Electricity bills could become 82 euros more expensive in 2025

De Vreg acknowledges that the proposals have a significant impact on the energy bills of Flemish families and companies. “With a view to the energy transition, grid operators must invest billions in the electricity grid in the coming years. This translates into higher grid rates for electricity,” it said.

The network rates must cover the costs that Fluvius pays for the construction and maintenance of the Flemish distribution networks. On the other hand, they also cover the transmission costs that Fluvius pays to Elia, the operator of the Belgian high-voltage grid.

An increase in the network rates for an average Flemish family by 82 euros to 445 euros in total amounts to an increase of 23 percent. According to Vreg, half of this estimated increase (39 euros) is due to higher transmission network tariffs from Elia. The distribution network operators behind Fluvius pass this on through the network rates.

For natural gas, the network rates for an average family will decrease from 245 euros this year to 224 euros in 2025. This decrease is due to lower network costs.

For companies connected to the medium-voltage grid, there is a proposed increase in grid rates of 41 percent for electricity. For SMEs connected to the ‘normal’ networks, the proposed evolution is in line with that for households.

With the tariff methodology, the Vreg establishes the framework for determining the income of the Flemish distribution system operator for the next four years. The Vreg’s proposals should ensure that they have sufficient resources with a view to the energy transition, it is said. After all, more and more electricity will be used and less natural gas. The proposals now go to all stakeholders.

“Fluvius stands for major investments in the electricity grid to make the energy transition possible. The VREG wants to contribute to this with its renewed tariff regulation. Fluvius must have the necessary financial space to make these investments in a timely manner,” Pieterjan Renier, general director of the VREG, explains the higher network rates in the press release. De Vreg is careful “to keep the increase to a minimum”.

“Unacceptable”

Flemish Minister of Energy Zuhal Demir calls the proposed increase in electricity grid rates completely unacceptable. “This is at odds with the decline in the Flemish policy component in recent years,” she says.

The increase is partly the result of transmission network tariffs that are set federally. Demir asks the federal government to intervene, because high electricity prices are a disincentive for, for example, the installation of heat pumps.

“The electricity bill also ensures a flow of dividends to local authorities,” she says. “Every year, cities and municipalities receive hundreds of millions of euros in dividends from the electricity bill, both via Fluvius and Elia. Since local authorities are also in favor of lower electricity bills, I think it is only normal that local authorities give up their dividends at least temporarily.”

In the coming government negotiations, she wants to avoid a Flemish participation in grid operator Fluvius. This is currently in the hands of eleven Flemish intermunicipal partnerships.