Dutch energy bills a quarter higher than 8 years ago; No sharp drops on the horizon

Dutch households now spend almost a quarter more on energy costs than they did seven to eight years ago, economists at ABN Amro calculated. The experts expect that the costs of gas and electricity will not drop significantly again any time soon.

“Looking ahead, a sharp drop in household energy costs seems unlikely. Estimates for the gas price indicate only a small drop in 2025 and 2026. From a historical perspective, energy prices will, therefore, remain high. Any drop in household energy costs will have to come from cuts on energy consumption,” the experts wrote in an analysis published on Wednesday.

The energy bill has risen sharply in the past two years after the energy crisis of 2022 caused by Russia invading Ukraine and the closing of the gas tap from Russia. In the years before that, energy costs were fairly constant.

According to the figures, there were significant fluctuations during that energy crisis itself. In 2022, the government paid energy compensation to every Dutch household in November and December, resulting in a reduction of 380 euros in energy costs. As a result, the energy costs of an average household fell by approximately 19 percent in 2022.

The calculator also showed that the energy costs of tenants have increased more than those of homeowners. People living in a rental home often have few energy-saving options other than, for example, turning off the heating. Homeowners, on the other hand, can make energy-saving investments.

The economists added that tenants generally have lower energy bills than homeowners. This difference ensured that tenants experienced a greater decrease in their energy costs in 2022 because the 380 euros in energy compensation covered more of their bills.