Janson Baugniet

In the Energy Sector

Regulatory and tariff issues

Guy Block and his Department are known in the Energy sector for having realized the transposition into Belgian federal and regional Laws of both the first (Directives 96/92/EC of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity and 98/30/EC of the European Parliament and of the Council of 22 June 1998 concerning common rules for the internal market in natural gas) and second (Directives 2003/54/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in electricity and repealing Directive 96/92/EC and 2003/55/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC) Directives liberalizing the energy markets in Europe.

These works included the drafting of project laws and secondary legislation, as well as technical grid codes. Our Department also assisted in the drafting of legislations and regulations in other European countries, such as Luxemburg, France, and Romania, as well as in non-European countries such as Tajikistan, Turkey, Morocco, Iran, Tajikistan and Qatar.

The practice of our Department in this respect notably includes:

• Drafting of the Belgian federal legislation implementing the first and second Electricity and Gas Directives (Directives 96/92/EC and 2003/54/EC for the electricity and Directives 98/30/EC and 2003/55/EC for the gas) and including notably grid codes, tariffs, public service obligations and dispute resolution mechanisms;
  
• Assistance to the Government of the Brussels Region for the transposition of the second Electricity and Gas Directives (Directives 2003/54/EC and 2003/55/EC) and the amendments of the existing Electricity and Gas Ordinances;
  
• Assistance to a Belgian regional Governments in the transposition of the Directive 2006/32/EC of the European Parliament and of the Council of 5 April 2006 on energy end-use efficiency and energy services and repealing Council Directive 93/76/EEC;
  
• Assistance to the Government of Tajikistan for reforming its energy sector under financing of the Asian Development Bank;
  
• Assistance to the Belgian federal and regional Governments in the transposition into federal and regional law of Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market;
  
• Assistance to Belgian Federal and Regional Governments in the implementation of the Protocol of Kyoto and in the transposition into federal and regional law of the Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC;
  
• Assistance to the Belgian federal Government for the implementation of Directive 2003/30/EC of the European Parliament and of the Council of 8 May 2003 on the promotion of the use of biofuels or other renewable fuels for transport;
  
• Assistance to the Government of the Brussels Region on the implementation of Directive 2002/91/EC of the European Parliament and of the Council of 16 December 2002 on the energy performance of buildings;
  
• Drafting of legislation related to the phasing out of nuclear power plant and on funding for decommissioning;
  
• Assistance to Belgian Regulator in tariff structures in the electricity and gas sectors;
  
• Assistance in transport tariffs related to local production;
  
• Assistance in the application of tariffs to the activities of gas transit;
  

 Advice to new entrants

In the frame of the liberalization of the electricity and gas markets, our Department developed a strong practice in assisting major energy players on entering the European electricity and gas markets. Particularly, we advised on competition issues related to long term gas and electricity supply contracts, TOP clauses, price rebates and price fixing, multi-site contracts, green certificates and default supplying mechanisms. We also advised on the allocation of the available electricity capacity to new entrants.
This expertise covers notably the following projects:

• Advise on close market issues to new entrants in the Belgian energy markets (access and access responsible contracts, contacts with regulatory authorities);
  
• Advice to a major gas supplier on the access and the participation to the Zeebrugge Hub;
  
• Advice in the coupling of the French, Dutch and Belgian electricity markets allowing an easier and more transparent access to new entrants;
  
• Assistance in the organization of a Belgian power exchange for the allocation of the available electricity capacities;
  
• Assistance to regulatory authorities on the setting up of an auction mechanism of the Belgian virtual power plants;
  
• Advise on taxation of energy and benchmarking covenants;
  
• Assistance to a gas and electricity supplier in the obtainment of purchased green certificates;
  
• Drafting of contracts for the purchase of green certificates and guarantees of origins (general and particular conditions);
  
• Assistance and advice on issues raised by the invoicing of public service obligations by system operators;

Permitting

Along with the advice to new entrants, our Department has a long practice in assisting major energy players in the erection of new power plants, fuelled both by fossil fuels and by renewable sources of energy. In this respect, we developed contacts with the necessary regulatory authorities and permitting administrations, as well as corporate and contractual mechanisms within the regulated framework of network access.
Our Department particularly took part in the following projects:

• Advice to electricity operators in the erection of a biomass-fuelled cogeneration unit: strategic advice, financial advice ...
  
