Flanders Cuts Electricity €80, Raises Gas €80 for Heat Pumps
The Flemish government has finalized a major energy tax shift designed to make electric heating more attractive by reducing annual electricity costs by approximately €80 while increasing gas bills by the same amount, according to draft texts reviewed by De Tijd. The proposal, set to take effect in 2028, represents the flagship climate policy of Energy Minister Melissa Depraetere.
Context: Correcting a Price Distortion
Flanders currently has some of the highest electricity prices in Europe, with a kilowatt-hour of electricity costing households on average 4.1 times more than a kilowatt-hour of natural gas. This disparity stems from high levies on electricity while fossil fuels have been relatively lightly taxed — a structure that actively discourages the switch to electric heating solutions like heat pumps.
The tax shift aims to correct this imbalance as part of the broader Flemish Climate Plan, which targets a 40% reduction in CO2 emissions by 2030 compared to 2005 levels. Currently, Flanders is on track for only a 33.7% reduction, according to VRT NWS.
The Numbers
For an average household consuming 3.5 MWh of electricity per year, the annual electricity bill will decrease by approximately €80. Conversely, a household heating with gas (consuming roughly 17 MWh) will see its annual gas bill increase by approximately €80. For heating oil users consuming around 23 MWh, the annual increase is approximately €74.40.
The Flemish government is allocating €174.6 million to fund the electricity cost reduction. This budget comes from revenues generated by the European Union’s new Emissions Trading System 2 (ETS2), a carbon pricing mechanism that will make fossil fuels for heating and transport more expensive starting in 2028. As the official Vlaanderen.be website explains, revenues from ETS2 flow back to EU member states, and Flanders plans to use these funds to support the transition.
Political Dynamics
The tax shift is a signature project of Minister Depraetere (Vooruit, socialist party), who has positioned herself as a progressive force on climate within the Flemish coalition government, which also includes the Flemish nationalist N-VA and Christian democratic CD&V. The policy represents a compromise: progressive climate action tempered by cost-neutrality guarantees for average households.
“In Flanders we are still very dependent on gas,” Depraetere told VRT NWS. “We want to motivate people to switch, but we don’t want to punish them if it doesn’t work out.”
Flemish Minister-President Matthias Diependaele (N-VA) added: “By joining forces, we can see how we can achieve maximum ecological gains and reach those climate ambitions without making it too difficult for people.”
Challenges and Criticism
Despite the government’s intentions, the proposal has drawn significant criticism. The €80 annual saving on electricity is modest compared to the upfront cost of a heat pump, which typically ranges from €5,000 to over €12,000. One reader comment published by Het Laatste Nieuws calculated a payback period of roughly 35 years.
Furthermore, approximately 70% of Flemish households heat with natural gas, and many — particularly those in apartments, older buildings, and coastal areas — lack the technical ability to switch to heat pumps. Renters, who cannot control heating system choices, may be disproportionately affected by rising gas costs without the ability to benefit from cheaper electricity.
Broader Policy Trajectory
The tax shift is the latest in a series of measures phasing out fossil fuel heating in Flanders. Previous policies include a ban on gas connections for new construction (2025), a ban on oil boilers for new construction (2022), and requirements for renewable energy shares in new buildings (2023). These policies have progressively made electric heating the default choice for new buildings, but existing buildings — the majority — remain heavily dependent on gas.
What to Watch For
The precise legislative timeline for approval remains to be determined. Key outstanding questions include what specific mechanism will be used to reduce electricity costs, what support mechanisms exist for low-income households and renters, and whether the €174.6 million will be sufficient to fund the electricity cost reduction. The policy’s interaction with federal Belgian energy taxation policies also requires clarification.
As the Bobex.be analysis notes, the tax shift makes electric heating more economically attractive but is unlikely to trigger a mass conversion overnight. The real test will be whether the combination of gradually rising fossil fuel costs, falling electricity prices, and available subsidies can overcome the significant upfront investment barrier that heat pumps present for most households.