Your installment amount is made up of these costs

You pay a monthly fee for your energy: your installment amount. Are you curious about which specific cost items make up your installment amount? We'll explain them all in this article.

Your installment amount

Simply put, your installment amount consists of your total energy costs for an entire year divided by 12. At the end, we'll settle all the costs you've made with the total amount you've paid. Consumed more than you've paid? We'll ask you for an additional payment.

In addition to variable delivery costs, your monthly amount also consists of the fixed delivery costs, network management costs, government taxes, and VAT. Good to know: except for the variable and fixed delivery costs, the energy provider hand over all costs to the Dutch Tax Administration or power management. That way, you pay for your energy once every month and don't have to pay any separate costs.

Variable delivery costs

The variable delivery costs are the rates that you pay per kilowatt-hour (kWh) of electricity or cubic meter (m3) of gas. You pay these costs to us. The more you consume, the more you pay. These rates depend on your contract. How long we maintain these rates depends on the duration of your contract. Do you have a 3-year contract? Your rates are fixed for this entire period. For a variable contract, these rates can increase or decrease with the market every month. With a dynamic contract, you pay an amount that can differ every hour for energy and an amount that can differ every day for gas.

Fixed delivery costs

In addition to variable delivery costs, you also pay fixed delivery costs. And as the name says, these are fixed. Even when you don't consume energy. You pay the fixed delivery costs monthly and they can differ per energy supplier. These costs can contain the administration costs and other costs that the energy supplier has to supply you with energy, for example.

Network management costs

Every region in the Netherlands has its own network manager that's responsible for the installation, maintenance, and management of the energy network. You pay the network management costs to the energy supplier monthly, who then hands this over to your network manager. You pay these costs for the maintenance and transport of the energy to your home.

Goverment taxes and VAT

Energy taxes

The government taxes the consumption of electricity and natural gas. The government sets this amount, but you pay this to your supplier in a monthly installment amount. The energy supplier makes sure this amount goes to the Dutch Tax Administration.

Reduction energy taxes

Each household gets a discount on the energy taxes from the government. This is a fixed amount and is called an energy tax reduction.

Sustainable energy surcharge

The government asks for a sustainable energy surcharge (ODE). With the income from this surcharge, they invest in sustainable energy. That way, every energy customer in the Netherlands does their part in making energy more sustainable.

VAT

Just like with all stuff and groceries you buy, you also pay VAT on the energy you consume. VAT stands for 'value added tax'. For energy suppliers, this is 21%.

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Article by:
Bente Energy Expert.