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Belgian watchdog seeks end to utility CO2 windfalls

Posted in Europe on January 22, 2009

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AMSTERDAM, Jan 21 (Reuters) - Belgian authorities must act to prevent utilities from making windfall profits by passing on the cost of carbon emission rights to consumers, the country’s energy market regulator CREG said on Wednesday.

Electricity producers in the Belgian market generated about 1.2 billion euros ($1.68 billion) in profits between 2005 and 2007 by charging clients for carbon dioxide (CO2) emissions rights they had received for free, the regulator estimated in a report in October.

CREG said it wanted a structural solution to the problem, which would include measures to require carbon emissions costs to be taken into account when deciding on building of new power plants.

Electrabel, the Belgian electricity arm of GDF Suez (GSZ.PA), dominates Belgium’s electricity market. (Reporting by Catherine Hornby, editing by Anthony Barker)

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