Households pay much more for energy

As from 1 January 2006, the average Dutch household will face a 7.5 percent higher energy bill in comparison to December 2005 as a result of higher gas and electricity rates, effective from 1 January.

Higher energy rates

Energy distributors claim the rate increase is the result of the sharp increase in oil prices on the global market. Transport costs, energy tax and the levy discountremained virtually on the same level compared to December 2005. The so-called MEP levy was not raised.

Average annual energy bill exceeds 1,800 euro

The average household’s annual energy bill tops 1,800 euro based on the rates effective from January 2006 and energy consumption in the year 2000. The amount is made up of 1,400 euro for costs of distribution and transport and 400 euro for energy tax and MEP levy. The MEP levy and part of the energy tax are compensated by the government. The discount is included in the amount of 400 euro.

Energy bill, January 2006  (including VAT)

Energy 65 percent more expensive than in 2000

The average gas bill for households rose by 85 percent in the period between 2000 and January 2006; the price of electricity went up 40 percent over the same period. The average Dutch household saw its energy bill increase by 65 percent compared to 2000. Proportionally, the price increase for energy was higher than for other goods and services. The consumer price index rose by 12.9 percent in the period 2000-January 2006. One sixth (2.4 percentage points) is the direct result of higher energy prices.

Consumer price index (2000=100)

Tax and VAT also contribute to higher energy bill

Higher energy prices in the period 2000-January 2006 are mainly caused by dramatically higher rates for distribution of energy to the consumer. Other factors affecting the energy bill are VAT and energy tax. The VAT rate was raised from 17.5 to 19 percent. If tax rises are not taken into account, the energy bill for the average Dutch household would have risen by 50 percent instead of 65 percent.

Esther Vierhuis