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Sustainable energy system
Energy market
End consumers
Small consumers
Facts & Figures
Gas Tariffs
Gas tariffs (in €/m3, incl. VAT) – Source: CBS
In 2022, we were witness to the huge increase in gas prices resulting from the Russian invasion of Ukraine. This is because the Netherlands chose to no longer import Russian gas, causing temporary shortages and uncertainty in the gas market, which in turn lead to inflated prices. These increases are to be seen in the change in average wholesale costs, as shown in the graph above. However, wholesale costs are but one component of the energy bill:
- Costs to providers (variable wholesale costs and fixed supply costs)
- Network Costs
- Taxes (energy tax, ODE, VAT, energy tax reduction)
- Other (tax returns, administrative fees, etc.)
Fixed supply costs differ per energy provider, and cover operational costs. Transport costs cover the costs of transmission and distribution through pipelines and cables, and vary by location. Other costs include potential returns or additional administrative fees.
Taxes include an energy tax on the consumption of electricity and gas, and a tax to foster renewable energy which is altered yearly. On top of this, energy is subject to a VAT rate of 21%. As a measure to counter the recent energy crisis, this rate was temporarily lowered to 9% between July and December of 2022. However, in the future energy taxes on gas can be expected to increase so as to incentivise the use of renewable or low carbon energy.
Please note that while the energy tax for 2023 is known, the average wholesale costs have not yet been calculated.Â
Electricity Tariffs
Electricity tariffs (in €/kWh, incl. VAT) – Source: CBS
The recent energy crisis caused not only the gas prices to rise, but also the electricity prices. This was because gas is the primary source of electricity production in the Netherlands. These increased prices can be seen in the change in average wholesale costs, as depicted on the graph above. Wholesale costs are the prices consumers pay for the actual energy they use. However, wholesale costs are merely one component of the energy bill:
- Costs to providers (variable wholesale costs and fixed supply costs)
- Network Costs
- Taxes (energy tax, ODE, VAT, energy tax reduction)
- Other (tax returns, administrative fees, etc.)
Fixed supply costs differ per energy provider, and cover operational costs. Transport costs cover the costs of transmission and distribution through pipelines and cables, and vary by location. Other costs include potential returns or additional administrative fees.
Taxes include an energy tax on the consumption of electricity and gas, and a tax to foster renewable energy which is altered yearly. On top of this, energy is subject to a VAT rate of 21%. As a measure to counter the recent energy crisis, this rate was temporarily lowered to 9% between July and December of 2022. Additionally, the energy tax on electricity was decreased considerably in order to soften the blow of the crisis. Finally, consumers also receive an energy tax reduction. Read more about this in 8.1.2. Please note that for 2023, only the energy tax is shown since the exact average tariffs have not yet been calculated.
Energy Tax Reduction
Energy tax reduction (in €/year, incl. VAT) – Source: CBS
The Dutch state offers an energy tax reduction. This reduction is meant to ease the burden of consumers, and to stimulate behaviour that leads to energy savings.
The energy tax reduction is based on the government’s belief that part of household energy consumption constitutes a basic need. As such, this portion of energy consumption is tax free. The size of the reduction is established yearly by the government.
If, over the course of a year, a household pays less in energy tax than the full amount of the energy tax reduction, they will nonetheless receive the reduction in full. This means that the reduction can result in a lower energy bill.
As the graph shows, the size of the energy tax reduction has increased throughout recent years. This is because it stimulates households to consume less, in the hopes of lowering their energy bill, but also because this measure helps to lighten the burden on households with lower incomes. As a result of this, the size of the reduction peaked at 825€ during the 2022 energy crisis. The reduction has since decreased again, but it remains higher than previous years.Â
