Belgian Electricity Prices Hit Two-Year Record as Energy Costs Surge

Belgian households face sharply higher energy costs this August as electricity prices on fixed contracts have reached nearly 20 cents per kWh — a two-year record — while gas prices have surged by up to 40 percent since August 1. The price spike, driven primarily by the ongoing US-Iran conflict and its impact on wholesale energy markets, is hitting consumers just as the autumn and winter heating season approaches.

According to RTBF, the cheapest fixed electricity contract on the market — offered by Luminus at 19.87 cents per kWh — represents the highest price observed in two years, surpassing even the levels seen in April following the outbreak of hostilities in Iran.

The Geopolitical Driver

The primary cause of the energy price surge is the escalating conflict between the United States and Iran. After a brief period of stabilization between 40 and 45 euros per megawatt-hour, the breakdown of the ceasefire in July sent wholesale gas prices soaring to 63 euros per MWh on July 24 — double the price from six months earlier and a record level not seen since January 2023, at the tail end of the European energy crisis triggered by the Ukraine war.

The crisis has been compounded by the closure of the Strait of Hormuz, which has disrupted oil and gas shipments. Qatar, a key LNG supplier to Europe, stopped deliveries in July, significantly slowing the refilling of European gas reserves ahead of winter. As RTBF economic columnist Amid Faljaoui warned in mid-July: “Without ships this summer, no filled reserves. The bill for this July blockage will be discovered on our heating bills this winter.”

Impact on Household Bills

The price increases are substantial across all Belgian regions. Consumer organization Testachats reports that fixed electricity contracts in Wallonia are on average 15 percent more expensive in August than in July, at 18.96 cents per kWh. Fixed gas contracts have risen even more sharply, averaging 26 percent higher at 7.76 cents per kWh.

For an average household consuming 3,500 kWh of electricity annually, the August price increase represents a surcharge of approximately 167 euros per year compared to March 2026 prices. For households consuming 17,000 kWh of gas, the increase amounts to roughly 445 euros more per year.

Some suppliers have implemented particularly aggressive increases. Mega raised its prepaid fixed gas contract by 42 percent, while Eneco’s fixed natural gas contract increased by 39 percent. By contrast, Engie barely increased its prices — only about 4 percent — and now offers the cheapest fixed gas contract on the market, likely due to more favorable purchasing strategies.

Why Electricity Prices Are Soaring

The electricity price surge is not solely a consequence of gas prices. As RTBF explains, Belgium’s electricity market operates on the merit order principle: the price of electricity is set by the most expensive power source needed to meet demand. When renewable sources and nuclear power suffice, prices remain low. But when gas plants must be activated, electricity prices align with gas prices.

This July, several factors converged to push electricity prices upward: very little wind during heat waves, solar panels performing less efficiently in extreme heat, several nuclear plants taken offline, and high electricity demand for air conditioning.

New Excise Taxes Add to the Burden

Compounding the market-driven increases, new excise taxes on gas and heating oil came into effect on August 1, 2026. According to Econostrum, the tax on gas increased by about 18.17 euros per year for an average household consuming 17 MWh, while electricity taxes decreased by about 12.64 euros per year for a household consuming 3.5 MWh. The net effect is approximately 5.5 euros more per year for an average household.

The reform, part of the government’s program law adopted in May 2026, aims to make fossil fuels less attractive and promote electricity use. However, it adds to the perception of rising energy costs at a time when households are already feeling the pinch.

What Should Consumers Do?

Experts and consumer organizations offer nuanced advice for households navigating the current turbulence. The consensus is clear: do not panic-switch to expensive fixed contracts.

“If you already have a fixed contract: don’t change anything,” advises RTBF’s Xavier Lambert. “Keep your old contract given the turbulence.” For those with variable contracts, the advice is similarly cautious: “The bill will be steep for electricity in July. But it’s not really the time to switch.”

Testachats echoes this guidance, recommending that consumers “don’t hastily sign a fixed-price contract at current rates, but continue to closely monitor the evolution of the situation.” The organization notes that price differences between suppliers remain significant — the cheapest fixed electricity contract is more than 300 euros cheaper than the most expensive in Flanders and Wallonia, and for gas, the difference exceeds 400 euros.

This advice aligns with earlier warnings from consumer advocates. As Brussels Today reported in April, Test-Achats spokesperson Julie Frère cautioned: “For those who did not subscribe to a fixed rate in March, it is not recommended, based on current price levels, to switch to a fixed rate and lock in these high prices.”

Winter Outlook

The coming months will be critical for European energy security. European gas reserves are not being filled at normal rates, and European countries have decided to fill strategic reserves to 80 percent instead of the planned 90 percent, partly to avoid driving prices even higher. This creates significant risk for winter heating costs.

The RTBF analysis of the Ormuz crisis highlighted the insurance market as a key obstacle: at the peak of tensions, premiums for tankers passing through the strait multiplied by 40. Even if the strait were to reopen, insurers would take months to return, and without restored confidence, ships will not sail.

For Belgian households, the key question is whether wholesale prices will continue to moderate as they began to do in early August. Experts suggest that if the geopolitical situation stabilizes, fixed contract prices may improve in the coming months. However, with the conflict showing no signs of resolution and winter approaching, the outlook remains uncertain.

What to Watch Next

Several factors will determine the trajectory of energy prices in the coming months: whether the US-Iran conflict escalates or de-escalates, whether European gas reserves can be filled before winter, whether wholesale prices continue their downward trend, and whether more suppliers follow EnergyVision’s example of maintaining stable prices. For now, the advice from experts is clear: monitor the situation closely, compare offers carefully, and avoid locking in today’s elevated prices unless absolutely necessary.