Amsterdam Energy Costs 2021
Posted: 11th January 2021 by James Evans
For most households, the network management costs increase by an average of € 2.00 including VAT per month compared to 2020. The reason for this increase:
- Higher purchasing costs from Tennet
- Correction to cost of capital allowance.
In 2021, an average household pays approximately € 17.00 including VAT per month for gas for network management costs. And € 23.00 including VAT per month for electricity. The Netherlands Authority for Consumers & Markets (ACM), the energy market regulator, determines the permitted level of these tariffs.
DID YOU KNOW?
Liander manages more than
kilometers of gas network and 90,000
kilometers of electricity network.
Increase due to higher TenneT purchasing costs
Liander purchases electricity from TenneT. Liander pays 'purchase costs for transport' to TenneT for this. Liander processes these purchasing costs in its rates every year. TenneT's purchasing costs have risen structurally. That is why the rates for electricity at Liander are also rising.
Correction to cost of capital allowance
In addition, the tariffs for both gas and electricity are increasing due to a correction to the low capital cost allowance. This fee is part of the annual permitted, regulated turnover of a grid operator. This was set too low by ACM in the period 2017 to 2020. ACM's correction to this resulted in an increase in tariffs.
To find out more, and understand the costs of utilities such as water, gas and electricity in Amsterdam checkout the page here.
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