ODE phase-out integration: a guide for businesses
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The ODE, the Dutch Sustainable Energy and Climate Transition Surcharge (Opslag Duurzame Energie- en klimaattransitie), was until 2023 a separate levy on electricity and gas consumption, alongside the energy tax. It financed subsidies for renewable energy, such as the SDE++. As of 1 January 2023 the ODE was merged into the energy tax: the separate line disappeared and the energy tax rates were raised accordingly.
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ODE phase-out integration: scattered information versus Energy Intelligence
Anyone comparing a pre-2023 energy bill or annual statement with a recent one notices a difference. There used to be two government levies on consumption: the energy tax and, alongside it, the ODE. Since 2023 that second line is gone. This raises the question for entrepreneurs and finance managers whether something was abolished or made more expensive. This topic explains what the ODE was, why it disappeared, and what the integration into the energy tax means in practice.
- From 2013 to 2023 the ODE was a separate surcharge on electricity and gas, using the same system as the energy tax, intended to fund subsidies for renewable energy.
- As of 1 January 2023 the ODE rates were integrated into the energy tax and set to zero; as of 1 January 2024 the ODE Act was formally repealed.
- For your business the system does not fundamentally change: the same charge, but under a different name and in a different place on the energy bill.
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What exactly was the ODE?
The ODE, in full the Sustainable Energy and Climate Transition Surcharge, was a separate Dutch government levy on the consumption of electricity and natural gas. The surcharge was levied alongside the energy tax and used the same system: a rate per consumption bracket, settled through your energy supplier. The purpose was specific: the proceeds financed subsidies for renewable energy, in particular the Stimulering Duurzame Energieproductie en Klimaattransitie, the SDE++. In this way every consumer contributed to the generation of renewable energy and to reducing CO2 emissions. The ODE therefore appeared as its own, recognisable line on the energy bill, separate from the energy tax.
- ODE stands for Opslag Duurzame Energie- en klimaattransitie, the Sustainable Energy and Climate Transition Surcharge.
- It was a separate levy on electricity and gas, alongside the energy tax.
- The proceeds financed subsidies for renewable energy, mainly the SDE++.
- The surcharge used the same bracket system as the energy tax.
Why was the ODE merged into the energy tax?
The financing of the SDE++ was decoupled from the ODE. As a result, the ODE lost its reason to exist as a separate levy alongside the energy tax. To simplify the tax system, the government chose to let the ODE rate path merge into the energy tax. As of 1 January 2023 the ODE rates were integrated into the energy tax rates and then set to zero. With that, the ODE was functionally abolished. The energy tax rates were raised accordingly, so that the levy as a whole did not simply vanish but continued under one heading. As of 1 January 2024 the ODE Act was also formally repealed.
- The link between the SDE++ and the ODE was released.
- The government merged the ODE rates with the energy tax to simplify the system.
- As of 1 January 2023 the ODE rate went to zero and the separate line disappeared.
- As of 1 January 2024 the ODE Act was formally repealed.
What does this mean for your business?
In practice, less changes for your business than it seems. The separate ODE line has disappeared from the energy bill, but that does not mean a cost item simply fell away. The energy tax was adjusted accordingly during the integration, so the same charge now sits under a different name and in a different place on your bill. Where you previously saw two government levies on your consumption, you now see one. When comparing historical energy costs, keep this difference in presentation in mind: a pre-2023 bill splits energy tax and ODE, while a recent bill only shows energy tax. The underlying system per consumption bracket remained in place.
- The separate ODE item no longer appears on the energy bill.
- The energy tax was raised accordingly during the integration.
- Net, it is the same charge, with a different name and location.
- When comparing old and new bills, mind the difference in presentation.
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