The price consists of two components: supply price and network price.
The supply price for electricity consists of a standing charge, energy tax, energy tax refund, a delivery charge and VAT. The network price is paid for the use and maintenance of and connection to the electricity distribution network, plus metering charge.
The network price consists of a standing charge, system services charge, transport charge, metering charge and VAT. The system services charge comprises costs charged by national grid operator Tennet for the maintenance of the national high-tension network. The metering charge comprises the installation, operation and maintenance of gas and heat meters, including readings.
Electricity consumption is taxed across a number of brackets: the first amount of electricity used is taxed at the highest rate, the rates are increasingly lower for subsequent amounts used.
Electricity users are also eligible for a tax refund. This is a fixed amount per grid connection, regardless of the amount of electricity used.
Households using large amounts of electricity pay more ‘energy tax minus refund’ per unit than business users of electricity. For households using small amounts of electricity this is not the case: the refund they receive is larger than the amount they pay in energy tax.
The prices charged are inclusive of VAT. Business user can claim back VAT they have paid.