -4,250 -2532012 2,971 -4,245 -1,0502013 2,821 -3,933 -1,1092014 2,697 -3,562 -1,9102015 2,545 -3,291 -2,3792016 - - -7322017 - - -7362018 - - -2,029

Average - - -982

Table 4 shows the same information, but expressed as annual 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 2,379 MW was recorded. In 2018, we again see cross-border exchanges characterised by the typically high import volumes of the years 2012 to 2015, when the annual net import average continued to rise until a maximum value was reached in 2015.

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.



The clear increase in the position of Belgian imports compared to 2017 is mainly due to the shutdown of several nuclear power plants (in addition to planned shutdowns) at the end of 2018. As a result, during the months of September to December 2018, only one nuclear power plant (Doel 3 with 1,006 MW) was available from mid-October to mid-November (out of a total of approximately 6,000 MW) and one additional unit (Tihange 1 with 962 MW) for the remainder of those months, after which a third unit (Doel 4 with 1,039 MW) was commissioned. However, the shutdown of the nuclear power plants is not the only reason for the observed increase in the volume of imports. Since the end of April 2018, flows exchanged in the CWE region have also benefited from a coordinated measure at regional level aimed at making a minimum volume of 20% of the thermal capacity of the system elements available to the market (which is taken into account in the flow-based market coupling). The separation of the bidding zone consisting of Germany, Austria and Luxembourg into two zones with Germany and Luxembourg on the one side, and Austria on the other, on 1 October 2018, also had a favourable impact on the volumes exchanged, in particular through a reduction in loop flows. The low volume of imports in 2017 was due in particular to the restrictions of the available capacity for commercial exchanges in the CWE region on the system elements within the bidding zones that are taken into account in the market coupling.

Since the introduction of FBMC in May 2015, for each hour when there was no price convergence, it is possible to

verify on which line or critical branch critical outage (CBCO) the congestion occurred. This information is available via the Implicit Allocation Utility Tool on the website of the Joint Allocation Office (JAO). The data analysis carried out in 2016 and 2017 showed that the congestion primarily occurred on internal transmission lines where hardly any capacity was available for cross-border trade.

Low capacity for trading between bidding zones with a low RAM may be due to a decision to use the capacity of the system element for other purposes, such as (1) commercial exchanges within the zone, (2) loop flows resulting from commercial exchanges within another bidding zone and/or (3) high safety margins applied by the system operators. The method currently used to select the critical network elements in the CWE FBMC technology allows low RAM internal lines to block cross-border trade. In principle, these internal lines should not restrict commercial exchanges between different zones (see in this respect ACER Recommendation of 14 November 2016 and Article 1.7 of the Annex to Regulation (EC) No 714/2009). The current selection method provides that a line can be selected as a critical branch if the impact (in percentage) of one of the commercial exchanges between the 4 (currently 5) bidding zones on that line exceeds 5% (for example: the exchange of 100 MW between two zones leads to a flow of 5 MW on the system element). This rule does not offer the possibility to ensure the non-discrimination of commercial exchanges between zones in favour of internal exchanges in the zones, but it does enable system operators to shift internal congestion

to the borders (through the introduction of highly congested internal lines). That is the reason why, in their joint position paper in 2015, the CWE regulators asked the CWE system operators to review the selection method. When no proposal for review was forthcoming, the regulators repeated their request at the beginning of 2017. The proposal that the CREG discussed with the CWE regulators and Elia in March 2016, and which it submitted to the CWE system operators, represents an important contribution in this respect. One of the essential elements of the CREG's proposal is the fact that minimum conditions should be imposed with regard to the available capacity on the system elements taken into account in the flow-based market coupling of the CWE region. This measure is necessary so that flow-based market coupling actually helps increase the volume of cross-border exchanges and improve the convergence of prices between the bidding zones.

The study of the system operators in the CWE region that we received in 2018 did not enable us to apply a new rule for selecting the system elements to be taken into account. This is why it was decided for the CWE region to guarantee a minimum of 20% of the thermal capacity of a critical branch for commercial exchanges between bidding zones. This measure is particularly important for the internal critical branches, where the flows resulting from internal exchanges into the bidding zones take up a large part of the available capacity. This measure was introduced at the end of April 2018 and made it possible to increase the volumes of exchanges from the CWE region, as shown in Figure 5 below.



Figure 5 shows that the commercial exchanges in the CWE region in 2016 and 2017 were mainly restricted by the internal critical branches in the bidding zones. It is primarily these internal lines, although they are only influenced slightly by the commercial exchanges between the zones (usually 4%), that limited the exchanges in the CWE region, given the very limited margins resulting in particular from the presence of very high flows as a result of the (priority) internal exchanges in the bidding zone. In 2018, the situation changes significantly due to the application of the 20% rule. From 2018 on, it is the 'cross-zone' lines that restrict commercial exchanges the most. The available capacities made available for commercial exchanges are close to 60% on average for cross-zone lines, and only 42% for internal lines. By way of comparison, we refer here to the ambitious objectives of making at least 70%

of the thermal capacity of the lines available to commercial exchanges, which are included in the new European legislative package, the Clean Energy Package, which is currently being finalised. Thanks to this new 20% rule, Belgium was able to record a record import volume of 5,196 MW at 6pm on 26 December 2018.

The following table shows the evolution of annual revenues from import and export capacities purchased by market actors in explicit auctions, valid for the following year or the following month. The table shows that the market players paid a total of €43.7 million to purchase the annual and monthly capacities offered in 2018, an amount significantly lower than in 2017. The revenues from the annual auctions in 2018 were lower than the revenues from the monthly auctions.

Table 5: Annual revenues from the monthly and annual capacities

offered for auction (in millions of euros) (Sources: Elia data,

CREG calculations)

Year Annual

auctions

Monthly

auctions

Total

2007 38.9 16.0 54.9

2008 27.1 11.6 38.7

2009 30.9 12.3 43.2

2010 25.5 8.1 33.6

2011 10.1 5.2 15.3

2012 15.6 8.5 24.1

2013 36.7 20.7 57.4

2014 42.6 24.1 66.6

2015 65.1 37.0 102.1

2016 33.4 30.7 64.1

2017 42.0 22.7 64.6

2018 20.1 23.5 43.7

Despite the implementation of market coupling in November 2010 between five countries of the CWE region (Luxembourg, Belgium, the Netherlands, France and Germany), considerable price discrepancies between exchanges can still be observed in D-1. These discrepancies indicate saturation of the interconnection capacity between the various markets. The price gap is a reflection of the severity of the observed congestion.

The evolution of the gross commercial congestion rents generated by the market coupling in D-1, before offsetting the long-term rights, is illustrated in figure 6 for the Belgian market in the period from 2007 to 2018. The figure shows the total revenues of the daily market by border. In practice, this amount is shared by the holders of long-term rights and the transmission system operator.

Figure 5: Impact of the guaranteed availability of 20% of the thermal capacity of the critical branches on trade between different bidding

zones (Sources: TSO CWE, CREG calculations)

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.

2016 2017 2018

0

500

1 000

1 500

2 000

2 500

3 000

3 500

0%

10%

20%

30%

40%

50%

60%

70%

Active internal CBs - # Hours

Active cross-zonal CBs - # Hours

Total - # Hours

Active cross-zonal CBs - Average RAM (%FMAX)

Active internal CBs - Average RAM (%FMAX)

Total - Average RAM (%FMAX)



In 2018, the gross congestion rents generated at the Belgian borders for D-1 amounted to €131.3 million. This amount is 54% higher than in 2017 and sets a new record, exceeding the previous record of 2013. The congestion rents are distributed more or less equally across the two borders: €62 million at the Belgian-Dutch border compared to €69 million at the Franco-Belgian border. This new record is primarily due to the high levels of congestion observed in 2018, in particular the high volume of imports in that year (17.3 TWh).

Until 21 May 2015, the congestion rents could be calculated per border and per direction. This is no longer the case. Since the introduction of flow-based market coupling between the four bidding zones of the CWE region, congestion rents are determined based on the results of flow-based market coupling, and then allocated to a bidding zone border using a distribution formula. At present, the revenues per border are divided equally between the two neighbouring system operators (50/50).

Moreover, all European transmission system operators have jointly proposed a new method to divide congestion rents under Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management. On 14 December 2017, at the request of all regulatory authorities, ACER, through its Decision 07-2017, adapted and adopted the methodology proposed by the transmission system operators. The main changes from the original allocation methodology concern the distribution of congestion rents from exchanges externally to the capacity calculation region and the distribution of costs related to the compensation of long-term transmission rights.

3.1.4.2. Correlation of the development plan for the transmission system with the development plan for the European network

In the context of its opinion on the draft federal development plan (see point 3.4.2 of this report), the CREG examined the correlation between the development plan for the transmission system drawn up by Elia and the EU ten year network development plan 2018 (TYNDP 2018). Although the assumptions and scenarios in the federal development plan are closely aligned with those of the TYNDP 2018, drawn up

by ENTSO-E, the methodology of the development plan was not applied transparently.

3.1.4.3. Flow-based market coupling

On 28 June 2018, the CREG received a proposal from Elia and the other TSOs in the Central West European region (CWE region) to adapt to market coupling following the integration of the bidding zone border between Germany and Austria/Luxembourg (DE/LU-AT) and the incorporation of the 20% minimum RAM rule.

In this decision, the CREG agrees to the introduction of the bidding zone border on 1 October 2018. The CREG asks Elia to ensure that the implementation is carried out efficiently, including in terms of guaranteeing long-term rights and the quality of the baseline scenario or base case.

The CREG also agrees to the application of the 20% minimum RAM rule, in force since April 2018, as a temporary measure to make minimum capacity available to the market. However, Elia did not demonstrate the optimal nature of this measure, nor its non-discriminatory character. The CREG asks Elia to further explain and justify this.

In addition, the CREG requests that the application of the external restrictions on Belgium's overall net position be justified and scientifically substantiated. These external restrictions were supposed to be introduced when the Nemo Link was commissioned, as the Belgian net overall position would then be determined not only by exchanges in the CWE region, but also by exchanges with the United Kingdom in the Channel region. The CREG asks Elia to submit this in a report for approval and then to publish it. The report must be published before being applied.

Figure 6: Daily congestion rents from market coupling (Sources:

Elia data, CREG calculations)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

140

120

100

80

60

40

20

0

France → Belgium Belgium → France Netherlands → Belgium Belgium → Netherlands

Total CWE Flow-based (21/05/2015)

128.1

97.1

68.0

43.2 44.3

37.133.3

36.9

107.9

67.6

131.3

85.2

67,6 67,6

mill

ion

euro

s



Finally, the CREG has observed that the transparency regarding the operation of CWE FBMC within the CWE region is insufficient. It asks Elia to fulfil these transparency requirements.71

3.1.4.4. The use of Dynamic Line Rating in the capacity calculation

In October 2017, the CREG decided not to approve a proposal from Elia regarding the use of Dynamic Line Rating (DLR). The CREG asked Elia to submit a new proposal. In December 2017, Elia submitted an amended proposal that takes into account the comments made by the CREG in its October decision. The CREG then decided to approve the amended proposal regarding DLR.72

Dynamic Line Rating is a method of dynamically determining the capacity of overhead transmission lines, i.e. the maximum electrical current which can pass through a transmission line, taking into account its design, safety criteria and the weather conditions (temperature, wind speed, etc.) for the line in question.

3.1.4.5. The implementation of network codes

The entry into force of various network codes has led to a number of additional tasks for various regulatory authorities, including the CREG, and the need to strengthen European and regional cooperation. As part of the implementation of the CACM Regulation (EU) 2015/1222, the FCA Regulation (EU) 2016/1719, and the EB Regulation (EU) 2017/2195, the CREG, along with other regulatory authorities, needed to take a

decision on various proposals from the European transmission system operators and Nominated Electricity Market Operators (NEMOs). These proposals include methodologies that are essential for establishing uniform day-ahead, intraday and long-term market coupling in Europe.

• Products that NEMOs can take into account in the uniform day-ahead and intraday coupling process

In February 2017, EPEX SPOT Belgium and Nord Pool submitted various applications for approval to the CREG.

These proposals were developed jointly at European level by all NEMOs and submitted to the regulatory authorities for approval.

Following a request for amendment in August 2017, the CREG, in consultation with the other European regulatory authorities, decided to approve the amended proposals for products that the NEMOs can take into account in the uniform coupling process, on the one hand in day-ahead73 and on the other hand in intraday.74

• Participation in the costs of the NEMOs

In December 2017, Elia submitted a proposal for approval, relating to its contribution to the costs of the NEMOs designated in Belgium for establishing, modifying and implementing uniform day-ahead and intraday coupling. This proposal was slightly modified and an amended final proposal was presented in January 2018. It specifies the principles for the distribution and possible contribution of Elia to the costs of the NEMOs, in relation to the obligations pursuant to the CACM Regulation (EU) 2015/1222.

Following a restricted consultation with Elia and the relevant NEMOs (EPEX SPOT Belgium and Nord Pool), the CREG decided on 14 June 2018 to approve this proposal.75 This positive final decision came after a number of objections formulated by the CREG in the draft decision had been met during the consultation phase.

• Appeal for annulment by EPEX SPOT Belgium regarding the sharing of the costs of the NEMOs and the contribution to the NEMOs.

In November 2017, the CREG sent a letter to Elia, Nord Pool and EPEX SPOT Belgium informing them of its non-binding guidelines on Elia's proposal regarding the contribution to the costs of the NEMOs ("Guidance on the sharing of costs incurred for the establishment, amending and operating single day-ahead and intraday coupling").

By application dated 28 December 2017, EPEX SPOT Belgium requested the Brussels Market Court to partially annul and revise these guidelines. In its judgement of 9 May 2018, the Market Court confirmed the non-binding nature of these guidelines and ruled that it was not an actual decision, with the result that EPEX SPOT's appeal was declared inadmissible and rejected.

• Back-up methodology

In February 2017, EPEX SPOT Belgium and Nord Pool submitted an application for approval regarding the back-up methodology to the CREG. These proposals were developed jointly at European level by all NEMOs and submitted to the regulatory 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.



August 2017, the CREG decided, in consultation with the other European regulatory authorities, to approve the amended proposal for the back-up methodology.76

• Methodology for the calculation of intraday capacity applicable at the Belgian borders

In May 2017, Elia submitted an approval request to the CREG for a proposal on the methodology for calculating capacity for cross-border intraday trading. Elia drafted this proposal together with the transmission system operators of the Central-West-European region.

In accordance with the joint position paper of the Central-West-European regulators, drafted in September 2017, the CREG then decided to approve the proposal. In this regard, the CREG asked Elia to improve its description of the proposed methodology and include it in an amended proposal to be submitted to the CREG.77

• Nomination rules of the physical transmission rights in the Channel region

In July 2017, Elia submitted an approval request to the CREG for the nomination rules for physical transmission rights at the bidding zone borders in the Channel region. Elia drafted this proposal together with the transmission system operators of the Channel capacity calculation region. The CREG decided to approve the proposal.78

• Regional draft regarding long-term transmission rights in the Channel region

In April 2017, Elia submitted an approval request to the CREG for a proposal for a regional draft regarding long-term electricity transmission rights. Elia drafted this proposal together with all transmission system operators in the Channel region. Following a request for amendment from the CREG, Elia amended the proposal. The CREG then decided to approve the amended proposal.79

• Regional draft regarding long-term transmission rights in the Core region

At the end of 2017, Elia submitted an approval request to the CREG for amendments to the regional draft regarding long-term transmission rights in the Core capacity calculation region. The proposal was drafted by all TSOs in the Core region and covers the long-term rights to the bidding zone borders of Germany/Luxembourg with Austria and of the Czech Republic with Slovakia. The CREG decided to approve the proposal.80

• Common network model

In 2017, Elia submitted an approval request to the CREG for the methodology for the common network model. The proposal was drafted by all European TSOs in the context of the European network code on Forward Capacity Allocation.

Following a request for amendment in March 2018, the CREG decided to approve the amended proposal.81

• Methodology for the provision of generation and baseload data

In July 2017, Elia submitted an approval request to the CREG for a uniform methodology for the provision of generation and baseload data. Elia drafted this proposal together with all European TSOs in the context of the European network code on Forward Capacity Allocation. The CREG decided to approve the proposal.82

• Reserve procedures in the Channel region

In May 2018, the CREG received an approval request from Elia and the transmission system operators of the Channel region for joint reserve procedures. In consultation with the other regulatory authorities concerned, the CREG decided to approve the proposal.83

In August 2018, the CREG received an approval request from Elia for the allocation rules through shadow auctions. These shadow auctions are used in application of the reserve procedures for the day-ahead markets. The CREG decided to approve the proposal.84

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.



• Methodology for the capacity calculation of the day-ahead and intraday markets in the Channel region

In May 2018, the CREG received an approval request from Elia to develop, together with the transmission system operators of the Channel region, a coordinated net transmission capacity approach for calculating cross-zone capacities for the day-ahead and intraday markets. In consultation with the other regulatory authorities concerned, the CREG decided to approve the proposal on 29 November 2018.85

In September 2017, the CREG received an approval request from Elia for a coordinated capacity calculation methodology. This methodology sets out how Elia and the transmission system operators of the Channel region will jointly calculate cross-zone capacities for the day-ahead and intraday markets. On 6 December 2018, the CREG decided to approve the amended proposal following two previous requests for amendments in March and July 2018.86

• Electricity emergency and restoration

During the course of 2018, the CREG organised a series of meetings with Elia and the Directorate-General for Energy to gain a clear understanding of the content and requirements of Commission Regulation (EU) 2017/2196 of 24 November 2017 establishing a network code on electricity emergency and restoration.

This Regulation contains provisions to ensure the operational security of the electricity system and to prevent crisis situations.

The principles and measures to be taken in order to achieve these objectives need to be included, firstly, in the protection plan of the system to which the interruption plan belongs and secondly, in the restoration plan. The latter applies when the electricity system is in a black-out status, despite the protective measures taken by the system.

In accordance with the above-mentioned network code and the Royal Decree of 12 December 2018,87 following a formal public consultation with the stakeholders, Elia submitted the two plans to the Minister for Energy for approval in December 2018, after consultation with the CREG. However, the CREG still has to give its opinion to the Minister as stipulated in the Royal Decree of 12 December 2018 (see also point 2.5 of this report).

This European network code gives the CREG a specific power of approval, in particular with regard to the rules for the suspension and restoration of market activities and the specific balancing rules applicable during the suspension of market activities. Elia therefore submitted a proposal for these rules to the CREG, also in December 2018. In 2019, the CREG will assess the proposals received from Elia and formulate decisions in accordance with its legal obligations.

3.1.4.6 The System Operating Policy regarding compensation between Elia and Nemo Link

In September 2018, Elia submitted an approval request to the CREG for the compensation mechanism to be applied when the commercial capacity of the Nemo

Link Interconnector is reduced by Elia. The CREG decided to approve the proposal.88

3.1.4.7. The results of the day-ahead market in November 2017

Following informal requests from various market participants, the CREG analysed the results of the daily market in October and November 2017. Besides an analysis of the available generation capacity during this period, the note discusses in detail the pricing and bidding behaviour on 9 and 16 November.89

3.1.4.8. The day-ahead wholesale market from 1 to 7 October 2018

Until 1 October 2018, Germany, Luxembourg and Austria belonged to one price area. Since 1 October 2018, Austria has been in a separate price area. This means that different prices may occur between Austria and Germany/Luxembourg if there is network congestion and cross-border trade needs to be restricted for operational security reasons.

In this note, the CREG examined the market outcomes of the day-ahead flow-based market coupling during the first week following the splitting of the German-Austrian price area (from 1 to 7 October 2018). Compared to the planning which was known on 30 August 2018, there was approximately 1,500 MW less nuclear generation capacity available in Belgium during this period. As regards market outcomes, the relatively high prices during this period for Belgium and the low prices in Germany 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.



This note concludes that, as regards the examined period, the splitting of the price areas of Austria and Germany/Luxembourg has so far progressed in a technically correct manner: the market coupling appears to be the same as before the split. In addition, on 3 October, the Belgian electricity market was much more robust than might initially be concluded: with an additional demand of 1,000 MW, imports appear to have increased by an average of 866 MW, raising the average market price by 30%. With additional demand of 2,000 MW, imports would have increased by an average of 1,700 MW.

Part of the reason for this robust result for 3 October 2018 was that the loop flows through Belgium were lower than average on that day. If loop flows rise, the CREG expects imports to Belgium to increase less strongly, and these are also accompanied by faster rising prices on the Belgian day-ahead market.90

3.1.4.9. Setting up and storing the common network models

On 17 September 2018, the CREG approved the joint proposal from Elia and all transmission system operators for a methodology for drawing up and storing the common network models. This proposal was submitted on the basis of Articles 67(1) and 70 of Regulation (EU) 2017/1485 establishing a guideline on electricity transmission system operation ("SO Regulation").

These common network models should allow the efficient and coordinated use of emergency services, which are necessary to ensure operational safety and voltage quality in real time,

support an efficient European single market and facilitate integration into renewable energy sources.

It is therefore crucial that these models are accurate. Articles 70(5) and 70(6) of the SO Regulation therefore provide that each TSO evaluates and ensures the accuracy of the variables. To this end, the CREG asked Elia to take the necessary measures by 31 December 2019 at the latest to enable the CREG to assess whether Elia complies with these legal provisions.91

3.1.4.10. Determining the synchronous zone of continental Europe

On 12 September 2018, the CREG decided to approve 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 load frequency control blocks or "LFC blocks". This proposal lays down the structure of the LFC blocks, LFC zones and responsibility areas for the synchronous zone of continental Europe. For Belgium, the proposal corresponds to the current situation. Belgium is an LFC block consisting of one LFC zone and one responsibility area.92

3.2. Competition

3.2.1. Monitoring of wholesale and retail prices

3.2.1.1. CREG studies conducted in 2018

• The profitability of natural gas used as fuel for cars

The CREG study into the profitability of natural gas used as a fuel for cars (CNG or compressed natural gas) shows that

CNG is more environmentally friendly and economical than petroleum fuels.

The study analysed the characteristics of CNG, the Belgian targets for CNG by 2020 and the regional support measures. It also covered CNG vehicles and filling stations, the composition of the price at the pump and the possible impact on the systems. Finally, the study made a cost-benefit analysis between CNG vehicles and vehicles equipped with other engines.

In economic terms, the pump price of CNG, expressed in €/kg, appears to be about 25% cheaper than that of petrol and diesel, expressed in €/litre. However, the difference in fuel cost per km is greater, with CNG being 33% cheaper than diesel, and 77% cheaper than petrol.93

• The billing method applied to household customers An analysis by the CREG shows that suppliers active on the Belgian energy market apply various billing methods for the energy component and for additional services.

With a view to greater transparency for the consumer and the supplier, the CREG has formulated four recommendations:

1. Consumers who change supplier in the course of a contract year can still pay the full year's subscription fee. Other suppliers charge the fee pro rata. In the case of a delivery period of 18 months with a subscription fee of €50 per year, there is a difference of €25 between the two methods. The CREG argues for a method whereby either the fee is charged pro rata over the entire term of the contract, or the fee for the first year of the contract is charged on a flat-rate basis and 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.



2. The costs of certificate obligations (green electricity and cogeneration) are charged separately by most suppliers. These costs are often increased or even doubled during the term of the contract, for both fixed and variable energy price contracts. The CREG argues in favour of including the costs for these certificate obligations in the energy component. That way, the consumer can be sure from the outset of the costs that will be charged to them.

3. For the annual settlement, suppliers use a standard annual profile to breakdown the volume of electricity or natural gas consumed by the consumer. Some suppliers also use correction factors that are only known internally. The CREG argues that only publicly available data that are applied in a uniform manner should be used.

4. For electricity contracts based on quarterly parameters linked to the short-term market (spot products), the energy price is only known at the end of a quarter. If the contract is terminated at the beginning of a quarter, the supplier would in principle have to wait until the end of that quarter to draw up the settlement. As a result, it may come into conflict with the regional regulations on billing periods. The CREG argues that, in such cases, suppliers should calculate the energy price for that period based on the available daily quotations.94

• Electricity and natural gas prices for household customers

In its half-yearly survey of energy prices for household customers, the CREG observed that the average price of the energy component for electricity rose over the period March 2017 - March 2018 in all regions: by 5.69% in Flanders, 6.54%

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.

in Brussels and 4.59% in Wallonia. This increase is primarily due to the rising prices on the international wholesale markets since September 2017.

During the same period, the average price of the energy component for natural gas also increased: in Flanders by 3.40%, in Brussels by 2.09% and in Wallonia by 3.14%. Compared with electricity, the price differences between the regions for natural gas are more limited.

The "theme in the spotlight" section of this note raises the question of whether the cheapest tariff on the market is accessible to all customers. It shows that signing up to one of the ten cheapest electricity and/or natural gas products often goes hand in hand with additional conditions. The most important condition is "exclusively online". Additional payment terms occupies the second spot. Both types of conditions make the cheapest electricity and natural gas products more difficult to access for the (economically) more vulnerable members of society.95

• European comparison of electricity and natural gas prices for household customers and SMEs

In accordance with its powers regarding the final price of electricity and natural gas, the CREG commissioned PwC to carry out a study comparing the electricity and natural gas prices for household customers and small business customers, between the three Belgian regions and four neighbouring countries (Germany, France, the Netherlands and the United Kingdom). The study is based on data from February 2018 and covers various parts of the bill.

The main conclusions are as follows:

- Belgian households and small business customers have a high electricity bill, which is partly explained by the costs of the grid, but mainly by taxes, surcharges and certificate obligations. Belgium is the second most expensive country for electricity for the two profiles covered by this study (after Germany) and is on average 22% more expensive than the average of the neighbouring countries. On the other hand, Belgian households and small business customers have a relatively small natural gas bill. For both profiles, Belgium ranks second in the ranking of the cheapest prices of the five countries (after the United Kingdom). Natural gas prices in Belgium are on average 14% cheaper than the average price in the neighbouring countries. There are significant differences between regions, both for electricity and for natural gas.

- In general, small business customers pay less per kWh than household customers, both for electricity and for natural gas. This is partly due to the lack of VAT, but that is not the only reason: in general, small business customers also pay less for the "energy" component and for the grid component.

- There are large price differences between the countries, both for electricity and for natural gas. However, these differences are relatively more limited for small business customers than for household customers. For example, a household customer in Germany pays almost twice as much for electricity as a household customer in France. For a small business customer, this difference is smaller. For natural gas, a household customer in the Netherlands pays the most, almost twice the price paid by a customer in the United Kingdom. In the case of a small 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.



- Finally, a relatively low cost of electricity does not mean that the cost of natural gas is relatively low and vice versa. The correlation even seems to go in the opposite direction (except for the United Kingdom): in countries or regions where the cost of electricity is relatively low, the cost of natural gas is relatively high, and vice versa.96

• Group purchases in the retail market

In 2014, the CREG carried out an initial study into the organisation of group purchases in the energy market. At the time, group purchases were still a relatively new phenomenon. They have since become commonplace and have also brought a certain dynamism to the market. However, this follow-up study shows that around 13% of natural gas customers and 18% of electricity customers have never changed their energy supplier. In recent years, even group purchases have not managed to convince these so-called passive consumers to actively participate in the energy market. In any case, participating in a group purchase does not necessarily guarantee consumers the cheapest product. Not all suppliers offer this possibility. And suppliers who do participate are not obliged to offer the lowest price.

Consumers responding to an offer via a group purchase should also bear in mind that if the supplier makes a proposal for renewal at the end of the contract period, the renewal contract will in most cases feature a higher price.

The CREG does not currently have the authority to request information directly on group purchases. Group purchases 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).

Nevertheless, the impact of group purchases on the energy market is significant: imposing product specifications and conditions on energy suppliers, imposing the way subscription fees are charged, influencing the percentage of supplier changes and communicating potential savings to consumers.

