Belgium announces that it will put in place measures to deal with soaring energy prices. This is in a context where the reality of an energy crisis threatens Europe.
Belgium wants to reduce its electricity consumption
The Belgian proposal aims at reducing electricity consumption, thus allowing for lower prices. In fact, to combat rising prices, Belgium is announcing measures aimed at public buildings. In addition, there are discussions about turning off the lights on highways and cities at a certain time.
Prime Minister Alexander De Croo says:
“If every citizen saves energy when possible, their wallet will benefit, but also prices will go down.”
Regulations will be put in place to reduce electricity consumption in public buildings. Thus, the heating will not be able to exceed 19 degrees and the use of the air conditioning will be obligatorily reduced. Office lighting and monuments will be turned off at 7:00 p.m.
In addition, the measures previously taken are extended to the end of the first quarter of 2023. Within this framework, the reduced VAT rate of 6% for gas and electricity will be maintained. The preferential rate for low-income individuals will also be extended.
In parallel, Belgium wants to present a proposal by the end of September. The latter aims to tax the excess profits of large energy companies such as Engie or TotalEnergies. Belgium is inspired by another tax, already in place, which applies to nuclear energy. The latter brings in 800 million euros.
Belgium returns to nuclear power
Russia’s invasion of Ukraine has put a strain on Belgium’s plan to phase out nuclear power. In fact, it wanted to rely on natural gas to limit its consumption of nuclear energy. However, the difficulties concerning the supply of Russian gas to Europe have forced Belgium to review its strategy.
In July, the country turned to Engie to secure a source of energy. The two had signed an initial agreement to extend the life of the Doel 4 and Tihange 3 reactors by ten years. Belgium had also asked to postpone the shutdown of two older reactors but Engie refused.
