Brussels (Brussels Morning) – Belgian households and small-medium enterprises (SMEs) spent less in early 2024 for their electricity and gas than their counterparts in most neighbouring nations, according to a study performed by consultancy firm PwC on behalf of four Belgian energy regulators.
The examination compared the costs of electricity and natural gas in January 2024 with the last year’s prices. It uncovered that electricity bills for households and businesses on low-tension grids in Belgium decreased in early 2024, although costs remained significantly more elevated compared to pre-energy crisis levels.
What Factors Contributed to Lower Energy Bills in Belgium?
Federal Government measures like VAT decline to 6% on electricity for households assisted to lower costs relative to neighbouring countries. As per the previous year, electricity invoices for Belgian households and businesses were the least costly of the analysed countries, with the exception of France where common household products remain government-regulated.
Concerning natural gas, Belgium was the least costly country for households of those studied in 2024. The difference was tiniest with the UK, while the Netherlands was once again the most costly for households.
According to the analysis, network costs, levies and taxes were relatively low in Belgium, and a 6% VAT deduction on natural gas for households played a key role. For businesses, natural gas bills also greatly reduced in response to the decline in wholesale prices, which had surged in 2022 and 2023 due to the fighting in Ukraine.
Now, energy prices for industrial users approach pre-energy concern levels. Overall, Belgium remains competitive for natural gas due to its low levies, surcharges, and network costs. As of 2023, small companies in Belgium had a more competitive gas bill than large companies.
What Percentage of Income Do Belgians Spend on Energy?
The study also compared the ratio of disposable income that Belgian households and those in neighbouring nations dedicate to energy bills. In early 2024, Belgian households with an average revenue spent about 5.2% of their income on total energy bills, down from 6.7% in 2023. This percentage was more down than in all neighbouring countries.
For the lowest-income Belgian households, the ratio of total income spent on energy bills also dropped this year to 7.8%. Again, Belgium managed better than neighbouring countries. For example, in the Netherlands, the energy bill accounted for roughly 11.5% of the income of the most precarious households.
What Were the Findings on Belgian Industrial Energy Competitiveness?
Finally, the study analysed the competitiveness of the most significant industries in Belgium with respect to energy prices. It discovered that the competitiveness of the Belgian industry enhanced significantly between 2023 and 2024. All surveyed sectors in Flanders and Wallonia had a competitive edge, for both non-electro-intensive and electro-intensive companies. However, grave industrial baseload consumers (those using energy continuously) enjoyed more profitable electricity prices in France than in Belgium.
