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14% reduction in monthly utility bills for many homes

On average, Dutch residents pay lower monthly up-front energy bills than they did six months ago. The average gas and electricity installment paid by households in May was €182, 14% lower than the €212 paid in December. NOS Report based on ING’s analysis of customer payments to energy suppliers.

About 40% of households paid less in advance for utility bills in May than in December. This group spent an average of €115 less. About a quarter paid about the same amount as in December. And 3 in 10 households paid higher upfront payments in May.

ING economist Marten van Garderen said households that paid more may have had too low installments that needed to be adjusted. Or some households have had their cheap, long-term, fixed-price energy contracts expire and have had to sign new, more expensive contracts. On average, this group paid him €65 more in May than he did in December.

Energy rates are down as energy prices and delivery rates are significantly lower than they were at the end of last year. Due to government price caps, most families also get discounts on their utility bills.

Meanwhile, energy bills are rising due to rising energy taxes and network management costs. For example, grid management company Tennet charges extra to keep the grid stable with volatile solar and wind energy supplies. The average household now pays up to €120 a year for this imbalance insurance premium, compared to €30 a few years ago.

Ultimately, ING expects installment payments to continue to decline. “It’s a great boost to the development of purchasing power and to consumer spending,” Van Garderen said.

https://nltimes.nl/2023/06/09/many-households-see-monthly-energy-bills-fall-14-percent 14% reduction in monthly utility bills for many homes

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