Large industrial consumers are significantly cheaper in neighbouring countries

Photo: Thomas G. via Pixabay
Wouter Hoeffnagel
Wouter Hoeffnagel
11 April 2024
2 min

Large industrial consumers of electricity are considerably more expensive in the Netherlands than in neighbouring countries. They pay up to 66% more for electricity in the Netherlands than in Belgium, Germany and France.

This is according to research commissioned by the central government, about which Minister Adriaansens of Economic Affairs and Climate (EZK) and Mr Jetten of Climate and Energy informed the Lower House. Total electricity costs in 2024 for wholesale consumers in Belgium, Germany and France are 15% to 66% lower than in the Netherlands.

The exact differences differ from country to country. Large industrial consumers are the cheapest in France, where they pay up to 66% less than in the Netherlands. In Germany the percentage is 52%, while in Belgium large consumers pay 41% less.

Negative impact on industry

Minister Adriaansens and Minister Jetten point out the impact of this in the letter. Combined with uncertainty about the development of grid tariffs in the future, the high costs have a negative impact on the competitive position of Dutch industry.

The combination also makes it less attractive for the company to produce in the Netherlands and electrify their production. The latter is very important in view of the energy transition envisaged by the government.

More generous financial support

Various causes of the high Dutch electricity costs were identified in the study. These include high costs charged by grid operators. They say this is necessary to be able to upgrade and expand the electricity grid. Also, many of our neighbours are more generous in supporting energy-intensive industries, with the aim of cushioning electricity costs.

Ingrid Thijssen, chairman VNO-NCW: 'This has finally been demonstrated conclusively by the researchers. The Dutch industry faces a very uneven playing field because of all the schemes other countries put in place to make electricity cheaper for their companies and their lower grid tariffs. This cannot continue like this. Already several companies are in danger of running into short-term problems because production is shut down or they have to compete against companies that can operate much cheaper. The question is whether such companies will ever be restarted. For the long term, the structurally higher cost of electricity is crippling investments in the necessary sustainability of Dutch companies.'

Creating a level playing field

Thijssen calls for the creation of a level playing field for industrial companies compared to neighbouring countries. Thijssen: "There needs to be a fair playing field for our industrial companies vis-à-vis neighbouring countries in both the short and long term. Otherwise, we will erode our industry, while it is a pillar of our exports, innovation and prosperity."

Author: Wouter Hoeffnagel
Photo: Thomas G. via Pixabay

Wouter Hoeffnagel

Wouter Hoeffnagel is a freelance journalist and copywriter, with interests in both manufacturing industry, IT and the intersection between these topics. He writes a wide range of texts on these topics, ranging from background articles, interviews and news items to blog posts, white papers, case studies and website texts.