That is why the CREG is looking to extend its legal powers, so that it can systematically request information from the organisers of group purchases and, in this way, inform consumers transparently.97

• The offering from cooperative companies

In a new study, the CREG examined the cooperative companies operating on the Belgian electricity market. The study provides an overview of the structures and conditions of entry, the market shares and the cost price for electricity of these companies.

The CREG identified various structures of companies that supply electricity, and advises consumers to find information about the company and the conditions of entry before subscribing to the share(s) of a cooperative company. In comparing estimated costs of supply of electricity, consumers should distinguish between the purchase of the share and the supply of electricity.

The study shows that the offering from cooperative companies for certain consumption profiles can be an interesting option (Belgian green electricity).

The CREG advises consumers to always make a price comparison on the basis of their personal consumption data.98

• Monitoring energy market prices for households and small professional users

In its annual monitoring study, the CREG discusses the main developments on the retail market (see point 3.2.1.2 of this report).

• Verification mission in the context of extending the lifetime of the Tihange 1 power plant

On 28 June 2018, the CREG published its report (RA)1771 on the verification of the revenues and actual costs of the Tihange 1 nuclear power plant for the period from 1 January 2017 until 31 December 2017, in accordance with the Convention on extending the lifetime of Tihange 1 of 12 March 2014 and the amendment to the Convention on extending the lifetime of 31 March 2017.

• Nuclear distribution fee

On 28 June 2018, the CREG issued an opinion on the profit margin of the industrial production of electricity by the fission of nuclear fuels by the nuclear power plants subject to the distribution fee (Doel 3, Doel 4, Tihange 2 and Tihange 3) for the year 2017,99 in accordance with the Law of 11 April 2003 on provisions made for the decommissioning of nuclear power plants and for the management of irradiated fissile material in these plants.

The amount for the nuclear distribution fee for the year 2018 was set by Royal Decree of 15 October 2018 at €177,000,000.00.100



• Mission to verify the pledge of the Belgian State to extend the operating life of Tihange 1, Doel 1 and Doel 2.

On 6 September 2018, at the request of the Minister for Energy, the CREG issued a report in the context of 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 2.101

• Impact of the unavailability of nuclear power plants in Belgium on electricity prices

The announcement that the shutdown of certain nuclear power plants would be extended led to price peaks in September 2018, both in the short-term market and in the medium and long-term market. There was certainly an impact on the consumer's bill, but this is difficult to quantify. It should be borne in mind that consumers' supply contracts have a range of durations, renewal procedures and time horizons (old contracts that have expired in recent months and are not renewed will be affected more frequently).

• Composition of prices

In the context of its competence regarding the end price for electricity and gas, on 29 March 2018 the CREG presented the results of the annual update of its study on the components of electricity and natural gas prices.

Since 2007, the CREG has followed the evolution of electricity and gas prices charged to the end customer. This annual study takes into account the evolution of the components of electricity and natural gas prices. In addition to the evolution of the pure energy price that follows the market, there are

also the annual evolutions of the distribution and transmission system fees and the charges.

For electricity, the average price for residential customers increased by 71.81% between 2007 and 2017. In concrete terms, this is an average increase of €163.34/MWh in Flanders, €74.51/MWh in Wallonia and €33.43/MWh in Brussels. For business customers in Belgium, the average price likewise increased, by 11.68%. However, the trend varies from one region to another. In Flanders, the price charged to business end users increased, on average, by €14.12/MWh and in Wallonia by €28.26/MWh. In Brussels, the price fell on average by €6.91/MWh. In 2017, compared with 2016, the CREG observed an increase of 5.81% for household consumers in Belgium, or an average increase of €19.47/MWh in Flanders, €12.23/MWh in Wallonia and €5.51/MWh in Brussels. For professional customers in Belgium, the average price also rose by 4.89%, or an average increase of €2.88/MWh in Flanders, €11.52/MWh in Wallonia and €9.27/MWh in Brussels.

For natural gas, the average price for residential customers increased by 14.54% between 2007 and 2017. This is an increase, on average, of €3.69/MWh in Flanders, €13.41/MWh in Wallonia and €3.54/MWh in Brussels. For business customers in Belgium the average price fell by 0.77%. Here as well, there are differences by region. On average, business customers in Flanders pay €1.11/MWh less for natural gas, in Wallonia €0.88/MWh more and in Brussels €0.22/MWh more. In 2017, compared with 2016, an increase of 5.70% was observed for household consumers in Belgium, or an average increase of €3.38/MWh in Flanders, €2.66/MWh in Wallonia and €2.12/MWh in Brussels. For professional customers in Belgium, the average price also rose by 8.41%, or an average increase of €2.42/MWh in Flanders, €2.10/MWh in Wallonia and €2.03/MWh in Brussels.102

• Functioning of the wholesale electricity markets in 2017 and price trends on this market

For the fourth year in a row, the load on the Elia grid, an indicator of Belgian electricity consumption, was approximately 77 TWh in 2017. This is around 6% of total consumption in the Central-West-European region (Belgium, the Netherlands, Luxembourg, France, Germany and the United Kingdom). The stabilisation in Belgian electricity offtake came on the heels of a continuous decline which started in 2007. At the same time, the estimated amount of solar electricity generated stabilised at around 3 TWh in 2017, i.e. at the same level as in 2015 and 2016.

In a special section on electricity consumption, the impact of wind farms on residual peak demand is briefly analysed. The conclusion of this analysis is that more wind capacity only slightly reduces the need for peak capacity. On the other hand, more wind capacity greatly reduces the number of hours that this peak capacity is needed to meet the demand for electricity. In 2017, the already installed wind capacity reduced the number of operating hours of the peak capacity by more than 50%. This creates opportunities for peak capacity that can only be activated for a limited number of hours per year (such as demand management and emergency generators).

The average price on the Belgian day-ahead market in 2017 was an average of €44.6/MWh. This price was comparable with France (€45.0/MWh) but higher than in the Netherlands (€39.3/MWh) and Germany (€34.2/MWh). There were similar price differences in 2016. The average price on the forward supply market in 2018 was €37.3/MWh. This price was on average €1/MWh higher than the price in France and around €1/MWh lower than the price in the Netherlands. With €32.4/MWh, Germany was €5/MWh cheaper on average.

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.



The large price differences between the countries mentioned can partly be explained by the inefficient functioning of day-ahead market coupling, with various restrictions caused in the German system, as well as an increasing number in the Dutch and Belgian systems. The last three months of 2017 saw an improvement.

In 2017, the use of reserves to balance the Elia grid accounted for 664 GWh (open balancing capacity). This figure is more or less the same as in 2016. With an activation of 504 GWh, it was primarily the secondary reserves (aFRR) that were activated. The activation of around 430 GWh of reserves was avoided thanks to the International Grid Control Cooperation (IGCC), a mechanism whereby a country's imbalance is offset with other countries participating in the mechanism. The IGCC mechanism shows how important it is for Belgium to cooperate at European level, even for balancing and reserves.103

• European comparison of prices to large industrial customers

In 2015, PwC conducted a study on behalf of CREG entitled 'A European comparison of electricity and gas prices for large industrial consumers'. This showed that the situation of Belgian industrial consumers was complex and that further research was necessary.The follow-up study conducted in June 2016 once again compared energy prices for six industrial consumers (four for electricity and two for natural gas, selected in consultation with the relevant sector organisations) in Belgium and the four neighbouring countries.

On 16 July 2018, PwC submitted to the CREG its third annual follow-up study on the situation during January 2018. This new

study largely upholds the decisions made beforehand: while Belgian consumers who are not electricity-intensive enjoy a major competitive advantage, Belgian electricity-intensive consumers suffer a significant competitive disadvantage.104

• Supply of major industrial customers in Belgium

At its own initiative, the CREG conducted a study on electricity supply to major industrial customers in Belgium in 2017 with the aim of improving the transparency of the supply of electricity to major industrial customers.105 Analysis of the supply contracts shows that industrial customers mainly enter into short-term contracts (with a duration of 1 or 2 years). In 2017, the billed energy prices ranged from €15/MWh to €96/MWh, with 50% of the customers being between €46/MWh and €56/MWh. This study discusses the determining factors that contribute to the differences in the billed energy price. The market share of the dominant supplier has declined almost continually since 2002. Compared with 2016, the annual electricity offtake from the Elia grid increased to 17.17 TWh in 2017 and a comparison of energy exchanges between access responsible parties (ARPs) in 2017 shows that there were fewer exchanges on the electricity exchanges and that the industrial ARPs purchased more energy from other ARPs than from the dominant ARP.

This study is based, among others, on two studies into the mechanisms for determining the energy prices applicable in 2017 in electricity supply contracts of large industrial customers of Electrabel and EDF Luminus.106 In these studies, the CREG examined in detail the mechanisms for determining the various components of the energy price, based on which the bill for large Belgian industrial customers was drawn up. These

studies aimed to identify the main factors that influenced, and will still influence in the future, the energy prices charged to major Belgian industrial customers.

3.2.1.2. Monitoring energy market prices for households and small-scale professional users

• Observations for 2018

On 15 November 2018, the CREG published a study into the annual monitoring of prices on the electricity and natural gas markets for households and small professional consumers. The CREG's findings for 2018 were as follows:

- Despite the phasing-out of the safety net mechanism, all suppliers of products with a variable energy component continue to use quarterly price parameters linked to exchange quotations for electricity and natural gas. Since 1 June 2018, Mega has been the only supplier to use a monthly indexation parameter.

- In 2018, the number of active suppliers on the retail market fell slightly for the first time. This fall was mainly due to the effects of a wave of consolidation in the sector that started in 2016.

- In general, increased competition between suppliers has a clear effect on the evolution of the market shares of the different suppliers. Not only are the market shares of the former standard suppliers under pressure, but new suppliers are also increasingly competing with each other.

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.



- On average, each supplier offers three products for the supply of electricity and five products for the supply of natural gas. There are fewer active suppliers in Brussels compared to Flanders and Wallonia. In particular, the offering to families is limited in Brussels and amounts to about half of the other regions.

- Most suppliers charge a fixed contribution, on top of the cost of using energy, which, they claim, serves to cover their administrative costs. Some suppliers bill on a pro rata basis according to the number of days of effective delivery, while others bill per delivery year commenced. The CREG suggests obliging all suppliers to bill the fixed fee pro rata to the number of days delivered, in order to avoid this fixed cost acting as a brake on switching suppliers.

- Providing sufficiently clear and understandable information to consumers is becoming increasingly important. However, tariff maps and bills are still too often difficult for consumers to understand. Additional services, whether charged or not, marketed as 'taking away the hassle' for consumers, are also on the rise, making it increasingly complex for the consumer to compare and make the right choice.

As a regulator, the CREG recognises this problem and will continue to make efforts to provide consumers with clear and comprehensible information, for example by publishing information graphs containing data on suppliers, their products and prices, and by updating the CREG Scan on a monthly

basis. The CREG strives to ensure that as many consumers as possible, with as much involvement in the free energy market as possible, are able and willing to make conscious choices.107

• Databases of energy prices

Since 2012, the CREG has established, for each supplier operating in Belgium, for any variable type of contract and for any new standard contract, by consultation with them, a database to record the methodology for calculation of variable energy prices, including indexation formulas and the parameters that they use. To this end, and in order to keep the database up-to-date, the CREG makes use of publicly available data (suppliers’ websites) and the data that suppliers are obliged to submit to the CREG every month.

In addition to the variable components, the database also includes all the products that have a fixed energy component.All the elements included in the price formula of the energy component (subscription, indexation parameters and related coefficients, renewable energy and combined heat and power contributions) are included separately in the database. The energy component of the annual energy bill is then calculated for certain standard customers108 using relevant annual consumption levels.

The results are compared by sampling with those from the suppliers’ calculation modules and the existing price comparison modules.

The CREG also continuously compares the energy component for the supply of electricity and natural gas to household and SME end customers with the average energy component of neighbouring countries.

In the context of its general monitoring duties, in 2012 the CREG also established a permanent database of energy prices in the neighbouring countries (Germany, France, the Netherlands) and in the United Kingdom.

As such, in addition to the energy component, the CREG has monitored the all-in prices (total bill) in Belgium and in the neighbouring countries on a monthly basis, since 2012.

The results obtained by the CREG are, furthermore, checked by country by comparing them with the results obtained using the price simulators of neighbouring countries.

In an effort to improve both the content and clarity of its communication, the CREG publishes infographics that provide a clear overview of the number of active suppliers and their product offering, as well as potential savings.

The analysis of the energy component and the permanent comparison of prices between Belgium and the neighbouring countries are illustrated in the following figures.

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



INFOGRAPHIC FOR HOUSEHOLDS

Cheapest and most expensive offer (€/year**) :

* 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

December 2018Number of existing products (active and dormant*)

Potential for savings FLANDERS WALLONIA BRUSSELS

CREG Scan - Do you have the best energy contract ?

12/2018

€1129

€327 €498 €278 €498 €243 €479

Most expensive existing product

€605 €1129 €606 €1129 €528

19

436active dormant

53

572active dormant

56

563active dormant

60

1094

FLANDERS

55

1220

WALLONIA

21

728

BRUSSELS

€631€882

Duration: 1 yearType: fixed

Duration: 4 yearsType: fixed

FLANDERS (13 active suppliers)

€631€882



WALLONIA (11 active suppliers)

€285

€528


Duration: 3 yearsType: variable

BRUSSELS (6 active suppliers)

€278

€580




€328€582




€650€893




INFOGRAPHIC FOR SMEs & SELF-EMPLOYED

Cheapest and most expensive offer (€/year**) :

* dormant products: do not appear in the results of the price comparisons, but are included in the CREG Scan** 100.000 kWh of natural gas, 50.000 kWh of electricity, excluding VAT, taxes, distribution and transmission

Number of existing products (active and dormant*)

Potential for savings FLANDERS WALLONIA BRUSSELS

CREG Scan - Do you have the best energy contract ?

December 2018

12/2018

€4432

€3991 €1792 €3468 €1792 €3426 €1792

Most expensive existing product

€7736 €4432 €7769 €4432 €6937

€2640€3640


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€2640€3640




€3511

€6937




€3745

€7736




€4301

€7769




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41

475active dormant

48

514active dormant

45

502active dormant

52

1043

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51

1105

WALLONIA

45

858

BRUSSELS



Average DE, FR, NL Average BE

Figure 7: Monthly trends in the price of electricity in 2018 for a standard household customer

(standard customer = 3,500 kWh/year) (energy component) (Source: CREG)

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Figure 8: Monthly trends in the price of natural gas in 2018 for a standard household customer



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

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Wh

Figure 9: Monthly trends in the price of electricity in 2018 for SMEs and the self-employed



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

€/M

Wh

Figure 10: Monthly trends in the price of natural gas in 2018 for SMEs and the self-employed



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

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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.

3.2.2. Monitoring of market transparency and openness

3.2.2.1. Electrical power demand

According to the data supplied to the CREG, the load109 on the Elia grid110 without pump consumption by the pumping stations - in other words net offtake plus grid losses - was estimated at 76,652 GWh in 2018, compared to 77,414 GWh in 2017, or a fall of 1.0% from one year to the next. The peak 15-minute load in 2018 was estimated at 12,440 MW, compared with 12,867 MW in 2017 (Source: Elia, for 2018: provisional data, February 2019).

Figure 11 shows the average monthly load on the Elia grid per year for the years 2007 to 2018. After a steep reduction in the load from October 2008 following the economic crisis, which also continued into 2009, the load recovered in early 2010. The recovery did not last, however, as the decline in load returned the following year to reach its lowest average levels in 2014, 2015, 2016 and 2017. Compared to 2007, the decrease in the average load was 13.5% in 2018. These figures have not been weighted for meteorological factors.

Local power generation by sites connected to the Elia grid is not fully taken into account in these figures. Synergrid has estimated local generation at 10.6 TWh in 2018 (10.4 TWh in 2017), i.e. a 1.9% rise compared with 2017.

Figure 11: Average monthly load on the Elia grid from 2007 to 2018. (Sources: Elia data, CREG calculations)

MWh/h

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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

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8,2238,050 8,065

8,256

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3.2.2.2. Market share of wholesale generation

Table 6 provides an estimate, in both absolute value (in GW) and in relative value, of the Belgian market shares in electricity generation capacity at the end of each year.

Electrabel still has a substantial market share (69%) of total generation. The second largest player is EDF Luminus, with a market share of 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 5 040

(1) The shares of SPE and EDF Luminus have been combined since 2010, following the takeover of SPE by EDF.

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 5 130

(1) The shares of SPE and EDF Luminus have been combined since 2010, following the takeover of SPE by EDF.

The HHI, a widely used concentration index, fell slightly again in 2018. With a value of 5040, it remains very high. By way of comparison, a market is considered to be highly concentrated if the HHI is equal to or higher than 2000.

Table 7 provides the same estimate, but in terms of the energy actually generated. Overall, the units connected to the Elia grid generated 57.8 TWh in 2018, considerably less than in 2017.

The dominant position of Electrabel fell slightly to 69% in 2018 (compared to 77% in 2017). In 2018, the HHI fell to 5130, confirming that the market is extremely concentrated.



3.2.2.3. Energy exchange

Despite gradual market coupling, price convergence in the CWE region has still not materialised. This can be explained by various factors, including the unavailability of nuclear power plants in France and Belgium and, more prominently, the priority access to loop flows: flows resulting from commercial exchanges which are not in competition with cross-border commercial exchanges between bidding zones but which, like the latter, also use the transmission system which connects bidding zones (see study (F)1687 by the CREG).

In 2018, the average daily market price in Belgium was €55.3/MWh, higher than the €50.2/MWh in France and the €52.5/MWh in the Netherlands. By way of comparison, in 2017 the daily market price in Belgium was €44.6/MWh. The average German daily market price in 2018 also rose compared to 2017, but at €44.7/MWh remained the lowest in the CWE region. However, the rise in the German daily market price is stronger than the increase in the Belgian daily market price, both in absolute and relative terms. International factors, such as CO2 and gas prices, are driving the price increase in Belgium and its neighbouring countries.

In 2018, the proportion of hours in which there was price convergence fell slightly in the entire CWE region (with a margin of €1/MWh) to 37.4%, compared to 37.9% in 2017. There was price convergence with France in 49.5% of the hours, and with the Netherlands in 51.6%. Price convergence with Germany rose sharply to 40.0%. Despite this rise, Belgium had no

price convergence with any of its neighbouring countries for 41.8% of the hours. This is an increase compared to the 35.9% recorded in 2017.

In the wake of the high prices observed on the EPEX SPOT Belgium DAM in the fourth quarter of 2018, on 28 June 2018 the CREG published its analysis of day-ahead prices for delivery on 9 November 2017 and 16 November 2017 (note (Z)1715). In addition, the CREG published a note on price setting on the daily market based on the daily market outcomes from 1 to 7 October 2018, with a focus on those of 3 October (note (Z)1847). The main conclusion of both notes is that the robustness of the Belgian market is dependent on loop flows: the lower the loop flows, the more Belgium can import at high prices, which limits the price increase on the Belgian market. Loop flows were reduced in 2018 as a result of (1) the splitting of the German and Austrian price zones, (2) the guarantee by TSOs in Germany, the Netherlands, France and Belgium that at least 20% of the maximum capacity of each restricting system element would be made available for cross-border trade, and (3) the increase of the import limit for Belgium from 4500 MW to 5500 MW.

The total volume traded on the Epex Spot Belgium daily market was 25.9 TWh, compared to 17.9 TWh in 2017. This equates to approximately 33.8% of total offtake from the Elia grid.

The sensitivity of the electricity price on the daily market to additional offtake volumes (market depth) is an important factor. The greater the sensitivity, the more easily the price can be manipulated. The monthly average relative price

increase if 500 MW extra was purchased was lower than €4.5/MWh in 2018, except in September, October and November, when the increase was around €10.33/MWh. The monthly average relative decrease in the price if 500 MW extra was sold was lower than €4.1/MWh in 2018, except in October and November when the decreases were €6.1/MWh and €6.8/MWh respectively.

The intraday market provides market participants with the possibility to manage their unexpected changes in expected injection or offtake after the closure of the day-ahead market via a public market. Unexpected changes include, for instance, the unexpected unavailability of a generating plant, but also changes resulting from updated forecasts of wind and solar energy injections. The introduction of Epex Spot's M7 system in October 2016 facilitated trade on the Belgian intraday market by linking the Belgian market to that of Germany, France, Austria and Switzerland. The total traded volume on the intraday market rose to 2,012 GWh in 2018. This is a slight rise compared to 2017 (1,991 GWh). The average intraday price rose by 23% to €56.3/MWh in 2018.

The wholesale prices for short and long-term contracts rose in 2018. The contracts for supply the following year had an average price of €51.0/MWh, representing an increase of 37% compared to 2017 (€37.3/MWh). In 2018, the average daily market price was higher than the average price of the year-ahead contract with delivery in 2018 (i.e. trade during 2017). The average daily market price in 2018 was €55.3/MWh compared to €37.3/MWh for contracts traded in 2017 for delivery the following year.



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)

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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)

20

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BE NL FR DE

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

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Wh

50.245.0

67.8

55.3

44.6

77.6

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Figure 14: Average monthly strength of the Epex Spot Belgium market between 2007 and 2018 (Sources: Epex Spot Belgium, CREG calculations)

500 MW additional purchased 500 MW additional sold

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Figure 15: Energy traded and average price on the intraday exchange (Source: Epex Spot Belgium, CREG calculations)

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I I I I I I I I I I



Figure 16: Comparison of wholesale prices for short-term and long-term contracts (Sources: Epex Spot Belgium, Epex Spot, ICE Endex,

CREG calculations)

D + 1 M + 1 Q + 1 Y + 1

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3.2.2.4. Transparency, REMIT and financial instruments

• Our workshop of 15 May

On 15 May 2018, the CREG organised a workshop on the role of market players in bringing about a more efficient market on the basis of European legislation on transparency, REMIT and financial instruments. This workshop was intended for market players in the broad sense of the word: European institutions, regulators, transmission system operators, transparency platforms, business federations and companies active in the wholesale market for electricity and gas. This workshop was organised following the study carried out by the CREG on 5 October 2017 on the application of European and Belgian legislation in the context of

the transparency of the Belgian wholesale markets for electricity and natural gas. The CREG made an informative presentation on the legislation on transparency, REMIT and financial instruments.

A note was published on the CREG website containing a summary of the presentations and discussions which took place, and the conclusions of the workshop.

• REMIT

The REMIT regulation (Regulation on wholesale Energy Market Integrity and Transparency)111 sets out a series of rules aimed at preventing and punishing manipulations and insider trading in the wholesale energy market.

In this context, the market players need to register on a platform and keep their registration details up to date. In 2018, the CREG validated various changes of registration.

It also helped market players with their registration or other questions about REMIT.

Following the peer review that the CREG underwent in June 2017 before the peer review panel (ACER and other regulators that are part of the RISIG group) and in order to validate the safety policy with regard to REMIT, the CREG received the approval of ACER, with several minor comments, in early 2018. The CREG took actions to resolve/clarify these remarks and sent its statements to ACER for validation.

Finally, in 2018, the CREG conducted various investigations and ad hoc analyses on questions from market players about possible violations of the REMIT Regulation. Of these cases, seven were closed or transferred to another body. The CREG drafted a note for three of these cases. It received six new cases in 2018.

The first case closed in 2018 pertained to a possible infringement of Article 3 of REMIT. The analysis showed that information had been published ineffectively. After the market participant had remedied this oversight, the CREG decided not to take any sanctioning measures.112

The second case related to a possible breach of Article 5 of REMIT. The analysis showed that there was insufficient evidence to rule that the operator in question may have attempted to give false or misleading signals, to keep the price 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.



The third case concerned an investigation into a possible breach of Article 5 of REMIT. The analysis showed that there were elements which suggested that the operator in question may have attempted to give false or misleading signals, to keep the price at an artificial level or to use fraud or deception. Due to the specific context and the prompt corrective actions taken by the economic operator, no immediate further steps were taken.114

3.2.2.5. Charter of best practices for electricity and gas price comparison websites

Following consultation with stakeholders, the CREG took a decision in July 2018 on the charter of best practices for electricity and gas price comparison websites.115

The aim of this charter is to provide household consumers (and SMEs) with useful, relevant and coherent information for online price comparisons for electricity and gas. The charter contains a number of provisions that an (online) price comparison must comply with in order to obtain accreditation from the CREG. The provisions of the charter relate to the following principles:

- The service provider must provide clear information about its services;

- The services must be user-friendly and straightforward;- The service provider must be accurate: it must provide non-

misleading, complete, correct, relevant information that is up to date;

- The service provider must act responsibly with the information from and for the user.

• Simplification of the energy bill

In 2017, the CREG, as expert party, participated in the multi-stakeholder consultation organised by the King Baudouin Foundation, on the possible simplification of the electricity and natural gas bill.

As part of the project, the following themes were discussed in workshops: identifying best practice as regards electricity and natural gas bills, proposing simplified bills and testing them with consumers with a view to ultimately arriving at a number of specific recommendations for a simpler energy bill.

Work continued on simplifying the energy bill launched by the King Baudouin Foundation throughout 2018.

On 19 October 2018, the Ministers for Energy and the Minister for Consumer Affairs announced that they would work together on a simplified energy bill. In 2018, the CREG actively participated in the working group organised in this context by the Cabinet of the Minister for Consumer Affairs.

• Charter

In the context of its consumer protection role, the CREG continued to monitor compliance with the provisions of the Charter of best practices for electricity and gas price comparison websites until June 2018, and took action if it found that market players had used references to the CREG or other regional regulators.

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.

3.3. Consumer protection

The CREG continued to stress the consumer protection aspect of its work in 2018.

• CREG Scan

Launched in February 2017, the CREG Scan is intended for individuals, SMEs and the self-employed, with a maximum annual consumption of 50,000 kWh for electricity and 100,000 kWh for natural gas.

The CREG Scan enables consumers to check whether the contract they have signed up to in the past is an active or a dormant contract and where it stands in relation to the cheapest and most expensive product on the market today.

The CREG Scan is easy to use and is complementary to existing price comparison websites, which only compare active electricity and natural gas products. The tool is aimed at ensuring that consumers make informed decisions and, especially, that they have full information.

• Revision of the consumer agreement

On 28 June 2017, the Minister of Work, Economy and Consumers and the energy suppliers signed a new agreement: 'De consument in de vrije elektriciteits- en gasmarkt' (The consumer in the free electricity and gas market). Most of the provisions of this new agreement entered into force on 1 January 2018.



• Consumer information

In 2018, the CREG continued to inform consumers, in particular about prices and price trends, among other things via:

- the annual study into the evolution of the components of electricity and natural gas prices (see points 3.1.3.5 and 3.2.1.1 of this report);

- monitoring energy market prices for households and small professional users (see point 3.2.1.2 of this report);

- the study into electricity supply to major industrial customers in Belgium in 2017, with the aim of improving the transparency of the supply of electricity to major industrial customers (see point 3.2.1.1. of this report);

- infographics and monthly dashboards for electricity and natural gas (see point 3.2.1.2 of this report);

- the monthly publication of quoted gas prices TTF101, TTF103 and, since February 2018, ZTP101. This monthly index informs end users and system users in Belgium about a price reference that can be used in gas supply contracts. This new monthly index from PEGAS enhances the visibility of the notional ZTP market and should further enhance its liquidity;

- the processing of enquiries and complaints received from consumers (see point 5.4 of this report).

Finally, readers are referred to the work carried out by the CREG in the context of European working groups handling aspects relating to consumer protection in the field of energy (see point 5.6 of this report).

