Michael Bodmann

New style energy bill on the way

Belgian finance minister Vincent Van Peteghem (Flemish Christian democrat) has finalised plans for the new format energy bill.  Average energy bills are set to rise 20 euros a month as a result of duty changes, but counters Mr Van Peteghem “the rise would have been 50 euros extra a month if reforms were not carried out”.  The VAT reduction from 21% to 6% introduced to soften the blow of spiralling energy prices triggered by Russia’s war on Ukraine becomes a permanent feature.

Under the new system a distinction is made between “basic energy consumption” and “extra energy consumption”.  Duty on basic consumption will fall when energy prices rise above a certain level.

Duty on extra consumption won’t be cut.  The government says that won’t mean it’s raking in extra cash because any additional revenue generated as a result of VAT on higher prices will be needed to pay for the duty cut on basic consumption.

When gas prices fall under a certain level, duty on extra consumption will rise.  It’s a measure intended to encourage energy transition and wean people off gas.


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