Many households see monthly energy bills fall by 14 percent
On average, Netherlands residents pay a lower monthly advance for energy than six months ago. In May, households paid an average installment amount of 182 euros for their gas and electricity, 14 percent lower than the 212 euros they paid in December, NOS reports based on an analysis by ING of its clients' payments to energy suppliers.
About 40 percent of households paid a lower advance on their energy bill in May than in December. This group spent an average of 115 euros less. About a quarter paid almost the same amount as in December. And three in ten households paid higher advance amounts in May.
According to ING economist Marten van Garderen, the households that paid more may have had a too-low installment that needed adjustment. Or households whose cheap, long-term, fixed-rate energy contracts expired, and they had to conclude a new, more expensive one. On average, this group paid 65 euros more in May than in December.
Energy bills are falling because energy prices and delivery rates are much lower than at the end of last year. Most households also receive a discount on their energy bill due to the government’s price cap.
On the other hand, higher energy taxes and network management costs are pushing energy bills higher. For example, grid manager Tennet charges extra fees for keeping the power network stable with the volatile supply of solar and wind energy. An average household now pays up to 120 euros per year for this imbalance premium, compared to 30 euros a few years ago.
On balance, ING expects the decrease in installment amounts to continue. “A nice boost for purchasing power development and consumer spending,” Van Garderen said.