3.4. Security of supply

3.4.1. Monitoring the balance between supply and demand

• Demand116

The load on the Elia grid was 76.65 TWh in 2018, compared with 77.41 TWh in 2017, equating to a fall of 1.0% between 2017 and 2018.

Table 8: Elia grid load (energy and peak capacity) for the period

2007-2018 (Source: Elia, 2018: provisional data)

Energy (GWh)

Peak capacity(MW)

2007 86 619 14 033

2008 87 760 13 431

2009 81 575 13 513

2010 86 501 13 845

2011 83 350 13 201

2012 81 717 13 369

2013 80 534 13 446

2014 77 161 12 736

2015 77 184 12 634

2016 77 295 12 734

2017 77 414 12 867

2018 76 652 12 440

• Installed capacity and generated energy

During the course of 2018, the installed generation capacity connected to the Elia grid in Belgium increased compared

with 2017, from 14,069 MW to 15,396 MW. This increase by 1,327 MW was the result of various developments in 2018. Firstly, the commissioning of the Rentel wind farm contributed to an increased installed capacity of offshore wind turbines. Furthermore, the generation units of Seraing and Vilvoorde (725 MW in total) returned to the market after having been contracted in the strategic reserve in previous years. Finally, the unavailability of certain nuclear power stations prompted some actors to take temporary measures, such as the installation of diesel generators or the recommissioning of units that had been definitively decommissioned. For winter 2018-2019, no volume of strategic reserve was contracted.

Table 9: Breakdown by plant type of installed capacity connected

to the Elia grid as of 31 December 2018 (Source: Elia)

Power plant typeInstalled capacity

MW %

Nuclear plants 5 919 38.4

CCGT and gas turbines 4 609 29.9

Conventional power plants 315 2.0

Cogeneration 874 5.7

Incinerators 247 1.6

Diesel engines 61 0.4

Turbojets 177 1.1

Hydro (excluding pumping power plants)

86 0.6

Pumping power plants 1 308 8.5

Onshore wind farms 231 1.5

Offshore wind farms 1 187 7.7

Biomass 382 2.5

Total 15 396 100.0

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.



117 Opinion (A)1802 of 12 July 2018 on the 2020-2030 draft development plan of Elia System Operator NV.

Table 10: Breakdown by primary energy type of electricity

generated in 2018 by plants located on sites connected to

the Elia grid

Primary energy Power generated

GWh %

Nuclear1 27 250 38.0

Natural gas1 19 326 26.9

Coal1 0 0.0

Fuel1 4 0.0

Other self-generated power used locally3

1 560 2.2

Hydro (including pumping power plants)1

1 142 1.6

Other1 10 115 14.1

Total2 59.400 100.0

1 Source: Elia, provisional data2 Source: Synergrid, provisional data3 Source: CREG calculations (values not supplied by Elia)

3.4.2. Verifying the development plan for the transmission system

The CREG publishes its opinion on Elia's draft Federal Development Plan for the period 2020-2030.

Elia proposes a total of €5 billion in investments over a period of 10 years. The CREG requests a clear cost-benefit analysis of the proposed investments for the Belgian end consumer. It is not clear from the draft version of the development plan whether all the investments are cost-effective.

Furthermore, the CREG asks for more transparency when the need to strengthen the grid and make new investments is identified. For example, Elia has to catalogue the assumptions regarding the location of generation and offtake. The figures

relating to the location, frequency and scale of the expected congestion in the various scenarios are also extremely important. Crucial information in this respect is whether the expected congestion is caused by commercial exchanges or loop flows. The CREG also believes it is relevant that Elia addresses the alternatives examined and the criteria on which these alternatives have not been selected.

Finally, the CREG proposes that Elia draw up a detailed roadmap for the delivery of phase 2 of the Modular Offshore Grid upon final approval of the Maritime Spatial Plan.117

3.4.3. Operational security of the grid

The graph below illustrates the changes in the maximum physical load for the interconnectors with France and the Netherlands. This physical load is a combination of flows resulting from commercial imports to and exports from Belgium and of flows resulting from transit through the Belgian network.

Figure 17: Changes between 2007 and 2018 in the maximum physical load for the interconnections with France and the Netherlands

(Source: CREG, based on Elia data)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

2 055 2 095 2 714 3 030 2 470 2 678 2 963 2 154 2 199 3 218 3 209 2 921

2 553 2 663 2 208 2 724 2 567 2 510 2 825 2 235 1 898 3 341 3 026 2 515

-3 597 -3 333 -1 917 -2 637 -3 171 -3 301 -3 643 -3 461 -3 795 -3 962 -3 275 -4 196

-3 260 -3 477 -2 740 -2 989 -2 711 -2 922 -3 050 -3 312 -4 005 -3 982 -3 799 -3 755

charge max. BE ➝ FR

charge max. BE ➝ NL

charge max. FR ➝ BE

charge max. NL ➝ BE

MW

-5 000

-4 000

-3 000

-2 000

-1 000

0

1 000

2 000

3 000

4 0004,000

3,000

2,000

1,000

0

-1,000

-2,000

-3,000

-4,000

-5,000



In 2018, the maximum peak flow on the Dutch border towards the Netherlands (exports) was 2,515 MW, compared to 3,104 MW in 2017. This peak was recorded on 12 March, when France exported 5,255 MW to Belgium, the Netherlands and Germany. At the time, Belgium imported 973 MW.

The maximum peak flow of 3,755 MW at the Dutch border in the direction of Belgium (import) was recorded on 5 February 2018, when Belgium and France together imported 7,815 MW from Germany and the Netherlands. Belgium imported 1,701 MW at the time.

The maximum peak flow of 2,921 MW on the French border towards France (export) was recorded on 19 March 2018, when France imported 7,493 MW from Belgium (436 MW), the Netherlands (82 MW) and Germany/Luxembourg/Austria (6,975 MW). The peak flow on the French border towards Belgium (import) was recorded on 23 December with a maximum of 4,196 MW, slightly higher than the level of 2017. At the time, France and Germany exported a total of 9,731 MW to Belgium (4,252 MW), the Netherlands (2,946 MW) and Austria (2,532 MW).

These maximum values were recorded during hours when the loop flows charged by Elia in the calculation of the day-ahead capacity calculations (see Elia website) were relatively low, i.e. no more than 466 MW as opposed to the annual average of 812 MW. This implies that the physical capacity utilisation of the interconnectors is at its maximum at low loop flows.

3.4.4. Investment in cross-border interconnections

The high-voltage grid needs to permanently evolve to meet the needs of consumers and the market, and to guarantee security of supply. Strengthening interconnections at European level is one of the major challenges for achieving these objectives.

n Planned strengthening of the northern border

Brabo project

The Brabo project is part of the strengthening of the Belgian electricity grid. The project is necessary to guarantee supplies throughout Belgium and, in particular, to the Antwerp port region, and will be implemented in several phases.

Brabo II and Brabo III include the construction of an additional above-ground 380 kV two-circuit connection between the Zandvliet and Mercator (Kruibeke) stations on the north-south axis of Antwerp in order to ensure the intended increase in interconnection capacity at the northern border following the completion of Brabo I.

The need to ensure a rise in industrial consumption in the Antwerp port area (especially phase II) and to create a reception capacity for centralised generation (especially phase III) is also being taken into account.

Brabo II has already started and is expected to be completed in 2020.

Brabo III is currently being studied. The commissioning of this last phase is planned for 2025.

Zandvliet-Rilland project

This project aims to strengthen the existing 380-kV Zandvliet-Rilland interconnector by replacing the conductors of the above-ground alternating current connection between Zandvliet (Belgium) and Rilland (the Netherlands) with high-performance conductors, installing two additional phase shifters and restructuring the Zandvliet substation.

This strengthening of the interconnection capacity at the northern border (in combination with the Brabo project) will reduce the risk that this border becomes a restricting factor for the increasingly larger and variable trade flows between the markets within the CWE area.

The commissioning of this project is planned for 2022.

Van Eyck-Maasbracht project

The Van Eyck-Maasbracht project currently being studied involves strengthening the existing 380 kV Van Eyck-Maasbracht interconnection. The reference solution consists of replacing the existing conductors of the above-ground alternating current connection between Van Eyck (Belgium) and Maasbracht (the Netherlands) with high-performance conductors, installing two additional phase shifters and restructuring the Van Eyck substation. Other variants are also being examined. The solution is being examined by three parties: Elia, TenneT and Amprion. This project is currently being studied.


n Planned strengthening of the southern border

Avelin-Horta project

This project aims, firstly, to strengthen the existing 380 kV interconnection between Avelin/Mastaing (France) and Avelgem (Belgium) by replacing the current conductors of the above-ground alternating current connection between Avelin/Mastaing and Avelgem with high-performance conductors and to replace the current conductors of the above-ground alternating current connection between Avelgem and Horta (Zomergem) with high performance conductors.




Lonny-Achêne-Gramme project

This project involves strengthening the existing 380 kV interconnection between Achêne/Gramme (Belgium) and Lonny (France). It will be implemented in various phases.

The first phase of this upgrade is necessary to allow a better distribution of the expected flows at the southern border by 2025. The reference solution consists of installing a phase shifter on the Belgian side.

The second phase is an additional upgrade. The reference solution consists of replacing the existing conductors of the above-ground 380 kV alternating current connection between Achêne/Gramme (Belgium) and Lonny (France) with high-performance conductors, installing a second phase shifter and restructuring the Achêne and Gramme substations.

This project is currently being studied. The commissioning of this project is planned for 2030.

Aubange-Moulaine project

This project aims to strengthen the existing 220 kV connection between Aubange (Belgium) and Moulaine (France) by installing two phase shifters at the Aubange substation.

The upgrade at the southern border complements the upgrade at Avelin-Avelgem, and reduces the risk that this interconnection becomes a restricting factor for the exchange of flows between markets.


n Planned interconnections between Belgium and the United Kingdom

The NEMO project involves the construction of a 1,000 MW direct current submarine cable about 140 km long. This project will connect Richborough in the UK to the 'Gezelle' substation, which is part of the Stevin project in Bruges.

For Belgium, this means that energy can be exchanged directly with the UK, which should lead to greater security of supply in view of the diversification engendered by a new interconnection.

Construction started in mid-2016. The technical completion of the new connection is planned for early 2019, after which its commercial operation can start.

A second project, the Nautilus project, is in a study phase and consists of analysing whether a second interconnection between Belgium and the United Kingdom is possible. The standard solution is a 1,000 to 1,400 MW direct current (HVDC) submarine cable connection.

In view of the preliminary results of the study and the fact that developing infrastructure on this scale would take around ten years, commissioning is currently scheduled for 2028 at the earliest.

n Planned interconnection between Belgium and Germany

The ALEGrO project involves the construction of a 1,000 MW direct current (HVDC) underground cable about 90 km long. This interconnection connects the substations at Lixhe (Belgium) and Oberzier (Germany) and will be the first direct connection

between Belgium and Germany with a capacity of around 1,000 MW. This project is in the implementation phase.The planned commissioning date is 2020.

The possibility of a second interconnection between Belgium and Germany is currently being studied. The standard solution is a 1,000 MW direct current (HVDC) submarine cable connection. The location of the connection point between Belgium and Germany has not yet been decided.

In view of the preliminary results of the study and the fact that developing infrastructure on this scale would take around ten years, commissioning is currently scheduled for 2028 at the earliest.

3.4.5. Measures to cover peak demand and deal with shortfalls

3.4.5.1. Strategic reserve: winter periods 2018-2019-2020

On 15 January 2018, the Minister for Energy tasked the transmission system operator (Elia) with setting up a strategic reserve for a volume of 500 MW for the winter period 2018-2019.118

As required by law, Elia submitted the operating rules for the strategic reserve for the winter period 2018-2019 to the CREG for approval. The CREG organised a public consultation on its draft decision. On 9 February 2018, the CREG decided to adopt an amended version of the operating rules.119

Elia also needs to lay down the procedures for establishing the strategic reserve after consultation with grid users, the CREG 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.



a number of remarks to the proposal for a procedure for the establishment of strategic reserves for the winter period 2018-2019 that was submitted by Elia for consultation.120

On 28 June 2018, the CREG issued an opinion on whether or not the prices offered to Elia System Operator NV for the supply of the strategic reserve in response to the call for tenders of 2018, were manifestly unreasonable.121

Following the announcement on 29 March 2018 that the CCGT unit at Seraing would return to the market, the Minister for Energy asked Elia to review its analysis of the need for a strategic reserve. Given that it also took into account a request from European regulators to the TSOs to allocate at least 20% of the interconnection capacity to the market, Elia recommended not establishing a strategic reserve for the winter period 2018-2019. As such, on 29 August 2018, the Minister for Energy instructed Elia not to establish a strategic reserve for the winter period 2018-2019.122

The tariff of the public service obligation 'strategic reserve' amounted to €0.4298 net per MWh taken off in 2018. In its decision of 6 December 2018,123 the CREG approved Elia's amended proposal to adapt this tariff. The new tariff (€0/MWh) will be applicable from 1 January 2019.

In the context of the public consultation organised by Elia on the methodology, assumptions and data sources for dimensioning the volumes for the strategic reserve for winter 2019-2020, the CREG gave its remarks on Elia's proposal in a note dated 17 May 2018.124

3.4.5.2. Access to demand management

• Participation of the flexibility of demand in the electricity markets in Belgium

Following the enactment on 13 July 2017 of the law amending the law of 29 April 1999 on the organisation of the electricity market with a view to improving demand flexibility and electricity storage, the CREG was given new competences which it exercised in 2018.

Pursuant to Article 19bis, §§3 to 5 of the Law of 29 April 1999 to facilitate the transfer of energy, the CREG took a decision on 15 March 2018 which lays down the following matters:

- the rules to be followed regarding the remuneration of the transferred energy;

- the formula(s) for determining the standard transfer price;- the mechanisms for the financial and contractual guarantees

to be obtained from the flexibility service provider:

- the formula for determining the standard transfer price applied by the CREG if no agreement was reached during the commercial negotiations between the market players;

- the model of standard clauses applicable between the flexibility service provider and the supplier in the absence of agreement on the terms of their contractual relationship.125

In addition, in the context of a tariff incentive imposed by the CREG in its tariff methodology, the CREG also took a decision 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.126

Subsequently, in the context of the implementation of Article 19bis, §2 of the Electricity Act, the CREG took two decisions. On 24 May 2018, after consultation with the competent regional authorities and after consulting Elia, the CREG decided to conditionally approve the rules governing the energy transmission on the market for free bids of tertiary reserves, as presented by Elia System Operator NV.127 On 17 September 2018, the CREG, after consultation with the competent public authorities and after consultation with Elia, decided to approve the amendment to the rules submitted by Elia System Operator organising energy transmission in order to enable energy transmission to the reserved tertiary and 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.



In the context of the implementation of Article 8 of this Electricity Act, the CREG approved Elia's proposal for the terms of reference setting out the criteria and modalities for monitoring the performance of managing demand flexibility data with an energy transmission and the criteria and modalities for selecting an external auditor.129

Finally, in the second half of 2018, the CREG took decisions on requests for application of the formula for determining the standard transfer price, pursuant to the provisions of Chapter III of the above-mentioned decision 1677.130

3.4.5.3. Security of electricity supply for winter 2018-2019

Following the announcements regarding the unavailability of nuclear power stations, the CREG, in its note of 28 September 2018, proposed a number of measures that could contribute in

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 by the 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.

the short term to improving the security of electricity supply during the winter 2018-2019. These measures have been implemented or are being discussed with our neighbouring countries.131

In addition, given the risks this situation posed to Belgium's security of supply, measures were taken pursuant to Article 32 of the Electricity Act, which allows the King to take the necessary protective measures in the event of a sudden crisis on the energy market.

In this context, in accordance with the aforementioned article 32, the CREG was asked to give an opinion on four draft Royal Decrees containing protective measures for Belgium's electricity supply in the event of a crisis.132 These Royal Decrees contain measures that derogate from the Electricity Act or its implementing decrees and, in particular, allowed certain idle

generation facilities to return to the market quickly and allow for a temporary increase in the net developable capacity of certain units. In its opinions, the CREG essentially wrote that more justification had to be given as to why it was necessary to invoke Article 32 of the Electricity Act.

The CREG also offered support for the conclusion of bilateral and multilateral agreements on measures for the operational management of solidarity in order to ensure Belgium's security of supply for winter 2018-2019.

Finally, the CREG also took a decision to allow the operating rules of the market for the compensation of 15-minute imbalances for the introduction of a product to allow the submission of free quotations of R3 by non-CIPU units with an activation period of more than 15 minutes in response to a signal from Elia (see also point 3.1.3.4, C), balancing, of this report).


4. The natural gas market

The natural gas market

4



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).

4.1. Regulation

4.1.1. Natural gas supply

4.1.1.1. Federal natural gas supply licences

The supply of natural gas to customers (distribution companies or end customers whose gas offtake at each supply point permanently amounts to a minimum of one million m³ per year) established in Belgium is subject to the prior granting of an individual permit issued by the Minister for Energy (except when it is carried out by a distribution company on its own distribution system).

The application dossiers for federal natural gas supply licences are sent to the CREG, which examines the criteria and then sends its opinion to the Minister for Energy.

In 2018, the CREG issued eight opinions in response to applications for natural gas supply licences. These applications came from Eneco Belgium, Gazprom Marketing & Trading Limited, Ineos Energy Trading Ltd, EDF Luminus SA, Direct Energie SA, Direct Energie Belgium SA, Getec Energie AG and European Energy Pooling bvba.133

During the course of 2018, the Minister for Energy granted an individual supply licence for natural gas to six companies, namely Eneco Belgium SA,134 Gazprom Marketing & Trading Ltd,135 Ineos Energy Trading Ltd,136 EDF Luminus SA,137 Direct Energie SA138 and Direct Energie Belgium SA.139

Table 11: Companies active in 2018 on the Belgian market for transmitting natural gas - Change compared with 2017 (Source: CREG)

VOLUME TRANSPORTED IN BELGIUM (IN TWH)*MARKET SHARE IN BELGIUM (IN %)

2017 2018 Δ2018/2017

TWh % TWh % (%)** (%-point)***

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

AXPO SOLUTIONS AG 0.20 0.11 0.12 0.06 -40 -0.1

BELGIAN ECO ENERGY NV 0.10 0.06 0.11 0.06 10 0.0

DIRECT ENERGIE 3.55 1.95 2.84 1.52 -20 -0.4

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

ENERGY GLOBAL HANDEL BV 0.34 0.18

ENGIE 58.27 32.02 61.18 32.70 5 0.7

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

EQUINOR ASA 5.44 2.99 5.77 3.08 6 0.1

ESSENT SALES PORTFOLIO MANAGEMENT BV 4.09 2.18

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

GETEC ENERGIE AG 0.35 0.19 0.25 0.14 -29 -0.1

LAMPIRIS SA 4.19 2.30 0.001 0.00 -100 -2.3

NATGAS AKTIENGESELLSCHAFT 1.41 0.77 1.29 0.69 -9 -0.1

PROGRESS ENERGY SERVICES 1.80 0.99 0.98 0.52 -46 -0.5

RWE SUPPLY & TRADING GMBH 9.05 4.98 6.38 3.41 -30 -1.6

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

UNIPER GLOBAL COMMODITIES SE 0.46 0.25 0.50 0.27 9 0.0

VATTENFALL ENERGY TRADING NETHERLANDS SA 6.32 3.47 6.45 3.44 2 0.0

WINGAS GMBH 10.80 5.93 11.57 6.18 7 0.3

FINAL TOTAL 182 100 187 100 3

* 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.



140 The assessment is based on figures related to shipping activities on the transmission system as communicated by the transmission system operator.

In 2018, total natural gas consumption140 amounted to 187 TWh, representing an increase of 3% compared with consumption in 2017 (182 TWh). There was slightly higher consumption for end consumers connected to the distribution systems (+1.0%), a considerable increase in consumption both by industrial consumers (+5.9%) and for the generation of electricity (possibly combined with heat production) (+4.2%).

Two new companies started supply activities on the wholesale market for natural gas in 2018. Taking into account the merging of transmission operations within a company from the same group, 25 companies were active on the Belgian transmission market last year.

The top 3 companies active on the transmission network - with a combined market share of 55%, down 5% compared to 2017 - remain unchanged. Engie Electrabel remains in first place and slightly increased its market share from 32.0% to 32.7%. Eni 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 of EDF Luminus rose by 0.2% to reach 10.8%.

Total gas & power Ltd, whose market share increases by 4.9% (to 7.8%) takes over the fourth place from Wingas GmbH, which occupies the fifth place with 6.2%. Eneco Energy Trade BV has a market share of 5.2%.

There are only 6 market players with a market share higher than 5%.

The market share of Gas Natural Fenosa SAS declines slightly (0.3%) to 3.6%. Vattenfall Energy Trading Netherlands remains stable at 3.4%. RWE Supply & Trading GmbH experiences a fall (1.6%) to 3.4%. Equinor ASA (Statoil) retains its market share of 3.1%. The market share of ArcelorMittal Energy SCA stabilises at 2.6%. Essent Sales Portfolio Management BV accounts for a market share of 2.2%.

The other active network users each have a market share below 2%.

On 31 December 2018, 36 grid users were in possession of a federal supply permit for natural gas. During the course of 2018, 25 of them carried out supply activities on the natural gas transmission system for Belgian end consumers. By way of comparison, at the end of 2007, just six grid users were operating on the Fluxys Belgium transmission system for supplies to Belgian end customers.

4.1.1.2. Price caps

• For unprotected customers whose supply contract has been terminated

Readers are referred to section 3.1.2.2 of this report, which also applies to natural gas.

• For protected household customers on low incomes or in precarious situations

In accordance with current legislation, the CREG calculated and published the social tariffs applicable from 1 February 2018 to 31 July 2018 and from 1 August 2018 to 31 January 2019 for the supply of natural gas to protected household consumers on low incomes or in precarious situations.

The maximum social price for the supply of natural gas was 2.595 euro cent/kWh (€0.02595/kWh) for the period from 1 February 2018 to 31 July 2018 and 2.636 euro cent/kWh (€0.02636/kWh) for the period from 1 August 2018 to 31 January 2019.

This is the price without VAT, federal contribution, and connection fee (Wallonia). The tariffs of the transmission and distribution networks are included.

4.1.1.3. Trends in and fundamentals of the natural gas price

The following are some of the trends observed for natural gas in 2018:

- At the start of 2018, the distribution and transmission tariffs were adapted.

- In the neighbouring countries, no new surcharge was introduced in 2018; existing system tariffs and surcharges, however, were adjusted, as is the case every year.

Readers are referred to point 3.1.2.3 of this report.

4.1.2. Transmission and distribution

4.1.2.1. Unbundling and certification of the transmission system operator

In accordance with its powers of monitoring compliance with unbundling requirements by the TSO, the CREG concluded that the changes made in 2018 to the shareholdings in the subsidiaries of the parent company Fluxys comply with the provisions of the Gas Act of 12 April 1965.

The shareholdings of the subsidiaries of the parent company Fluxys underwent the following changes in 2018:

- In the context of the Greek restructuring plan, the Greek authorities launched a tender procedure in April 2018 to sell 66% of the share capital of the Greek transmission system operator (TSO) DESFA. DESFA was certified in 2014 under the ITO model and is the only TSO for natural gas in Greece. The European consortium selected to take over 66% of the shares is called SENFLUGA Energy Infrastructure Holdings SA and is made up of the following companies:



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.

Snam SpA (60%), Fluxys Europe BV (20%) and Enagas Internacional S.L.U. (20%). At the request of the Greek regulator responsible for certifying DESFA, the CREG noted in November 2018 that its decision from 2012 regarding the certification of Fluxys Belgium was still valid and that Fluxys Europe BV has no interests in gas and electricity production and/or supply companies that could have an impact on the Greek energy market.

- Fluxys Europe BV, together with its partners in the consortium AXA Investment Managers-Real Assets, acting on behalf of its customers, and Crédit Agricole Assurances, decided to purchase a 35.76% stake in Dunkerque LNG, owner of the liquefied natural gas (LNG) terminal in Dunkirk, from EDF and Total. This 35.76% shareholding is in addition to the 25% already held by Fluxys Europe BV, bringing the total shareholding of the company and its consortium partners to 60.76%. Through the consortium, Fluxys Europe BV holds 30.39% of the capital of the terminal, while AXA Investment Managers-Real Assets, acting on behalf of its customers, and Crédit Agricole Assurances each hold 15.19% of the capital. Fluxys Europe BV's stake in Gaz-Opale, the company responsible for operating the terminal, is maintained at 49%, the remaining 51% being held by Dunkerque LNG. In addition to the 35.76% stake transferred to Fluxys Europe BV and its consortium partners, EDF and Total sold their remaining 39.24% stake in the plant to a consortium of Korean investors led by IPM Group, in cooperation with Samsung Asset Management.

- In November 2018, Fluxys Europe BV and Enagás Internacional S.L.U. jointly sold their complete shareholding in Swedegas, owner and operator of the Swedish natural gas network, to FS Gas Transport AB. FS Gas Transport AB is indirectly a wholly-owned subsidiary of the European Diversified Infrastructure Fund II of First State Investment (First State).

- In October 2018, Rostock LNG GmbH, a joint venture between Novatek and Fluxys Europe BV, signed a land lease agreement with the Port of Rostock for the construction and operation of a medium-scale storage terminal for liquefied natural gas (LNG). The joint venture between Novatek (49%) and Fluxys Europe BV (51%) aims at the construction and operation of an LNG terminal capable of receiving and unloading medium-sized LNG carriers, storing LNG and providing LNG distribution services, such as the loading of tankers (and possibly freight trains) to supply industry or filling stations for trucks using LNG as a fuel, and loading operations to supply LNG as a maritime fuel, primarily to ships operating in the Baltic Sea.

In 2018, the shareholdership of Interconnector UK Limited consisted of Fluxys UK Limited (37.60%), Gasbridge 1 BV (23.68%), Snam International BV (23.68%) and Fluxys Interconnector Limited (15.04%).

In February 2018, the Italian TSO Snam SpA and Fluxys Europe BV decided to exercise their proportional right of pre-emption on the shareholding of the 'Caisse de dépôt et

placement du Québec' in Interconnector UK, through the companies Gasbridge 1 BV and Gasbridge 2 BV, of which they are joint shareholders. As far as Interconnector UK Limited is concerned, there were no significant developments in the areas of unbundling and certification in 2018.

4.1.2.2. Corporate governance

In the context of the monitoring of the application of Article 8/3 of the Gas Act and the assessment of its effectiveness with regards to the requirements of independence and impartiality of operators, the CREG examined the activity reports of the corporate governance committees of Fluxys Belgium and Fluxys LNG for the year 2017.

The CREG also examined the report of the compliance officer on compliance with the programme of commitments by Fluxys Belgium and Fluxys LNG employees in 2017. The purpose of this programme of commitments is to prevent any discrimination between system users and/or categories of system users.

In its favourable opinions of 14 June 2018141 and 25 October 2018,142 the CREG concluded that Ms Anne Leclercq and Ms Sabine Colson met the criteria for independent directors with regard to their directorships on the board of directors of Fluxys Belgium. Furthermore, analysis of documents received and additional information showed that these appointments are compatible with compliance by Fluxys Belgium with the rules on ownership unbundling.



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.

4.1.2.3.Technical operation

A. Natural gas transmission licences

The construction and operation of installations for natural gas transmission is subject to the prior granting of a permit issued by the Federal Minister for Energy, on the advice of various authorities, including the CREG.

