Energy distribution tariffs to see an average increase of 5 euros per household per year in 2020

In 2020, the tariffs for the distribution of electricity and natural gas will increase, on average, by 5 euros per household per year. That is less than the inflation rate. This follows from the 2020 tariff decision of the Netherlands Authority for Consumers and Markets (ACM) for the distribution system operators.

The tariff increase can largely be attributed to the distribution of natural gas. The main reason is that administrative and physical losses of natural gas in 2020 will be incurred by the system operators, and no longer by the energy suppliers. With regard to electricity, the distribution tariffs will only increase, on average, by 50 cents per household per year.

From 2020 onwards, ACM will also set regulated tariffs for the entire connection of natural gas for large-scale users. In 2019, only the tariff for part of the connection was regulated. As a result of this change, these users will enjoy more tariff protection.

Towards an affordable, secure and sustainable supply of energy

ACM supports the objective of realizing an affordable, secure, and sustainable supply of energy. It regulates system operators, which enjoy a monopoly on the transport of energy. ACM’s regulation ensures that tariffs are not higher than necessary, and it helps create a healthy investment climate. The transport and connection tariffs represent, on average, 20% of consumer energy bills, and amount to, on average, 306 euros per household per year.

Tariffs for large-scale users of electricity

ACM expects to set the tariffs for large-scale users of electricity that are connected to transmission system operator TenneT in early-December.