Belgium Bans Fake Energy Discounts in Consumer Protection Crackdown

The Belgian Chamber of Representatives has unanimously approved a landmark ban on so-called “sjoemelkortingen” (fake discounts), targeting energy suppliers who use misleading pricing tactics to lure consumers into expensive contracts. The new law, which takes effect in October 2026, is expected to save 2 million Belgian households an average of €500 per year.

Introduced by Energy Minister Mathieu Bihet (MR) and Consumer Protection Minister Rob Beenders (Vooruit), the legislation addresses a systemic problem in Belgium’s liberalized energy market where complex discount structures have prevented consumers from making informed choices. As VRT NWS reported, the unanimous vote signals broad cross-party consensus on the need for greater pricing transparency.

The Problem of ‘Sjoemelkortingen’

The term “sjoemelkortingen” — literally “cheating discounts” — refers to a practice where energy suppliers offer seemingly attractive welcome discounts tied to strict conditions that make them difficult to actually receive. Common tactics include discounts that are only credited after one or two years of remaining with the same supplier, or discounts that require direct debit and are forfeited if a single payment is late.

These misleading offers have been particularly damaging because they are included in price comparison calculations, making expensive contracts appear cheap at the top of comparison lists. According to Testaankoop, the consumer organization that has long advocated for reform, roughly half of all energy tariffs currently come with such welcome discounts — some offering apparent savings of over €1,000 for an average household.

“Energy suppliers juggle with discounts that have strict conditions attached, making it very likely that you won’t get that discount,” Minister Beenders said in an earlier interview. “We oblige suppliers to show the correct price that you pay from day one. It is not up to the customer to search the fine print to see if the contract is cheaper.”

What the New Law Changes

From October 2026, welcome discounts on energy contracts will only be permitted if they are applied from day one on every kilowatt-hour consumed, without additional conditions. Suppliers can no longer adjust prices on fixed contracts without changing the product name to make the change clear to consumers.

Administrative costs will also be reformed: suppliers can only charge for the actual consumption period, not for half or full years in advance. This removes a significant barrier for consumers who want to switch suppliers mid-contract.

A QR code will be added to all energy bills, allowing consumers to scan and compare their contract with others on the market via the CREG Scan tool. A new edition of the “DurfVergelijken” (Dare to Compare) campaign will further encourage consumers to switch to better contracts.

Consumer Savings and Market Impact

The scale of the problem is stark. According to the federal energy regulator CREG, in September 2025, half of Belgian households had one of the 10 most expensive electricity contracts, while only 10 percent had one of the 10 cheapest. For natural gas, 64 percent of households were locked into the most expensive contracts.

Approximately 700,000 Belgian households overpay by up to €700 per year for their energy. The new measures are projected to save 2 million households an average of €500 annually, with 700,000 of those households seeing savings of at least €700.

Consumer organization Testaankoop has welcomed the reforms. “We fully support the plan to make welcome discounts more transparent,” the organization stated. However, it cautioned that it remains to be seen how energy suppliers will adapt their strategies. “It remains to be seen how energy suppliers will handle these stricter rules and what effect this will have for bargain hunters.”

Broader Reform Agenda

The ban is part of a wider package of energy market reforms by the De Wever government, which has been addressing energy affordability amid ongoing cost-of-living pressures. The reforms also align with broader European trends: the EU’s Omnibus Directive introduced new rules on price reduction announcements, and the forthcoming Digital Fairness Act is expected to further strengthen consumer protection in digital markets.

Energy Minister Mathieu Bihet, the youngest member of the federal government at 34, has been a driving force behind the reforms. “Today you almost need a PhD to get out of your energy contract,” he remarked, highlighting the complexity that has long plagued the market.

What to Watch For

As the October implementation date approaches, attention will turn to how energy suppliers respond. Some may reduce or eliminate welcome discounts altogether, potentially reducing competitive pressure on prices. Cashback and premium offers not linked to kWh prices will still exist but will not appear in official price comparisons, making them harder for consumers to evaluate.

Consumer advocates and regulators will need to monitor compliance closely to ensure the law delivers its promised savings. The CREG database and QR code system will be critical to the reform’s success, particularly for less digitally savvy consumers.

For now, the message from Brussels is clear: the era of hidden conditions and deceptive pricing in Belgium’s energy market is coming to an end.