Dutch gas prices are among the highest in Europe, energy comparison platform Energievergelijk has reported based on the latest data from the Household Energy Price Index (HEPI). With people in the Netherlands paying an average rate of 17,8 cents per kilowatt-hour (kWh), only Switzerland and Sweden have more expensive European gas rates.
According to the HEPI, gas in the Netherlands comes with a hefty price tag compared to other European countries. The only countries with higher gas prices are Switzerland at 17,95 cents per kWh and Sweden at 32,67 cents per kWh.
Compared to neighbouring countries Germany (11,88 cents per kWh) and Belgium (9,31 cents per kWh), Dutch gas tariffs are considerably higher. On the other hand, when it comes to electricity prices, the Netherlands is more affordable with lower costs than neighbouring countries at just 25,23 cents per kWh. In fact, Germany actually has the highest electricity prices in Europe at a whopping 40,23 cents per kWh.
According to Energievergelijk, the reason Dutch gas costs are so high is because of taxes. Not only are the taxes high, but the Netherlands has the highest tax burden on gas in Europe.
The energy comparison site calculated that 62 percent of gas payments go towards tax: 45 percent for energy taxes and 17 percent for VAT. The HEPI estimates that taxes make up a lower percentage of 51 percent, by including fixed costs and grid management costs in the calculation.
Energy expert Koen Kuijper explains that the high energy tax is a way for the government to encourage homeowners to transition to more sustainable energy. “The energy tax is in fact a kind of excise duty to discourage the use of gas and to stimulate the transition to electricity,” he said. “Households that are completely off gas and have properly insulated their homes therefore pay much less tax on their energy bill."
"The problem is that the transition to a natural gas-free home is not an option for many households,” continued Kuijper saying that many households can't transition to using electricity because of how expensive the heat pump is, insufficient insulation of a house or the residents could be staying in a rental house and the decision is up to the landlord.