• Advice to major Belgian industrials in the acquisition of a significant share of production capacity output of electricity of more or less 14 TWh/year against investment for 20 years and in the possible erection of a 800 MW clean coal power plant;
  
• Advise on the construction of a 400 MW auto-production plant (BOO) with impact on transmission and greenhouse gas emission permits costs;
  
• Assistance and strategic advice to a foreign investor in the construction of a high-efficiency cogeneration unit in Romania (heat and power and urban district heating);
  
• Assistance to the construction of a 400 MW combined cycle gas turbine by private operators (project financing);
  
• Assistance in the construction of a 420 MWE gas turbine power plant and a 65 MWE gas power plant;
  
• Assistance in the construction of a 70 MW cogeneration power plant;
  
• Assistance in the filing of applications before Belgian regulators for change of control of power plants;
  
• Assistance to a local producer of electricity on various issues linked to private grids.

Energy Contracts (connection agreements, access contracts, supply contracts, public service obligations)

While assisting new entrants and in the delivery permits, our Team drafted numerous contracts essential to the liberalization of the energy markets. We notably undertook the following project:

• Assistance for the drafting of contracts and general conditions for supply of gas and electricity to industrial, small and medium sized and residential consumers at the Belgian federal and regional levels;
  
• Assistance in the accordance of energy contracts with public service obligations;
  
• Assistance in the drafting and negotiation of connection contracts, access responsible party contracts, balancing contracts, access contracts, etc.; 
  
• Drafting of gas transit service agreements;
  
• Assistance in the drafting of strategic supply agreements of electricity and gas;
  
• Assistance in the renegotiation of gas transit contracts;

Renewable Energy Issues

In the face of the growing concerns for environmental protection and energy security of supply, our Department developed a strong practice in the production of electricity from renewable energy sources. It particularly assisted in the setting up of green certificate schemes and in the erection of green energy power plants. We also advised about the development of emerging renewable energy sources such as hydrogen as well as about the setting up of emissions trading schemes and the use of flexible mechanisms in the frame of the Kyoto Protocol.
In this respect, the Energy & Transport Department notably took part in the following projects:

• Assistance to the Belgian Governments for the setting up of federal and regional green certificates schemes;
  
• Assistance to a Belgian regional Governments in the drafting, negotiation and adaptation of legislative dispositions to promote and support decentralized production and supply of electricity;
  
• Assistance to the Brussels-Capital and the Walloon Government in the creation of a green certificate stock exchange;
  
• Assistance to the Brussels-Capital and the Moroccan Governments in the creation of a reciprocal green certificate mechanism; 
  
• Assistance to electricity suppliers in litigation related to the support of renewable energy in the Flemish Region;
  
• Assistance and strategic advice in the erection and financing of wind farms;
  
• Assistance and strategic advice in the erection and financing of biomass-fuelled cogeneration power units;
  
• Assistance in the construction of a 70 MW cogeneration power plant;
  
• Assistance and advice to a major fuel cell components producer for support under the European framework;
  
• Assistance in the erection of Hydrogen fuel cells stationary applications;
  
• Assistance in emission permits and Kyoto flexible mechanisms;
  
• Assistance in the erection of solar panels;
  
• Study for a Belgian regulator related to the development of decentralized production units.

Liquified Natural Gas

Our Team has a strong expertise in the field of LNG. We notably undertook the following projects:

• Assistance to major gas producers in the assignment of LNG slots as well as transit facilities in Belgium;
  
• Assistance to major gas actors for due diligence on up-stream LNG installations financing;
  
• Assistance to large LNG shippers at Zeebrugge LNG new terminal to draft capacity subscription agreements (slots, terminaling contract, maritime issues, etc.);
  
• Assistance to major energy players on extension investments in the Zeebrugge LNG Terminal;
  
• Assistance to a major player in the obtainment of a license for gas storage;
  
• Advice to a major gas supplier on the access and the participation to the Zeebrugge Hub (slots, authorization, tariffs, maritime issues, ...);
  
• Assistance to large consumers of gas (more than 15% of the Belgian liberalized market) to switch to another supplier (including balancing, tariffs, connections to interconnector and Zeebrugge hub);
  
• Assistance in taxes and VAT issues related to LNG delivery in Belgium;
  
• Assistance in the application of tariffs to the activities of gas transit;
  
• Assistance in the transfer of shares of a company active in the transit of gas;
  
• Analysis for a major operator in Luxemburg of the gas grid code.

Nuclear

We also developed a strong expertise in nuclear energy. The following projects may notably be cited:

• Drafting of legislation related to the phasing out of nuclear power plant and on funding for decommissioning;
  
• Assistance to major nuclear control authorities in affiliation of companies;
  
• Drafting of a position paper related to nuclear power plants in Belgium;
  
• Assistance to producers of electricity in the erection of a nuclear power plant.

