Belgium: Electricity and gas markets: recent amendments

in keeping with your desire for periodic updates on developments here in=20
Europe, a summary of recent Belgian decrees. mcs
---------------------- Forwarded by Mark Schroeder/LON/ECT on 06/11/2000=20
17:39 ---------------------------

Bruno Gaillard@ENRON
06/11/2000 15:25
To: Chris Presiaux/LON/ECT@ECT, Raphael Brun, Didier Magne/LON/ECT@ECT
cc: Mark Schroeder/LON/ECT@ECT, Peter Styles/LON/ECT@ECT=20

Subject: Belgium: Electricity and gas markets: recent amendments

On 24 October 2000, six Royal Decrees on the liberalisation of the energy=
=20
(electricity and gas) market were published in the Official Gazette. Below =
is=20
a breif summary of the decrees

Electricity matters:=20

Eligibility of end users=20
Elegiblility consumption threashold:=20
currently 100 GWh, 20 GWh starting 31/12/00, 10 GWh starting 31/12/02=20
Distribution companies are elegible, for the volume of electricity supplied=
=20
to eligible clients within the distribution grid=20
Registration requirements:
Elegible customers must provide the competent minister with all relevant=20
information, such as the meter reading recording the supply of electricity=
=20
over the previous year, and an evaluation of consumption in the next year.
For 2000,customers must register by 23/11/00, these customers will be=20
elegible through 12/31/01
For all comming years, including 2001, customers must register by the 1st o=
f=20
Febuary of that year
Resistration must be renewed every year. (An official registration form is=
=20
publish and will be available soon)=20
=20
Management of the transmission grid
At least half the Board of Directors must be independent directors;
The Board of Directors constitutes a governance committee composed only of=
=20
independent directors. This committee=01,s object is to:
propose candidates for appointments as independent directors; and
examine conflicts of interest between the system operator and any of its=20
shareholders and report to the Board of Directors; and
rule on cases of conflicts of interest (managers and personnel); and
supervise the proper application of the Royal Decree.

The Management Board, constituted of independent members, is exclusively=20
competent for the technical operation of the network. =20

However, the system operator has yet to be appointed. The Council of=20
Ministers may make this appointment in the next few weeks (maybe on 10=20
November 2000). The guarantee to the right of access for the eligible=20
customers, is not yet in force and shall come into force only once the=20
appointment of the system operator is official.

Composition and functioning of the General Council of the CREG
The General Council of the CREG gives advice and recommendations on the=20
electricity and gas market at the request of the competent Minister, a=20
regional government or the executive body of the CREG.
The composition of the General Council has been amended to e.g. increase th=
e=20
representation of public authorities, and allow producers of renewable ener=
gy=20
to be represented.

2. Gas Matters
A large part of the Act of 29 April 1999 on liberalising the gas market is=
=20
now in force. However, most provisions now in force only empower the King =
or=20
the competent Minister to issue (Royal) Decrees to implement the Gas Act.

Three provisions, in force since 24 October, may be singled out:

Electricity producers may buy the gas necessary to generate electricity,=20
whatever their consumption. However, the right of access to the network is=
=20
not yet in force (same problem as for the electricity market).

Conflicts on access to the gas network may be submitted to the GREG, which=
=20
has powers of conciliation and arbitration. An administrative court ("La=20
chambre d'Appel") will also be created to rule on this kind of conflict. A=
=20
Royal Decree regulating arbitration and the procedure in the administrative=
=20
court still has to be issued.

From the first financial year after 10 August 2000, Belgian companies that=
=20
generate, transport, deliver, supply, stock or buy gas, must comply with=20
Belgian accounting rules and keep separate books for activities of transpor=
t,=20
distribution and storage of gas.

Below please find the decrees in french. Please let me know if you want the=
m=20
translated.

---------------------- Forwarded by Bruno Gaillard/EU/Enron on 06/11/2000=
=20
12:02 ---------------------------
=20
=09Enron Capital & Trade Resources Corp.
=09
=09From: Isabel.DeBacker@LOEFF.BE 06/11/2000 10:=
59
=09

To: Bruno.Gaillard@enron.com
cc: =20

Subject: RE: The liberalisation of the electricity and gas markets: recent=
=20
amendments

- EnronARR1.doc
- EnronARR2.doc
- EnronARR3.doc
- EnronARR4.doc
- EnronARR5.doc
- EnronARR6.doc