Understanding Your Electricity Bill

What Makes Up Your Electricity Bill?

When you buy a bottle of milk from the local store, you’re actually paying several contributors: the farmer, the dairy processor, the transporter, and the store itself. You don’t pay each entity individually; instead, the store handles it all, and you pay them.

Electricity works the same way. Let’s look at the different contributors involved in your electricity purchase:

1. Electricity Producers

1. • Generate the electricity you consume.

2. Transmission System Operator (TSO)

1. • In Belgium, Elia manages high-voltage lines that transport electricity across regions.

3. Distribution System Operators (DSOs)

1. • Operators like ORES, RESA, or AREWAL members distribute electricity to villages and neighborhoods and measure consumption for each building.

4. Electricity Suppliers

1. • These companies consolidate data from producers, TSOs, and DSOs, then generate and send your bill.

Components of Your Electricity Bill

1. Commodity Cost (40%)

1. • Pays for the production of the electricity you use.

2. Transport and Distribution (25%)

1. • Covers the cost of transporting electricity from producers to your home.

3. Taxes and Levies (35%)

1. • Includes contributions to energy policies, renewable energy investments, and grid connection fees.

The Prosumer Tariff Explained

For Installations Before January 1, 2024

Owners of photovoltaic systems installed before January 1, 2024, benefit from the “reversing meter” principle until the end of 2030. This means they can offset their annual energy consumption with the energy they produce, resulting in little to no energy purchases from the grid.

However, as they do not directly contribute to grid maintenance costs, a prosumer tariff was introduced. This ensures fairness by charging prosumers for their share of grid usage.

For Installations After January 1, 2024

New photovoltaic system owners are not subject to the prosumer tariff. Instead, surplus energy not consumed during production is sold to the grid, while additional energy needs are purchased, including transport and distribution fees.

The Importance of Self-Consumption

For new prosumers after January 1, 2024, consuming solar electricity at the time it is produced—known as self-consumption—becomes essential. Maximizing self-consumption reduces reliance on the grid and associated costs, making photovoltaic systems more financially viable.

Conclusion
Understanding your electricity bill and the prosumer tariff is key to optimizing energy use and costs. For solar panel owners, self-consumption is more important than ever, enabling efficient energy use and supporting sustainability goals.

Contact us today to discover how LoopXCell can help you enhance self-consumption and reduce your electricity costs!