Energy users will be encouraged to conserve electricity in this progressive scheme.

Brussels-Capital Region in Belgium announced it plans to introduce the progressive tariff or increasing block tariffs (IBT) by 2018. IBT is a pricing model for electricity where those who consume more will pay more while those who consume less will pay less.

At present, Brussel’s system is the opposite of IBT where large consumers pay a lower rate. According to Environment Minister Evelyne Huytebroeck, this system is socially unjust as ‘Generally, families with higher incomes consume more than families with low income.’

A great number of Belgians will stand to benefit from cheaper electricity rates once IBT will be implemented, said the minister. Around 60 to 70% of Brussels residents will pay less in the new system.

She added that the current system ‘does not encourage energy conservation.’ But through IBT, there will be incentive for people to save energy.

At present, Italy, Greece and some countries in Eastern Europe are using the IBT model. Aside from Belgium, Spain and France have also announced their interest in implementing the model.