Private sector companies have to pay higher prices for natural gas

The natural gas price for private sector companies was raised considerably over the past three years. Companies with a small to medium-sized consumption level faced the most substantial price increase. The price increase in this category was mainly triggered by changes in tax legislation.  

Small to medium-sized consumers most affected

With an average price increase of 33 percent compared to three years ago, companies with a small to medium-sized consumption level were affected most in 2013. Though less dramatic, the natural gas price increase in the category large to very large consumers (10 - < 1000 TJ) was also substantial in the period 2010-2013. The price rise for very large consumers was 23 percent, for large consumers 18 percent. 
If tax effects are not taken into account, the price increase was proportional to the consumption level over the period 2010-2013. 

Price increase natural gas by consumption level

Changes in tax legislation main cause for higher gas prices

The tax rate increase is the main cause for the higher gas price medium-sized to large consumers have to pay. In 2012, the VAT rate was raised from 19 to 21 percent and on 1 January 2013 a new energy tax was imposed, the Tax on Renewable Energy. The natural gas price is also higher because - since 1 January 2013 – private sector companies in the category small to medium-sized consumers pay the same tax rate as private consumers. As a result, the rate for this category was raised significantly. Taxes accounted for more than 40 percent of the natural gas price in the category small to medium-sized consumers in 2013, versus 38 percent in 2010. 

Average natural gas price small to medium-sized consumers

Stanley Cramer