Posted by Wondering about monthly household energy expenses? Our family moved into our current townhouse in 2017, and our monthly electricity and gas costs were around 80 euros, with some refunds at year-end. However, due to the energy crisis caused by the Russo-Ukrainian War, the expenses skyrocketed to 270 euros per month, but they have now decreased to around 130 euros.
In reality, I know that many families living in larger houses experienced even more extreme fluctuations.
Recently, I took the time to thoroughly examine our monthly energy bills (we have dual electric meters) and discovered how they are calculated. Additionally, I have some suggestions to help you easily reduce your energy expenses.
Your energy bill composition
According to Total Energies, your monthly electricity bill into three main components:
- Energy Usage Cost:
- The total cost of energy consumption is directly influenced by the amount of electricity and gas you use. Energy companies set the unit price for energy based on your choice of provider.
- This part of your bill depends on how much energy you consume, and it’s the most significant factor in determining your overall expense.
- Grid Usage:
- The electricity grid is responsible for transporting energy to your home. It involves converting high-voltage electricity to low-voltage electricity and distributing it.
- Grid maintenance is handled by the grid operator, and the pricing is ultimately reviewed and approved by the government. Your energy company assists in collecting these charges.
- Government Taxes and Levies:
- Various taxes and fees are associated with your energy usage. These charges are typically based on your consumption levels.
- Additionally, there is a 6% value-added tax (previously 12%) applied to the total bill.
The cost for the electricity consumption
Let’s delve into the intricacies of electricity pricing and usage patterns.
- Peak and Off-Peak time:
- Energy companies often differentiate between peak hours (daytime) and off-peak hours (nighttime) when setting electricity prices.
- In my region, peak hours are typically from 07:00 to 22:00 on weekdays, while off-peak hours are from 22:00 to 07:00 on weekdays and all day on weekends.
- The hours can slightly change depending on the region
- Price Variation:
- During off-peak hours, electricity rates are significantly lower than during peak hours. For instance, using your example with Total Energies in the Flémalle region:
- Peak rate: 9.23 cents/kWh
- Off-peak rate: 7.78 cents/kWh
- The price difference is nearly 20%.
- Considering this, it’s advisable to schedule energy-intensive tasks (like running dishwashers or washing machines) during off-peak times to save costs.
- During off-peak hours, electricity rates are significantly lower than during peak hours. For instance, using your example with Total Energies in the Flémalle region:
- Smart Scheduling:
- Leveraging features like delayed start or scheduling on appliances can help. For instance, setting your washing machine to run during off-peak hours ensures freshly laundered clothes by morning without affecting your work routine.
- Limitations of Fixed Pricing:
- However, fixed pricing doesn’t always reflect supply and demand accurately.
- With the rise of renewable energy sources (such as solar and wind power), daytime electricity supply may increase. As a result, future pricing models might become more dynamic.
- I can imagine a scenario where abundant sunlight or strong winds lead to cheaper electricity rates during the day.
Remember, understanding your energy usage patterns and making informed choices can help you optimize costs.
The cost for grid usage
Electric Grid Pricing and Capacity Charges in Belgium
The pricing structure for electricity grid usage is ultimately determined by government agencies such as Vreg. This approach is necessary because electric grid companies operate as monopolies. To ensure fair pricing and guarantee reliable services, grid operators propose annual prices to the government for approval. For instance, in the Flémalle region, the grid company (such as Fluvius) sets the rates based not only on your consumption (4-5 cents/kwh, depending on the region) but also introduces a new concept called “capacity charges.”
Capacity Charges:
- The introduction of capacity charges aims to maintain grid safety and sustainability, especially during peak demand periods when multiple appliances (such as electric vehicle charging, washing machines, ovens, etc.) are in use.
- Starting in 2023, grid companies began charging based on the maximum electricity usage (peak demand) within 15-minute intervals.
- The capacity charge amounts to approximately €3.33 per kilowatt (kW) per month.
- Grid operators record your usage and peak values every 15 minutes, which significantly influences your grid fees.
Annual Minimum Charge:
- Each household pays an annual minimum capacity charge equivalent to 2.5 kW (approximately €100).
- If, during any month, your peak usage within a 15-minute interval exceeds 2.5 kW, you’ll pay additional capacity charges for the excess. For example:
- For instance, my peak usage last month was 3.99 kW, I had to pay an extra €5 for capacity charges.
Tips to Avoid Unnecessary Charges:
- To prevent overpaying for capacity charges, consider the following:
- Avoid running multiple appliances simultaneously when not essential (e.g., don’t charge your electric car while doing laundry or running the dishwasher during a shower).
Only dual meters can measure the peak value, thus a constant capacity charge is applied for households with a single meter.
Conclusion
Understand your consumption during peak hours and off peak hours, as well as the max peak usage during 15 min interval can influence your behaviour and help you to save electricity bill significantly. I hope this article could help you to make informed decision.
If you are curious about your usage and the peak value for your consumption, feel free to log on to fluvius.be to check it out. If you are looking for an energy provider, feel free to checkout my current one, using my referral link here.
Read more about savings in Belgium:
The paid leaves linked to giving birth in Belgium
Strategies for Salary Growth in Belgium
How does a Belgian salary slip look like?
This article answered a lot of my questions, great job.