INTRODUCTION

Belgium has been hit, from the end of 2021 and throughout 2022, by multiple insolvencies and bankruptcies of energy suppliers. This rather unprecedented phenomenon was provoked by multiple ‘new factors’ which could be seen as ‘the straw that broke the camel's back’.

Not only did serious questions arise from those bankruptcies regarding the applicable regulatory framework in such cases, but it also shed the light on the changing realities of the energy market, notably for energy supply and some paradoxical effects of the liberalisation of those markets.

This contribution will analyse in §2 the main causes of the risks causing energy suppliers’ bankruptcies on the Belgian market(s). Then §3 will analyse some of the preventive actions taken by the Belgian authorities to address these risks. Next, §4 discusses briefly the regime of ‘supplier of last resort’, its challenges, and mitigation measures to protect consumers from the effects of an energy supplier's bankruptcy. Finally, §5 will provide a conclusion.

RISKS LEADING TO ENERGY SUPPLIER's BANKRUPTCIES

MARKET RISKS

Some risks are inherent to the activity of suppliers in every liberalised energy market, i.e. market risks. Among these risks, price volatility and the design of the Belgian energy markets can be considered as the main threats for energy suppliers.

Soaring Prices and Related Risks

After a period of relative stability on the electricity and gas markets, notably characterised by stable and low prices on wholesale (and therefore retail) markets, the average day-ahead prices of electricity in Belgium rose from €31.90 per MWh in 2020 (the lowest on record in the last 15 years) to €104.10 per MWh in 2021,2 while gas prices (long-term price of the Dutch TTF being used as reference) went from €9.40 per MWh to €96.70 MWh.