Average Flemish energy bill rises to record high in April
Electricity and gas bills for the average Flemish family have risen to record highs in April. According to figures from Flemish energy regulator Vreg, the VAT reduction that the government implemented to temper the rise in energy costs has already been completely wiped out.
Anyone taking out a contract for electricity in April will see their annual bill rise to an average of €1,708, a new record. In March, the VAT reduction resulted in a significantly smaller bill (1,468 euros). Due to the rising price of the electricity, this decrease is no longer visible.
Someone who signs a contract for natural gas in April will be paying €3,659 per year, which is slightly higher than the previous record in January. In February and March, the gas bill decreased somewhat, but this trend has also ended.
This means that the government's VAT reductions for electricity and natural gas from 21 to 6 percent are no longer noticeable. For natural gas, the reduction has never even been felt: even with the VAT reduction of April passed on, the invoice is at record levels. But without the VAT reduction, the bill would be even higher.
Prices expected to drop in coming months
Energy supplier Eneco expects the prices for electricity and natural gas to drop somewhat this month and the coming months. The prices in April give a somewhat distorted picture of the market, according to Pieter Verlinden, head of energy purchasing for Eneco Belgium.
"The Vreg prices for April take into account what happened on the market in March. Then there were historically high prices due to the situation in Ukraine. But in the meantime, most of the stress about Ukraine is out of the market."
"For April, we are already seeing daily prices for electricity and natural gas that are 30 per cent lower than in March. The expectation is therefore that we will see lower prices this and next months, if this trend continues of course," Verlinden says.
But we may not return to prices like those in 2019 or 2020. "For 2023 and 2024 we are already seeing rising prices on the markets. Prices are likely to rise again this autumn. The market fears that this energy crisis will continue for some time."
(TOM)
© BELGA PHOTO NICOLAS MAETERLINCK