ENGIE confirms that an agreement in principle has been reached between its subsidiary Electrabel and the Federal Government of Belgium regarding the conditions for a 10-year extension to operation of the Doel 1 and Doel 2. This agreement is part of the overall framework of the new nuclear contribution system announced by the Minister of Energy, Environment and Sustainable Development, the amount of which will be calculated based on a study by the CREG (Commission for the Regulation of Electricity and Gas) in March 2015.
The fee and the nuclear contribution will be set up into a draft bill that will be tabled when Parliament resumes. When legislative work is completed, it will be possible to establish a convention stating the principles laid down in the law.
The planned amounts for the reactors Doel 3, Doel 4, Tihange 2 and Tihange 3* reactors are as follows:
- A fixed amount of 200 million euros in 2015
- A fixed amount of 130 million euros in 2016 (the €20 million due for the Doel 1-Doel 2 extension will be added)
- From 2017, the Belgian state will revise the contribution according to an objective formula taking account of changing costs, production volumes and electricity prices. The margin applied will be 40%.
Specifically, for the Doel 1 and Doel 2 extension, an annual fee of 20 million euros will be payable from 2016 to 2025. This fee will be paid into the Belgian energy transition fund created by the law of 28 June 2015.
The agreement concluded also includes the resolution of an ongoing a dispute between Electrabel and Belgian state (law of 8 December 2006 on unused industrial sites) for an amount of 100 million euros in 2015 and 20 million euros in 2016.
The new agreement establishes a stable legal and economic framework for the future. On this basis, for the 10-year extension to its plants, and in addition to the 600 million euros in Tihange 1, the ENGIE Group will invest 700 million euros in Doel (subject to the agreement of the Federal Agency for Nuclear Control concerning the extension of both units).
ENGIE, with its 18,000 employees in Belgium, aims to be leader in the energy transition by offering innovative solutions to customers and producing closer to them with a flexible and very diverse production facilities.
*Conditions relating to Tihange 1, whose operation was extended for 10 years by the previous legislature, remain unchanged. They are subject to a tripartite agreement between the Federal Government and the two co-owners of Tihange 1, i.e. EDF and ENGIE. Doel 1, Doel 2 et Tihange 1 are subject to contributions by their extension date in 2015.
ENGIE develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take on the major challenges of energy’s transition to a low-carbon economy: access to sustainable energy, climate-change mitigation and adaptation, security of supply and the rational use of resources. The Group provides individuals, cities and businesses with highly efficient and innovative solutions largely based on its expertise in four key sectors: renewable energy, energy efficiency, liquefied natural gas and digital technology. ENGIE employs 152,900 people worldwide and achieved revenues of €74.7 billion in 2014. The Group is listed on the Paris and Brussels stock exchanges (GSZ until 30 july 2015 included, ENGI from 31 july 2015)and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe and Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20).