Electricity and gas: price Archives

The price of a kilowatt-hour (kWh) is one of the key elements of an electricity bill. But why is it important? Are there different types of invoices? And what about gas? Energyprice.be clarifies the matter for you.

SummaryWhat does an electricity bill consist of? The energy price, in other words the price of the electricityThe transmission and distribution pricesTaxes and surchargesDifferent kWh prices depending on the type of electric meterThe electricity price at night: when to use the dual and the night-only meterCan’t decide between a standard and a dual meter? What to choose: a fixed or variable electricity rate? Characteristics of fixed and variable ratesWhich rate suits you best ? Two tips to find out the right the electricity rate for youChoose your electricity contract carefullyChoose your energy supplier carefullyComparison of the cost of electricity in Flanders and WalloniaComparison of the cost of electricity in BrusselsEvolution of electricity prices in BelgiumHow to pay less? What about the price of gas?

Talking about electricity consumption automatically means determining an energy budget. This exercise implies that you have to consider your electricity needs, but there is another factor as well: the price. The lower the rate, the less money you will need to spend for the same number of kWh. Logical, you might say. However, there are some subtleties involved that might change the situation. Here is everything you need to know about the price of electricity in Belgium in 2022.

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What does an electricity bill consist of?

An electricity bill is divided into three parts, namely:the price of the energy itself,the transmission and distribution costs,and the sum made up by the taxes (such as VAT) and surcharges.

These items make up the total electricity price charged to the consumer. Composition of the electricity price in Flanders, Brussels and Wallonia (April 2022) – Source of data: CREG1. The energy price, in other words the price of the electricity

The energy price is set freely by the supplier, except for the social rate. The price of a kWh of electricity is based mainly on the wholesale market prices. It can therefore vary from one company to another It includes:the price per kWh for electricity itself,the fee, also called the annual subscription,and the costs incurred as part of the supplier’s obligation to purchase green certificates and, in Flanders, cogeneration certificates.

This last category of costs is usually indicated on the bill as “Contribution to renewable energy” or “Green energy costs” and, where applicable, “Co-generation costs” (kosten WKK).

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If you own photovoltaic panels and live in Wallonia, you will also have to take into account the prosumer rate in your electricity budget. This rate is charged for the use of the distribution network and makes the participation in the network fees uniform, regardless of your consumer profile. You could also still be charged this prosumer rate in Flanders if you still have a uni-directional analog meter.2. The transmission and distribution prices

This component of the bill covers the costs of two energy market stakeholders:the electricity transmission system operator (TSO), i.e. Elia,and the distribution system operator (DSO) or distribution network operator (DNO) in the customer’s municipality. For information, the DSO was formerly referred to as the “intercommunal company”.

Unlike the energy price, the transmission and distribution prices are non-negotiable and must be approved by the Commission for Electricity and Gas Regulation (CREG – Commission de Régulation de l’Électricité et du Gaz or Commissie voor de Regulering van de Elektriciteit en Gas ). However, they can vary from one region to another, particularly depending on population density, as it will always be cheaper to supply electricity in towns and cities than in rural areas.

>> Free tool: check who your DNO is3. Taxes and surcharges

This final bill item includes the amounts set by the federal State and the Regions. The supplier collects the sums due, since they handle the billing, but they then forward these amounts in full to the various authorities.

In summary, consumers have limited room for manoeuvre since they can only influence the energy price, in other words, the part left to the supplier’s discretion.

>> Read also: The essential guide to understand your energy bill!

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Different kWh prices depending on the type of electric meter

When establishing its price plans, the electricity supplier must consider a technical element: the electricity meter. In Belgium, there are three main types:the standard meter,the dual meter,and the night-only meter.

Each one is associated with a specific electricity price and allows consumers to make savings as long as they are used in an optimal manner. The electricity price at night: when to use the dual and the night-only meter

This is especially true for the dual meter. With its two dials, it divides the hours of the day in two time periods: peak hours, corresponding to daytime on weekdays, and off-peak hours, corresponding to nights and weekend days. The aim is to encourage consumers to use their energy-intensive devices during off-peak hours in order to make use of the excess electricity produced at night in Belgium. To achieve this, the idea was to offer an attractive rate during this period. In return, the day rate for the dual meter is higher than the single rate for the standard meter.

As for the night-only meter, it is used most by people who have electric storage heaters. The night-only rate is generally equivalent to the off-peak rate of the day/night system.

However, starting in 2023, the Flemish Region will see the introduction of a new billing system, marking the gradual end of the peak hours/off-peak hours system. This so-called capacity tariff varies according not only to how much electricity you use but also when you use it. This new system optimizes electricity flows according to the capacity of the electricity grid and, as a consequence, should prevent it from being overloaded. Still in Flanders, supplier Engie has set up dynamic pricing contracts where the price of electricity is calculated on a hourly basis according to wholesale market rates. This process can lead to significant savings for certain types of consumers (especially those who pay close attention to their consumption). Can’t decide between a standard and a dual meter?

Standard and dual meters meet different needs. So, before replacing your electricity meter, review your habits and work out your electricity consumption. If it is low, the standard rate will probably suit you best. If you have any doubt as to which type of meter to install, you can call us on 0800 37 456 or email us at info@energyprice.be.What to choose: a fixed or variable electricity rate?

Most energy suppliers offer several kinds of contract. The consumer usually has the choice between, for example, a green electricity deal, a 100% online deal, or a more traditional deal. But one criterion goes beyond these specifics: the type of electricity price.

Fixed or variable, it influences not only the cost per kWh and the annual fee but also the guarantee given to the customer. Characteristics of fixed and variable rates

A fixed rate ensures the same electricity price per kWh throughout the whole duration of the energy supply contract. In return for this security, suppliers often demand a higher annual fee.

A variable rate is indexed quarterly or monthly. Consumers usually discover whether it has risen or fallen when they get their annual breakdown. The risk is that if the price has increased they will have to pay the difference, which may be substantial.

As a general rule, variable prices tend to be more attractive than fixed prices at the end of the contract as they carry more risk. Which rate suits you best ?

To avoid a high energy bill, it is generally recommended that people who prefer security should choose a fixed rate for electricity. For natural gas, a variable rate might be more attractive as the natural gas rate is more stable.  However, this does not stop some energy suppliers from offering a more attractive gas price.

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