ABN Amro: better wait with state aid for energy costs

The average amount that Dutch households spent on energy last August was more than a quarter higher than in August last year. That appears from research published on Monday from state bank ABN Amro, based on transaction data from one million households. Last August, Dutch households paid an average installment amount of 166 euros, compared to 132 euros last year. In AD Nevertheless, ABN chief economist Sandra Philippen warns on Monday not to wait with state aid measures.

ABN’s research results are at odds with the dominant sentiment in the House of Representatives. There, the idea prevails that the aid package of 17 billion — as compensation for rising energy prices — that leaked out last week is already coming too late. Not true, says Philippen: throwing billions already is too early. “Get everything ready to do it, but wait until it’s needed. Otherwise, inflation will rise even further.”

Yes, Philippen acknowledges, there are households that suddenly have to pay an extra five hundred euros per month for energy. But she thinks it is still too early to declare the energy crisis. After all, only a small group of people suffer from skyrocketing energy costs. The bank estimates that 1.5 to 2 percent of Dutch households paid an installment in August that was more than 150 percent higher than a year earlier. Moreover, the energy bill of a third of the Dutch was actually lower.

Stark contrast with CBS figures

The increase calculated by ABN Amro contrasts sharply with that of Statistics Netherlands (CBS). That is based on a 151% price increase on an annual basis. This can partly be explained by the different calculation method. Statistics Netherlands calculates with the installment amount that is paid after concluding a new energy contract. Anyone who does so will most likely receive a variable energy contract, with installments that increase in line with rising energy costs. In reality, approximately 44 percent of the Dutch still benefit from a fixed energy contract.