You are currently viewing 6% VAT, extended social tariff, excise duties, contracts: the CREG’s proposals to limit energy bills

6% VAT, extended social tariff, excise duties, contracts: the CREG’s proposals to limit energy bills

  • Post category:Economy News
  • Reading time:2 mins read

While the government continues to look into the measures to be taken to limit the impact of the increase in energy products for households and businesses, the CREG, the Electricity and Gas Regulatory Commission presents its latest recommendations: maintenance of VAT at 6%, extension of the social tariff, reverse ratchet mechanism for excise duties and other measures to reduce the complexity of suppliers’ offers and protect customers under fixed contracts.

The CREG can only observe the “exceptionally high and never before seen levels” wholesale market prices for natural gas and electricity in recent days.

The CREG observes that in Belgium, the prices of gas and electricity, both for households and professionals, are directly linked to price trends on the wholesale markets, whereas in neighboring countries, forms of regulation make it possible to limit the passing on of wholesale prices to consumers.

The CREG emphasizes the effect of the social tariff for those who benefit from it and who currently pay around 20% of the commercial price of gas and 50% of the commercial price of electricity.

It is in this context that the CREG makes recommendations to the federal government.