In 2018, the CREG issued four favourable opinions in this respect.143

B. Balancing zone and balancing model

• Balancing zone

In 2017, Fluxys Belgium and Creos entrusted the management of the grid balancing of the integrated Belux zone to a joint venture: Balansys. The CREG approved the balancing contract proposed by Balansys, the balancing code and the balancing programme. However, the approval will only take effect after approval of the compliance programme of Balansys by the Agency for the Cooperation of Energy Regulators (ACER). In addition, Balansys must also comply with the comments made by the CREG in its decision and draw up a new proposal for incident management and emergency situations.144

• The balancing model

At the end of February and beginning of March 2018, North-Western Europe was hit by a cold spell that was described in the specialised press as The Beast from the East. In a note

dated July 2018, the CREG analysed the functioning of the Belux balancing system during this cold spell. It concluded that the system is robust, even in difficult and even exceptional circumstances. Network users also find the functioning of the system to be extremely effective and transparent. In this way, this market-driven balancing system ensures the effective and efficient functioning of the natural gas market, which translates into competitive prices on the wholesale market.145

The trends relating to the market-based balancing model, in effect from 1 October 2012 and summarised in the 2013 Annual Report (pages 55-56), are still applicable in 2018.

C. Regulations governing system security and reliability, and standards and requirements for quality of service and supply

Pursuant to Article 133 of the Code of Conduct, the natural gas transmission system operator must apply a monitoring system that tracks the quality and reliability of its natural gas transmission system and the transmission services provided.

In particular, this monitoring system makes it possible to determine quality criteria in terms of:- frequency of service interruptions and/or reductions;- average duration of service interruptions and/or reductions;- causes and remedies for these service interruptions and/or

reductions;- the portfolio of natural gas transmission services offered.

There were no service interruptions or reductions in 2018.

D. Time taken by the transmission system operator to carry out connections and repairs

In accordance with the Gas Act, the CREG is responsible for monitoring the time taken by the natural gas transmission system operator to carry out connections and repairs.

In 2018, two new connections were created for end customers and two for public distribution. The construction of these four new connections took 80 and 124 months, respectively, for end customers, and 57 and 84 months, respectively, for public distribution.

In 2018, five repairs were carried out following accidents or incidents, and twenty repairs were carried out in the context of maintenance periods. Four of the five unplanned repairs were carried out within the same day, after consultation with – and without any impact on – the shippers and the end consumers. The twenty repairs under scheduled maintenance periods were carried out to avoid any impact on service delivery. All scheduled operations were for a limited time (usually one day or a few days) and were carried out in conjunction with the end consumer and/or shippers concerned.

E. Code of Conduct

• Fluxys Belgium

On 26 April 2018, after consulting the market players, the CREG approved Fluxys Belgium's application to amend the regulatory documents for natural gas transmission (transmission contract, transmission programme and access regulations).



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.

Among other things, the amendments relate to the transfer of the commercial system balancing activity by Fluxys Belgium to Balansys, the capacity conversion service on the Prisma platform, invoicing and the introduction of new services such as reshuffling.

The CREG asked Fluxys Belgium to submit an action plan for natural gas quality and a roadmap for the integration of physical and notional trading services by 15 June 2018 at the latest.146 In its letter of 11 June 2018, Fluxys Belgium communicated to the CREG its intentions regarding the quality and integration of the two hubs ZTP (P) and ZTP (N). The CREG will continue to monitor this in 2019.

• Fluxys LNG

In the context of the expansion of the capacity of the LNG terminal at Zeebrugge, the following adjustments to the regulatory documents were proposed by Fluxys LNG: addition of two new services concerning small-scale mooring rights and residual storage.

Following consultation by Fluxys LNG with the market players, the CREG decided to approve the amendments to the conditions for the LNG terminal in Zeebrugge submitted by Fluxys LNG.147

• Interconnector (UK)

On 1 March 2018, the CREG approved the proposal for an implicit allocation method submitted by Interconnector (UK).

This proposal was drafted following various market consultations by IUK on the method of capacity allocation. The market players participating in the consultations welcomed IUK's efforts to develop and expand its range of flexible services. Most of them saw added value in the provision of transport services via implicit allocation as an additional possibility to the explicit offering via Prisma. In addition, the market players did however express a number of critical considerations about the way in which implicit allocation was offered. In response to this, IUK amended the access regulations and specified the rules and general conditions for the partners of implicit allocation in an annex.

In this way, the market consultations resulted in an acceptable framework within which capacity can be offered and allocated implicitly.

The CREG also asked IUK to explicitly monitor the application of the implicit allocation method and to communicate the result to the CREG by 1 April 2019 at the latest.148

F. Measures to safeguard security of supply

The Gas Coordination Group of the European Commission coordinates the application of Regulation (EU) No 2017/1938 of the European Parliament and of the Council of 25 October 2017 concerning measures to safeguard security of gas supply and repealing Regulation (EU) No 994/2010, published on 28 October 2017. The CREG represents Belgium in this group, alongside the designated competent authority, namely the Directorate-General for Energy.

This new Regulation closely follows the existing one (Regulation (EU) No. 994/2010) but provides for much more explicit, regional cooperation to manage emergencies. In addition, a legal framework is provided to develop a solidarity mechanism between the European member states as regards continuous supply for protected customers.

In 2018, the CREG worked together with the Directorate-General for Energy to develop the requested plans and mechanisms for Belgium. Risk analyses at regional and national level were drawn up for scenarios in which gas supply and infrastructure are disrupted. This relates to scenarios both for the supply of L-gas and H-gas. The development of a solidarity mechanism between Member States in the event of a crisis, as required by Article 13 of the new Regulation, was one of the main topics of discussion in the various European workshops.

The CREG also assists the Directorate-General for Energy in the application of the European Regulation concerning measures to safeguard security of supply in Belgium. In this context, the CREG primarily focuses on the optimisation of market functioning and possible market instruments that aim to safeguard security of supply. Residual risks require appropriate intervention on the part of the authorities, which can be integrated within the operation of the market without disruptive consequences.

The new regulation (EU) No 2017/1938 is the result of an initiative by the European Commission in 2014 to revise regulation (EU) No 994/2010. In this context, and in close collaboration with the European Commission, CEER set up a



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.

task force on 26 November 2014 in order to help the European Commission with this revision and to publish their opinion with regards to security of supply on behalf of the European energy regulators. On 18 October 2018, this task force published a report on the application in the Member States of the supply standard provided for in the Regulation.149 The CREG is Deputy Chair of this task force.

As part of its remit to monitor and check the application of the Code of Conduct (see also point 4.1.2.3.E of this report), the CREG monitored balancing on the transmission system for H-gas and L-gas. In 2018, the CREG did not identify any problems that posed a threat to preserving the balance of the system. The current system balancing model puts a heavy responsibility on system users, and the natural gas transmission system operator now has only to provide residual balancing, if necessary. The market-based balancing mechanism is closely monitored and the CREG believes it to be an effective and important mechanism that also contributes to ensuring the continuity of natural gas supplies for all end users. The Belgian balancing zone for H-gas has been expanded since 1 October 2015 through the merger with the Luxembourg natural gas market. Ever since this date, the same balancing rules apply to both markets that have merged into a single balancing area with just one trading platform (the existing Zeebrugge Trading Platform ZTP) and a single entry/exit area. Market-based balancing in the single Belux zone is organised by Fluxys Belgium pending the allocation of this responsibility to the separate company (Balansys) created by Fluxys Belgium and the Luxembourg transmission system operator, CREOS (see point 4.1.3.3 of this report).

4.1.2.4. System and LNG tariffs

A. Transmission system, storage and LNG

a) Tariff methodology

n Transmission, storage and LNG

On 24 January 2018, the CREG, Fluxys Belgium and Fluxys LNG signed the procedural agreement that forms the basis of the tariff methodology process and lays down the procedure to be followed to determine the tariff methodology 2020-2023 for the natural gas transmission network, the management of the natural gas storage facility and the management of the LNG facility or the amendment of the tariff methodology in force at the time the agreement is signed. The agreement also lays down the procedure for approving tariff proposals and tariff modifications.

On 12 March 2018, a consultation meeting was organised between the CREG, Fluxys Belgium and Fluxys LNG to prepare for the public consultation on the new tariff methodology.The public consultation of the CREG on the draft decision establishing the tariff methodology ran from 19 April to 17 May 2018. The CREG received three responses (from FEBEG, FEBELIEC and AVERE BELGIUM) which were summarised and analysed in the consultation report.

Based on these responses, the CREG submitted its amended draft decision setting out the tariff methodology to the Chamber of Representatives, which did not report any findings in this respect.

The CREG approved the final decision establishing the methodology for determining the transmission, storage and LNG tariffs for the period 2020-2023 on 28 June 2018.150 This methodology is based on tried and tested principles that have been refined and supplemented. The regulation is intended to strike the right balance between the quality of the services provided and the prices borne by final customers and grid users. Fluxys Belgium will use this methodology to present its tariff proposal. The tariffs will be announced in the course of 2019.

From 23 October to 22 November 2018, Fluxys Belgium organised a market consultation on storage tariffs for the period 2020-2023. This highlighted the fact that a thorough review of the storage model was inevitable and should be carried out immediately. As a result, the CREG and Fluxys Belgium agreed to postpone the date for submitting the tariff proposal, to 15 October 2019 at the latest.

n Interconnector (UK)

At the end of 2017, Interconnector (UK) submitted a request for exemption from the application of certain articles of the European regulation establishing a network code on harmonised transmission tariff structures for gas. The CREG and the UK regulator OFGEM worked closely together on this request and jointly assessed it. On 28 June 2018, the two regulators decided to grant a limited exemption to Interconnector (UK) and informed the European Commission and ACER.151

As a reminder, at the end of 2017, the CREG adopted a decision establishing the tariff methodology for the connection and 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).



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.

b) Tariff trends

n Transmission tariffs 2018

As stated on page 57 of the 2017 Annual Report, in May 2017 the CREG approved the natural gas transmission tariffs applicable in 2018. They were 7.5% lower than in 2017 (including indexation).

n Storage tariffs 2018

The storage tariffs approved in 2015 remained unchanged, with the exception of the indexation provided for in advance by the CREG.

n Balancing tariffs 2019

Following a market survey in July 2018, Fluxys Belgium and Balansys submitted a proposal to the CREG to approve the balancing tariffs. The CREG accepted the proposal on 25 October 2018. The daily and intraday imbalance charge that will apply in 2019 will therefore be maintained at its current level and the neutrality charge went from €0/MWh to €0.013/MWh.152

n LNG terminal tariffs

On 28 June 2018, the CREG approved Fluxys LNG's updated tariff proposal. This updated tariff proposal was submitted in order to:

- confirm the final investment amount for the second pier;- provide a more advanced estimate of the investment budget

for the expansion needed for the provision of transshipment services, namely the fifth storage tank and the additional compressors;

- introduce tariffs for the new services relating to small-scale berthing rights and residual storage services, and

- update the financial parameters as requested by the CREG in its decision approving the tariffs in 2014.

The tariffs for existing services remain unchanged compared to the tariffs approved by the CREG on 2 October 2014, with the exception of the tariff for the approval of LNG tankers and the loading tariff for LNG tankers if they have been subscribed 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 of the fifth tank scheduled for 1 April 2019.153

c) Balances

In its decisions of 12 July 2018, the CREG approved the adjusted tariff reports, including the balances submitted by Fluxys Belgium NV and Fluxys LNG NV for operating year 2017.154 In this regard, the CREG verified the total income and operating balances of the two companies. These balances are the result of the differences between the tariff estimates and the figures and quantities actually established.€/

kWh/

h/ye

ar

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180,0

0,5

1,0

1,5

2,0

2,5

3,0

Figure 18: Fluxys Belgium's tariff trends for natural gas transmission (entry/exit tariffs for H-gas) between 2007 and 2018 (Source: CREG)

3.0

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1.0

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B. Distribution systems

Readers are referred to point 3.1.3.5.B of this report.

4.1.3. Cross-border issues and market integration

4.1.3.1. Access to cross-border infrastructure

Under the new European TEN-E Regulation No 347/2013, which was published on 25 April 2013 and entered into force on 15 May 2013, project promoters may, during a biennial selection process, submit investment projects to the European Commission with a view to securing Project of Common Interest status (hereinafter: PCI). Only projects spanning at least one national border within the European Union can be considered. PCI status enables a project to benefit from faster and more efficient licence-granting procedures and revised regulatory conditions. In addition, a cost-benefit analysis is made of the PCI projects for the different countries to which these projects apply. This is done with a view to possible cross-border compensation of costs if projects would otherwise not be carried out. There can be no subsidies from the European Commission to help finance the necessary work other than as a last resort, i.e. if the market is unable to finance the cost of the investment and if significant positive externalities are nonetheless linked to the project, such as market integration, competition, security of supplies and sustainability.

At the request of Fluxys Belgium, in 2018 the CREG helped draw up an application for European co-financing of the PCI for the conversion to H-gas of the zone currently supplied with L-gas. Fluxys Belgium and GRTgaz, the operator of the French gas transmission system, are both promoters of this project

given that the conversion in France is also jointly included in the PCI.

On 4 October 2018, the CREG and the CRE, the French energy regulator, reached an agreement on the cross-border sharing of the costs borne by Belgium or France, without cross-border compensation. This decision is a prerequisite for qualifying for European funding within the CEF (Connecting Europe Facility) programme. The European INEA (Innovation and Networks Executive Agency), which examined this application for funding, is due to give its opinion on the application at the beginning of 2019.

The list of European PCI projects is updated every two years and checked by the respective European regional working groups. At the end of 2018, a new and fourth list of PCIs was launched again, for the end of 2019. The CREG follows these activities within the working group for the region GasWest. Not only is the CREG involved in the selection process and monitoring of PCIs, it also contributes, in close consultation with other regulators and ACER, to the correct implementation of the TEN-E Regulation No 347/2013. This includes, among other things, the assessment of costs and benefits for Belgium possibly included in the PCI projects abroad and a possible cost compensation resulting from these foreign projects. Until now, Belgium has not been in receipt of any possible cross-border cost compensation for the completion of PCI projects.

4.1.3.2. Correlation between the investment plan for the transmission network and the development plan for the European network

Readers are referred to point 4.4.2 of this report.

4.1.3.3. Market integration

Belgium and the surrounding countries represent 57% of the European natural gas market. Belgium is located at the centre of important natural gas corridors in North West Europe and is characterised by intensive cross-border trade in natural gas. The Dutch TTF is the main border market for trade in natural gas (H-gas and L-gas) for the Belgian market. In 2018 net natural gas transactions from TTF to ZTP amounted to 111.5 TWh. The British NBP continues to show a positive net balance for natural gas transactions to ZTP (13.0 TWh in 2018). Natural gas transactions with both German natural gas markets change direction fast between exit to Germany and entry into Belgium. With the North German GASPOOL, net natural gas transactions to ZTP amounted to 34.30 TWh in 2018, while net natural gas transactions from ZTP with the South German NCG amounted to 7.8 TWh. France is highly dependent on natural gas transactions between ZTP and PEG Nord (149.7 TWh in 2018).

The price curves in Figure 20 show the annual average day-ahead (DAM) price of natural gas for the Belgian natural gas market ZTP (since 1 October 2015 ZTP also comprises the Luxembourg natural gas market), the Dutch TTF and both German markets GASPOOL and NCG. These price curves converge, which indicates that smooth cross-border trade in natural gas is possible between these markets. The annual average year-ahead price of natural gas (Y+1) is also shown. Given the price convergence and correlation on the short-term market, the long-term price in the Netherlands and Germany can also be used as a reference price for the Belgian-Luxembourg market.



The average price of natural gas on the short-term market rose to approximately €23.0/MWh in 2018, and on the long-term market to approximately €20.8/MWh. This is an increase for both products, although not yet to the level of 2013, when they were on average above €26/MWh. Average natural gas prices on the short-term market in Belgium and abroad were at a similar level, with a difference of 0.8% between NCG and ZTP.

Figure 19: Net natural gas transactions between the ZTP* Belgian natural gas market (Belux) and the markets in the neighbouring

countries during the period 2011-2018 (in TWh/year, H-gas and L-gas) (Sources: CREG, gasdata.fluxys.com data)

2011 2012 2013 2014 2015 2016 2017 2018

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* 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)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

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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.

4.2. Competition

4.2.1. Monitoring of wholesale and retail prices

4.2.1.1. CREG studies conducted in 2018

• Natural gas transmission market in Belgium in 2017

In its note on core data for the transmission market for natural gas in Belgium in 2017, the CREG stated that total natural gas consumption last year was 182.0 TWh. This is an increase of 1.4% compared to consumption in 2016 (179.4 TWh). This increase is the result of an increased consumption of natural gas in the consumer segments industry and electricity generation. In the distribution systems segment, there is a slight decrease, closely correlated with the lower heating requirements.

In 2017, one additional company started delivery activities on the transmission system, while another company ceased its activities, resulting in 23 active market players. The top 3 of the supply companies remains unchanged, as does their respective position, but their combined market share falls from 67.4% to 60.0%.

The HHI index - which gives an indication of market concentration - gives the same signal and drops from fully 1,900 to 1,580 points.155

• Prices on the Belgian natural gas market in 2017

The study on the prices in force on the Belgian natural gas market in 2017 analyses market shares, price formation, price

levels, price breakdown and billing in the different segments (import, resale, supply of residential customers, industrial customers and power plants) of the Belgian natural gas market in 2017.

With more than 40 natural gas companies, the Belgian natural gas market is highly competitive. In particular, the study notes that the gross sales margins on the different market sectors and on the types of indexing are falling.

In all segments, quoted gas prices were the main vector of prices. Only 1% of industrial contracts are indexed to oil. As regards household customers and SMEs, 2017 was the second year in which billing of the transmission component was separate from the energy component. The CREG also recommends this split billing for the other segments.156

• Natural gas supply to large industrial customers

In 2018, the CREG conducted a new study into natural gas supply to large industrial customers in Belgium. These customers, which are connected directly to the Fluxys Belgium transmission system, accounted for 24% of consumption by Belgian end consumers in 2017.

Analysis of the supply contracts shows that short-term contracts (with a duration of 1 or 2 years) are primarily entered into. For example, in 2017, supply contracts of 2 years are the most common: in 42% of cases, followed by contracts of 1 year: in 24% of cases.

Contracts with variable prices based on quoted gas prices account for more than 90% of customers. Around 8% of customers have a fixed price contract and approximately 1% have a fixed price contract indexed to quoted oil prices. The CREG notes that the increased practice of quoted natural gas prices is becoming more generalised, both upstream (supply contracts) and downstream (sales contracts).

Given the HHI index, which fell back to 2,411 in 2017, the lowest level in the study period (2007-2017), the market for industrial customers directly connected to the Fluxys Belgium grid remains dynamic and competitive. In view of the significant drop in volumes that were the subject of supplier changes in 2017, the switching rates still need to be monitored.157

• Other studies


4.2.1.2. Monitoring energy market prices for households and small professional users


4.2.2. Monitoring of market transparency and openness

• The REMIT Regulation




• Charter of best practices for electricity and gas price comparison websites


4.3. Consumer protection

Readers are referred to point 3.3 of this report.

4.4. Security of supply

4.4.1. Monitoring the balance between supply and demand

A. Natural gas demand

In 2018, total natural gas consumption amounted to 186.97 TWh, representing an increase of 3.0% compared with consumption in 2017 (181.53 TWh). This increase in demand can be attributed primarily to industry (+5.9%) and natural gas-fired power plants (+4.2%). The growth in demand from large-scale consumers is striking, all the more so as an average 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 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%.

In these conditions, the share of the natural gas offtake on the distribution systems was 49.6% in 2018 (compared to 50.6% in 2017).

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%

Figure 21: Distribution of Belgian H-gas and L-gas demand by user segment in 2017 and 2018 (Source: CREG)

0

20

40

60

80

100

Electricity generation Distribution systemsIndustrial customers

2017 TWh 2018 TWh

Total H L Total H L Total H L



B. Natural gas supply

Natural gas suppliers can choose from a range of entry points on the natural gas transmission system to both carry out national and international natural gas transactions and to supply their Belgian customers with H-gas. Natural gas customers who use L-gas are supplied directly from the Netherlands or indirectly, against the flow, via the Blaregnies interconnection point with France. LNG imports, mainly from Qatar via the Zeebrugge

Figure 22: Evolution of natural gas consumption per user segment during the 1990-2018 period (1990=100), corrected for climate variations (Source: CREG)

household & equivalent

industryElectricity

generation

total

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

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

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

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

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

80

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terminal, accounted for a 3.2% share of the average import portfolio in 2018 for the Belgian market. Zeebrugge is the main supply point for Belgian natural gas consumers and, in 2018, had a share of 44.7%. On a virtual level, there are imports via the interconnection point with France at Blaregnies, both for H-gas and for L-gas, via nominations against the flow of border-to-border natural gas flows that are initially destined for the French market.

The supply portfolios of the individual natural gas suppliers resulted, overall, in a differentiated supply depending on the type of contract. The share of long-term contracts concluded directly with natural gas producers with a remaining duration in excess of 5 years was 39.7% (43.8% in 2017) and remained the main component of these portfolios. The total supply provided through supply contracts concluded directly with natural gas producers was 47.0% (52.9% in 2017). Net supply on the wholesale market recorded an increase in 2018 to



53.0% (47.1% in 2017). Long-term contracts with natural gas producers remain the backbone in the portfolio of the most important suppliers on the Belgian market, but suppliers are increasingly sourcing from the wholesale market (hubs). In 2018, a total of 25 supply companies were operating on the Belgian market. Electrabel (Engie), 33% (32% in 2017), and ENI S.p.A., 11% (17% in 2017) together covered 44% (compared to 49% in 2017 and 58% in 2016) of natural gas supply to 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 of at least 5%. The remaining 20 supply companies (together accounting for a market share of 31%) each had a market share of less than 5%, while 11 of these supply companies had market share of less than 1%. Market concentration fell in 2018 compared to 2017.

Figure 23: Breakdown of incoming natural gas by entry zone in

2018 (Source: CREG)

* The Blaregnies entry points are used against the flow of the actual flows ('reverse flow'), making use of the predominant transit flows at these points.

Figure 24: Composition of the average supply portfolio of suppliers

operating in Belgium in 2018 (Source: CREG)

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

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Figure 25: Composition of the average supply portfolio for the Belgian natural gas market between 2000 and 2018 (shares in %)

(Source: CREG)

West (Zeebrugge) 41.5%

LNG Terminal 3.2%North

(Zelzate, Zandvliet)0.7%

North (L-gas) 25.2%

North-east ('s Gravenvoeren, Dilsen)

21.8%

East (Eynatten)

6.8%

Blaregnies* (H-gas)

0.9%

Contracts with producers > 5 years

39.7%

Contracts with producers < 5 years

7.3%Other contracts > 1 year

5.6%

Other contracts < 1 year 47.4%

0

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158 Federation of transmission and distribution system operators for electricity and natural gas in Belgium.

4.4.2. Monitoring TSO investment plans

The natural gas transmission system, operated by Fluxys Belgium, has developed in such a way that it has become an important intersection for transmission pipelines in north-west Europe, reporting a record level in terms of coupling with neighbouring transmission systems. Import capacity increased to more than ten million cubic metres of natural gas per hour (100 GWh/hour) with natural gas flowing in both directions and no congestion problems. This maturity explains why no immediate significant investments in extensions are planned. The need to replace some elements of some facilities will however increase.

There are some unfavourable developments in Europe that make decisions to invest further in extensions less clear-cut. Demand for natural gas is generally stagnating or even shrinking, and is also showing increased volatility. Short-term transmission capacity orders continue to increase without, however, showing any commitments in long-term transmission contracts with the natural gas transmission system operator. Furthermore, there is uncertainty about the use of natural gas-fired plants for future electricity generation.

The deployment of green gas including biomethane, and the conversion of temporary electricity surpluses (solar and wind energy) into hydrogen, for example, will help determine the future of the natural gas infrastructure, under the influence of Europe's ambitious energy and climate change targets.

In any case, natural gas infrastructure has to make an important contribution to a cost-efficient energy transition, since the storage of electrical energy remains a difficult link to bridge.In 2018, Fluxys Belgium drafted a ten-year plan concerning the development of the system (2019-2028), in accordance with Article 15/1, paragraph 5 of the Gas Act. The CREG evaluated this plan in parallel with the ENTSO-G's 10-year network development plan (TYNDP 2017) and the TSOs of the North-West European region's regional investment plan (GRIP 2017), and found no issues.

The current major challenge is the conversion of the separate L-gas transmission system with the aim of evolving towards a Belgian natural gas market supplied exclusively with H-gas. This conversion is necessary because no new long-term contracts will be concluded with the Netherlands for the supply of L-gas, given the way in which the Netherlands is managing the remaining stocks of L-gas. Furthermore, the Dutch government has taken drastic measures to limit the extraction of L-gas in Groningenveld because of the risk of earthquakes in the region. In 2018, the CREG held further consultations

with Fluxys Belgium with a view to developing an efficient system to enable suppliers to easily switch to H-gas, so that they can continue to supply customers who have already made the switch. During the conversion period, the necessary transport capacity for L-gas supplies to France will continue to be provided. The aim is to follow the implementation of the indicative L/H conversion plan as proposed by Synergrid158 with a view to a full exit from L-gas in the summer of 2029. This L/H conversion plan is based on the maximum reuse of existing infrastructures to avoid investments that are only needed for the switchover period. The gradual adjustment to a market supplied exclusively by H-gas is included in the draft 10-year network development plan.

The LNG terminal at Zeebrugge is being further expanded in response to the development of the small-scale LNG market and new flows. Following commissioning of a new pier, at the start of 2017, for LNG ships with a capacity of 1,000 to 210,000 m³ of LNG, the facilities for loading trucks and LNG containers were also doubled, increasing the maximum capacity of the terminal from 4,000 to 8,000 shipments per year on 1 January 2019. This infrastructure is perfectly in line with the development of the use of LNG as a fuel for maritime or road transport or for supplying areas that are not connected to the pipeline network. In addition, the construction of a fifth tank with a capacity of 180,000 m³ of LNG (2015-2019) that is currently underway will bring the maximum storage capacity of the terminal from 386 to 566,000 m³ of LNG. This is necessary to receive icebreaker LNG vessels from the Sabetta peninsula (northeast of Siberia Yamal LNG) if the eastern route that connects Sabetta directly to Asia is blocked by ice. The LNG terminal will make it possible to unload icebreaker LNG ships and load immediately (ship-to-ship transshipment) or later (ship-storage-ship transshipment) on regular LNG ships in order to transport the LNG further to the end markets. The construction of a third pier in Zeebrugge, which was considered for some time, was postponed due to the current level of

Figure 26: Market shares of supply companies in the transmission

network in 2018 (Source: CREG)

* Supply companies each with a market share of less than 1%: Antargaz Finagaz, Axpo Solutions AG, Belgian Eco Energy SA, Energy Global Handel BV, Enovos Luxembourg SA, GETEC Energie AG, Lampiris SA, natGAS Aktiengesellschaft, Progress Energy Services, Soc. Europ. de Gestion de l’Energie SA, Uniper Global Commodities SE.

Wingas GmbH 6%

Vattenfall Energy Trading Netherlands NV 3%

Total Gas & Power Ltd 8%

Eni S.p.A. 11%

Equinor ASA 3%

EDF Luminus SA 11%

Direct Energie 2%

ArcelorMittal Energy S.C.A. 3%

European Energy Pooling 2%Gas Natural Europe 4%

Electrabel 33%

Eneco Energy Trade BV 5%

Essent Sales Portfolio Management BV 2%

RWE Supply & Trading GmbH - UK Desk 3%

Other 5%



market demand and the operational capacity of the terminal which is equipped with two piers. Depending on the signals from the markets, the construction of additional infrastructure at the Zeebrugge terminal (additional piers, additional storage tanks, etc.) may still be considered.

Limited annual growth on the distribution systems and the expected development for industrial customers and power stations have given rise to some local reinforcement. Moreover, carrying out this investment continues to depend on adequate payment for the capacity by end users.

