The Dutch government and the energy companies have agreed on a price ceiling for energy until the end of 2023. Insiders report this after reporting from the public broadcaster NOS on Monday. The measure will apply from 1 January, but in practice the energy bill will already be reduced on 1 November. In concrete terms, everyone in the Netherlands will pay this winter up to a certain gas and electricity consumption at the pre-war prices in Ukraine.
Energy prices have also skyrocketed among our northern neighbors after the Russian invasion of Ukraine. The Dutch plans against the sky-high energy bills will be officially announced on Tuesday, but things are already clear.
Average energy consumption
For example, there will be a price ceiling, or a kind of basic package for energy, based on an average energy consumption. That is around 1,200 cubic meters of gas and 2,500 kilowatt hours of electricity per year; where exactly the bar for the ceiling will be is still being discussed.
According to an insider, it is expected that the agreement will cover the entire consumption of more than half of Dutch households. As a result, they will pay their energy this winter at the price of January (the price for the war in Ukraine) – the rest is paid by the government. Everything above the ceiling is settled at the current market price.
The price ceiling would be between 6 and 10 billion euros. A large part of this will be collected by canceling the extension of the energy tax reduction next year. That amounts to 5.4 billion euros.
emergency fund
As previously announced, there will also be another one in the Netherlands emergency fund for people who run into payment problems. The government reserves 50 million euros for this and energy companies are also contributing. People who can’t pay their bill get an extra six months and are allowed not closed to gas and/or electricity.
It has also been agreed that energy suppliers more fixed, long-term contracts to offer citizens more stability. It depends on that that it abort prematurely of long-term contracts with energy companies for citizens more expensive will become.
“Final details”
The coalition parties were updated on Monday evening by Finance Minister Sigrid Kaag. Earlier in the day, she already spoke with the party leaders Jesse Klaver of GroenLinks and Attje Kuiken of the social-democratic PvdA. They sent a proposal to the government for a price cap last week. Afterwards, they said they were “very hopeful” that their plan for a price cap for gas and electricity would be adopted by the government and implemented before the end of the year.
“The last details are still being worked out and filled in,” it was said. This concerns, among other things, the arrangement for the last two months of this year. In recent months there has been continuous consultation between the government and energy companies. The industry association of energy companies, Energie-Nederland, was not yet available for comment.
Large package of measures
The plans for the price ceiling will be sent to parliament today/Tuesday. Then the government will announce a large package of measures to compensate people in the Netherlands next year for the sharply increased energy prices and inflation.
The opposition has long insisted on doing something for the citizens in the last months of this year. The government previously allocated almost 7 billion euros to help purchasing power, but this autumn would no longer be possible because it would no longer be possible from a technical point of view.
The Vivaldi parties of our Belgian federal government reached an agreement last week to help Belgians with extreme energy bills. For example, there will be a basic energy package in November and December, which can be extended if necessary, together with a fuel oil cheque.
The basic package is subject to conditions in terms of income and type of contract. Couples may have a maximum joint net taxable income of 125,000 euros per year to be able to make full use of the discount. For single people it is 62,000 euros. EUR 3,700 will be added to the ceiling for each additional dependent person. Respectively, that amounts to a monthly income of 5,000 euros for couples and 3,000 euros for singles. These amounts are indicative. The net taxable annual income is the only factor that determines whether you are entitled to the basic energy package.
Is a discount also for retirees? What if my advance is less than the discount? Do I have to repay part if I earn too much? Your questions about the basic energy package answered (+)
This is how the European Commission wants to tackle the energy crisis this winter: 140 billion euros in excess profit tax and compulsory savings on consumption (+)
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