Rising energy prices: steps suppliers have taken

Rising energy prices: since the summer, the media have talked of nothing else. The impressive and unprecedented rises could threaten many Belgian households in the coming months, but also risk putting some suppliers out of business. To protect both themselves and consumers, some suppliers have decided to suspend contracts and promotional offers and have introduced various temporary solutions. An overview of the decisions taken by the different suppliers.

Reminder: what is causing rising energy prices?

While 2020 saw extraordinarily low energy prices due to the coronavirus pandemic and its multiple lockdowns, the recovery in economic activity in 2021 clearly had a negative impact on the electricity and gas sector. It is of course partly because of the greater demand for energy that prices have risen.

But coronavirus is not the only culprit: the reduction of gas storage space in Europe is also thought to be a key factor. With 37% less storage space than in previous years, Europe is now regarded as an importer rather than an exporter of gas, and this exerts natural pressure on gas prices.

To this must be added rising costs of raw materials such as oil or coal which are essential for the production of grey energy, as well as the poor weather conditions in recent weeks, which have led to greater use of electricity and gas.

On the basis of the reference tariffs for September 2021, the CREG (the Commission for Electricity and Gas Regulation) has estimated the increase in annual bills between April 2021 and March 2022. The regulator estimates that the annual electricity bill of a typical household (with an annual consumption of 3,500 kWh per year) will increase by €115.82, while the gas bill for a typical household (with an annual consumption of 23,260 kWh) will increase by €597.92.

What steps have energy suppliers taken in response to the price rises?

To offset this inflation, some suppliers have decided to introduce temporary changes to their deals and cancel promotions or certain contract types. These actions are aimed at protecting suppliers, because the first to feel the effects of the rising energy prices are the suppliers when they buy electricity and gas on the wholesale market. Let’s take a look at the changes introduced by the various suppliers in the market.