Finally, the European investment context has been shifting for several years, with, firstly, changes in demand-side behaviour. Secondly, European regulations are focusing more on building 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, security of supply and sustainability. The aim is also to establish a sectoral link between electricity and natural gas. Cost issues remain of crucial importance to the CREG, and it is obvious that more attention will be paid to alternative solutions to avoid wasted investment and safeguard the competitiveness of natural gas. Cross-border investment decisions are increasingly subject to new factors beyond the national interest.

4.4.3. Forecasts on future demand, available reserves and additional capacity.

• 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

Figure 27: Forecast for demand for natural gas in Belgium until 2028 (GWh, normalised t°, H+L) (Source: CREG)

0

50 000

100 000

150 000

200 000

250 000

H + L H L

GWh

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

trend that takes account of temperature. Taking into account the numerous uncertainties existing at this moment, these forecasts are highly hypothetical and may change in the short term as market conditions change.

Above all, there is a great deal of sensitivity regarding the use of existing power plants and the construction of new power plants that run on natural gas, the competitive position of natural gas in the energy mix (especially for wholesale users), the economic

forecasts and the role of natural gas in the transition to a low-carbon economy. The forecasts include an estimate of the growth in H-gas demand to replace the L-gas demand, according to the draft L/H conversion plan included in the indicative ten-year plan for the development of the Fluxys Belgium network (see point 4.4.2 of this report). A situation of gradual convergence to a single integrated H-gas market is described within the context of stagnating natural gas demand, except for changes in trends or events that cannot currently be predicted.

250,000

200,000

150,000

100,000

50,000

0



• Supply

The number of importers of H-gas for the Belgian market is currently 23 (the same as in 2017). Among all importers there is a high degree of diversification, both in terms of supply sources and in terms of supply routes. Under the impetus of European market organisation, the natural gas market has seen more and more short-term transactions, a greater volume of trade, increased volatility, more international arbitrage and price coupling between European markets. In Belgium the conditions for the attraction and distribution of natural gas flows are favourable and this can be further enhanced by the gradual transition to a single integrated H-gas market in 2029. 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.

As for L-gas suppliers, there are currently 18 suppliers (like in 2017), which are also active on the Belgian H-gas market and depend almost exclusively on the Hilvarenbeek/Poppel interconnection point for supplies from the Netherlands. Trends on the Belgian L-gas market are defined to a great extent by the gradual conversion of L-gas customers to H-gas.

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.

Figure 28: Breakdown of the peak offtake by user segment in 2018

(Source: CREG)

Figure 29: Breakdown of the sources of natural gas to cover the

peak offtake in 2018 (Source: CREG)

Electricity generation15%

Industry15%

Distribution systems

70%

Wednesday 28 February 20181,030 GWh

Germany 12%

NL L-Gas29%

NL H-Gas31%

Norway 22%

LNG 2%

Loenhout storage 4%

Wednesday 28 February 20181 030 GWh

Net natural gas supply originating from the Netherlands covered 60% of peak demand (31% H-gas and 29% L-gas). Around 22% came directly from the Norwegian gas fields located in the North Sea via the Zeepipe that comes ashore at Zeebrugge.

Natural gas flows entering the Belgian market via Germany covered 12% of peak demand. In addition, 4% of this peak demand came from the underground storage at Loenhout and 2% from the LNG terminal at Zeebrugge.


5. The CREG

The CREG

5


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.


5. The CREG

Table 13: Directorates and staff of the CREG as of 31 December 2018

CHAIR OF THE BOARD OF DIRECTORS LOCQUET Koen Acting Chairman of the Board of DirectorsDEVACHT Christiane Executive AssistantFIERS Jan Secretary of the Board of Directors VAN HAUWERMEIREN Geert European Chief Strategic AdviserDE VREESE Annemarie Communications ManagerLENOBLE Sophie Senior Adviser COZIGOU Liana Adviser

DIRECTORATE FOR THE TECHNICAL OPERATION OF THE MARKETS TIREZ Andreas Director

GOOVAERTS Wendy Executive AssistantVAN KELECOM Inge Multi-functional secretaryCUIJPERS ChristianDE WAELE Bart GHEURY Jacques MARIEN AlainMEES EmmericVAN ISTERDAEL Ivo Chief AdvisersCLAUWAERT Geert PONCELET Yves Senior AdvisersFILS Jean-FrançoisMAENHOUDT MarijnSCHOUTTEET NicoVERHELST Clara Advisers

DIRECTORATE FOR PRICE AND ACCOUNTS MONITORING JACQUET Laurent DirectorFELIX Kim Executive AssistantCORNELIS Natalie DEBRIGODE PatriciaJOOS BenediktLAERMANS Jan Chief Advisers

ALLONSIUS Johan BARZEELE Elke DUBOIS Frédéric HERNOT KurtLIBERT Brice MAES Tom PIECK An SOFIAS Anastasio Senior AdvisersCOBUT Christine WILMART Gilles Advisers

DIRECTORATE FOR GENERAL AFFAIRSLOCQUET Koen DirectorSELLESLAGH Arlette Executive Assistant

Gas and Electricity Advisory BoardDE LEEUW Han HERREZEEL Marianne Advisers

General Administration BAUWENS Evi SAMYN Emilie VAN ZANDYCKE Benjamin TranslatorsLOI Sofia Administration and Logistics coordinatorJUNCO Daniel Logistics staff memberCEUPPENS Chris DE DONCKER Nadine HAMELRIJCKX Maryse WYNS Evelyne Multi-functional office staff

HR DepartmentSMEDTS Hilde Senior Legal AdviserQUERTINMONT Carole CounselVAN MAELE Nele HR Officer

IT DepartmentDAELEMAN Kurt System and Networks ManagerGORTS-HORLAY Pierre-Emmanuel Assistant IT staff

Finance SCIMAR Paul Head of FinanceLECOCQ Nathalie AccountantCROMBEZ Thomas Accounting and Administrative AssistantPINZAN Laurent Administrative Assistant

Research, Documentation and ArchivesBOUCQUEY Pascal Chief AdviserCHICHAH Chorok DETAND Maria-Isabella GODDERIS Philip HEREMANS Barbara ROOBROUCK Myriam STEELANDT Laurence ZEGERS Laetitia

Senior AdvisersHENGESCH Luc Documentalist


5. The CREG

5.2. Gas and Electricity Advisory Board

The Gas and Electricity Advisory Board provides advice and acts as a discussion forum, created by the CREG and the Federal Minister for Energy.

Its role is:- to set guidelines for the application of the Electricity and Gas

Acts and their implementing decrees, on its own initiative or at the Minister's request;

- to draft opinions on any issue submitted to it by the CREG's Board of Directors;

- to act as a forum for discussing energy policy objectives and strategies.

The Advisory Board held nine plenary meetings in 2018.

The Chairman is Mr Peter Claes and the Vice-Chairman is Mr Mathieu Verjans.

Participation by a representative of the federal Minister for Energy has enabled the Advisory Board to focus its work on the most urgent aspects and to be kept informed periodically of the Government's concerns regarding gas and electricity. The questions asked by members to the Minister's representative made it possible to inform the Minister of the concerns of the Advisory Board.

The Advisory Board issued one opinion in 2018, namely opinion AR181221-070 on note 1847 on the Belgian day-ahead wholesale market for electricity from 1 to 7 October 2018, in particular the market outcomes before 3 October 2018 and decision 1814 on the approval request by Elia System Operator NV for the adaptation to market coupling in the CWE region as a result of the integration of the German-Austrian bidding zone border and the integration of the 20% minimum RAM rule.


5. The CREG

Table 14: Members of the Gas and Electricity Advisory Board as of 31 December 2018 (Source: Belgian Official Journal)

MEMBERS DEPUTY MEMBERSFederal Government VANEYCKEN Sven

ROOBROUCK NeleCHAHID RidouaneANNANE JihaneDORREKENS FrançoisDASGUPTA Jivan

JUSTAERT ArnoutWAEYAERT NicolasJOURDAIN SigridNIKOLIC DianaNICOLAS StéphaneDEMEYERE Frank

Regional Governments BIESEMAN WilfriedAUTRIQUE HenriJACQUET Annabelle

TANGHE MartineBOHET MauriceDECROP Jehan

Representative employees' organisations sitting on the National Labour Council VERJANS MathieuVERHUE MaureenVAN DAELE DanielDE CROCK Bart

NICAISE DidierVAN WIJNGAERDEN JanVAN MOL ChristiaanSKA Marie-HélèneJONCKHEERE Caroline

Representative employees' organisations sitting on the Council for Consumption DE WEL BertSTORME Sébastien

QUINTARD ChristopheSPIESSENS Eric

Organisations for the promotion and protection of the general interests of small-scale users ADRIAENSSENS ClaudeDOCHY Stéphane

RENSON Marie-ChristineMOERS Jan

Representative organisations of the industry and the banking and insurance sector sitting on the Central Economic Council VANCRONENBURG GeertBROUWERS ElsVAN der MAREN Olivier

VANDERMARLIERE FrankCALOZET MichelAERTS Kristin

Representative organisations of the crafts, small and medium-sized trading companies and small-scale industry sitting on the Central Economic Council

DE BUYSER CapucineVANDEN ABEELE Piet

DEPLAE ArnaudVAN GORP Michel

Large electricity consumers CLAES Peter EELENS Claire Large natural gas consumers BRAET Luc de MUNCK LaurentElectricity producers that are members of the Belgian Federation of Electricity and Gas Companies (FEBEG) VAN DEN BOSCH Marc

SCHOONACKER FrankDE GROOF Christiaande VILLENFAGNE Aude

Electricity producers using renewable energy sources LAUMONT Noémie BODE BartElectricity producers using cogeneration plants BOYDENS Jean-Pierre MARENNE YvesIndustries that generate electricity for their own needs BÉCRET Jean-Pierre ZADORA PeterDistribution system operators

GRIFNÉE FernandHUJOEL LucDE BRUYCKER Luc

DE BLOCK Gert

DECLERCQ ChristineDEBATISSE JenniferVERSCHELDE Martin

HOUGARDY Carine

- INTERMIXT

- INTER-REGIESTransmission System Operator for Electricity DAMILOT Julien MERTENS StevenTransmission System Operator for Natural Gas GOSSUIN Luc DESCHUYTENEER ThierryHolders of a supply licence for natural gas that are members of FEBEG VANDEN BORRE Tom

VAN NUNEN CarlosDE BUCK HildeDEDECKER Gunnar

Environmental associations VAN DYCK SaraVANDE PUTTE Jan

TURF JanDE SCHOUTHEETE Cécile

Holders of a supply licence for electricity that are members of FEBEG HEYVAERT GrietWYVERKENS Herman

GODTS AnnemieVAN BOXELAER Kathleen

Market operator for the exchange of energy blocks proposed by BELPEX MATTHYS-DONNADIEU James PIERREUX Nicolas


5. The CREG

5.3. General policy plan, comparative report on the objectives and achievements of the CREG, and the memorandum of the CREG for the attention of the federal elections

In accordance with the Electricity Act, on 25 October 2018 the CREG drew up its general policy plan for 2019.159 This plan is a continuation of what has been undertaken by the Board of Directors since September 2013 and, specifically, the CREG's Strategic Plan for 2013-2019. The policy plan sets out the objectives which the CREG will be pursuing in 2019 with due observance of its legal duties and in the context of the strategic guidelines defined by the federal Parliament and the federal Government in the area of energy. Each specific objective is described in detail, as are the resulting activities for the year 2019, with a list of deliverables and an indicative implementation date.

The policy plan accompanies the CREG's draft budget for the year 2019. Both documents have been submitted to the President of the Chamber of Representatives and to the Chair of the Commission for Economy, Scientific Policy, Education, National Scientific and Cultural Institutions, the Self-employed and Agriculture (hereinafter: the Economic Commission), and presented during a CREG hearing before the Economic Commission on 4 December 2018.

A comparative report160 has also been drafted on the objectives formulated in the 2016 policy plan and their achievement in 2017. On 26 April 2018, this report, together with the CREG's Annual Report 2017, was submitted to the Minister for Energy, the President of the Chamber of Representatives and the full members of the Economic Commission. In its policy note for 2017, the CREG identified 14 issues for which the different objectives needed to be achieved using different deliverables. The comparative report shows, for each action, the degree of completion achieved and explains why if a give action was not completed, or only partially. It is provided as an annex to the CREG's Annual Report.

In November 2018, the CREG also drew up a memorandum for the federal elections in May 2019. In it, the CREG proposes regulatory initiatives to protect consumers, promote the energy transition and ensure the proper functioning of the electricity and gas markets.

5.4. Handling questions and complaints

The CREG continued to handle the questions and complaints raised by consumers, businesses in the sector, lawyers, consultants, researchers, students, administrations, federal and regional mediation services or international authorities on a voluntary basis in 2018.

In addition, in 2014 the CREG also continued to cooperate with the Federal Energy Mediation Service, the three regional energy regulators (BRUGEL, CWaPE and VREG) and the FPS Economy, SMEs, the Self-employed and Energy (Directorate-General for Economic Inspection and Directorate-General for Energy). This cooperation is the result of an agreement signed in 2011 in which the services involved agreed on the procedure for the handling of complaints and questions that do not fall under the competence of the service that receives the complaint or question.

In addition, in March 2018, the CREG submitted to the Federal Energy Mediation Service its statistics on the complaints it received in 2017, in the context of its annual reporting obligations to the European Commission. Of the 791 queries and complaints received by the CREG in 2017, 131 were complaints (here the CREG regards any form of dissatisfaction as a complaint) that fell within the CREG's remit. They related primarily to the CREG Scan.

Finally, in 2018, no use was made of the possibility for anyone who considers that they have been disadvantaged by a CREG decision to ask the CREG to review their case, and the Dispute Resolution Chamber,161 a body of the CREG, could not yet start work in 2018, in the absence of a decision on the appointment 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.


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 gaz: rapport de la consultation publique - évolutionAanpassing van het charter voor goede praktijken voor online prijsvergelijking voor elektriciteit en gas: verslag openbare raadpleging - evolutie

29/01

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 regulatorsCREG - Belgium

7/02

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 l’électricité: Coût, conséquences et prévention de la défaillance / Studiedag : Een kink in de kabel: Kostprijs, gevolgen en voorzorgen

Solutions and cost to avoid load interruption 22/02

CEER Specialised Legal training on evolving regulatory processes in European Energy policy

European Regulators’ Forum (ERF) Regulatory challenges 27/02

NEMOs Regulatory framework and challenges 28/02

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 RegulationTariff Setting Method

16/03


5. The CREG


SRBE-KBVE Journée d'étude : Implémentation des Network Codes européens dans notre région, en Belgique impositions aux installations existantes / Studiedag : Implementatie van de Europese netwerkcodes in onze regio, in België en voorschriften voor bestaande installaties

EU connection and operation Network codes: creg’s role 21/03

Joining forces on the implementation of network codes - The role of National Regula-tory Authorities

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 flamands et wallons

Recontre dans le cadre de la compétence de la CREG de contrôler et approuver les soldes de la cotisation fédérale des GRD du passé

Modifications légales et réglementaires relatives à la cotisation fédérale électricité - Soldes des GRD / Wettelijke en reglementaire wijzigingen betreffende de federale bijdrage elektriciteit - Saldi van de DNB’s

30/03

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 et Responsable (AMPERes)

L’essor de la mobilité électrique en Belgique et en Europe

Impact of mass introduction of electric vehicles 19/04

CEER Specialised training on wholesale and retail market monitoring

Wholesale market functioning and monitoring : approach at CREG with regard to the Belgian situation and case study on market abuse

20/04

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 Honnelles

Changement de fournisseurs d’électricité Changement de fournisseurs d’électricité 23/05

CEER Specialised Training on Implementation of Electricity Network Codes and Guidelines

Capacity Allocation and Congestion Management GLs 24/05

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 la régulation avec les politiques publiques - les tarifs sociaux en pratique - Le cas de la Belgique

30/05

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 électriques et construction des marchés régionaux

4/06


5. The CREG


Conseil consultatif - Adviesraad GT composantes de prix Studie 1736 over de rendabiliteit van aardgas gebruikt als brandstof voor wagens (CNG of Compressed Natural Gas) / Étude 1736 sur la rentabilité du gaz naturel utilisé comme carburant pour les voitures (CNG of Compressed Natural Gas)

11/06

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 des tarifs sociaux

12/07

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 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

17/09

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 report 2017

20/09

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


5. The CREG


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 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

19/10

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 stroomafschakeling… Wat nu?

Prijsevolutie op de energiebeurzen: trends en drivers 21/11

SRBE - KBVE Journée d'étude: Transition énergétique, Quoi de neuf ? En Belgique et ses régions ? / Studiedag: Energietransitie, Wat is nieuw ? In België en zijn gewesten ?

Faut-il encore des mécanismes de soutien et faut-il changer le design des marchés de l’électricité pour réussir la transition énergétique ?

27/11

Conseil consultatif - Adviesraad GT fonctionnement du marché - électricité Decision 1814 on the updated CWE FBMC approval package following the introduction of the German-Austrian border and the introduction of the 20% minRAM measure

30/11

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


5. The CREG

5.6. The CREG and other authorities

5.6.1. The CREG and the European Commission

In 2018, the CREG took part, either directly or indirectly, in the work of the European Commission, for example by participating in the Seminar on Managing European and National Agendas on Energy Regulation, the Conference on the European Network Codes and the high-level debates on the state of play and future of regulation in electricity markets and infrastructures.

It also followed the work of the European Commission's High Level Group on North Seas Energy Cooperation, on offshore developments for the electricity infrastructure. In particular, in collaboration with the FPS Economy, it actively participated in the work of the North Seas Energy Cooperation Support Group 2 and the North Seas Energy Cooperation UK-BE-NL Cluster. In this context, a proposal to amend a recital of the Electricity Regulation was discussed in the context of the new texts of the Clean Energy Package, in view of the development of hybrid offshore electricity infrastructure. This amendment was presented with the support of a number of Member States, including Belgium, and included in the final text proposal of the new electricity regulation.

The CREG assumed its consultative role by assisting the government at the various meetings chaired by the European Commission: meetings to follow up and approve European network codes (see point 5.6.2 of this report), meetings of the Gas Coordination Group relating to security of supply and development of the gas infrastructure in the European interest, and meetings of the Electricity Coordination Group relating to security of supply for electricity, development of the electricity interconnections and cybersecurity.

In its role as a member of the CEER, the CREG also, as in previous years, provided assistance in a number of consultations and reports for the benefit of the European commission (see point 5.6.3 of this report).

In a similar vein to these activities, the CREG also actively participated in the forums chaired by the European Commission, including the European Gas Regulatory Forum, the European Electricity Regulatory Forum, the Citizens' Energy Forum and the Energy Infrastructure Forum (see points 5.6.4 to 5.6.7 below).

The CREG also submitted the 2017 National Report from Belgium to the European Commission and ACER.162 This was drafted in close collaboration with the regional regulators (BRUGEL, CWaPE and VREG) and the Federal Energy Mediation Service, and includes the measures taken and the results obtained within the framework of the legal missions of these authorities.

Finally, if it has been informed, the CREG responds to various questionnaires in the context of the harmonisation and integration of the European gas and electricity markets. In 2018, these included the following themes: Information request concerning the implementation of several provisions of Directive 2012/27/EU of 25 October 2012 on energy efficiency, Questionnaire on the general implementation of Art. 13 of Regulation 347/2013 and past recorded and future planned investments, Questionnaire on project incentive decisions and Questionnaire for a study on energy communities for the European Commission.

5.6.2. The CREG within ACER

ACER (the Agency for the Cooperation of Energy Regulators) was created by the third energy package in order to encourage the completion of the interior energy market, both for electricity and for natural gas.

The three objectives that it formulated based on the drawn-up legislation concern:- a more competitive integrated market offering more choice

to consumers;- an efficient energy infrastructure in which the free circulation

of energy beyond borders and the transmission of new energy sources are guaranteed, thereby improving security of supply for the companies of the European Union and consumers;

- a controlled and transparent energy market in which consumers pay a price which is guaranteed to be fair and reflect costs, and in which abuse is prevented.

ACER developed activities for each of these objectives in 2018, according to the challenges presented by the energy market. For example, as regards the further development of a future-proof European energy market, the main key issues and the associated regulatory challenges identified in the European Commission's 'Clean energy for all Europeans' legislative package, published on 30 November 2016, were discussed on various occasions. However, these new provisions will not enter into force before January 2020. As a result, there was no formal adjustment to the functioning of ACER in 2018.

Together with the CREG and all other national energy regulators in the European Union, ACER welcomes the efforts of the European Commission to promote the integration of renewable sources into the market, and maximise the use of 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.


5. The CREG

price signals. In this regard, calls are made to avoid overly prescriptive rules that could stifle the market and innovative initiatives.

Of greater concern to the CREG is the impact and level of regional regulatory supervision. While confirming that the local specificities of energy markets need to be taken into account, consistency between regional developments also needs to be monitored in order to achieve a well-functioning EU-wide internal energy market. Adequate regional regulatory oversight, including with regards to other EU organisations – including the European Network of Transmission System Operators (ENTSO), the future Distribution System Operators (DSO) body and the Nominated Electricity Market Operators (NEMOs) – will be one of the focal points that ACER will need to shape in the coming years.

In addition, the issuing of opinions supported the further development of an efficient energy infrastructure. For example, for the first time, the ENTSOs, both for electricity and natural gas, were able to consult each other in order to draw up their scenarios, which form the basis of their ten-year network development plan. Similarly, ACER, in consultation with the CREG and the other national energy regulators, considered the outcome of the consultation launched by the European Commission in 2018 with a view to drawing up a new list of projects of common interest.

Finally, ACER has intensified its supervision to ensure transparency and integrity in the energy markets. Three years of experience, since the start of data reporting by the stakeholders involved, was discussed in the first Energy Market Integrity and Transparency Forum. The CREG is also making every effort to continue to instil confidence in the trade in electricity and natural gas. It does this partly on its own initiative and partly at the request of ACER. Cooperation

between supervisory authorities remains a key element in this respect.

In addition to these future-oriented structural and strategic reforms, work on the creation of the integrated energy market continued in 2018. Within the Agency, the CREG collaborated in the preparation and implementation of the technical documents necessary in this regard.

n The Gas Working Group

The CREG is closely involved in ACER's Gas Working Group, and acts as vice-chair.

In 2018, the activities of the various task forces were further monitored with regard to the implementation of the various network codes and the monitoring of the natural gas market. Particular attention was given to the recent developments concerning the European Gas Directive on the regulation of natural gas connections with third countries (non-EU member states) and the Clean Energy Package regarding the transition towards a carbon-free natural gas system.

The GWG has approved reports on, inter alia, incentives for high-risk investment projects, cross-border cost allocation for projects of common interest (PCI) and the evaluation of ENTSOG's European investment plan.

The GWG also approved the ACER Market Monitoring Report 2017 on the wholesale market. Interoperability, in particular as regards data exchange at cross-border interconnection points and storage facilities, was also addressed by the GWG.

The GWG also focused on the supply of conditional transmission capacity in the Member States as an alternative to fixed transmission capacity, and the extent to which there

may be an impediment to the proper functioning of the entry/exit system. This analysis will be continued in 2019.

The GWG also followed up the public consultation on the tariff methodology by the various Member States.

n The Electricity Working Group

The ACER EWG is made up of the following task forces (TF):

- CACM TF, which is responsible for the introduction of the network code CACM (Capacity Allocation and Congestion Management);

- FP TF, which is responsible for developing the Future Policy (FP) of the electricity market;

- FCA TF, which is responsible for implementing the network code FCA (Forward Capacity Allocation) as regards long-term transmission capacity allocation;

- BAL TF (BALancing), which is responsible for matters relating to the balancing of the control area;

- INF TF (INFrastructure), which is responsible for matters related to the development of the network and the 10-year plan of ENTSO-E;

- SOGC TF (System Operation and Grid Connection), which is responsible for questions relating to system operation and grid connection.

The CREG jointly leads the task forces CACM, FCA and FP workstreams.

In 2018, the EWG focused its activities on implementing the CACM and FCA network codes. This required a large number of coordinated decisions at European level or at regional level.163 These coordinated decisions demand substantial work and follow a very formal process described in the network 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.


5. The CREG

The ACER EWG also played a coordinating role in producing the annual ACER market monitoring report, and the first report on the monitoring of the implementation of the FCA and CACM network codes.

n The Market Integrity and Transparency Working Group

Additional monitoring tasks were carried out within ACER's third objective, namely the implementation of the REMIT Regulation.164 Since 2015, data has been collected in accordance with this Regulation. The MIT WG is responsible for the implementation of REMIT.

The activities of the working group in 2018 focused on the quality of the data reported to ACER, the supervision of the markets and the conduct of market players, the publication of inside information, the sharing of information with other authorities (financial regulators, competition authorities, etc.), and the analysis of the specific characteristics of the energy market compared to the financial market, taking into account new financial regulations.

As part of efforts to improve the data ACER collects, the information manuals for providing information are being revised to specify exactly which information the market players have to provide. The work on the quality of the data is discussed with the Supervision and Market Conduct department, so that it corresponds to the analysis needs of the market to detect market abuse.

In order to monitor the markets and supervise the conduct of the market players, ACER has developed a computerised monitoring system that includes coordinated alarms to filter the REMIT data, in order to detect suspicious commercial actions for all European wholesale energy markets. The alarms are discussed and shared with the national regulatory authorities. As

a complement to the ACER Guidance, four orientation papers containing more detailed information on specific practices that constitute market abuse were prepared and discussed within the working group, in accordance with Article 5 of REMIT: "Wash trade", "Transmission capacity hoarding in the interconnectors", "Electricity generation capacity withholding" and "Layering". The aim of these papers is to share ideas on the general framework of the analysis to be used to determine whether specific conduct may be in violation of REMIT. They will be updated as necessary to take account of the evolution of the negotiation strategies.

For the purposes of sharing information between ACER and other authorities (financial regulators, competition authorities, etc.), the modalities for confidential information in the context of REMIT were included in an interpretative document of Article 17.4 of the Regulation. The document was endorsed in early 2018, but may be revised in the event of significant changes in relations with the various regulators or developments in the exchange of information between regulators in the broad sense.

As regards the publication of inside information, ACER sent a letter to the market players in May 2018 regarding the publication of inside information and its content distributed through the insider publication platforms. In 2018, the working group was tasked with producing a state of play of the current situation of published inside information, and the problems experienced. Based on this, ACER's guidelines and manual of procedures will be reviewed in 2019.

As regards the analysis of the specific features of the energy market compared to the financial market, various issues were addressed following the entry into force of a new financial regulation (MiFID II). A note on the 'commodity product' was drawn up in 2018 and is expected to be finalised in 2019.

During the meetings with ACER, the national regulatory authorities also exchange experience on suspected cases of market abuse in the respective countries. For Belgium, various cross-border cases are discussed within ACER-led research groups to ensure coordination between the different national regulatory authorities involved.

n Legal Experts Network

On 6 December 2017, the Legal Experts Network (hereinafter: LEN) was set up within ACER. The LEN is a network made up of legal experts from ACER and from the national regulatory authorities (hereinafter: NRAs). The aim of the LEN is to provide expert support and advice on technical-legal issues to ACER, the BoR and the ACER working groups. In 2018, the LEN issued opinions on various issues.

For example, the question of whether ACER is authorised to take decisions in English in respect of a natural or legal person whose official language is not English was examined. The LEN Panel concluded that Regulation No 1 of 1958 determining the languages to be used by the European Economic Community does not oblige ACER to use the official language of the Member State in which the addressee of the decision is situated, provided that the addressee has submitted a clear and explicit language waiver and that the ACER decision is not a document of general application.

