You've probably caught on over the past few days that both electricity and gasoline prices have risen sharply. But how did this come about? And most importantly, will these prices fall again? We like to summarize it for you.
Historically low energy prices in 2020
Electricity demand was lower than usual in 2020, causing electricity prices to hit an all-time low.
One of the causes was that a lot of companies were not running at full capacity due to the corona crisis (with accompanying lockdown). Thus, less electricity was used, causing an oversupply on the market and prices plummeted.
Sharp increase in energy bill in 2021
This year we are experiencing the opposite and there is animmense price increase intermsof energy and gasoline prices.
A fixed contract with an energy supplier has a price increase of 35%, a variable contract fluctuates around 64%. The figures for gas don't lie either: a fixed contract has an increase of 70%, while that of a variable contract is no less than 280%.
On top of that, the spring of 2021 was rather cold, so we needed more electricity than usual (heating, still telecommuting,...). There was also the revival of the economy influencing this. Companies picked up where they left off, which also maximized their electricity consumption again.
These price increases are determined on international markets, so our governments have no influence on them and can't do anything about it. Monitoring your own consumption and buying less electricity from the grid can reduce your bill. For the latter, investing in renewable energy can be the solution.
By installing solar panels, you provide yourself with power, making you much more independent of rising energy prices. Plus, you stand a chance of receiving an injection fee when you send your surplus power to the grid. Are you not often home during the day when your panels reach their peak output? Then a home battery is the ideal match!
Why a home battery?
If you already have solar panels or are not often home during the day (when your solar panels reach their peak output), a home battery may be of interest. The battery stores the excess power your solar panels produce. Then, when you need electricity in the morning or evening, you can use it from your home battery and enjoy your own free green energy.
Europe's Green Deal and rising gasoline prices
"The European Green Deal" is a climate law to ensure that Europe is climate neutral by 2050. Drastically reducing and even neutralizing greenhouse gas emissions is part of this.
The ambition to produceonly electric cars by 2035 plays a major role in this. There will betaxes on CO2 emissions in the coming years. These taxes are also expected to be passed on to the consumer and this will have a direct impact on gasoline prices, which will continue to rise as a result. Looking forward to an electric car seems almost inevitable.
Would you like more info on how to reduce your energy bills through solar panels (with or without a home battery)? Would you like more info on how to charge an electric car at home? Leave your details here, we'll call you with more info and get you our brochure!
Source: ec.europa.eu and vrt.be
