The new year has brought with it a new method of calculating electricity bills for consumers in Flanders. The new “Capacity Tariff” system means that part of the bill will be calculated based on consumption during peak times. Despite the changes the Flemish energy regulator Vreg reassures consumers that there will be no great impact on the amount we pay for our electricity.
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A new way of calculating Flemish households' electricity bills
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From now on 7% of our electricity bills will be calculated based on peak use or how much pressure is placed on the electricity grid. This means that the vast majority of the bill will still be calculated based on the number of kilowatt/hours we have consumed.
For those that have a digital electricity meter the Capacity Tariff will be calculated based on peaks in consumption during a given month. A fixed sum will be charged to those with traditional mechanical electricity meters.
Meanwhile, a minimum tariff will be levied for use of the electricity grid. This tariff will remain the same around the clock which means that there is no longer a difference between the grid tariff charged during the day and the tariff charge during the night.
The Capacity Tariff will not apply to households that benefit from cheaper electricity through the “Social Tariff” system. Around 16% of Flemish households benefit from the social energy tariff.
Spread consumption
The idea behind the Capacity Tariff is to encourage households and companies to spread out their use of appliances that use a lot of electricity such as heat pumps and charging points for electric vehicles.
The energy transition means that we will consume less and less fossil fuels and more and more electricity. This will put increased pressure on the electricity grid. By encouraging consumers to spread their electricity consumption it is hoped that the need for billions of euro in investment in the electricity grid can be averted.
Vreg says that this will ensure that the Grid Tariff levied on our electricity bills will remain affordable. The energy regulator also assures consumers that the changes won’t result in sky-high electricity bills.