Vlaamse Nutsregulator 2025: a new chapter in regulation.

21 Feb

2025

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Thomas Craps

Energy & Utilities Consultant


5

min. read

Starting January 1, 2025, the Vlaamse Regulator van de Elektriciteits- en Gasmarkt (VREG) will officially transition into the Vlaamse Nutsregulator (VNR), reflecting an expanded role and new responsibilities. This transformation marks a critical step as the organization evolves into a multi-utility regulator overseeing electricity, gas, heat, CO₂ transport, and water. Here’s a detailed overview of the key priorities outlined in their 2025 business plan and how Trilations can support their mission:

Key strategic priorities for 2025

Operationalization of the Vlaamse Nutsregulator

The transition to the VNR requires a significant overhaul of internal processes, governance, and organizational culture:

  • Structural updates: implement new systems and processes to integrate the expanded scope effectively, covering energy, water, and heat sectors.

  • Communication strategy: launch a new brand identity, logo, and public-facing communication platforms to highlight the organization’s expanded role.

  • Stakeholder engagement: collaborate with industry players, policymakers, and the public to ensure a smooth transition.

Electricity and gas regulation

As the core areas of VNR’s responsibilities, these remain critical to achieving sustainability goals:

  • Flexible connection agreements: develop a framework for temporary, flexible network connections in areas with capacity constraints to accelerate renewable energy integration.

  • Market model evolution: launch initiatives to enable multiple energy delivery contracts per household, allowing flexibility and better utilization of renewable resources.

  • Natural gas transition: conduct studies on the future of natural gas networks, focusing on phasing out fossil fuels, reusing infrastructure, and adapting tariff structures to reflect the transition.

  • Investment oversight: evaluate Fluvius and Elia’s long-term investment plans to ensure alignment with energy transition goals and cost efficiency.

Data management and market monitoring

Robust data systems are essential for efficient market operation and decision-making:

  • Audit of IT systems: ensure network operators’ IT infrastructure supports market needs, data accuracy, and compliance with regulations.

  • Public dashboards: expand data transparency through dashboards that provide insights into energy prices, market performance, and system flexibility.

  • Dynamic contracts: monitor and promote dynamic electricity contracts to increase consumer engagement and optimize energy use during peak and off-peak hours.

Unlocking flexibility and driving innovation

The VNR aims to transform flexibility into a cornerstone of the energy system:

  • Flexibility products: collaborate with grid operators to implement and promote flexibility tools like vehicle-to-grid (V2G) technologies and energy-sharing models.

  • Demand-Side management: create regulatory conditions that empower consumers to adapt their consumption based on price signals, supporting grid reliability.

  • Dynamic pricing: support the implementation of tariffs that reflect real-time market conditions, enabling cost savings and energy efficiency.

Preparation for water sector regulation

Looking ahead to 2026, the VNR will expand its regulatory responsibilities to include water production and purification:

  • Knowledge building: establish partnerships and recruit experts to prepare for regulating public and private water utilities.

  • Holistic approach: work on a framework that incorporates the entire water cycle, from production to waste management, ensuring affordable and sustainable water services.

  • Stakeholder collaboration: partner with the WaterRegulator and other agencies to set up a system for effective oversight and information exchange.

Regulating heat and CO₂ transport networks

As these sectors grow in importance, the VNR will focus on:

  • Technical guidelines: draft technical regulations for heat networks and CO₂ transport pipelines, ensuring safety, reliability, and cost-efficiency.

  • Market development: monitor and guide the growth of heat and CO₂ markets, including setting tariffs and resolving disputes.

  • Infrastructure monitoring: build expertise to oversee the operational safety and quality of heat networks and CO₂ pipelines.

The Road Ahead: Challenges and Opportunities

The transformation into the Vlaamse Nutsregulator reflects the evolving needs of a society transitioning to a sustainable future. However, challenges remain, such as integrating new regulatory domains, managing data efficiently, and addressing capacity constraints in energy and water systems.

Trilations stands ready to support the VNR in achieving its mission by providing the tools, insights, and strategies needed to overcome these challenges and drive innovation and sustainability across Flanders’ utilities.

Any questions?

For more information, contact Frank, our Business Manager Energy & Utilities.

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Avatar picture

Thomas Craps

Energy & Utilities Consultant


5

min. read