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Belgium: towards an annual energy bill of around 8000 euros for households?

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Belgium: towards an annual energy bill of around 8000 euros for households?
Written by madishthestylebar

The rise in the cost of energy affects the budget of Belgian households. So much so that their annual energy bill could reach 7,920 euros, or 660 euros per month, according to estimates based on current prices for natural gas and electricity.

Belgium is also facing the energy cost crisis. The price of natural gas reaches 295 euros per MWh and the MWh of electricity can be purchased at 562 euros, as RTBF points out. Record prices which could, if they continue, heavily affect the purchasing power of Belgian households.

The newspaper L’Echo has indeed estimated that the average annual household bill could reach nearly 8,000 euros. To arrive at this result, the media used the wholesale market prices for natural gas and electricity on August 24, 2022. It then multiplied them respectively with the annual gas and electricity consumption bases. of a residential customer, established by the Electricity and Gas Regulatory Commission (Creg) in Belgium. The amount of the estimated annual bill thus stands at 5320 euros for natural gas and 2580 euros for electricity, ie 7920 euros in total.

A heavy impact that Belgian households can already see on their monthly expenses.

“The amount of a household’s monthly bill is close to the amount of rent, we are in a very serious situation which could turn into a financial drama for many households”, warned Damien Ernst, professor at the University of Liège in the columns of the Echo.

A fall in prices linked to the contraction in demand?

“The prices for this month only account for 1.4% of annual gas consumption”, however nuanced Jordi Van Paemmel, energy expert for the Belgian consumer association Test-Achats. Before continuing: “it will be above all the prices communicated at the beginning of October and at the end of March which will determine the total bill for the consumer who heats with gas”.

But there is still one unknown in this equation: how prices will evolve in the coming months. According to the specialist, they could still climb by these deadlines. Questioned by L’Echo, Damien Ernst believes, meanwhile, that the contraction in demand could lead, conversely, to a drop in the price of gas.

At current prices, he estimates the reduction in demand at more than 15% of usual consumption in Europe. In the first half of 2022, gas consumption by households and businesses in Belgium had already fallen by 18.5%, according to figures from the natural gas carrier Fluxys, taken over by Belgian Energy Minister Tinne Van der Straeten , end of June.

The price of gas multiplied by 15 since 2020

The price of gas has been multiplied by 15 since 2020, recalled the professor from the University of Liège. It then stood at 18 euros per MWh, compared to 290 MWh today. As for electricity, it costs ten times more than two years ago. This increase in energy costs is mainly due to supply difficulties resulting from the conflict in Ukraine.

But a series of events subsequently reinforced the energy crisis. For Francesco Contino, professor at the Ecole Polytechnique of UCLouvain and energy specialist, guest on the channel The first one on August 25, they are linked “to climate change and drought”. These meteorological phenomena led to a reduction in gas production in Norway, one of Belgium’s main suppliers, but also in electricity production in France and Germany.

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