Citing the "unprecedented energy price crisis," West Flemish company Elexys announced it will cease its activities in the Walloon and Brussels regions.
The company, which was established in 2010 and specialises in supplying gas and electricity to companies and industries in Belgium, said its customers will automatically be supplied from the emergency supplier until they choose a new supplier.
"Due to geopolitical tensions, the conflict in Ukraine and the uncertain supply of gas, the energy sector is facing an unprecedented situation. Gas and electricity prices have reached levels that no one could have foreseen," a statement published by Elexys on Friday read.
It added that the rising energy prices are also hitting customers hard, with many people struggling to pay their bills on time, which is putting extra pressure on suppliers.
The company said it "made every effort to manage the current situation in a highly professional manner," but that no sustainable solution could be found.
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In response to the global energy crisis, which is having a particularly bad effect on European countries, Belgium’s Federal Government adopted a new raft of measures to bring the situation under control on Tuesday, including a reduction in VAT on electricity and gas, lower excise duties on diesel and petrol and a heating oil bonus, as well as an extension of the broad social rate.
For businesses, which are negatively impacted by the rising energy prices alongside the increasing cost of raw materials, the governmen has asked the National Bank of Belgium to analyse the impact on the various sectors in more detail, and on the basis of the results, it will consult with social partners what policy measures can be taken, including with regard to energy bills.