Understanding the market
1. Liberalization of the market, what does that mean?The liberalization or liberalization of the gas and electricity market in Belgium is the result of the European directives of December 19, 1996 and June 22, 1998.
A liberalized market is a market where competition can play freely.
Previously, consumers had no choice and had to gas and electricity decrease the sole supplier: his intercommunal.
Today the situation is different and everyone can choose their supplier from a list of private operators.
2. Why has changed the market?From the idea that energy is a primary need, the European Union has decided to open up the gas and electricity market. They will thus achieve multiple objectives.
The main objective is to ensure the fairest possible prices.
The principle plays, is that consumers multiple offers in a market with open competition gets he can compare, which pushes the prices down.
Competitive suppliers do all that lies in their ability to offer the best prices and best service.
Of course the pursuit of environmental conservation also plays a role.
Since the liberalization, consumers can indeed choose what type of energy he wants to buy.
Everyone has the choice between conventional energy and renewable energy (clean energy from renewable sources).
The consumer who wants to do something for the environment today may be an additional contribute by opting for green energy.
3. What changes will this liberalization to you?
the intermunicipal your zone was the only operator and had a monopoly on the gas and electricity market until June 2003 no choice in Flanders and had you as a customer in Brussels and Wallonia until December 2006.
These intercommunal run time distribution (construction and maintenance of electricity lines and gas pipelines, connecting to the network, recording the meter reading, etc.), and the supply of electricity and gas.
From July 2003 in Brussels and Wallonia, Flanders and from January 2007 was split the gas and electricity market
The big change for consumers is that they can choose for the supply of gas and electricity for any vendor that is recognized by the Region.
- The management of the distribution network remains the responsibility of the PICs;
- For the supply, there are several competing players.
4. How does the energy come specifically to your home?On a liberalized energy your vendor is your main partner.
He sells you the natural gas and electricity.
To bring energy to your home, your provider uses the existing distribution networks for electricity and gas: those of your intercommunal.
Your intercommunal remains responsible for that network. It also asks the meter on. These data are then passed on to your supplier so that it can format your bill correctly.
5. What is now on your bill?Due to the liberalization of the market, the invoice can you receive are divided into three headings:
- The cost of energy: that's what you give to your provider to pay for your consumption (with a fixed annual price). Right there playing competitive and based on that you can choose your supplier;
- The cost of the transport of energy through the distribution network;
- The statutory taxes and charges.
6. What are the regulators?
The new markets for gas and electricity are controlled by the regulators.
These are independent organizations that were called by the various authorities in life.
Their mission is to ensure compliance with regulatory standards and quality requirements by the actors on the electricity and gas markets.
For each region there is a state and a federal regulator.
- At the federal level, the federal regulator, the CREG (Commission for Electricity and Gas Regulation).
- At the level of the Flemish Region: the Flemish regional regulator VREG (Flemish Regulator for the Electricity and Gas).
- At the level of the Walloon Region, the Walloon regional regulator, the CWAPE (Commission Wallonne pour l'Energie).
- At the level of the Brussels Region, the Brussels regional regulator BRUGEL (Regulatory Service for electricity and gas in the Brussels Capital Region).