Increased non-commodity costs in Belgium and neighbouring countries (VIB Seminar 2014)

18/10/2012 E&C Market info slide 1

Increased non-commodity costs in

Belgium and neighbouring countries

07/10/2014


Introduction

07/10/2014 E&C – VIB seminar slide 3

Energy p rocu remen t consu l tancy

Gas & electricity Focused on price, not on

consumption reduction

Consulting, not supplying,

trading or brokering

CLIENT

SUPPLIER CONSULTANT


Global customer loyalty


Febeliec benchmark study

(June 2014 ~ 100 – 1000 GWh)


Febeliec study (update June 2014)

< 100 GWh ?


E&C benchmark study

(September 2014 <100 GWh)


TOTAL DE - BE - NL - FR


TOTAL BE – NL – FR


COMMODITY DE – BE – NL - FR

51,8 51,0

44,9

36,5

49,751,0

48,9

41,2

50,852,0 51,8

43,6

50,6 51,5

46,9

38,0

0

10

20

30

40

50

60

20

11

20

12

20

13

20

14

20

11

20

12

20

13

20

14

20

11

20

12

20

13

20

14

20

11

20

12

20

13

20

14

Germany Belgium The Netherlands France

€/M

Wh

Commodity price for base load profiles (5-10 GWh)

Commodity


Non-commodity


TAXES DE – BE – NL - FR


TAXES BE – NL - FR


T&D DE – BE – NL - FR


TAXES Flanders – Brussels –Wallonia


T&D Flanders – Brussels - Wallonia


But, beware of…

The distribution cost in Flanders is ‘doped’ as pointed out by

the SERV


• Certificate glut

• Cost of freezing the grid tariffs

• Increasing pre-financing cost


Short term

Long term

Solution?

• Avoid additional financing cost?

• Spread the cost over more generations?

• Introduce a ‘bad fund’ with shares?

• Finance the debt by public funds?


Commodity


37

42

47

52

57

62

1/0

1/1

1

1/0

3/1

1

1/0

5/1

1

1/0

7/1

1

1/0

9/1

1

1/1

1/1

1

1/0

1/1

2

1/0

3/1

2

1/0

5/1

2

1/0

7/1

2

1/0

9/1

2

1/1

1/1

2

1/0

1/1

3

1/0

3/1

3

1/0

5/1

3

1/0

7/1

3

1/0

9/1

3

1/1

1/1

3

1/0

1/1

4

1/0

3/1

4

1/0

5/1

4

1/0

7/1

4

1/0

9/1

4

€/M

Wh

Endex BE Cal contracts

Cal 14 Cal 15 Cal 16 Cal 17

Doel 3 &

Tihange 2

Doel 4


Disposable for pay-back on fixed costs

Marginal cost = variable cost to

produce an extra MWh of electricity

Renewable Nuclear Coal Gas

Marginal cost

€/M

Wh

CO2

CO2


2013: Doel 3 – Tihange 2


2015: Doel 3 – Tihange 2 – conventional

outages + strategic reserve


2015: Doel 3 – Tihange 2 – Doel 4 –

conventional outages + strategic reserve


5,0

5,5

6,0

6,5

7,0

7,5

8,0

8,5

Janu

ary

Fe

bru

ary

Ma

rch

Apri

l

Ma

y

June

July

Aug

ust

Sep

tem

be

r

Octo

ber

Novem

ber

Decem

ber

TW

h

Power consumption in Belgium (TWh)

2009-2012 range 2012 2013 2014

Context of declining consumption


… and declining peak demand

Peak load (MW)

2014 12.469

2013 13.385

2012 13.362

2011 13.208

2010 13.845

2009 13.530

2008 13.479

2007 14.033


Conclusion

• ‘German consumers pay less than Belgian consumers’: only

partly true and not in all cases

• Need for a transparent invoice that is clear for consumers &

gives them a better basis to take decisions

• Need for additional cross-border capacity remains

• Some suppliers took their production plants out of the market but

keep it available for the security of supply because of introduction

of capacity cost


More information?

Kobe Cannaerts

Operations Director, E&C

Spinnerijkaai 43

8500 Kortrijk – Belgium

Direct: +32 56 25 24 25

[email protected]

http://www.eecc.eu

http://energytics.wordpress.com

mailto:[email protected]



http://www.eecc.eu/

http://energytics.wordpress.com/

Increased non-commodity costs in Belgium and neighbouring countries (VIB Seminar 2014)

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