Subsequently, the LEN Panel also provided legal advice with regard to the application of Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity (FCA GL), specifically regarding Article 30 (7) juncto 4 (6) and 4 (7) of the FCA GL. The LEN Panel concluded that Transmission System Operators (TSOs) exempted by their NRA to apply long-term transmission rights (LTTR) in a bidding 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.


5. The CREG

and methodologies for the introduction of LTTR to their NRA for approval.

In addition, the LEN Panel also examined the possibility of integrating the three Common Grid Model methodologies into a single document, in accordance with Articles 67 (1) and 70 of Regulation (EC) No 2017/1485 (GL), Article 18 of Regulation 2016/1719 (FCA GL) and Article 17 of Regulation 2015/1222 (CACM GL). The LEN concluded that from a European perspective, it is possible to adopt a single consolidated CGM methodology on the basis of three different legal bases (SO GL – FCA GL – CACM GL).

Finally, at the end of 2018, two LEN opinions were still pending. The first LEN opinion examines the conditions under which a TSO activity may be transferred to a third entity, whether or not it is a certified TSO. The second LEN opinion examines whether the compliance programme of Balansys NV meets the requirements of Article 7 (4) of Directive 73/2009/EC. The final versions of both opinions are expected during the first half of 2019.

n Questionnaires

Finally, the CREG actively contributed to the creation of ACER questionnaires and responded to them within the framework of the harmonisation and integration of the European gas and electricity markets. In 2018, these included the following themes: "Questionnaire on Retail and Wholesale Markets Monitoring", "Questionnaire on derogation requirements of the NC RfG", "Questionnaire on Incentives and investments", "Survey on the value of electricity supply for residential and professional users" and "Questionnaire on the national use of the Ten year network development plan (TYNDP 2018) for electricity".

All these questionnaires were used as a basis to write reports, status reviews, position papers and other documents issued by ACER. They not only give a detailed description of the differences and similarities between the Member States, but also provide information on the degree of application of European legislation in each Member State. The European Commission, for its part, uses these documents as the basis for the creation of legal initiatives.

5.6.3. The CREG within CEER

In its role as a founding member of CEER (Council of European Energy Regulators), the CREG also takes an active part in the discussions, deliberations and decisions of the CEER's General Assembly, which met nine times in 2018.

Since May 2015, Mrs Marie-Pierre Fauconnier, the resigning Chairwoman of the CREG's Board of Directors, has acted as Vice-Chair of CEER. Given that Mrs Fauconnier offered up her mandate in the second half of 2018, she was replaced by Mr Wolfgang Urbantschitsch, Executive Director of the Austrian Energy Regulator E-Control.

The CREG actively took part in the working group meetings of the CEER (and of the task forces and workstreams set up within these different working groups) as a Chair, Co-Chair, or member.

n The Electricity Working Group

The Electricity Working Group (EWG) of the CEER focuses on matters related to the European electricity systems, security of supply and sustainable development.

The EWG consists of three workstreams: one Sustainable Development workstream (WS) dealing inter alia with renewable energy issues, one Future Policy worksteam (FP WS) responsible for drafting future electricity market rules

and one Incentives Regulation and Efficiency Benchmarking workstream (IRB TF) responsible for collecting and exchanging essential information between NRAs in order to implement tariff and efficient monitoring of TSOs.

The CREG jointly manages the FP WS. In 2018, contributions were made, inter alia, to the preparation of several White Papers published by the CEER in response to the work of the European Commission on the proposals of the 'Clean energy for all Europeans' package. The White Papers in question relate, inter alia, to the integration of renewable energy sources into the market, to facilitating flexibility, the compensation mechanisms as regards capacity, and issues relating to the suitability of the system and the formation of efficient market-based electricity prices.

Within the IRB WS, the CREG contributes to the annual drafting of the Regulatory Frameworks Report (formerly the Investment Conditions Report), which gives a comprehensive picture of the investment conditions of the transmission system operators in Europe on the one hand, and the activities as part of the TSO Efficiency Benchmark on the other. Building on the preparations made in 2017 to launch the next TSO Efficiency Benchmark cycle, in 2018 the CREG decided to participate in this exercise. CEER is in charge of this project (ACM takes care of operations on behalf of CEER), for which the contract with the consultant was concluded in November 2017.

n The Gas Working Group

The Gas Working Group (GWG) of the European energy regulators handles questions relating to the European gas transmission systems and the European Union's gas market. The CREG acts as Vice-Chair. The GWG works on the various issues in close collaboration with ENTSOG, GSE and GLE, as well as with the other market players, and the other working groups of ACER and CEER.


5. The CREG

In 2018, the CEER GWG focused its attention on the following actions:

- Approval of the Status Review on the application of the supply standard foreseen in the gas Security of Supply Regulation. This report was published by CEER on 17 October 2018. The purpose of this analysis is to gain insight into the application of the supply standard at the national level, to identify current ways of application and to share experiences as reported by the national energy regulators;

- Publication of the CEER study 'Future Role of Gas' on 6 March 2018. CEER launched a stakeholder consultation with a view to gathering opinions and insights on the future of the natural gas market. Based on this consultation, the CEER's vision will be developed on the future role of gas from a regulatory perspective;

- Follow-up of the recommendations and findings of the CEER study 'Removing LNG Barriers on Gas Markets'.

On 24 April 2018, CEER organised a workshop to present its study on the future role of natural gas from a regulatory perspective. It also took part in the Madrid Forum of 16-17 October 2018, focusing on the future role of gas and natural gas infrastructure alongside the developments within the European Commission to redraft the legal gas package, with a view to the energy transition and the sector coupling between electricity and gas.

CEER also launched the following initiatives in 2018: - the drafting of an overview of the regulation of innovations in

the gas sector;- the drafting of a report on the gas infrastructure and energy

transition, with an analysis of the investment needs;- a follow-up of the Madrid Forum of October 2018: CEER

aims to take a leading role in analysing stranded assets and unbundling;

- preparation and follow-up of the EU initiatives on a new legislative package for gas.

n The Market Integrity and Transparency Working Group

The Market Integrity and Transparency Working Group (MIT WG) handles matters relating to transparency and the surveillance of energy exchanges, as well as the correlation between the legislation of the wholesale energy market and that of the relevant financial market. As such, the MIT WG is tasked with tracking all the measures concerning the operation of the energy markets and the surveillance of energy exchanges in general. This specifically includes the legislative proposals and the questions linked to energy exchanges, for example the decrease of VAT fraud on the energy markets.

In 2018, the MIT WG focused its attention primarily on:

- the implementation of the REMIT legislation at the national level. In order to monitor the national implementation of the REMIT legislation and provide a tool for comparison, in 2018 a questionnaire was sent to the national regulatory bodies; and

- the interaction between financial legislation and REMIT legislation.

n The Regulatory Benchmarking Workstream

The Regulatory Benchmarking Workstream (RBM WS) met four times in 2018 with the main objective of analysing the operating structures of national regulatory authorities. To this end, a questionnaire was drawn up covering various functional aspects in order to collect all relevant information and serve as a basis for the consolidated processing of the responses.

n The Customers and Retail Markets Working Group

The Customers and Retail Markets WG (CRM WG) gives priority to the interests of consumers by promoting consumer responsibility and encouraging the functioning of the retail market with a view to developing the best possible competition. Energy consumers must have the possibility to actively

participate in competitive and integrated energy markets. In this context, the CRM WG closely monitors consumer protection, but also strives to ensure that consumers have sufficient resources (e.g. price comparison tools) to make well-informed decisions on the energy market.

The CRM WG consists of four workstreams (WS) and the Partnership for the Enforcement of European Rights (PEER).The Customer Empowerment Workstream (CEM WS) handles aspects related to the retail market, such as billing to end consumers, handling their complaints, procedures for settling extra-judicial disputes, price comparison tools, and the protection of vulnerable energy consumers.

The Innovation and Retail Markets Workstream (IRM WS) considers questions relating to the proper functioning of the retail market, including the introduction of smart meters and the design of the electricity and gas markets. It focuses on how to empower consumers thanks to more competition between market players, and how to give them more choice through robust market procedures and tailored services. Its objective is to make energy consumers responsible.

The Monitoring Customer Empowerment Workstream (MCE WS) primarily works on the chapter on consumer protection and the automation of the ACER-CEER annual monitoring report.

The Monitoring Retail Markets Workstream (MRM WS) prepares the CEER report on retail market monitoring (with CEER working alone) and manages CEER's database of national indicators.

PEER, on the other hand, is an initiative of the European energy regulators to strengthen the application of the rights of European consumers through better cooperation between the authorities in the European Union. PEER brings together the bodies that want to protect and/or support European consumers in a wide range of sectors. These may include data protection authorities, consumer associations, ombudsmen,


5. The CREG

competition authorities and sectoral regulators (e.g. energy, telecommunications, finance, etc.).

Finally, in 2018 the CRM WG participated in a number of workshops and conferences, including the CEER-ECRB165 Workshop on Consumer Issues, the CEER Annual Customer Conference and the Workshop on Retail Energy Market Self-Assessment, and the Dublin Forum.

n The Distribution Systems Working Group

The Distribution Systems Working Group (DS WG) deals with potential developments and changes in the energy distribution sector, the consequences for the regulatory framework, and matters related to the current and future activities of the distribution system operators, namely the quality of electricity and natural gas supply, cyber security, smart networks and flexibility in the operation of the distribution systems.

In 2018, the DS WG completed and published the following four documents:

- "Incentives Schemes for Regulating Distribution System Operators, including for innovation A CEER Conclusions Paper" containing the conclusions of CEER following the public consultation on incentives for better regulation of distribution system operators and for innovation;

- "Distribution Systems Working Group Flexibility Use at Distribution Level A CEER Conclusions Paper" containing the conclusions of CEER following the public consultation on the guidelines on good practice for the use of flexibility at distribution level;

- "CEER Benchmarking Report 6.1 on the Continuity of Electricity and Gas Supply" containing an update of the key data on security of electricity and natural gas supply from the sixth CEER report published in 2016; and

- "CEER Cybersecurity Report on Europe’s Electricity and Gas Sectors" which makes recommendations to close the gap between the current situation and the optimal situation in terms of cyber security as imagined by the European regulators in the energy sector.

n Legal Affairs Committee

As a successor to the former Legal Task Force (LTF), the Legal Affairs Committee (LAC) was set up within CEER, which, under the new structure, will be directly responsible for and report to CEER General Assembly.

The LAC, which started its activities at the beginning of 2018, gives opinions on the legal and institutional aspects of the implementation of the third energy package, as well as on developments in the various legislative texts of the new Clean Energy Package. The LAC also provides specific legal support to other CEER working groups and task forces in carrying out their tasks, at their request. In addition, the LAC also handles specific legal questions raised by national regulators with regard to the implementation of provisions of European legislation.

For example, in 2018, a number of ad hoc legal questions submitted by the CEER working groups on the CACM were addressed, as were a number of specific questions from national regulators, including the issue of indirect grid connections following a specific case submitted by a national regulator, and a question that gave rise to the new RAPEX project (which will continue to be implemented in cooperation with the CRM working group). The LAC also addressed a number of questions in 2018 regarding the legal analysis of specific provisions contained in the different versions of a number of texts that form part of the new Clean Energy Package, providing input to other CEER working groups and the General Assembly.

Furthermore, the work of the LAC in 2018 was dominated by the following report and activities:

- The CEER Status Review Report on TSO and DSO Unbundling: this report provides, firstly, an update on the state of implementation of the unbundling rules for transmission and distribution system operators, contained in the third energy package, with a specific focus on new developments since 2015. The issues studied included cases and reasons for reopening certification, branding, financial independence in terms of resources and personnel, compliance programmes and compliance managers, investments, TSO joint ventures and joint undertakings. Secondly, the report already provides a link to changes and new unbundling-related provisions contained in the Clean Energy Package, such as new provisions concerning the delegation of TSO tasks, ownership of energy storage by DSOs and TSOs, new DSO tasks concerning the use of flexibility, integration of electromobility in the network, data management, etc. (on this point, the report will have to be further updated in 2019).

- Follow-up of the organisation of the two-day CEER Specialised Legal Training on Evolving Regulatory Processes in European Energy Policy which was held in February 2018. The CREG played an active role in the organisation of this training.

- Organisation of a joint LAC-EPU workshop on the Clean Energy Package in November 2018 (CEP: Final Negotiations and Implementation Preparation).

n International Relations Group

The International Relations Group (IRG) is the group within CEER responsible for forging and maintaining links with its counterparts in third-party countries and with international institutions in the energy regulation sector. The primary objective of creating the international network is to exchange good regulatory practices throughout the world, with a view to

165 Energy Community Regulatory Board.


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optimising the provision of specific opinions on the matter to governments.

In its capacity as Chair of IRG, the CREG, with the support of the CEER secretariat, ensured during the first months of 2018 that the European representation at the World Forum on Energy Regulation in Cancún (Mexico) was given the highest possible profile. Recognition was mainly received for the Women in Energy programme, which is gaining worldwide acclaim under the leadership of CEER. For the forum, the CREG assisted in the technical organisation of the panel with the subject 'Finding the right mix: grid solutions in the 21st century', and guided the discussion held in this panel in the right direction.

Finally, following the strategy developed within IRG in 2017, a cooperation agreement was signed on 12 December 2018 between CEER, the Energy Community Regulatory Board (ECRB) and the Mediterranean Energy Regulators (MedReg). This will strengthen regulatory cooperation between energy regulators across Europe to the Mediterranean Sea, South-East Europe and the Black Sea. It is a logical step forward for all organisations concerned towards greater pan-European integration.

With the signing of this agreement, the CREG drew its chairmanship of the IRG to a close, and will continue to participate in the work of the group as a full member.

n Questionnaires

Finally, the CREG actively contributed to the creation of the CEER questionnaires and responded to them within the framework of the harmonisation and integration of the European gas and electricity markets. In 2018, the questionnaires focused in particular on the following issues: "Questionnaire on TSO and DSO unbundling", "Questionnaire on NRA training needs",

"CEER Strategy support to NRAs: operational support to CEER 3D strategy", "Questionnaire on ways to Foster LNG markets in Europe", "Questionnaire on National indicators 2017: electricity, gas, consumers", "Questionnaire on the NRA organisational setup", "Questionnaire on work items for the international group", "Survey on gas regulatory challenges", "Questionnaire on CEER work program 2019 – online resource poll", "Questionnaire on target organization and REMIT implementation", "Questionnaire for RES Status review 2018", "Questionnaire on Aggregation of Interruptions" and "Questionnaire on the self assessment of Retail market".

All these questionnaires were used as a basis to write reports, status reviews, position papers and other documents from the CEER, ACER and the European Commission. They not only give a detailed description of the differences and similarities between the Member States, but also provide information on the degree of application of European legislation in each Member State. The European Commission, for its part, uses these documents as the basis for the creation of legal initiatives.

5.6.4. European Gas Regulatory Forum

The European Gas Regulatory Forum, also known as the Madrid Forum, serves as a platform for consultation on the development of the internal natural gas market in Europe. The Member States, the European regulators (including the CREG) and all other European market stakeholders take part in it, under the presidency of the European Commission. The 31st Forum meeting was held on 16 and 17 October 2018.

This forum focused specifically on addressing the role of gas within the decarbonisation objectives of the energy mix in Europe. Now that the climate debate is focused on reducing CO2 emissions, the need for a long-term strategy for the decarbonisation of gas is also becoming clear. This strategy will need to focus on sectoral linkage and integration.

The potential challenges for gas in the energy transition lie in the development and use of renewable and decarbonised gas, such as hydrogen. In this context, the CREG, together with the other regulators within CEER, has clarified its position: on the one hand, barriers that hinder innovative developments must be removed, but on the other hand, the competition and unbundling rules must be respected by the operators.This will all lead to an adaptation of the existing natural gas legislation, similar to what was launched by the European Commission on 30 November 2016 via the 'Clean energy for all Europeans' communication. To support this, specific gas studies have already been launched, the results of which will be discussed further at the Forum in the course of 2019. The adaptation of gas legislation relates to an upgrade of the regulated framework, an adaptation to the new challenges such as decarbonisation and the alignment of legal texts with the new electricity legislation.

5.6.5. European Electricity Regulatory Forum

The European Electricity Regulatory Forum, also known as the Florence Forum, serves as a platform for consultation on the development of the internal electricity market in Europe. The Member States, the European regulators (including the CREG) and all other European market stakeholders take part in it, under the presidency of the European Commission. The 33rd Forum meeting was held on 30 and 31 May 2018.

The meeting took place at a time when the discussions are entering a final phase regarding the European Commission's proposals set out in the 'Clean energy for all Europeans' communication of 30 November 2016. The forum is therefore taking a wait-and-see attitude, firstly by discussing a number of elements that are the subject of the debate, but secondly by making an attempt to look further into the future.


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Representatives of the various stakeholders took the opportunity to express their positions. It gave a clear picture of which aspects need to be further clarified regarding the electricity directive and regulation. As regards the organisation of the market functioning, this primarily concerns aspects relating to the maximum supply of cross-border capacity, the process of revising the bidding zones, the efficient use of congestion income, the coordination of national, regional and/or European adequacy studies, the reduction of CO2 emissions as a condition for generation units to benefit from State aid, the establishment of the DSO entity and the extension of the competences of the regional centres. Regarding consumer-related issues, the debate revolves around maintaining regulated prices and the issue of compensation in relation to demand management.

The future will clearly depend on the outcome of the negotiations on the new European legal texts. One discussion point that has not yet been addressed is the role of the Nominated Electricity Markets Operators (NEMOs) and the future supervisory structure. In principle, the NEMOs are competitive entities, but for the market coupling functions they perform, there is clearly no competition in evidence. The search for a suitable framework has started.

5.6.6. Citizens' Energy Forum

At the Citizens' Energy Forum, which for the first time was held in Dublin, the European Commission places active and involved consumers at the heart of a competitive, efficient and fair retail market. At the forum, in a number of working group sessions, consumer organisations and local market players discuss with representatives of various member states, regulators (including the CREG) and the main European stakeholders.

At this tenth edition, which was held on 20 and 21 September 2018, the 'Clean energy for all Europeans' legislative package was further discussed on the one hand, and the additional proposals of the European Commission to strengthen

European consumer rights, the so-called 'new deal' for the consumer, on the other.

Regarding the first issue, the discussion focused on the level of consumer involvement in the transition within the energy world, and how this can be better facilitated. Projects are starting to show the potential of systems in which consumers play a key role. The existing system is generally experienced as an additional burden. To this end, a stable framework needs to be established that offers equal opportunities for all, promotes efficiency and allows dynamic action.

Digitisation and a changing world demand an adaptation of general consumer rights. Modernisation, clarification, awareness-raising and simplification are the key words. The European Commission's new proposals work horizontally across all sectors, but will also be relevant for the energy sector, e.g. on 'door-to-door' sales, on price comparison websites and on the possibility of class action initiatives.

5.6.7. Energy Infrastructure Forum

The fourth Energy Infrastructure Forum was held in Copenhagen on 24 and 25 May 2018. Under the chairmanship of the European Commission, this recent Forum brings together the main market players around the theme of 'infrastructure'. These parties include the members of the regional groups which were set up for several privileged corridors which are essential for EU supply (Member States, system operators, regulators and project promoters), together with representatives of several European institutions (the European Parliament, the Committee of the Regions and the Economic and Social Committee) and European organisations (NGOs, ENTSO-E, ENTSO-G, ACER, INEA and the EIB).

The discussion at this forum was dominated by cooperation between the sectors (electricity and gas), between the wholesale and retail branches (transmission and distribution) and between the different Member States (cross-border

solidarity). Based on common scenarios, the electricity and gas operators are drafting future development plans. However, in the near future, the CREG and the other regulators hope to receive plans drawn up on the basis of an integrated model, i.e. including a joint simulation calculation, in which the outcome can be assessed in numerical terms.

It is already clear that gas will continue to play an important role in the energy transition. A purely electricity-based consumption market is not considered possible, taking into account the seasonal flexibility needed within the energy sector. In this regard, operators are asking to be able to participate actively, but their role in this process remains an open question. This discussion and its impact on the unbundling aspects, together with the call to avoid stranded assets, should not be ducked.

5.6.8. The CREG and the other national regulators

In 2018, the CREG continued to maintain good contacts with its regulatory counterparts in other countries. Specifically, with respect to neighbouring countries, it ensured that a dialogue was started at the highest level to explore areas of collaboration.

A meeting in the first half of 2018 with the chairman of the CRE, the French regulator, also led to participation in the 'Comité de prospective' in France. At this committee, the regulator entered into dialogue with more than 80 stakeholders on the future of the energy sector.

The good relationship resulted in the further development of Regulae.fr as an international network for French-speaking energy regulators. The CREG helped organise the third workshop, which was held from 11 to 13 July in Montreal, at the invitation of the 'Régie de l'énergie du Quebec'. The general assembly and the fourth workshop was held on 13 and 14 November in Dakar, Senegal.

A similar debate in the Netherlands was attended at the fifth anniversary conference of the ACM, the Dutch regulator. The


5. The CREG

focus there was more on the role of the energy consumer in the transition, and the influence of innovative techniques on consumer behaviour.

In addition to maintaining these direct bilateral contacts with neighbouring colleagues, in 2018 the CREG also answered questions on various topics coming from the Dutch, Cypriot, French, Irish, British, Austrian, Portuguese, Bulgarian, Hungarian, Lithuanian, Greek, Latvian, and Japanese regulators or regulatory authorities.

Above all, 2018 was marked by the further development of regional and European cooperation between regulators in implementing the European network codes and guidelines for electricity. For example, 16 decisions were taken within the European Regulators Forum, which was set up to meet to the obligation for all national energy regulators in the European Union to take joint decisions (the all NRA decisions) on joint proposals from all of the transmission system operators, the all TSO proposals. In three of these cases, unanimity could not be achieved and the decision was referred to ACER.

At regional level, for the further development of the harmonised short- and long-term capacity allocation rules, the CREG is part of the "Core" region and, since the certification of the Nemo Link Ltd in the United Kingdom, also part of the "Channel" region. As such, in 2018, a total of eleven joint decisions were taken in which only the case relating to the capacity calculation methodology for the Day Ahead and Intraday time zone in the "Core" region turned out to need referral to ACER. In addition, the CREG also participated in one joint regional decision implementing Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing, and two joint decisions implementing Commission Regulation (EU) 2017/1485 of 2 August 2017 establishing a guideline on electricity transmission system operation.

5.6.9. The CREG and the FSMA

The collaboration protocol between the CREG and the Financial Services and Markets Authority (FSMA) was approved by their respective Board of Directorss in December 2016. This protocol lays down the conditions for the collaboration between the two authorities as regards the exchange of information and expertise, to ensure the integrity and transparency of the energy markets. This protocol is crucial, since there is increasing interaction between the REMIT Regulation and the financial domain.

In 2018, in application of this protocol, the CREG continued its approach to understanding the financial markets, with its study of 16 October 2017 on the application of European and Belgian legislation in the context of the transparency of the Belgian wholesale electricity and natural gas markets, by inviting the FSMA to the workshop of 15 May 2018 on the "role of market players in achieving a more efficient market on the basis of European legislation on transparency, REMIT and financial instruments".

5.6.10. The CREG and Parliament

Over the years, the CREG has built an excellent relationship with the Parliament, more specifically with the Economic Commission. In particular, the CREG complied with requests for a hearing from this committee and, on the basis of a detailed explanation (see also point 5.7.2. of this report), its budget was adopted unanimously. Whenever the CREG was invited by the Economic Commission to give an explanation, it was thanked by members of Parliament for the high level of expertise provided. In conclusion, it can be stated that the CREG strictly complies with its legal obligations as regards providing information to Parliament about the funds it manages.

5.6.11. The CREG and the regional regulators

The CREG's informal collaboration with the three regional regulators (BRUGEL, CWaPE and VREG) continued in 2018 within Forbeg. Six plenary sessions were held. CWaPE acted as Chair in the first semester and the VREG in the second semester. The CREG chaired the 'Information Exchange', 'Europe' and 'Distribution System' working groups.

In 2018, the 'Information Exchange' working group continued its work on drafting the joint annual publication of the four regulators on the evolution of the Belgian energy market.166 Based on a statistical overview of the electricity and natural gas markets, the regulators aim to present the evolution of these markets and of competition in Belgium. New insights resulted in a better textual presentation of the document. The working group is also responsible for responding to ACER and CEER questionnaires. The working group also followed up the ACER Monitoring Report, with the result that data was collected from the four regulators, with a view to providing a full set of indicators for Belgium.

The 'Europe' working group met three times in 2018. This working group provides a formal framework that enables the CREG to perform its tasks as national regulator and represent Belgium within CEER and ACER. This working group concentrates on the optimal general workflow of European dossiers between the various working groups that are part of Forbeg and the four regulators themselves. As in previous years, the focus was on the topics discussed at the various European forums, the General Assembly within CEER and the Board of Regulators within ACER. The new market design for electricity, as set out in the 'Clean Energy for All Europeans' communication published by the European Commission, which was the subject of three-way discussions at European level in the course of 2018, was 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 inform the regional regulators of the activities of the CEER DS WG, present the documents that are on the agenda to the regional regulators so that these can submit comments on these documents, thereby improving the information exchange between the Belgian and the European regulators. In 2018, the working group convened nine times and continued discussions on the work of CEER DS WG (see point 5.6.3. of this report).

In addition, the CREG participated in the other Forbeg working groups on 'Gas', 'Electricity', 'Tariffs', and 'Emergency supplier arrangements'.

For the 'gas' working group, the chairmanship was transferred from the CREG to the CWaPE. However, the CREG will continue its efforts to monitor the gas issues within this Belgian framework. In 2018, in addition to the already implemented L/H-gas conversion, the further future evolution within the gas sector was also discussed. The development of new legislation on biomethane production and the call to develop a register of guarantees of origin were reviewed.

The 'Electricity' working group convened five times in 2018 and continued discussions on the following issues in particular: the exemption process from the European network codes, emerging technologies, the general requirements of the European RfG and DCC network codes, the adaptation process of the KORRR, the amendments to the ARP contract, the utility of emergency generators for security of supply and the new federal technical regulation for the transmission network.

The 'Tariffs' working group meets on average twice a year. Through this working group, experts from the four energy regulators inform each other of the most important trends in the development of new tariff methodologies and the handling

of tariff cases. In 2018, this working group also handled a number of specific cases: the federal contribution balances for 2009-2017, drafting an energy standard, and drafting rules to facilitate energy transmission.

The CREG participates as an observer in the 'Emergency supplier arrangements' working group. The aim of this working group is to draw up an emergency supply arrangement for suppliers who are active on the distribution systems. A first document containing analyses and recommendations was published for public consultation in 2018. In 2019, the analyses and recommendations will be further specified on the basis of feedback from the consultation.

5.6.12. The CREG and the competition authorities

A. Cooperation with the Competition authority at national level

n General collaboration between the CREG and the Belgian Competition Authority

The general collaboration between the CREG and the Belgian Competition Authority (BMA) was formalised at the end of 2017 via Royal Decree, which governs, among other things, the consultation between the two bodies, the exchange of (sometimes confidential) information and the cooperation procedures. Pursuant to this Royal Decree, more systematic cooperation between the CREG and the BMA was established in 2018, in particular in the form of a first meeting for consultation and the general exchange of information between the two bodies.

Informal contacts between the CREG and the BMA also took place in 2018, as well as formal contacts for the matters mentioned above.

n Merger case INEOS – RWE Generation Belgium NV (CHP Inesco)

Pursuant to Article 5 of the above-mentioned Royal Decree of 3 December 2017, on 28 August 2018 the CREG replied to an initial request for information from the BMA on the acquisition of exclusive control of RWE Generation Belgium NV by INEOS NV.

n CREG report on the relationship between costs and prices on the Belgian natural gas market in 2017

As part of its role to permanently monitor the gas market, the CREG issued a report on the relationship between costs and prices on the Belgian natural gas market in 2017167 and submitted this to the Belgian Competition Authority in particular.

