Energy bill 170 euros lower this year

© Hollandse Hoogte / Richard Brocken
Based on price levels in January 2020, this year’s average annual domestic energy bill for households will amount to 1,574 euros. This is 170 euros less than in January 2019 with consumption remaining constant. Relative to one year previously, it represents a reduction on the average energy bill for households of 9.7 percent. The amount still increased by 19 percent in January 2019. Large differences are seen among the households depending on their level of energy consumption, however. Statistics Netherlands (CBS) reports this based on newly released figures.

The comparison between the household energy bills of January 2019 and January 2020 is made based on average annual consumption levels remaining constant. Under this assumption, the calculated effects are entirely attributable to changes in energy tariffs. Energy consumption levels vary per household. As of 3 March 2020, CBS publishes a new dataset: Average energy prices for consumers. In this dataset, the average energy bill can be calculated on the basis of average energy tariffs for each selected level of consumption.

Higher tax credit and higher taxes

The largest discrepancy between the energy bills of January 2019 and January 2020 is found in the tax credit received by each household. This year, households are receiving a fixed amount of 216 more euros in energy tax reduction compared to the previous year. The energy tax on electricity is slightly lower this year, whereas the sustainable energy surcharge (ODE levy) is rising; this results in a year-on-year increase of 22 euros at average consumption. Households are going to pay an average 94 euros more in taxes on natural gas. This is due to an increase in both energy tax and ODE levy. On balance, the (rounded) amount of energy tax paid by Dutch households will be 100 euros lower on average at average consumption.

The supply tariffs went down as well. Relative to one year previously, the supply of electricity became 5.8 percent cheaper and gas 12.6 percent cheaper. This reduces the annual energy bill by 81 euros. Transmission became more expensive in January 2020; this was over 10 euros on an annual basis.

Lower consumption means more savings

Households with relatively low energy consumption are saving more as of January 2020 than high consumption households. For example, a one-person household in a small, new apartment will pay 16 percent (180 euros) less on average, while a multi-person household in a large, old, detached house will pay 4 percent (140 euros) less on average. This is due to the fact that everyone receives the same higher tax credit regardless of consumption level: 216 euros. This fixed reduction has less impact as the energy bill is higher, since consumption of gas and electricity is taxed more heavily.

Sources