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Industry costs second highest in EU

Power and wage expenses are affecting competition, says Febeliec

Major industrial consumers are paying 15 to 20% more for electricity in Belgium than their competitors in neighbouring countries, according to a study carried out by Deloitte on behalf of Febeliec, the Federation of Belgian Industrial Energy Consumers. The competitive disadvantage that results, commented Luc Sterckx, chairman of Febeliec, is “at least as negative as the wages handicap”.

According to the report, the majority of the difference is attributable to high network costs and higher taxes on energy. The association is calling for a cap on the costs major producers have to pay.

Febeliec’s warning was echoed by a number of major consumers, including ArcelorMittal in Ghent, Bayer in Antwerp, Solvay in Brussels and Nyrstar in Overpelt. “High electricity costs in Belgium are a threat to our future,” said Wim Van Gerven, CEO of ArcelorMittal Ghent, whose company pays 6% of its total cost package of €3 billion for energy.

On the subject of the wages handicap, a study by the German government’s statistical office revealed that Belgium has the highest salary costs in the EU after Sweden, at €40.40 per hour on average for the private sector. At the bottom of the table are Romania at €4.50 and Bulgaria at €3.70.

Belgium’s costs are also rising more quickly, by 2.9% between 2011 and 2012, compared to 0.7% in the Netherlands, 1.9% in France and 2.1% in the EU.

Alan Hope
(April 3, 2024)