Electrabel Not to Pay Belgian Nuclear Power Tax

Suez-owned Belgian utility Electrabel has said that it will not chip in with E250 million as nuclear power tax towards the 2008 Belgian budget, in return for the government’s proposal to keep five out of the seven nuclear plants in the country open, reported Thomson Financial.

Electrabel has stated that it never entered into any such agreement with the Belgian energy ministry and that such a deal could only be reached if it takes into account the pre-merger conditions set for the Suez-Gaz de France merger.

The news source reported the Belgian utility’s stipulation that it will sign such a deal only in agreement with public authorities, including local government holding Publigas, which owns a 31.25% stake in Electrabel’s gas trading unit, Distrigas. Electrabel is reportedly seeking the sale of its stake in Distrigas.

The Belgian energy minister, Paul Magnette, was quoted by the news source as saying that if Electrabel maintains its position on the non-payment of the nuclear power tax, the government will act towards bringing measures to break the utility group’s dominance in the market.