International Cooperation

On the basis of its practice developed in European countries, our Department takes regularly part in international projects funded by international and European banks such as the World Bank, the Asian Development Bank, the European Investment Bank and the European Bank for Reconstruction and Development.
Our Department was accordingly recently appointed by the Asian Development Bank for assisting the Tajik Government in the liberalization of its electricity market and restructuring of the national incumbent electricity operator. Through this project, we became deeply involved in the Inogate process. Inogate stands for Interstate Oil and Gas transport to Europe and is an international co-operation program that aims at promoting the regional integration of the pipeline systems, at facilitating the transport of oil and gas both within the Caucasus and Black Sea region and towards Europe and at attracting private and public investors (www.inogate.org). Guy Block took part in the Inogate Conference held in Brussels on the 7th and 8th of November 2006. He met at that occasion several representatives of Central and Eastern Asian countries and presented to the Assembly, on behalf of the Tajik Government, the current project of liberalization of the Tajik electricity markets.
Our Department was also appointed by the Asian Development Bank to assist the Laotian Transmission System Operator in the constitution of a special vehicle company for the transmission of electricity from Lao to Thailand.
We are also representing private investors in Romania for the possible erection of a cogeneration power plant. Guy Block also participated in a project between the Brussels-Capital and the Moroccan Governments for the setting up of a green certificate scheme in Morocco and its reciprocity with the Brussels-Capital scheme. He assisted in this respect the Moroccan Government and private investors in the erection on wind farms as well as in the development of electrical interconnections with neighboring countries.
Our Department also assisted the Iranian Government in energy valorization of biomass and the Turkish gas transmission system operator in the management of its gas and oil interconnections with neighboring countries.

Litigation and Arbitration in the Energy Sector

Our Team regularly acts before Belgian civil and administrative courts. Guy Block also regularly acts before the European Court of Justice and arbitration institutions. He is part of the ICC, the LCIA, the IAI, the CEPANI, the CWaPE (Walloon Commission for the Energy) and BRUGEL (Brussels-Capital Commission for the Energy).
Our Team notably acted in the following litigations and arbitrations:

• Litigation related to transport and distribution tariffs;
  
• Litigation related to off shore production of electricity;
  
• Litigation related to the taxes applicable for the use of the gas and electricity grids;
  
• Litigation on behalf of a major electricity producer and supplier related to electricity tariffs;
  
• Litigation on behalf of an electricity supplier related to the access to the Belgian electricity market; 
  
• Litigation on behalf of a major Belgian industrial related to tariff schemes for transport related services; 
  
• Litigation related to renewable support in the Flemish Region (green and cogeneration certificates);
  
• Litigation on behalf of the Belgian federal Government related to tariff issues;
  
• Litigation before state courts, Council of State and arbitration bodies related to the opening of electricity market, including competition issues, green certificates, right of access, obligations of TSO, etc.;
  
• Assistance to operators in litigation related to grid connection to access to the grid and to tariff;
  
• Advise to a major energy producer and trader (gas and electricity) in Luxemburg in arbitration procedures;
  
• Assistance in arbitration procedures for the execution of contracts;
  
• Litigation related to the free movement of goods.

2. In the Transport Sector

Railway Transport

While advising in the liberalization of the railway transport, Guy Block notably achieved the following projects:

• Establishment of a European Consortium for the railway transport in High Speed Lines (including financial, technical and legal issues);
  
• Project financing and quotation of the Channel Tunnel; 
  
• Creation of a joint venture in the establishment of a multi-modal road and rail company;
  
• Assistance in joint venture in passenger railway transport;
  
• Drafting of general conditions for transportation of goods and containers by train;
  
• Assistance to railway transport and moving companies in the drafting of their general conditions of carriage and/or warehousing;
  
• Drafting of contracts related to the bulk of transport by rail and private wagons;
  
• Assistance in railways slots systems;
  
• Assistance in railways collision; 
  
• Assistance to passengers and transport companies in the compliance with immigration regulations.

Air Transport

While advising in the liberalization of the air transport, Guy Block notably achieved the following projects:

• Assistance in the seizure and public sale by auction of an aeroplane (Airbus A 310);
  
• Numerous litigation in air transport, CMR and Warsaw conventions (including parcels transport);
  
• Assistance to transport and moving companies in the drafting of their general conditions of carriage and/or warehousing;
  
• Assistance in litigation procedure related to Air-Traffic Control;
  
• Assistance in the establishment of new air roads;
  
• Assistance in the noise control of airports;
  
• Assistance to Air Safety Control;
  
• Assistance in air cargo.

Road Transport

While advising in the liberalization of the road transport, Guy Block notably achieved the following projects:

• Creation of a joint venture in the establishment of a multi-modal road and rail company; 
  
• Numerous litigation in road transport, CMR and Warsaw conventions (including parcels transport);
  
• Assistance to transport and moving companies in the drafting of their general conditions of carriage and/or warehousing.