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Price per kWh electricity

How is the price per kWh electricity created?


The price per kWh electricity includes the following components:

NamePrice for example in € per kwH
Delivery rate€0,06
Energy tax€0,1165
Storage sustainable energy€0,001
Total exclusive VAT€0,1775
Total including VAT€0,214775

Besides the price per kWh electricity you also have to pay network costs and a standing charge. The network costs are determined by the government. The standing charge is determined by suppliers and therefore can differ a lot between different suppliers. When you are comparing energy offers always give a close look to the standing charge. After all every customer is eligible for a tax credit when someone works or lives at the address. The tax credit is €385,33 (including VAT) and will be settled at the annual account.

Do you want to compare the price per kWh from different suppliers? Click here.

What are the delivery rates for electricity?

Every electricity bill shows the delivery rates for the electricity. This is the stripped version of the total rate. These rates are build from variable costs and standing charges. The standing charges differ between suppliers, as the don’t need to be charged. The two aforenamed costs together are the delivery rates. The delivery rates are the biggest component of your bill.

At first the variable costs, these depend on your usage. When you decide to start using more machines, the usage logically will rise. With the rise of the usage, the variable costs will rise too. In the case of electricity you pay per used kWh. The variable delivery rates are calculated by the sum of the usage times the agreed tariff. As the tariffs differ between suppliers, it is important to check the different offers. It depends on your expected usage which offer suits your company the best. Compare the offers with the expected usage in your mind, this is important. The delivery rate can be agreed fixed or variable. Besides aforenamed options it is possible to choose a contract where the rate will be changed during the duration of the contract. With delivery rates it is possible to pay the same rate during the whole day. Also it is possible to pay two different rates during the day, you will get two meters. During off-peak hours you will pay less than during peak hours.

Besides the variable delivery rates there will be charged a standing charge. These costs don’t depend on your usage. It is compared with the costs of a cell-phone bill. Regardless of the calls you make you have to pay one standing/fixed figure for the cell-phone company. These costs include administration and that kind of costs. Important to say it the fact that charging these costs is an option for the supplier. In a lot of offers the standing charges are removed from the bill, you don’t have to pay them during the duration of your contract. Watch out for surprises, sometimes the offer isn’t as good as it seems. The standing charge is sometimes named as something else.

What’s the energy tax on my bill? 

Besides the delivery rates another big component on your electricity bill is the energy tax. The energy tax is, just like the delivery rates, calculated with your usage.

The reason behind this tax is the creation of awareness of your usage and the stimulation of responsible entrepreneurship. By charging taxes the government thinks that you will give your usage a closer look. The tax gives you a stimulus to reduce your usage. When you have to pay extra tax besides the costs for the delivery of electricity, the government thinks that you will pay more attention to your usage. The fact that you pay the taxes with the total price of your energy bill doesn’t mean that the supplier receives the tax. The supplier is obligated to collect these costs, but is also obligated to pay these to the government. You have probably seen the divide in the taxes on your bill. Firstly the standard tax, usually named EB, you pay this tax depending on your usage. The EB is divided in different zones. How higher your usage is, how higher the zone you will be at. The costs rise per zone. Besides the EB you also have to pay for the storage of sustainable energy (ODE). The ODE is used for projects that create and facilitate sustainable energy. For example the subsidy’s for the usage of windmills is paid by the revenues of ODE.

Something interesting with the energy taxes is the option of tax credits for some connections. The connections with a residential function can apply for a yearly discount. The discount is created because the government sees electricity as a basic need. The discount delivers a compensation to assure aforenamed need. The tax credit mostly appears as ‘’reduction energy tax’’ on your bill.  

Your connection has a residential function when the connection is set in a house, a corporate company or small business. The word residential has to be seen very literally, when it is possible for people to stay at the building it has a residential function. To clear things out, a house that isn’t done doesn’t meet the criteria for a residential function. Surely, unfinished houses aren’t meant to be lived in. On the other hand a lot of connections meet the criteria for a residential function. Houses of prayer, canteens, houses and crew wagons all these buildings (can) meet the criteria for a residential function.

What can we do for your electricity bill?

As said, the energy bill is build from a lot of costs. Some costs are determined by the suppliers, on the other hand some are obligated by the government. Especially when you are near the end of your contract, we advise to give the varied offer of energy contracts a close look. De delivery rates at the business market differs a lot. Besides that, a lot of ‘’too good to be true’’ offers are really too good to be true. All of aforenamed aspects should get your attention when looking for a new offer.

We are happy to help you with making the right choice when changing from energy supplier.