7.5% reduction in natural gas transmission tariffs in sight
Natural gas transmission tariffs are set to drop for the third time in five years on 1 January 2018, which will have a positive impact on gas bills for individuals, SMEs as well as large companies. This decrease is triggered by the interim tariff revision mechanism provided for in CREG’s tariff decision.
Tariff decision included revision mechanism
In late October 2015, CREG’s Board of Directors approved Fluxys Belgium’s tariff proposal for the 2016-2019 regulatory period. The approved proposal also provided for a mechanism for interim revision of tariffs in the event of significant deviations from the hypotheses used.
7.5% tariff reduction in sight
The proposed tariff reduction is a result of Fluxys Belgium’s sustained efforts to boost efficiency and the decrease in interest rates. Based on these factors, Fluxys Belgium and CREG agreed to launch the procedure to lower natural gas transmission tariffs in 2018 and 2019.
Tariff reduction will not affect Fluxys Belgium’s results
The tariff reduction and non-indexation on 1 January 2018 will cut the transmission tariff by around 7.5%, corresponding to a total of €51 million for 2018 and 2019. This follows a previous tariff reduction, which took effect on 1 January 2015.
The reduction in tariffs for transmission services on 1 January 2018 will not affect Fluxys Belgium’s results, as these are largely determined by the regulated rate of return.
Final decision expected by summer
Fluxys Belgium is holding a market consultation on its amended tariff proposal between 23 March and 6 April 2017. CREG is expected to be able to approve the proposal before the summer, which would allow the tariff reduction to take effect on 1 January 2018.