B. Cooperation with the Competition authority at European level

n CREG Study (F)1687 on the Functioning and design of the Central West European day-ahead flow based market cou-pling for electricity: Impact of TSOs Discretionary Actions

By letter of 25 January 2018, the CREG submitted its study 1687 of 21 December 2017 (see Annual Report 2017, pp. 30 and 40) to the Director-General of DG Competition of the European Commission, in order to express its concerns in this respect, including with regard to the legislative developments in the Clean Energy Package, and to inform them about the developments in the negotiations between the CWE regulators with regard to this issue.

n Case AT.40461 "DK/DE Interconnector"

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.


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to increase capacity of the electricity interconnector between Denmark and Germany.

On 7 December 2018, the European Commission took a decision in this case, making the commitments offered by the German grid operator TenneT legally binding.

n European decisions on the Belgian offshore wind farms Nor-thwester 2, Mermaid and Seastar

In mid-2018, the European Commission adopted decisions to approve two merger cases concerning changes in control in Belgian offshore wind farms:

1) Case M.8855 Otary/Eneco/Electrabel/JV: This case concerned a restructuring of the ownership of the Mermaid and Seastar wind farms, through the creation of a joint venture between Otary RS NV, Eneco Wind Belgium NV and Electrabel NV. With regard to this case, the CREG answered a number of informal questions put to it by DG Competition. The merger of Mermaid THV and Seastar NV was approved by the EC on 5 July 2018.

2) Case M.8970 - Sumitomo / Parkwind / Northwester 2: On 30 July 2018, the European Commission adopted a non-opposition decision in this case concerning a change of control at the Belgian offshore wind farm Northwester 2.

5.6.13. The CREG and Belgian universities

In the framework of its strategic objectives, the CREG regularly works together with Belgian universities, by participating in colloquia and scientific activities.

Since 2015, it has also awarded an annual prize for the most innovative Master's thesis based around energy. In this way, the CREG aims to support and encourage developments in the energy sector. Each winner receives €2,500 and the possibility of undertaking an internship at the CREG.

On 19 April 2018, the two winners for 2017 and their promoters were invited by the CREG to receive their prize. The winners are, for the Flemish Community: Nadia Wiesé of the University of Antwerp for her thesis entitled "Peak shaving by means of energy storage in lead-acid batteries at the residential level, with integrated solar panels and wind turbine" and for the French Community: Bilal Ghomraoui of the Université Libre de Bruxelles for his thesis entitled "Load flexibility benefits for the distribution network: technical and economical analysis of a Brussels case study".

5.7. The finances of the CREG

5.7.1. Federal contribution

The federal contribution is a levy on the amount of electricity and natural gas consumed in Belgium.168 This contribution finances various funds managed by the CREG (see point 5.7.2 of this report).

In December 2018, in accordance with the regulations,169 the CREG calculated and published the unit surcharges of the various components of the federal electricity and gas contribution to be applied from 1 January to 31 December 2019.

A. Federal natural gas contribution

Each quarter, the natural gas transmission system operator (Fluxys Belgium) and the operators of a direct line170 have to pay the federal contribution for which they had previously billed their customers to the CREG. In 2018, these companies also directly financed the CREG fund, the social energy fund, and the protected clients fund.

For their part, the natural gas companies that offered their customers discounts (degressivity and exemptions) submit their applications for reimbursement to the CREG on a quarterly basis (see below).

• Financing the funds

The expected annual amounts of the federal contribution are made up of the basic amount for each fund for the current year as well as any possible supplements destined to take account of the previous years' shortfall/surplus and cover the various exemptions.

Overall, revenue from the federal natural gas contribution in 2018 was 11.17% higher than the expected amounts.

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

The complete federal contribution was invoiced by Fluxys Belgium to the natural gas companies, but these natural gas companies cannot recover the full amount from their end customers, since some benefit from a reduction (degressivity) or even an exemption. The legislation specifies in this context that they can ask CREG every quarter to repay the difference between the federal contribution they paid to Fluxys Belgium and what they received from their customers.

For example, in 2018, the CREG reimbursed natural gas companies a total of €15,852,450 on the one hand, corresponding to the exemption from the federal contributions for natural gas destined for the generation of electricity injected into the system (electricity power plants and quality cogeneration units), and €225,342 on the other, which corresponds to the exemption from the federal contribution granted to the international institutions. These reimbursements were made using the available means in the various funds.

The same natural gas companies also made degressivity reimbursement applications totalling €11,148,168. Additionally, an amount of €1,727,248 in federal contributions, not paid to the CREG by the direct pipeline operator due to the granting of degressivity measures to their customers, was requested from the FPS Finance to be split between the various funds.

Finally, six end customers with a consumption location for which a separate bill was issued by different suppliers submitted an application to the CREG for adjustment based on the degressivity measure from which they had benefited in 2017. In total, the CREG reimbursed €2,825,172 to them.

Of the €16,500,000 that the CREG requested from the FPS Finance in 2018 to pay off all its requests for reimbursement of the degressivity, €799,412 was ultimately not used. This sum will then be deducted by the FPS Finance from the amount requested by the CREG in 2018.

• Irrecoverables

In 2018, the legal flat-rate increase of 0.7% earmarked to cover natural gas companies against federal contributions that they have been unable to recover from their customers due to non-payment, generated an amount of €188,378, which, at the end of the year, was distributed between the funds financed by the federal natural gas contribution.

B. The federal electricity contribution

The electricity transmission system operator (Elia System Operator) pays the contribution it has billed to its customers the previous quarter to the CREG on a quarterly basis. In 2018 Elia financed the CREG funds, the social energy fund, the denuclearisation fund and the protected customers fund. Due to the emptying of the greenhouse gas fund (see point 5.7.2.D below), Elia did not make any contribution to this fund in 2018.

For their part, the electricity companies that offered their customers discounts (degressivity and exemption) submit their applications for reimbursement to the CREG on a quarterly basis (see below).

• Financing the funds

The expected annual amounts of the federal contribution are made up of the basic amount for each fund for the current

year as well as any possible supplements destined to take account of the previous years' shortfall/surplus and cover the exemptions enjoyed by the international institutions.

Overall, the revenue from the federal contribution for electricity in 2018 for all the funds combined was nearly 1% lower than the expected amounts. This difference is negative despite the absence of an implementing decree for the legal exemption that should have been granted to storage facilities since 1 January 2018,171 whereas the CREG had anticipated this exemption when calculating the federal contribution for 2018, which should have led to higher federal contribution revenues.

Since 1 January 2018,172 the DSOs have invoiced the federal contribution to electricity by using the values published by the CREG without changing them, on all the quantities of electricity they have transported, including decentralised generation injected directly into their systems. The total quantities delivered to end customers could therefore exceed the quantities purchased from the transmission system and invoiced by Elia. Any overpayments generated in 2018 will be regularised in 2019 together with the CREG, which will take them into account when calculating the unit values of the federal contribution for 2020.

Finally, in accordance with the legislation173 and on the basis of the decisions of 14 June and 18 October 2018, the CREG determined the amount of the federal contribution for the period from 1 January 2009 to 31 December 2017 that the DSOs must reimburse to their customers (see point 3.1.3.5.B of this report).

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)..


5. The CREG

• Exemptions and degressivity

Electricity companies were charged the full federal contribution by Elia and the distribution system operators, while they cannot recover the full amount from their end customers since some benefit from a reduction (degressivity) or even an exemption from it, as is the case for the international institutions. In this context, the legislation provides that they can request from the CREG every quarter a refund of the difference between the federal contribution paid to Elia and the distribution system operators and what they have received from their customers.

In 2018, the CREG repaid a total of €1,605,469 in federal contributions to the electricity companies that they were unable to invoice to international institutions using the resources available in the various funds. They were repaid €26,727,756 in the context of reductions (degressivity) granted to their customers. This amount includes the request for regularisation of a final customer with a consumption location for which a separate invoice was issued by different suppliers.

Additionally, an amount of €44,539,352 in federal contributions, not paid to the FPS Finance by Elia due to the granting of degressivity measures to some of their customers, was requested to be split between the various electricity funds.

In 2018, the FPS Finance made an advance of €73,250,000 available to the CREG to cover the applications for reimbursement of the degressivity. An amount of €1,982,892 was ultimately not used and will be deducted by the FPS Finance from the amount requested by the CREG in 2019.

• Irrecoverables

In 2018, the legal flat-rate increase of 0.7% earmarked to cover electricity companies against federal contributions that they have been unable to recover from their customers in previous years due to non-payment, generated an amount of €220,664, which, at the end of the year, was distributed between the funds financed by the federal electricity contribution.

Finally, given that the amounts of the irrecoverables must be certified by an auditor or accountant,174 several electricity companies have not been regularised.

C. Offshore surcharge

This surcharge levied by Elia to its end customers and electricity companies, who then pass it on to their own customers, is intended to offset the costs borne by Elia due to its obligation to purchase the green certificates granted to electricity generation in the North Sea.

The CREG is responsible for reimbursing Elia and the electricity companies who granted their customers degressivity on this surcharge.175 In 2018, the CREG reimbursed them €39,088,109 and €67,160,894 respectively, on top of which are the requests of two end customers with a consumption site whose invoicing is carried out separately by different suppliers. These two end customers also submitted an application to adjust the degressivity applicable to the offshore surcharge from which they benefited in 2017. They were reimbursed a total of €378,294 in offshore degressivity.

In 2018, the FPS Finance made an advance of €112,750,000 available to the CREG to cover all applications for reimbursement. An amount of €6,122,703 was ultimately

not used and will be deducted by the FPS Finance from the amount requested by the CREG in 2019.

5.7.2. Funds

A. The CREG Fund

At its plenary session of 18 December 2017, the Chamber of Representatives set the amount intended for the partial financing of the operating costs of the CREG for 2018 at €14,952,254.

This decision was taken in response to a proposal by the CREG's Board of Directors to keep its 2018 budget at the same level as the 2011 budget.

However, in order to calculate the unit value of the CREG surcharge, this amount was supplemented by €31,850 and €11,077 in order to repay to the electricity and natural gas companies the exemptions that they had to grant to the international institutions. On the other hand, the electricity and natural gas profits for the 2016 financial year were deducted from the amount to be covered by the federal contribution, in order to be reimbursed to the end customers.176

The CREG accounts for 2018 are set out in detail in point 5.7.3 below.

B. Social Energy Fund

For 2018177 a total of €52,890,292 (€30,750,170 from the electricity sector and €22,140,122 from the natural gas sector) was set aside to help the public centres for social welfare with their task of providing guidance and financial social support in 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).


5. The CREG

This amount, to be covered by the federal contribution, is supplemented by €100,369 and €64,340 respectively in order to reimburse the international institutions. In addition, €1,500,000 is added and €5,000,000 deducted in order to correct the distribution of the financing of the fund between the electricity and natural gas sectors.

In the end, in 2018 a total net revenue of €2,150,937 for electricity and -€396,737 was recorded was recorded in this fund.

In addition to the transfer of the fourth payment for 2017 (€13,219,207) to the PCSWs, the cash balance of the fund allowed for the full payment of the first three amounts for 2018, requested by the FPS Social Integration (€39,667,719).

On 31 December 2018, the assets of the fund totalled €27,436,625. As such, the CREG will be able to pay the full fourth instalment for 2018 to the PCSWs at the end of January 2019.

C. Denuclearisation Fund

This fund is financed exclusively by the federal contribution charged by the electricity sector. It needed to be €69,000,000178 for the year 2018, to which was added €220,601 to offset the exemption for the international institutions. As from 2019, the annual amount earmarked for ONDRAF/NIRAS will remain at €69,000,000.179

In 2018, a total net income of €70,468,924 was recorded in the fund.

The CREG made repayments of exemptions granted to international institutions and regularised certain amounts from the past for a total of €492,127.

In addition to the 2017 balance, which could not be paid in time due to a lack of revenue, the CREG was able to pay the full amount for 2018 to ONDRAF/NIRAS this year.

On 31 December 2018, the assets of the fund totalled €270,074.

D. Greenhouse Gas Fund

Despite the lack of revenue in the greenhouse gas fund180 and thanks to the resources that are still available in the fund, the legal flat-rate amount of €3,600,000 for the year 2018 was paid into the organic budget fund of the FPS Environment for the financing of the federal policy for the reduction of greenhouse gas emissions.

In addition, the greenhouse gas fund also pre-financed, through quarterly instalments the €14,490,000 corresponding to the VAT due on the annual amount intended for ONDRAF/NIRAS. The VAT authorities refunded the CREG for the amount of these quarterly advances.

On 31 December 2018, the assets of the fund totalled €44,084,002.

• Kyoto JI/CDM Fund

The Kyoto Joint Implementation/Clean Development Mechanism fund, which is also managed by the CREG, collects the amounts originating from the greenhouse gas fund specifically allocated to the financing of greenhouse gas reduction projects that allow Belgium to achieve its objectives under the Kyoto Protocol.

In 2018, the FPS Environment did not use the fund to purchase CO2 emission credits.

On 31 December 2018, the assets of the fund totalled €14,972,767.

E. The protected customers funds for electricity and natural gas

For the year 2018181 the needs of these funds totalled €113,000,000 for electricity and €50,300,000 for natural gas, to which €113,710 and €152,102 must be added, respectively, for the reimbursement of the international institutions.

A net total revenue of €12,461,274 was recorded for the electricity fund. For natural gas a net total revenue of -€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.


5. The CREG

In 2018 the reimbursements for the sector's companies who supplied the protected household customers at the social tariff in 2017 amounted to €101,627,192 for electricity and €69,671,726 for natural gas. Thanks to the measure taken to increase the resources available in the electricity protected customers fund, all companies were reimbursed in October in accordance with the regulations.

On 31 December 2018 the assets of the two funds totalled €31,426,688 for electricity and €36,632,804 for natural gas.

F. The fund for flat-rate reductions for natural gas and electricity heating

This fund, also known as the heating premium fund, has been abolished from the Electricity Act, but remains included in Article 3, §6 of the above-mentioned Royal Decree of 24 March 2003. However, in 2018, no amount was called up and no regularisation for the past was made.

On 31 December 2018 the assets of the fund amounted to €24,404,014 split up into €16,810,476 for electricity and €7,593,538 for natural gas. As long as no legal allocation of the balance of the fund is defined, the CREG will continue to manage it, in particular as regards possible adjustments of previous amounts.

G. Fund to offset the loss of income suffered by the municipalities

The fund, which has been completely inactive for several years, had an unchanged balance of €578,691 on 31 December 2018, which corresponds to the interest received since 2005. As long as no legal allocation of the balance of the fund is available, it cannot be closed and the CREG will continue to manage it.

5.7.3. Accounts 2018

The actual amounts for the federal contribution for electricity (€10,321,884) and for the federal contribution for natural gas (€5,591,331) were higher than the expected amounts, respectively 1.5% and 20.6%. The amounts for the distribution of electricity and natural gas irrecoverables, the fees for applications to obtain an individual supply permit for natural gas and miscellaneous and exceptional revenue and financial revenue are added.

The income from the irrecoverables and the supply permits are directly linked to the revenue from the electricity and natural gas sectors. Of the miscellaneous, exceptional and financial revenue, 69% comes from the electricity sector and 31% from the natural gas sector.

Total revenue of €66,446, divided between the electricity sector (€34,545) and the natural gas sector (€31,901) is therefore added to the above-mentioned amounts from the federal contribution for electricity and natural gas.

The total revenue for the electricity sector therefore amounts to €10,356,429. For its part, the total revenue of the natural gas sector amounts to €5,623,232. This corresponds to total revenues of €15,979,661.

The total expenditure of the CREG for the financial year 2018 amounted to €14,760,393, a decline of 1.6% compared to 2016.

The subtotal of personnel costs fell overall by 1.2% compared to 2017.

The subtotal of operating expenses decreased overall by 3.2% compared to 2017, primarily as a result of the decrease in costs for external experts to, e.g., carry out studies, for the communication service and translations. On the other

hand, the costs of legal assistance increased as a result of the various writs of summons that the CREG had to deal with. General costs, on the other hand, increased by 3.2%, mainly due to the costs of the building (rent, rental charges and parking) and taxes. Finally, amortisations decreased by 5.6% compared to 2017.

The result of this is that the 2018 financial year ends with an overall surplus of revenue received by the CREG compared to its expenses, amounting to €1,219,268. This amount is divided between a surplus of €171,758 for the electricity sector and a surplus of €1,047,510 for the natural gas sector.

Given that the electricity and natural gas reserves were fully replenished in 2016, the 2018 profits for the electricity and natural gas sectors will, in accordance with Article 11, §4, final paragraph of the Royal Decree of 24 March 2003 and Article 17, last paragraph of the Royal Decree of 2 April 2014, be reimbursed in full to the end customers. To this end, these will be deducted during the next calculation of the CREG surcharge for electricity and natural gas (2020 surcharge, calculated in December 2019) from the amount.

As of 31 December 2018 the balance sheet total consolidated with the funds was €200,970,339.

Since 1 January 2013, the CREG has organised its bookkeeping in accordance with the principles laid down in the law of 22 May 2003 on the organisation of the budget and accounts of the federal State, and following the accounting schedule set out by the Royal Decree of 10 November 2009 setting the accounting schedule applicable to the federal State, communities, regions and the common community commission. Although a postponement means that this law will not come into effect until 1 January 2019, the CREG has continued to use this method of accounting.


5. The CREG

The following tables provide a summary of the budget accounts for expenditure and revenue.

Table 16: Summary of the 2018 budget accounts in expenditure (€)

(Source: CREG)

Budget 14,952,254

Commitments 14,938,438

Clearances 14,448,395

Differentiated appropriations 490,043

The CREG budget for 2018 was set at €14,952,254. Commitments for a total amount of €14,938,438 therefore correspond to 99.91% of the budget.

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

outstanding differentiated appropriations as of 31 December 2018 amounted to €760,076. All these differentiated appropriations will affect the general accounting results when they are cleared/covered.

Table 17: Summary of the 2018 budget accounts in revenue (€)

(Source: CREG)

Budget 13,597,504

Entitlements 14,760,920

Clearances 14,760,920

Overall, the CREG's revenue for 2018 was 8.6% higher than expected.


5. The CREG

Table 18: Summary of the 2018 budget accounts in expenditure (€) (Source: CREG)

2018 2017Personnel costs 12 183,030 12 334,198

Salaries and charges 11,970,924 11,846,061Variation provisions for indemnities for outgoing Members of the Board of Directors -70.218 117,589Variation in provisions for holiday bonuses -74,386 9,219Temporary staff 0 0Recruitment costs 16,852 4,120Training, seminars 66,755 61,019Leasing, company cars 273,104 296,189

Bodies 29,567 24,115Remuneration of Gas and Electricity Advisory Board 29,567 24,115

"Personnel costs" sub-total 12,212,597 12,358,313External experts 462,127 582,014

External studies 151,190 240,775Communication service 54,678 167,713Translators, Auditor, Social Secretariat 104,428 117,914Legal fees relating to lawsuits 151,831 55,612

General costs 1,870,342 1,812,759Rent and charges for premises 828,560 778,065Parking facilities 70,676 66,542Building maintenance and security 125,821 135,191Equipment maintenance and servicing 145,745 145,696Documentation 142,129 136,104Telephone, post, Internet 40,578 38,411Office supplies 7,334 11,802Meetings and representation costs 94,586 98,641Travel expenses (including abroad) 71,416 75,235Membership of associations 44,051 43,330Insurance, taxes and sundry costs 299,448 284,462

Amortisations 208,939 217,294Depreciation on tangible fixed assets 208,939 217,294

Financial costs 6,388 17,165Other 6,388 6,473Transfer to irrecoverable funds and federal contributions 0 10,692

"Other operating costs" sub-total 2,547,796 2,629,233TOTAL CHARGES 14,760,393 14,987,545Income (surcharges and fees) 14,725,017 14,554,291

Federal contribution electricity and natural gas 15,913,215 15,906,026Transfer of irrecoverable funds - natural gas and electricity 19,069 6,280Gas suppliers' adjustment, year n-1 0 0CREG adjustment - electricity, year n -171,758 -295,069CREG adjustment - natural gas, year n -1,047,510 -1,077,945Other fees 12,000 15,000

Financial income 58 439Income from current assets 58 436Other financial income 0 3

Extraordinary income 35,318 432,815Other extraordinary income 35,318 432,815

TOTAL INCOME 14,760,393 14,987,545RESULT FOR THE FINANCIAL YEAR 0 0


5. The CREG

Table 19: Balance sheet as of 31 December 2018 (€) (Source: CREG)

ASSETS 2018 2017FIXED ASSETSIntangible and tangible fixed assets 311,277 310,233

Building refurbishment 94,537 93,849Furniture and vehicles 58,976 54,671IT and telephone equipment 157,764 161,713

Financial fixed assets 295 295Various guarantees 295 295

CURRENT ASSETSAmounts receivable within one year 614,210 248,409

Trade receivables 19,996 7,780Other amounts receivable 0 -15Funds receivables 594,214 240,644

Cash at bank and in hand 199,651,041 189,421,768The CREG Fund 8,807,195 9,123,471Social Energy Fund 27,356,045 25,683,077Greenhouse Gas Fund 44,084,002 47,683,911Denuclearisation Fund 203,243 9,166Kyoto JI/CDM Fund 14,972,767 14,972,767Protected Customers Fund - Electricity 31,315,679 20,584,033Protected Customers Fund - Natural Gas 36,501,251 43,061,597Municipalities Fund 578,691 578,691Heating Grant Fund 24,404,014 24,404,014Federal Contribution Fund 18 0Electricity Degressivity Fund 2,729,870 863,730Offshore Degressivity Fund 7,060,929 58,857Natural Gas Degressivity Fund 1,106,797 2,189,951Irrecoverable Fund - Electricity 367,744 122,930Irrecoverable Fund - Natural Gas 161,213 84,486Cash 1,584 1,087

Accruals 393,515 393,968TOTAL ASSETS 200,970,339 190,374,672


5. The CREG

LIABILITIES 2018 2017EQUITYProfit brought forward 1,314,222 1,314,222CREG sector reserve 2,242,838 2,242,838

Electricity 1,547,558 1,547,558Gas 695,280 695,280

PROVISIONSCompensation for outgoing members of the Board of Directors 471,767 541,985Other provisions 0 0AMOUNTS PAYABLEAmounts payable within one year 5,505,036 5,737,774

Trade debts 2,964,933 3,120,355Taxes, 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 25,720,871Greenhouse Gas Fund 44,074,002 47,683,970Denuclearisation Fund 270,074 9,391Kyoto JI/CDM Fund 14,972,767 14,972,767Protected Customers Fund - Electricity 31,426,688 20,584,033Protected Customers Fund - Natural Gas 36,632,804 43,135,446Municipalities Fund 578,691 578,691Heating Grant Fund 24,404,014 24,404,014Federal Contribution Fund 18 0Electricity Degressivity Fund 2,729,870 863,730Offshore Degressivity Fund 7,060,929 58,857Natural Gas Degressivity Fund 1,106,797 2,189,951Irrecoverable Fund - Electricity 517,578 218,085Irrecoverable Fund - Natural Gas 215,620 118,047

Deferrals and accruals 0 0

TOTAL LIABILITIES 200,970,339 190,374,672


5. The CREG

5.7.4. Auditor’s report on the annual accounts of the Commission for Electricity and Gas Regulation (CREG) for the year ended 31 December 2018

In accordance with the assignment entrusted to us by the Management Board pursuant to Article 31, §1 of the internal rules dated 4th December 2015 of the Commission for Electricity and Gas Regulation (in short “the Commission”), we hereby present our statutory auditor’s report. It includes our report on the audit of the annual accounts as well as our report on the other legal and regulatory requirements. These reports form part of an integrated whole and are indivisible.

We were appointed in our capacity as auditors by the Management Board on 9 March 2018. We have performed the legal audit of the Commission’s annual accounts for 19 consecutive years.

Report on the audit of the annual accounts

Unqualified opinionWe have audited the annual accounts of the Commission, which comprise the balance sheet as at 31 December 2018 and the profit and loss account for the year then ended. The balance sheet total amounts to 200,970,339 EUR and the profit and loss account stands at 0 EUR, in accordance with the Royal Decrees of 24 March 2003 and of 2 April 2014 relating to the financing of the Commission, with the total income and charges standing at 14,760,393 EUR.

In our opinion, the annual accounts give a true and fair view of the Commission’s net equity and financial position as at 31 December 2018, as well as of its results for the year then ended, in accordance with the financial reporting framework applicable in Belgium.

Basis for unqualified opinion We have conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Belgium. Our responsibilities under those standards are further described in the section “Responsibilities of the auditor for the audit of the annual accounts” of our report. We have complied with all the ethical requirements that are relevant to the audit of annual accounts in Belgium, including those relating to independence.

We have obtained from the Management Board and Commission officials the explanations and information necessary for performing our audit.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of the Management Board for the annual accountsThe Management Board is responsible for the preparation of annual accounts that give a true and fair view in accordance with the financial reporting framework applicable in Belgium, and for such internal control as the Management Board determines is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the annual accounts, the Management Board is responsible for assessing the Commission’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Management Board has no realistic alternative but to do so.

Responsibilities of the auditor for the audit of the annual accountsOur objectives are to obtain reasonable assurance about whether the annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• identify and assess the risks of material misstatements of the annual accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risks of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or override of internal control;

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control;

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management Board;


5. The CREG

• conclude on the appropriateness of the Management Board’s use of the going concern basis of accounting, and, based on the audit evidence obtained, whether a material uncertainty exists related to events of conditions that may cast significant doubt on the Commission’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the annual accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Commission to cease to continue as a going concern;

• evaluate the overall presentation, structure and content of the annual accounts, including disclosures, and whether the annual accounts reflect the underlying transactions and events in a true and fair view.

We communicate with the Management Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Report on the other legal and regulatory requirements

Responsibilities of the Management BoardThe Management Board is responsible for the preparation and the content of the additional information contained in the annual report, as well as for the compliance with the legal and regulatory requirements regarding the bookkeeping of the Commission and the compliance with the law of 12 April 1965 on the transmission of gaseous and other products by pipeline (the “Gas” Act), the law of 29 April 1999 on the organization of the electricity market (the “Electricity” Act) and their implementing decrees.

Responsibilities of the auditorIn the context of our mandate and in accordance with the additional standard to the International Standards on Auditing (ISAs) applicable in Belgium (as revised in 2018), our responsibility is to verify, in all material aspects, the other information contained in the annual report, as well as the legality, with respect to the “Gas” Act, the “Electricity” Act as well as their implementing decrees, of the operations to recognize in the accounts, and to report on these matters.

Aspects concerning the other information contained in the annual reportIn the context of our audit of the annual accounts, we are also responsible for considering, in particular based on the knowledge we have obtained during the audit, whether the information disclosed in the annual report under the title “CREG finances” contains any material misstatement, i.e. any information which is inadequately disclosed or otherwise misleading. Based on the procedures we have performed, there are no material misstatements we have to report to you.

We do not express any form of assurance whatsoever on the annual report.

Statement related to independenceOur audit firm did not provide services which are incompatible with the legal audit of the Commission’s annual accounts, as defined by the “Electricity” Act, and we remained independent of the Commission during the terms of our mandate.

Other statements

• Without prejudice to formal aspects of minor importance, the accounting records were maintained in accordance with the general rules of the law of 22 May 2003 on the organization of the budget and the accounting of the federal State and

with the Royal Decree of 10 November 2009 fixing the chart of accounts applicable to the federal State, Communities, Regions and the Joint Community Commission.

• As at 31 December 2018, the Commission has entered into commitments for an amount of 760,076 EUR. These commitments do not appear in the accounts as they don’t constitute debts.

