Cabinet contributes a maximum of 50 million euros to a private energy emergency fund for vulnerable households | News item

News item | 11-28-2022 | 5:30 pm

On Prinsjesdag, the government announced a temporary energy emergency fund as part of a comprehensive package of measures aimed at mitigating the negative consequences of high energy prices. The purpose of this emergency fund is to prevent financially vulnerable households from accumulating problematic debts with their energy supplier despite these measures. The fund was set up by energy suppliers and civil society organizations and is expected to become operational in early January 2023. The government wants to support the fund once with a maximum of 50 million euros. Minister Carola Schouten (Poverty Policy, Participation and Pensions) writes this in a letter to the House of Representatives.

Due to the government’s extensive purchasing power package, such as the price ceiling, the number of households that are at risk of being squeezed by the high energy bill is expected to be limited. However, there will also be households that, despite these government measures, will not be able to pay the (full) energy bill. This concerns households with a low or middle income and a high energy bill, for whom all options for socially responsible collection have been exhausted. This means, among other things, that a flexible payment arrangement has been offered and that the supplier is in contact with the client about a solution to the payment problems. The fund is specifically thinking of supporting households in trouble with an income of up to 200% of the gross social minimum, in combination with a high energy bill.

The temporary energy emergency fund builds on the energy poverty action plan that a number of energy suppliers and social organizations presented in March 2022. This action plan, which is an initiative of Eneco, Vattenfall, Essent, Green Choice, SchuldenlabNL and the Nederlandse Schuldhulproute (NSR), has been developed to help households stay financially healthy through various options. In principle, the emergency fund will expire in April next year. It is not yet possible to register for the fund. Further information will follow shortly from the initiators.

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