Flanders energy tax shift to reduce agricultural costs

The Flemish government has approved the preliminary draft of a decree regarding an energy tax shift designed to make electricity more competitive against fossil fuels. Starting in 2028, policy costs will shift from electricity bills to fossil fuels used for heating.

According to the Boerenbond industry organization, this reform involves shifting approximately 316.9 million euros in costs from electricity to fossil fuels, alongside an additional 174.6 million euro reduction in electricity bills. For the agriculture and horticulture sectors, this is estimated to result in a net cost reduction of 10.4 million euros.

The actual financial impact on individual businesses will depend on their specific energy profiles, including their consumption of electricity, natural gas, or heating oil, as well as their connection to low- or medium-voltage grids. Companies with high electricity consumption are expected to benefit, while those relying heavily on fossil fuels for heating will face increased costs.