• We have not noted any breaches of the “Electricity” and “Gas” Acts or their implementing decrees as regards transactions booked in the accounts of the Commission.

Brussels, 19 February 2019

Christian SCHMETZAuditor


5. The CREG

5.8. List of acts drawn up by CREG in 2018

(B)656G/3612.07.2018

● Décision sur le rapport tarifaire adapté incluant les soldes introduit par la sa Fluxys Belgium concernant l’exercice d’exploitation 2017Beslissing over het aangepast tariefverslag met inbegrip van de saldi ingediend door Fluxys Belgium nv met betrekking tot het boekjaar 2017

(B)656G/3825.10.2018

● Décision sur la redevance d’équilibrage à des fins de neutralité et la valeur du petit ajustementBeslissing over de neutraliteitsheffing voor balancering en de waarde van de kleine aanpassing

(B)657G/1412.07.2018

● Décision sur le rapport tarifaire adapté incluant les soldes introduit par la SA Fluxys LNG concernant l’exercice d’exploitation 2017Beslissing over het aangepast tariefverslag met inbegrip van de saldi ingediend door de NV Fluxys LNG voor het exploitatiejaar 2017

(B)657G/1528.06.2018

● Décision sur la proposition tarifaire actualisée de la SA Fluxys LNG pour l’utilisation du terminal méthanier de ZeebruggeBeslissing over het geactualiseerd tariefvoorstel van FLUXYS LNG NV voor het gebruik van de LNG-zeeterminal van Zeebrugge

(B)658E/4905.01.2018

● 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 27 de la méthodologie tarifaireBeslissing 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/5105.07.2018

● 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 2017Beslissing 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/5228.06.2018

● 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 tarifaireBeslissing 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/5328.06.2018

● Décision relative à la demande d’approbation de la proposition tarifaire actualisée en vue d’une modification à partir du 1er novembre 2018 du tarif pour le maintien et la restauration de l’équilibre individuel des responsables d’accès, introduite par la SA Elia System OperatorBeslissing 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/5417.09.2018

● 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 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 externeBeslissing 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/5625.10.2018

● 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 et aux taxes et surcharges, à l’exception du tarif relatif à la réserve stratégique, d’application à partir du 1er janvier 2019Beslissing 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/5720.12.2018

● 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 méthodologie tarifaireBeslissing 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.


5. The CREG

(B)658E/5806.12.2018

● 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-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/5906.12.2018

● 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 l’obligation de service publique de la Réserve stratégique, introduite par la SA Elia System OperatorBeslissing 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)1109/929.03.2018

● Arrêté fixant la méthodologie tarifaire pour le réseau de transport d’électricité et pour les réseaux d’électricité ayant une fonction de transportBesluit tot vaststelling van de tariefmethodologie voor het elektriciteitstransmissienet en voor de elektriciteitsnetten met een transmissiefunctie

(Z)1109/1028.06.2018

● 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 2020-2023Besluit tot vaststelling van de tariefmethodologie voor het elektriciteits-transmissienet en voor de elektriciteitsnetten met een transmissiefunctie voor de regulatoire periode 2020-2023

(Z)1110/1128.06.2018

● 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 2020-2023Besluit tot vaststelling van de tariefmethodologie voor het aardgasvervoersnet, de opslaginstallatie voor aardgas en de LNG-installatie voor de regulatoire periode 2020-2023

(B)1457/126.04.2018

● 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 d’accès pour le transport de gaz naturel et du programme de transport de gaz naturel modifiésAddendum 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)166411.10.2018

● Note - REMIT case N61/2017Note - REMIT case N61/2017

(Z)166511.10.2018

● Note - REMIT case N17/2016 Note - REMIT case N17/2016

(B)169121.06.2018

● 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 modèle de réseau communBeslissing over het gemeenschappelijke voorstel van de NV Elia System Operator en alle transmissiesysteembeheerders voor een methodologie voor het gemeenschappelijk netwerkmodel

(B)170418.01.2018

● Étude pour une proposition de réforme du mécanisme de dégressivité de la cotisation fédérale et de la surcharge offshoreStudie voor een voorstel tot de hervorming van het mechanisme voor de degressiviteit van de federale bijdrage en de offshore toeslag

(Z)171528.06.2018

● Note sur les résultats du marché day-ahead en novembre 2017 Nota over de day-ahead marktresultaten in november 2017

(E)171711.01.2018

● Proposition relative à l’octroi d’une autorisation de fourniture d’électricité à Eneco Belgium SAVoorstel betreffende de toekenning aan Eneco Belgium NV van een vergunning voor de levering van elektriciteit.

● Published act.


5. The CREG

(B)171829.03.2018

● 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 de transportBesluit 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)171925.01.2018

● Note relative aux évolutions marquantes sur les marchés de gros belges de l’électricité et du gaz naturel en 2017Nota over de opvallende evoluties op de Belgische groothandelsmarkten voor elektriciteit en aardgas in 2017

(E)172018.01.2018

● Proposition relative à l’octroi d’une autorisation de fourniture d’électricité à Eni Gas & Power SAVoorstel betreffende de toekenning aan Eni Gas & Power NV van een vergunning voor de levering van elektriciteit

(Z)172125.01.2018

● 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 OperatorNota 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)172219.04.2018

● 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 cogénération pour les clients résidentielsStudie 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)172301.02.2018

● 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 produits dont les NEMO peuvent tenir compte dans le processus de couplage unique journalierBeslissing 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)172401.02.2018

● 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 produits dont les NEMO peuvent tenir compte dans le processus de couplage unique infra-journalierBeslissing 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)172501.02.2018

● 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 de la méthodologie en mode dégradéBeslissing over de gemeenschappelijke goedkeuringsaanvraag van Epex Spot Belgium en Nord Pool AS en alle benoemde elektriciteitsmarktbeheerders voor de back-upmethodologie

(A)172601.02.2018

● 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-tricité à partir des vents dans les espaces marinsAdvies 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)172708.02.2018

● Proposition relative à l’octroi d’une autorisation de fourniture d’électricité à Statkraft Markets GmbH Voorstel betreffende de toekenning aan Statkraft Markets GmbH van een vergunning voor de levering van elektriciteit

(Z)172826.04.2018

● Rapport comparatif des objectifs formulés dans la note de politique générale de la CREG et des réalisations de l’année 2017Vergelijkend verslag van de doelstellingen geformuleerd in de algemene beleidsnota van de CREG en van de verwezenlijkingen van het jaar 2017

● Published act.


5. The CREG

(B)172901.03.2018

● 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 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° 984/2013Beslissing 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)173022.02.2018

● 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 calcul de la capacité Channel, concernant la conception régionale des droits de transport à long termeBeslissing 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)173122.02.2018

● 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 Ronse Advies over de aanvraag van de NV Fluxys Belgium van een vervoersvergunning voor een hoge druk aardgasvervoersleiding van Maarkedal naar Ronse

(B)173222.02.2018

● 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 aux frontières belgesBeslissing 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)173315.03.2018

● Note sur les données du marché belge du transport de gaz naturel en 2017 - Comparaison avec 2016Nota over kerndata voor de vervoersmarkt voor aardgas in België en 2017 - Vergelijking met 2016

(F)173407.06.2018

● Étude sur le fonctionnement du marché de gros belge de l’électricité et l’évolution des prix sur ce marché – rapport de suivi 2017Studie over de werking van de Belgische groothandelsmarkt voor elektriciteit en de prijsevolutie op deze markt - monitoringrapport 2017

(B)173519.04.2018

● 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 Channel, de règles de nomination pour les programmes d’échange d’électricité entre zones de dépôt des offresBeslissing over de goedkeuringsaanvraag van de NV Elia System Operator voor het voorstel betreffende nominatieregels betreffende schema’s voor de elektriciteitsuitwisseling tussen biedzones

(F)173629.03.2018

● Étude sur la rentabilité du gaz naturel utilisé en tant que carburant (CNG ou compressed natural gas) pour voituresStudie met betrekking tot de rentabiliteit van aardgas gebruikt als brandstof (CNG of compressed natural gas) voor auto's

(A)173729.03.2018

● Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Eneco Belgium SAAdvies over de toekenning van een individuele leveringsvergunning voor aardgas aan Eneco Belgium NV

(F)173829.03.2018

● Étude sur les composantes des prix de l’électricité et du gaz naturel Studie over de componenten van de elektriciteits- en aardgasprijzen

(A)173929.03.2018

● Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Gazprom Marketing & Trading LimitedAdvies over de toekenning van een individuele leveringsvergunning voor aardgas aan Gazprom Marketing & Trading Limited

● Published act.


5. The CREG

(C)174016.04.2018

● 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 d’énergie renouvelablesVoorstel 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)174119.04.2018

● Décision sur les modifications des conditions générales des contrats de responsable d’accès proposées par le gestionnaire du réseau Beslissing over de wijzigingen van de algemene voorwaarden van de contracten van toegangsverantwoordelijke, voorgesteld door de netbeheerder

(B)174214.06.2018

● 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, la modification et l’exécution du couplage unique journalier et infra-journalierBeslissing 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)174426.04.2018

● 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-cès au site de Tessenderlo Chemie dans la Zennestraat à GrimbergenAdvies 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)174526.04.2018

● Décision relative à la demande de la SA Fluxys Belgium d’approbation du Contrat standard de transport de gaz naturel, du Règlement d’accès pour le transport de gaz naturel et du Programme de transport de gaz naturel modifiésBeslissing over de aanvraag van de NV Fluxys Belgium tot goedkeuring van het gewijzigde Standaard Aardgasvervoerscontract, Toegangsreglement voor aardgasvervoer en Aardgasvervoersprogramma

(B)174626.04.2018

● 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’équilibrageBeslissing over de aanvraag door Balansys NV tot goedkeuring van het balanceringscontract, de balanceringscode en het balanceringsprogramma

(B)174724.05.2018

● Décision relative à la proposition de la SA Elia System Operator concernant les règles organisant le transfert d’énergieBeslissing over het voorstel van de nv Elia System Operator betreffende de regels die de energieoverdracht organiseren

(A)174826.04.2018

● 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-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 BlighbankAdvies 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)174926.04.2018

● Note sur les prix de l’énergie de l’électricité et du gaz naturel pour les clients résidentielsNota over de energieprijzen voor huishoudelijke afnemers van elektriciteit en aardgas

(B)175017.05.2018

● 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 services de relivraison de GNL et du programme de terminalling de GNL modifiéBeslissing 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)175117.05.2018

● Proposition relative à l’octroi d’une autorisation de fourniture d’électricité à Lampiris SAVoorstel 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.


5. The CREG

(Z)175217.05.2018

● 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 dimensionnement des volumes de la réserve stratégique pour l’hiver 2019-2020Nota 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)175324.05.2018

● Avis relatif à la demande de l’ASBL SGS Statutory Services Belgium concernant le renouvellement de l’agrément en tant qu’organisme de contrôle Advies over de vraag van de vzw SGS Statutory Services Belgium tot hernieuwing van de erkenning als keuringsinstelling

(A)175431.05.2018

● Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Ineos Energy Trading LimitedAdvies over de toekenning van een individuele leveringsvergunning voor aardgas aan Ineos Energy Trading Limited

(B)175519.07.2018

● 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 RentelBeslissing 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)175614.06.2018

● 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 2017Beslissing 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)175714.06.2018

● 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 2017Beslissing 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)175814.06.2018

● 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 2017Beslissing 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)175914.06.2018

● 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 2017Beslissing 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)176014.06.2018

● 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 2017Beslissing 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)176114.06.2018

● 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 2017Beslissing 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)176214.06.2018

● 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 2017Beslissing 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)176314.06.2018

● 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 2017Beslissing 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)176414.06.2018

● 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 2017Beslissing 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)176514.06.2018

● 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 2017Beslissing 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)176614.06.2018

● 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 2017Beslissing over de vaststelling van het door PBE toe te wijzen bedrag aan federale bijdrage voor de periode 1 januari 2009 tot 31 december 2017




5. The CREG

(A)176724.05.2018

● 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 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)176828.06.2018

● 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 délivrés pour l’électricité produite par les installations de la concession domaniale de RentelBeslissing 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)176921.06.2018

● 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 Core, d’amendement de la conception régionale des droits de transport à long termeBeslissing 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)177028.06.2018

● 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-tition (Doel 3, Doel 4, Tihange 2 et Tihange 3) pour l’année 2017Advies 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)177128.06.2018

● Rapport sur la vérification des revenus et des coûts réels de la centrale nucléaire de Tihange 1 pour la période du 1er janvier 2017 au 31 décembre 2017 conformément à 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 2017Rapport 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)177228.06.2018

● 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 d’offres de 2018Advies 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)177314.06.2018

● Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à EDF Luminus SAAdvies over de toekenning van een individuele leveringsvergunning voor aardgas aan EDF Luminus NV

(A)177415.06.2018

● 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-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 BlighbankAdvies 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




5. The CREG

(A)177515.06.2018

● Avis relatif à la demande de modification de la concession domaniale octroyée, par arrêté ministériel du 1er juin 2012, à l’association commerciale momentanée Seastar 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 BlighbankAdvies 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)177628.06.2018

● Étude sur la fourniture en gaz naturel des grands clients industriels en BelgiqueStudie over de aardgaslevering aan grote industriële klanten in België

(A)177714.06.2018

● Avis relatif à l’indépendance de madame Anne Leclercq en tant qu’administrateur indépendant de Fluxys Belgium SAAdvies over de onafhankelijkheid van mevrouw Anne Leclercq als onafhankelijk bestuurder van Fluxys Belgium nv

(E)177921.06.2018

● Proposition relative à l’octroi d’une autorisation de fourniture d’électricité à la SA Aspiravi EnergyVoorstel betreffende de toekenning aan Aspiravi Energy nv van een vergunning voor de levering van elektriciteit

(F)178128.06.2018

● Étude relative aux prix pratiqués sur le marché belge du gaz naturel en 2017Studie over de prijzen op de Belgische aardgasmarkt in 2017

(A)178212.07.2018

● Avis relatif à la demande de maintien d’une autorisation individuelle de fourniture de gaz naturel à Direct Energie SAAdvies over de vraag om behoud van een individuele leveringsvergunning voor aardgas aan Direct Energie SA

(B)178328.06.2018

● 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 code de réseau sur l’harmonisation des structures tarifaires pour le transport du gazBeslissing 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)178405.07.2018

● 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 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 2012Advies 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)178512.07.2018

● Avis relatif à la demande de maintien d’une autorisation individuelle de fourniture de gaz naturel à Direct Energie Belgium SAAdvies over de vraag om behoud van een individuele leveringsvergunning voor aardgas aan Direct Energie Belgium SA

(RA)178605.07.2018

● 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 du 1er novembre 2018 au 31 décembre 2020Verslag 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)178712.07.2018

● 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 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)178826.07.2018

● 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 2Beslissing 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




5. The CREG

(B)178918.10.2018

● 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 2017Beslissing 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)179018.10.2018

● 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 2017Beslissing 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)179118.10.2018

● 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 2017Beslissing 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)179218.10.2018

● 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 2017Beslissing 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)179318.10.2018

● 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 2017Beslissing 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)179418.10.2018

● 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 2017Beslissing 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)179518.10.2018

● 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 2017Beslissing 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)179618.10.2018

● 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 2017Beslissing 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)179718.10.2018

● 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 2017Beslissing 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)179818.10.2018

● 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 2017Beslissing 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)179918.10.2018

● 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 2017Beslissing 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)180018.10.2018

● 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 2017Beslissing 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)180119.07.2018

● 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 d’énergie renouvelablesVoorstel 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)180212.07.2018

● Avis relatif au projet de plan de développement 2020-2030 de la SA Elia System OperatorAdvies over het ontwerp van ontwikkelingsplan 2020-2030 van de NV ELIA System Operator

(Z)180319.07.2018

● Note sur l’équilibre du réseau sur le marché du gaz naturel Belux pendant la vague de froid de février-mars 2018Nota over de netevenwicht op de Belux aardgasmarkt tijdens de koudegolf van februari-maart 2018




5. The CREG

(RA)180419.07.2018

● Rapport relatif à la relation entre les coûts et les prix sur le marché belge du gaz naturel en 2017Verslag met betrekking tot de verhouding tussen de kosten en prijzen op de Belgische aardgasmarkt in 2017

(B)180519.07.2018

● Décision relative aux modifications des conditions générales des contrats de responsable d’accès proposées par le gestionnaire du réseauBeslissing inzake de wijzigingen van de algemene voorwaarden van de contracten van toegangs-verantwoordelijke, voorgesteld door de netbeheerder

(B)180620.09.2018

● 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 quart-horaires – Entrée en vigueur au 01/12/2018Beslissing 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)180717.09.2018

● Décision relative à la proposition de la SA Elia System Operator concernant une modification des règles organisant le transfert d’énergieBeslissing over het voorstel van Elia System Operator nv betreffende een wijziging van de regels die de energieoverdracht organiseren

(B)180818.10.2018

● 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 2019Beslissing over de vraag tot goedkeuring van de evaluatiemethode voor en de bepaling van het primair, secundair en tertiair reservevermogen voor 2019

(A)180923.08.2018

● 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 KalloAdvies 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)181020.09.2018

● 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 sociétéBeslissing 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)181120.09.2018


(B)181220.09.2018

● 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 sociétéBeslissing 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)181320.09.2018


(B)181430.08.2018

● 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 l’introduction de la frontière germano-autrichienne et d’une règle minimale de 20% de RAMBeslissing 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




5. The CREG

(F)181525.10.2018

● Étude sur l’offre des sociétés coopératives sur le marché belge de l’électricitéStudie over het aanbod van coöperatieve vennootschappen op de Belgische elektriciteitsmarkt

(A)181628.09.2018

● 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 du 19 décembre 2002 établissant un règlement technique pour la gestion du réseau de transport d’électricité et l’accès à celui-ciAdvies 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)181704.10.2018


(B)181804.10.2018


(B)181904.10.2018


(RA)182006.09.2018

● 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 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)182120.09.2018

● 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, 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_G8Beslissing 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)182211.10.2018

● 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 SAStudie over de in 2017 geldende prijsvormingsmechanismen in leveringscontracten voor elektriciteit van de grote industriële afnemers van Electrabel nv

(F)182329.11.2018

● 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 Luminus saStudie over de in 2017 geldende prijsvormingmechanismen in leveringscontracten voor elektriciteit van de grote industriële afnemers van EDF Luminus nv




5. The CREG

(A)182406.09.2018

● 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 à Tessenderlo après l’acquisition de l’ensemble des parts par la SA Tessenderlo GroupAdvies 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)182512.09.2018

● 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-tale, relative à la détermination des blocs RFPBeslissing 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)182606.09.2018

● 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-duction d’électricité à Zwijndrecht après l’acquisition de l’ensemble des parts par INEOS Oxide LimitedAdvies 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)182718.10.2018

● Étude relative aux achats groupés sur le marché de détail de l’électricité et du gaz naturel Studie over groepsaankopen binnen de kleinhandelsmarkt voor elektriciteit en aardgas

(A)182817.09.2018

● 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 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)182917.09.2018

● 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 sauvegarde des modèles de réseaux communsBeslissing 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)183004.10.2018

● Décision relative à la fixation du montant visant à couvrir les coûts totaux de raccordement au Modular Offshore Grid pour la concession domaniale MermaidBeslissing 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)183104.10.2018

● Décision relative à la fixation du montant visant à couvrir les coûts totaux de raccordement au Modular Offshore Grid pour la concession domaniale SeastarBeslissing 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)183211.10.2018

● 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 installations situées dans la concession domaniale de Northwester 2 pour la première période suivant le financial closeBeslissing 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)183328.09.2018

● 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 2019Verslag 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




5. The CREG

(B)183425.10.2018

● 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, R_D4, R_E4, R_F3, R_G4, R_G5, R_G6 et R_G7Beslissing 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)183528.09.2018

● 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 2018-2019Nota over de maatregelen op korte termijn inzake marktwerking met het oog op de bevoorradingszekerheid van elektriciteit voor de winter 2018-2019

(A)183627.09.2018

● Avis relatif à un projet d’arrêté royal portant des mesures de sauvegarde en cas de crise d’approvisionnement en électricité du paysAdvies betreffende een ontwerp van koninklijk besluit houdende beschermingsmaatregelen in geval van crisis op ’s lands elektriciteitsbevoorrading

(A)183711.10.2018

● 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 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)183808.11.2018

● 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 pour l’électricité produite par les installations de la concession domaniale de NortherBeslissing 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)183908.11.2018

● 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 LinkBeslissing over de goedkeuringsaanvraag van de NV SA Elia System Operator voor de System Operating Policy inzake compensatie tussen Elia en Nemo Link

(B)184025.10.2018


(A)184111.10.2018

● Avis relatif à la demande de la SA Fluxys Belgium d’autorisation de transport pour le raccordement du client industriel Prayon à PuursAdvies over de aanvraag van de NV Fluxys Belgium voor een vervoersvergunning voor de aansluiting van de industriële afnemer Prayon te Puurs

(A)184218.10.2018

● 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 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 WitloofAdvies 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)184325.10.2018





5. The CREG

(B)184425.10.2018

● 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 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)184525.10.2018


(B)184629.10.2018

● 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 OperatorBeslissing over het voorstel van standaardformulier voor de bankwaarborg van toepassing in het kader van de energieoverdracht voorgelegd door de NV Elia System Operator

(Z)184715.10.2018

● 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 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)184812.10.2018

● Rapport relatif à l’impact sur les prix de l’électricité de l’indisponibilité des centrales nucléaires en BelgiqueVerslag over de impact op de elektriciteitsprijzen van de onbeschikbaarheid van de kerncentrales in België

(C)184929.11.2018

● 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 certificats verts en 2019Voorstel 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)185025.10.2018

● Avis relatif à l’indépendance de madame Sabine Colson en tant qu’administrateur indépendant de Fluxys Belgium SAAdvies over de onafhankelijkheid van mevrouw Sabine Colson als onafhankelijke bestuurder van Fluxys Belgium NV

(Z)185124.10.2018

● Note de politique générale pour l’année 2019Algemene beleidsnota voor het jaar 2019

(A)185218.10.2018

● 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 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 cogénérationAdvies 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)185318.10.2018

● Avis relatif à deux projets d’arrêté royaux portant des mesures de sauvegarde en cas de crise d’approvisionnement en électricité du pays Advies betreffende twee ontwerpen van koninklijke besluiten houdende beschermingsmaatregelen in geval van crisis op ‘s lands elektriciteitsbevoorrading

(B)185408.11.2018

● Décision sur les modifications des conditions générales des contrats de responsable d’accès proposées par le gestionnaire du réseauBeslissing inzake de wijzigingen van de algemene voorwaarden van de contracten van toegangsverantwoordelijke, voorgesteld door de netbeheerder




5. The CREG

(B)185508.11.2018


(B)185630.10.2018

● 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 quart-horaires – Entrée en vigueur au 05/11/2018Beslissing 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)185730.10.2018

● 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 quart-horaires – Entrée en vigueur au 01/12/2018Beslissing 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)185815.11.2018

● Étude sur le monitoring annuel des prix du marché de l’électricité et du gaz naturel pour les ménages et les petits consommateurs professionnelsStudie over de jaarlijkse monitoring van de prijzen op de elektriciteits- en aardgasmarkt voor gezinnen en kleine professionele verbruikers

(Z)185915.11.2018

● Note - REMIT case N137/2018 Note - REMIT case N137/2018

(B)186026.11.2018

● 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 installations situées dans la concession domaniale de Mermaid pour la première période suivant le financial closeBeslissing 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)186126.11.2018

● 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 installations situées dans la concession domaniale de Seastar pour la première période suivant le financial closeBeslissing 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)186215.11.2018

● 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 d’installations de production d’électricité à partir des vents dans les espaces marins situés au sud du ThorntonbankAdvies 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)186329.11.2018

● 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 Channel, de la proposition commune de procédures de repliBeslissing 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)186629.11.2018

● 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 fictivesBeslissing over de goedkeuringsaanvraag van de NV Elia System Operator voor de toewijzingsregels van capaciteit in day-ahead middels schaduwveilingen




5. The CREG

(B)186706.12.2018

● 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 Channel, d’une proposition modifiée de méthodologies communes de calcul coordonné de la capacité pour les marchés journaliers et infra-journaliersBeslissing (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)186820.11.2018

● Avis relatif à un projet d’arrêté royal portant des mesures de sauvegarde en cas de crise d’approvisionnement en électricité du paysAdvies betreffende een ontwerp van koninklijk besluit houdende beschermingsmaatregelen in geval van crisis op ‘s lands elektriciteitsbevoorrading

(B)186929.11.2018

● 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, d’application d’une approche fondée sur la capacité de transport nette coordonnéeBeslissing over het verzoek van de NV Elia System Operator en alle transmissiesysteembeheerders van de Channel capaciteitsberekeningsregio voor een toepassing van een gecoördineerde nettotransmissiecapaciteitsaanpak

(B)187013.12.2018


(F)187113.12.2018

● Étude relative à la fourniture d’électricité des grands clients industriels en Belgique en 2017Studie over de elektriciteitsbelevering van grote industriële klanten in België in 2017

(A)187206.12.2018

● 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 Bali Wind SAAdvies 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)187306.12.2018

● Avis relatif à un projet d’arrêté royal portant modifications de l’arrêté royal du 24 mars 2003 fixant les modalités de la cotisation fédérale destinée au financement de certaines 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 2019-2023Advies 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)187420.12.2018

● 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’électricitéAdvies over de aanvraag tot hernieuwing van de aanwijzing van Elia System Operator NV als beheerder van het transmissienet voor elektriciteit

(A)187513.12.2018

● Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à Getec Energie A.GAdvies over de toekenning van een individuele leveringsvergunning voor aardgas aan Getec Energie A.G




5. The CREG

(A)187620.12.2018

● Avis relatif à la demande d’octroi d’une autorisation individuelle de fourniture de gaz naturel à European Energy Pooling BVBAAdvies over de toekenning van een individuele leveringsvergunning voor aardgas aan European Energy Pooling BVBA

(B)187718.12.2018

● 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 et l’acquisition de capacités d’équilibrage pour les réserves de stabilisation de la fréquenceBeslissing 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)187818.12.2018

● 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 d’autoriser les fournisseurs de services d’équilibrage à transférer leurs obligations de fournir des capacités d’équilibrageBeslissing 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)187918.12.2018

● 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 d’équilibrage à la hausse et à la baisse pour les réserves de restauration de la fréquence avec activation automatiqueBeslissing 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)188020.12.2018

● Note sur le mécanisme de soutien à la construction de parcs éoliens offshore après 2020Nota over het ondersteuningsmechanisme voor de bouw van offshore windmolenparken na 2020

(A)188113.12.2018

● 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 puissance réactive du 1er janvier 2019 au 31 décembre 2019 inclusAdvies 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)188213.12.2018

● 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-sance réactive du 1er janvier 2019 au 31 décembre 2019 inclusAdvies 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)188313.12.2018

● 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 et de la puissance réactive du 1er janvier 2019 au 31 décembre 2019 inclusAdvies 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)188413.12.2018

● 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 réactive du 1er janvier 2019 au 31 décembre 2019 inclusAdvies 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)188619.12.2018

● Avis relatif à un projet d’arrêté royal portant des mesures de sauvegarde en cas de crise d’approvisionnement en électricité du pays Advies betreffende een ontwerp van koninklijk besluit houdende beschermingsmaatregelen in geval van crisis op ‘s lands elektriciteitsbevoorrading



Responsible EditorKoen LOCQUET

Rue de l’Industrie 26-381040 Brussels

Designwww.inextremis.be

Staff photoRalitza Soultanova

CREG – Rue de l’Industrie, 26-38 - 1040 Brussels T +32 (0)2 289.76.11 - www.creg.be

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