An increase in water prices in Brussels, but why?
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For Investors5 August 20212 min read

An increase in water prices in Brussels, but why?

Following a decision by Vivaqua, it was announced that the price of water in the Brussels-Capital Region would increase by 15% on 1st January 2022. This will be a one-off increase applying over the 2022–2026 period.

Since 2014, the price of water has not increased by more than 3% in the Brussels-Capital Region. This is why Vivaqua, the Brussels water company, requested a price increase. The aim is to make up for the indexation that was not obtained between 2014 and 2019. By contrast, rates have increased by 16.5% in Flanders and Wallonia over the past seven years. Despite this increase, prices in Brussels will remain lower than those in Wallonia and Flanders.

Before the final decision was reached on 30 June, three scenarios were considered: a 12.5%, 15% or 20% increase in rates. Vivaqua’s board of directors agreed on the 15% increase.

The reasons for the increase

Vivaqua did not decide to increase water prices without good reason. The first reason put forward was the increase in production and distribution costs. Added to this are the costs of maintaining and renovating the infrastructure. Indeed, the underground infrastructure in the Brussels-Capital Region is ageing and needs to be refurbished. The annual amount invested in it ranges from €100 million to €110 million. However, Vivaqua’s revenue comes from Brussels residents and is no longer sufficient to cover all the costs.

What are the consequences for Brussels residents?

However, this increase may cause concern. People may wonder what impact it will have on their bills. There is no need to worry! While bills will increase for some, this will not be the case for everyone. People on low incomes will not be affected by the rate increase. In fact, if they receive social support, their bills will fall by between 2% and 15% compared with the amount they currently pay.

Vivaqua even provided an example to explain as clearly as possible what will happen.
Let us take a two-person household that consumes 70m3 of water per year. If they currently pay €260/year, they will pay €299/year from 2022. However, if this household receives social support and currently pays €260/year, it will pay only €231/year from 2022.

It should also be emphasised that the risks to the poorest households were considered before this decision was made. Indeed, social support will be introduced from 2022 and will benefit a quarter of Brussels households.

In conclusion, these price changes affect all Brussels residents, but not in the same way. They should also help improve the infrastructure through its refurbishment.

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