On 5 December 2024, The Belgian Ministry of Finance issued guidelines (Circular 2024/C/77) on how companies can reimburse employees’ home electricity costs for charging company cars. The goal of the legislation is to simplify the reimbursement process for companies while ensuring employees are fairly compensated for the electricity used at home.
This article outlines the different options for companies for managing home reimbursement electricity costs. Below we outline what this legislation means, what the options are, and how to request either option.
About the new fixed rate option
In cases where the electricity is billed in the employee’s name and the electricity costs are paid by the employee directly to the energy supplier, the reimbursement must be based on the employee’s actual electricity costs.
Currently, companies are reimbursing employees’ electricity costs by e.g. reviewing employees’ electricity bills. The new legislation introduces an option which lets companies use a fixed rate per kWh to pay employees back for their used electricity costs.
New: Reimbursement using a regional fixed rate (CREG rate)
Considering that the calculation of the actual electricity costs may result in a significant administrative burden, Circular 2024/C/77 provides that the employer may use a fixed amount per kWh to calculate the actual electricity costs. The fixed amount cannot exceed the CREG rate. The CREG rate, a regional rate set by the government, is determined for each quarter on the basis of the employee’s place of residence.
The employer may also choose to reimburse electricity consumed without taking into account the residence of its employees. In such a case, the maximum fixed rate per kWh is equal to the lowest rate applicable in one of the regions for the quarter in question.
The administrative tolerance to calculate actual electricity costs based on a maximum flat rate per kWh is only applicable to electricity costs relating to the period from 01.01.2025 to 31.12.2025. The rates (Outside Scope VAT) for Q4 of 2025 are:
- Flanders: €0.3070/kWh (€0,2896/kWh excluding VAT)
- Brussels: €0.3303/kWh (€0,3166/kWh excluding VAT)
- Wallonia: €0.3457/kWh (€0,3261/kWh excluding VAT)
How to request tariffs
Note: these guidelines are only applicable for companies operating in Belgium.
Option 1. Reimbursement based on actual costs (current option)
Currently, companies can reimburse employees for the electricity based on the actual costs. Providers are able to set their own reimbursement rates.
How to request:
- Request new tariffs the same way as before. You can find more information here.
- In the request, clearly state if you want to use the regular tariff or a different tariff for example with new names, regions, years, etc.
- Send in your request at least 2 weeks before the starting date.
Option 2. Reimbursement using a fixed rate (new option as of 1 Jan 2025)
Companies can now also reimburse electricity costs at the official rate per region. The rates are updated every quarter by the government. The rates (Outside of Scope VAT) for Q4 of 2025 are:
- Flanders: €0.3070/kWh (€0,2896/kWh excluding VAT)
- Brussels: €0.3303/kWh (€0,3166/kWh excluding VAT)
- Wallonia: €0.3457/kWh (€0,3261/kWh excluding VAT)
- This option is valid until December 2025, after which the government will decide if it stays or changes.
How to request fixed rate:
- Let us know that you would like to use fixed rates by contacting our Customer Care team at support@lastmilesolutions.com. Clearly state in the email that you give Last Mile Solutions permission to update the fixed rates for you every quarter.
- Last Mile Solutions will then make sure that the rates are available to you before the start of each quarter until the end of 2025.
- Send in your request at least 1 week before the start of the quarter.