Belgium’s Energy Excise Reform Takes Effect August 1
A major reform of Belgium’s energy excise duties, shifting taxation from electricity toward natural gas and heating oil, takes effect on August 1 after months of political debate and a postponement linked to the Iran conflict. The phased reform, adopted by the Chamber of Representatives on May 29 as part of Program Law DOC 56 1378, aims to correct one of Europe’s highest electricity-to-gas price ratios and encourage households to adopt electric heating.
Context: Correcting a Pricing Imbalance
Belgium has long grappled with a structural energy pricing problem. In early 2025, electricity cost approximately 4.15 times more than natural gas per unit of energy — the widest gap in Europe, according to RTBF. This disparity effectively discouraged consumers from investing in heat pumps and other electric heating alternatives, locking households into fossil fuel dependency. The reform progressively rebalances the tax burden to make electricity relatively cheaper and fossil fuels more expensive.
How the Rates Change
Under the reform, excise rates follow opposing trajectories through 2029.
Electricity (decreasing, per MWh): The excise drops from €50.33 in 2025 to €46 in August 2026, then continues falling to €38 by 2029.
Natural gas (increasing, per MWh): Rates rise from €8.72 in 2025 to €10.31 in August 2026, reaching €13.60 by 2029, with a higher rate applied above 12 MWh of annual consumption.
Heating oil (increasing, per 1,000 liters): The steepest relative increase — from €17.30 in 2025 to €23 in August 2026, then climbing by €1 annually to €26 by 2029.
Households on the social tariff are fully protected, with their electricity excise capped at €1 per MWh.
Political Controversy Over Timing
The reform has been politically contentious from the start, as reported by Moustique. Originally scheduled for April 1, the increase was postponed to August following the outbreak of the Iran conflict and resulting energy market volatility.
PTB MP Nabil Boukili criticized the government’s timing, arguing on La Première that “in the midst of soaring energy prices, the government decides to increase taxes — it should be doing the opposite,” as covered by RTBF.
As recently as July 27, the Anders party called for further postponement, with Frédéric De Gucht and Steven Coenegrachts warning that rising gas prices — now exceeding €64 per MWh on the Amsterdam exchange — make additional taxation ill-timed, according to Business AM. CD&V has indicated openness to discussion. Environmental group Bond Beter Leefmilieu, however, argues that further postponement undermines the climate transition.
Modest Financial Impact
Despite the political controversy, the direct financial impact on most Belgian households is expected to be small. Economist Philippe Defeyt of the Institute for Sustainable Development characterized the sums as “tiny” — essentially lost in broader bill fluctuations driven by market prices.
By 2029, when the reform is fully phased in:
- A family of four with gas heating will see an increase of approximately €16 per year
- A couple using heating oil and electricity will save about €16 per year
- A family of four with a heat pump will save roughly €90 per year
As Defeyt noted, the primary driver of electrification will remain the market price of fossil fuels, not marginal tax adjustments. RTBF has published an interactive calculator allowing consumers to estimate their personal impact based on household composition, dwelling type, and heating method.
What to Watch For
The reform follows a phased trajectory through 2029, with rates adjusting annually. While last-minute political pressure to delay persists, the federal government has so far held firm. The coming months will reveal whether these modest tax signals are sufficient to accelerate Belgium’s shift away from fossil fuel heating, or whether broader market forces will continue to dominate household energy decisions.