Belgium's Federal Government is set to approve a package of measures designed to better protect consumers and increase the transparency of energy contracts.
The federal energy regulator CREG has calculated that by September 2025, as many as half of Belgian households will be on one of the 10 most expensive electricity contracts on the market, while only 10% will be on one of the 10 cheapest contracts.
To help consumers make the right choices, the Federal Government is now introducing new legislation to simplify energy contracts, which will come into force from October 2026.
"This way, consumers have a better understanding of the consequences of choosing one contract over another," said consumer protection organisation Testachats, which welcomes the new legislation.
Victory for consumers
For years, Testachats has been calling for a key change in these contracts, namely that the fixed fee should no longer be charged per contract year commenced. This fixed fee is a kind of subscription charge, intended to cover the supplier’s administrative costs, and is therefore not dependent on a household's consumption.
Some suppliers charge this fixed fee per contract year commenced, while some charge it in full only during the first year. Others calculate it on a pro rata basis from the outset. For variable-rate contracts, the fixed fee may in any case only be charged for half a year.
With the new legislation, these practices are now coming to an end: from 2027, the fixed fee must be charged on a pro rata basis according to the number of days the consumer remained a customer.
"That full charge has been a thorn in our side for over 10 years," said Laura Clays, Testachats spokesperson. "It was a hidden termination fee. Anyone who did not pay close attention when switching risked having to pay a fixed fee to both their old and new suppliers. We are therefore delighted with this victory for consumers."
Credit: Belga / Michel Krakowski
To make it easier to compare prices, suppliers will no longer be allowed to charge separate fees from 2027. A single all-inclusive price must therefore cover the cost of energy shares, green energy certificates and, from 2029, the new CO₂ tax as well.
Additionally, the numerous conditions currently attached to welcome discounts will be banned from October.
However, discounts on the price per kWh that apply throughout the entire contract term will still be permitted. Cashback offers that are only earned after 12 months, or other one-off discounts that do not relate to the price per kWh will also remain possible. However, these must not be included in price comparison tools.
"This should ensure that consumers are less likely to sign up to contracts that appear cheap due to a high welcome discount, but which become very expensive once that discount expires," said Clays.
"Although it remains to be seen to what extent suppliers will continue to offer such high discounts," she said. "The same question arises for cashbacks: will suppliers still offer them if they are not allowed to highlight them in comparison tools or in their own price simulations?"
A clearer picture of your tariff
Due to the many complex pricing structures, many consumers do not know how much they are actually paying for energy. Not only can simpler pricing structures remedy this, but clearer and personalised information for each consumer can also help.
From 2027, for example, suppliers will have to send an estimate of the total annual price to their customers. This is particularly important when renewing a contract.
"Customers did receive an email setting out the new terms of their renewed contract, but not necessarily a recalculation of their advance payment or an estimated annual cost," said Clays.
"Following the energy crisis, we have seen situations where consumers were faced with a sky-high annual bill after a year, because they were unaware throughout that time that their contract had been renewed at an exorbitant price," she said. "This measure is intended to prevent such tragedies.”
