DNB: energy bill as affordable again as before energy crisis

Energy bills are back to their affordability level before the outbreak of war in Ukraine. According to De Nederlandsche Bank, on average, Dutch people are spending about 4 percent of their disposable income on gas and electricity this year, up from 7 percent during the peak in 2022 and 4 percent in 2021. In 2022, energy prices rose rapidly in Europe, partly because of dependence on Russian gas.

Since then, energy prices have fallen significantly, and wages have risen, resulting in improved affordability of energy bills. Gas is expected to become somewhat cheaper in the coming years. On the contrary, electricity bills will become more expensive due to higher electricity prices and increasing grid management costs, among other things.

The intended cabinet of PVV, VVD, NSC, and BBB wants to reduce the energy tax on gas. In that case, the energy bill would become an even smaller part of income. In 2025, an average of 3.7 percent of income would then go into energy, compared to 4 percent without the tax cut. In 2026, it will be 3.3 percent instead of 3.6 percent.