Increased non-commodity costs in Belgium and neighbouring countries (VIB Seminar 2014)

1. 18/10/2012
E&C Market info
slide 1
Increased non-commodity costs in
Belgium and neighbouring countries
07/10/2014

2. 22/09/2014
E&C Market info
slide 2
Introduction

3. 07/10/2014
E&C – VIB seminar
slide 3
Energy procurement consultancy
Gas & electricity
Focused on price, not on consumption reduction
Consulting, not supplying, trading or brokering
CLIENT
SUPPLIER
CONSULTANT

4. 07/10/2014
E&C – VIB seminar
slide 4
Global customer loyalty

5. 07/10/2014
E&C – VIB seminar
slide 5

6. 22/09/2014
E&C Market info
slide 6
Febeliec benchmark study (June 2014 ~ 100 – 1000 GWh)

7. 07/10/2014
E&C – VIB seminar
slide 7
Febeliec study (update June 2014)
< 100 GWh ?

8. 07/10/2014
E&C – VIB seminar
slide 8

9. 07/10/2014
E&C – VIB seminar
slide 9

10. 22/09/2014
E&C Market info
slide 10
E&C benchmark study (September 2014 <100 GWh)

11. 07/10/2014
E&C – VIB seminar
slide 11

12. 07/10/2014
E&C – VIB seminar
slide 12
TOTAL DE - BE - NL - FR

13. 07/10/2014
E&C – VIB seminar
slide 13
TOTAL BE – NL – FR

14. 07/10/2014
E&C – VIB seminar
slide 14
COMMODITY DE – BE – NL - FR
51,851,044,936,549,751,048,941,250,852,051,843,650,651,546,938,00102030405060 2011201220132014201120122013201420112012201320142011201220132014 GermanyBelgiumThe NetherlandsFrance €/MWh Commodity price for base load profiles (5-10 GWh) Commodity

15. 22/09/2014
E&C Market info
slide 15
Non-commodity

16. 07/10/2014
E&C – VIB seminar
slide 16
TAXES DE – BE – NL - FR

17. 07/10/2014
E&C – VIB seminar
slide 17
TAXES BE – NL - FR

18. 07/10/2014
E&C – VIB seminar
slide 18
T&D DE – BE – NL - FR

19. 07/10/2014
E&C – VIB seminar
slide 19

20. 07/10/2014
E&C – VIB seminar
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TAXES Flanders – Brussels –Wallonia

21. 07/10/2014
E&C – VIB seminar
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T&D Flanders – Brussels - Wallonia

22. 07/10/2014
E&C – VIB seminar
slide 22
But, beware of…
The distribution cost in Flanders is ‘doped’ as pointed out by the SERV

23. 07/10/2014
E&C – VIB seminar
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•Certificate glut
•Cost of freezing the grid tariffs
•Increasing pre-financing cost

24. 07/10/2014
E&C – VIB seminar
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25. 07/10/2014
E&C – VIB seminar
slide 25
Short term
Long term
Solution?
•Avoid additional financing cost?
•Spread the cost over more generations?
•Introduce a ‘bad fund’ with shares?
•Finance the debt by public funds?

26. 22/09/2014
E&C Market info
slide 26
Commodity

27. 07/10/2014 E&C – VIB seminar slide 27
37
42
47
52
57
62
1/01/11
1/03/11
1/05/11
1/07/11
1/09/11
1/11/11
1/01/12
1/03/12
1/05/12
1/07/12
1/09/12
1/11/12
1/01/13
1/03/13
1/05/13
1/07/13
1/09/13
1/11/13
1/01/14
1/03/14
1/05/14
1/07/14
1/09/14
€/MWh
Endex BE Cal contracts
Cal 14 Cal 15 Cal 16 Cal 17
Doel 3 &
Tihange 2
Doel 4

28. 07/10/2014
E&C – VIB seminar
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29. 07/10/2014
E&C – VIB seminar
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30. 07/10/2014
E&C – VIB seminar
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31. 07/10/2014
E&C – VIB seminar
slide 31
Disposable for pay-back on fixed costs
Marginal cost = variable cost to produce an extra MWh of electricity
Renewable Nuclear Coal Gas
Marginal cost
€/MWh
CO2
CO2

32. 07/10/2014
E&C – VIB seminar
slide 32
2013: Doel 3 – Tihange 2

33. 07/10/2014
E&C – VIB seminar
slide 33
2015: Doel 3 – Tihange 2 – conventional outages + strategic reserve

34. 07/10/2014
E&C – VIB seminar
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2015: Doel 3 – Tihange 2 – Doel 4 – conventional outages + strategic reserve

35. 07/10/2014 E&C – VIB seminar slide 35
5,0
5,5
6,0
6,5
7,0
7,5
8,0
8,5
January
February
March
April
May
June
July
August
September
October
November
December
TWh
Power consumption in Belgium (TWh)
2009-2012 range 2012 2013 2014
Context of declining consumption

36. 07/10/2014
E&C – VIB seminar
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… and declining peak demand
Peak load (MW) 201412.469201313.385201213.362201113.208201013.845200913.530200813.479200714.033

37. 07/10/2014
E&C – VIB seminar
slide 37
Conclusion
•‘German consumers pay less than Belgian consumers’: only partly true and not in all cases
•Need for a transparent invoice that is clear for consumers & gives them a better basis to take decisions
•Need for additional cross-border capacity remains
•Some suppliers took their production plants out of the market but keep it available for the security of supply because of introduction of capacity cost

38. 07/10/2014
E&C – VIB seminar
slide 38
More information?
Kobe Cannaerts
Operations Director, E&C
 Spinnerijkaai 43
8500 Kortrijk – Belgium
Direct: +32 56 25 24 25
kobe@eecc.eu
http://www.eecc.eu
http://energytics.wordpress.com