GDF Suez warns Belgium against hiking nuclear tax

BRUSSELS Oct 19 (Reuters) - Electrabel, the Belgian arm of French utility GDF Suez , said late on Tuesday it would consider shutting its Belgian nuclear power plants earlier than planned if a new Belgian government hiked its levy on them.

Six political parties in Belgium are busy in talks to form a government some 16 months after a parliamentary election, with budget discussions taking place this week.

Belgium wants to bring its budget deficit down to 2.8 percent of gross domestic product (GDP) next year from an envisaged 3.3 percent this year.

Belgian business daily L'Echo said on Tuesday that Elio Di Rupo, the French-speaking Socialist party chief leading coalition talks, wanted to charge the nuclear power industry, dominated in Belgium by Electrabel, 1 billion euros ($1.37 billion) per year.

GDF Suez agreed in October 2009 to pay Belgium between 215 million and 245 million euros per year in the period 2010-2014 and a further unspecified contribution for 2015-2025.

Electrabel said the figures referred to in the Belgian media were three times higher than decided upon and disputed by the sector in Germany.

The deal involved the lives of the company's Doel 1 and 2 and Tihange 1 reactors being extended for 10 years.

Electrabel said that if Belgium ignored this agreement then it would be forced to take the state to court to protect its investments there.

"If the Belgian state does not fulfil its engagements then GDF Suez would be obliged to review its policy towards investments, employment, training and patronage, including the life of its nuclear plants ... and the significant investments linked to them," Electrabel said.

Belgium's two nuclear sites are operated by Electrabel. Rival SPE, in which EDF owns a 63.5 percent stake, has drawing rights on some 7 percent of capacity. EDF itself has the right to about 8 percent. ($1 = 0.731 Euros) (Reporting By Philip Blenkinsop; Editing by Hans-Juergen Peters)