High energy bills will cause serious damage to the Belgian glassware business

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When energy prices exploded following Russia’s war in Ukraine last year, Belgian glassmaker Christophe Gennard had no choice but to close for three months.

The 45-year-old’s gas bill was 6,000 euros ($6,500) a month.

Faced with the prospect of leaving his beloved glassmaking business of 20 years, he was forced to adapt to living with a small kiln to make glassware.

“When I was closed, between July and September 2022, I thought about how I could continue living, so I just changed the equipment I used,” Genard says in his studio in Liège, where he also hosts classes.

Gennard told AFP that he now uses propane gas cylinders to fire the small stove two days a week.

“This comes to 3,000 euros a month, it’s half the price, but I don’t work every day,” Genard said, adding that he produces half of what he used to.

Late last year, Walloon’s regional government announced around 175 million euros in measures to support businesses against rising energy costs, but some worry it may not be enough.

In an interview on LN24 channel on January 22, the head of the Walloon Union of Companies, Olivier de Wasage, said: “We will see if it is enough in terms of volume.”

They called on the Belgian federal government to have a “structural energy policy” in line with neighboring countries and to take drastic measures, including a transition to renewable energy.

Belgium allocated just 4.3 billion euros to help households and businesses facing an energy crisis – the equivalent of 0.8 percent of its gross domestic product, according to a study published in November by the Bruegel think tank.

It was the fourth lowest in the 27-member European Union, behind countries such as neighboring Netherlands, which spent 43.9 billion euros, or more than five percent of GDP.

Even smaller economies spend a larger share of their GDP on such aid, with Romania allocating 8.5 billion euros (3.5 percent).

– Businesses are feeling the heat –

Genard is one of many independent business owners in Belgium who have been forced to change how they operate to meet higher energy costs despite low production.

The Federation of Belgian Enterprises (FBB) warned of spiraling costs for businesses this month due to higher energy prices and inflation-linked wage increases.

The first half of 2023 will be “extremely difficult” for Belgian companies, FBB said, because fixed contracts for gas and electricity prices will expire during this period.

“They will face three to seven times higher energy costs than usual,” the federation warned, adding that it would cost businesses between €10 billion and €25 billion more.

Another survey published last month found that more than 76 percent of Belgian retailers fear going bankrupt, citing a number of threats, including higher energy bills.

Three-quarters of retailers surveyed said they had reduced the temperature in their stores, while 66 percent said they had turned off neon signs outside of business hours.

– No more pressure –

Gennard said he wanted to keep the price unchanged “because it’s already declining for many people to afford it,” he said, surrounded by gilded glass apples and bright glass chickens.

A decorative glass costs Apple 60 euros, the same price in 2022.

“I want to continue producing pieces and welcoming everyone to the workshop,” Gennard said.

He added that he tried not to think about the future.

“It’s hard for me to look too far into the future. When we think too much about the future, it puts us in uncomfortable situations, we feel fear and anxiety,” he said.

But the changes are not all bad for the glasses.

“I no longer feel the constant pressure to be profitable, I have more time to design, to create, to think of ways to develop partnerships.”

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