GdF-Suez holds back on Belgian payment

Tuesday, 20 October 2009

[Reuters, 17 October] The Belgian government has demanded that French utility GdF-Suez agree to a deal on an energy levy for 2009 of up to €500 million ($748 million) by 22 October. Belgium is demanding the payment of a levy of €250 million ($374 million) for the operation of GdF-Suez's Belgian nuclear power plants, as well as a €250 million contribution to a renewable energy fund. GdF-Suez CEO Gerard Mestrallet said that the company is not prepared to pay the levy as it totals about the same amount as the entire profit from the company’s Belgian operations. GdF-Suez's Electrabel subsidiary primarily owns and operates all seven of Belgium's nuclear reactors. The company paid a €250 million levy in 2008, but is challenging that payment at Belgium’s constitutional court. Last week, the Belgium government announced its decision to put back its plans to phase out nuclear power by ten years. However, it said that the country's nuclear producers must make an annual 'contribution' of some €215-245 million ($320-364 million) per year to the country's budget over the period 2010-2014.