Mining energyHousehold electricity bills will increase by several euros per month in the coming years. The reason for this? The new transmission network tariffs. “The watte?”, you may think… However: the total amount of your energy bill consists of three components: the ‘energy price’, the ‘grid rates’ and the ‘levies’. These three items are also stated separately on your invoice. But what exactly do these terms mean? And how do you interpret them in your search for the cheapest electricity and gas contract? Mijnenergie.be will find out.
By Kenneth Servaes, in collaboration with Mijnenergie
First component: ‘energy price’
This is the amount that your supplier invoices for the purchase of electricity and/or gas. This cost is calculated based on the energy consumed.
This energy price is freely determined by each supplier and includes:
• The annual subscription (if applicable).
• The kWh price.
• Only for electricity: the costs incurred by the supplier to comply with government-mandated purchases of green energy and cogeneration certificates. This amount is included under the term ‘Contribution for renewable energy (+ CHP)’.
This item amounts to approximately 50 percent of the total amount of your electricity bill and approximately 60 percent for gas.
Second component: ‘net rates’
The amount you pay for the transport and distribution of energy to your home. This cost is determined by the grid operator – sometimes also called an intermunicipal company – and transferred to him by the energy supplier.
The network rates of the relevant network operator are approved by the Commission for the Regulation of Electricity and Gas (CREG) and are the same for every energy supplier in its area. In principle, these network rates are fixed for a full calendar year.
The cost for distribution and transport costs is calculated based on your energy consumption.
read more. Transmission network tariffs: expect an increase of 40 euros per year from 2025.
Third component: ‘levies’
Finally, this is the amount determined by the government and refunded by the energy supplier.
For electricity and natural gas, this amount is always the same for all suppliers. This cost is also calculated based on your consumption.
Where you live plays a role: find the electricity and gas prices for your municipality or city here.
How do you compare rates?
To compare electricity and gas quotes, you should only base your calculations on the energy price and not on the total amount stated.
After all, the other two components are not determined by the energy suppliers themselves. It is also possible that the quotation does not yet contain the most recently imposed rates for network rates and levies.
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Read more on Mijnenergie.be:
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The new fixed electricity rate from this supplier is immediately the cheapest on the market
Why does the price difference between fixed and variable energy rates remain high?
This article was brought to you by our partner Mijnenergie.be.
Mijnenergie.be is an independent energy price comparator of electricity and gas offers.
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