The Dutch government plans to reduce the burden on households caused by rising energy prices. By tradition, all government budget plans are announced on Prince's Day (Prinsjesdag) - September 20th. These plans already contained 16 billion euros in aid to the population of the Netherlands, but the government decided that it could do even more. New amendments to the budget will be made after Prinsjesdag.
The Cabinet of Ministers held talks with the parties in the parliamentary coalition on supporting the government's plans to reduce household energy costs. It is planned to establish a price ceiling for electricity and gas. Large companies supplying gas and electricity to the population will introduce a price ceiling as early as November 1. Smaller suppliers will need more time, so they will start applying the price cap from January 1, 2023. The government compensates supplier companies for the difference between the real cost of energy resources and the bills issued to the population.
Until the price ceiling is determined, this procedure requires careful calculations, which will take time. In general, the scheme will work like this:
- establish maximum consumption rates;
- within these volumes there will be a price ceiling;
- energy resources consumed in excess of the norm will be paid at the market price.
The government believes that such a scheme will stimulate the saving of energy resources.
Norms of consumption have not yet been approved. The average consumption of gas in The Hague is 1200-1500 cubic meters, and electricity - 2500-3000 kilowatt-hours per household per year. It is assumed that consumption within the average norms will be paid at prices set by the government.
The government promises to reduce household energy spending this year. There is not much time left, so it is to be expected that decisions will be formulated and approved in the near future.
Publication Date: 11.10.2022
