Will we freeze in winter? We recently discussed this issue in our video: Will we freeze in winter? Energy and Benefits: Government Plans. Low-income families will not be able to pay their bills at the new energy tariffs. The Dutch expected support from the government, and now the corresponding decision has been made - message October 4 appeared on the official government portal.
Preferential rates
From January 1, 2023, feed-in tariffs will be available to all households and other small consumers of electricity and gas:
- For gas, the preferential rate will be EUR 1,45 per cubic meter up to 1200 cubic meters for a year.
- For electricity, the preferential rate is €0,40 per kWh up to 2900 kWh for a year.
The calculation of consumption rates was carried out on the basis of statistical data. In 2021, the average household energy consumption was 1200 cubic meters of gas and 2460 kWh of electricity. In 2023, a household with an average consumption will benefit from the introduction of feed-in tariffs of about 2500 euros.
Consumption of gas and electricity per year depending on the type of housing
2021 year | Cubic meters | kWh | Cubic meters | kWh |
The average | The average | 10% savings | 10% savings | |
One person living in a new small apartment | 640 | 1600 | 576 | 1440 |
One person living in an old small apartment | 840 | 1590 | 756 | 1431 |
Two or more people living in an old small apartment | 1040 | 2330 | 936 | 2097 |
One person living in an old small terraced house*** | 1090 | 1690 | 981 | 1521 |
One person living in an old medium-sized terraced house | 1300 | 2000 | 1170 | 1800 |
Two or more people living in an old small terraced house | 1260 | 2800 | 1134 | 2520 |
Two or more people living in a new medium-sized terraced house | 1120 | 3290 | 1008 | 2961 |
Two or more people living in an old medium-sized terraced house | 1430 | 3220 | 1287 | 2898 |
Two or more people living in an old large terraced house | 2020 | 4000 | 1818 | 3600 |
Two or more people living in an old large detached house | 2530 | 4670 | 2277 | 4203 |
Source: Central Bureau of Statistics, 2022
***Note: A row (blocked) building, or a townhouse, involves the adjoining of neighboring houses to each other by side walls.
Unprecedented high prices
The introduction of feed-in tariffs was commented by Climate and Energy Minister Rob Jetten: “More and more people are suffering from unprecedented high energy prices. With the introduction of tariff limits for suppliers, we are helping to reduce this burden, and people will have more confidence. When determining the price, we took into account the peculiarities of heating in the country. In particular, a significant part of the housing is connected to the heating network or heated using hybrid heat pumps. In this regard, we have increased the rate of electricity consumption at a reduced rate.”
Cheaper electricity
The maximum allowable tariff for electricity within the consumption rate was reduced from 0,70 to 0,40 euros, while the electricity consumption rate itself increased from 2400 to 2900 kWh per year. This means that the majority of consumers will be able to meet the norm (see the table above). For those who struggle to fit in or don't fit in, this will be an incentive to save. The norms are most suitable for households that heat their homes with a hybrid heat pump and therefore use more electricity and less gas.
Heating network
Households connected to the heating network will also benefit from the introduction of feed-in tariffs. The rate for thermal energy will be pegged to gas prices and will amount to 47,39 euros per gigajoule (GJ) of heat. The consumption rate for heating networks will be worked out additionally. A support option will also be offered separately for people living in row houses (see note above) where there is shared heating for several households.
Fixed discount in November and December
Since feed-in tariffs within the energy consumption norm will only be introduced from January 1, 2023 to help households at the beginning of the heating season, the government is introducing a fixed discount of 190 euros per month for electricity. The discount will apply in November and December. This compensation is the same for all small consumers and will be charged through suppliers.
Other small consumers
Not only Dutch households, but also individual entrepreneurs (ZZP), shops, small public organizations, as well as part of small and medium-sized enterprises will be able to use preferential tariffs. The government will also develop a targeted compensation scheme for energy-intensive enterprises that belong to the small and medium-sized business (MKB) sector.
Subsidy for energy suppliers
Energy suppliers will receive compensation from the state. The amount of such compensation will depend on price dynamics: if energy prices remain at current levels, the total costs from the state budget for feed-in tariffs and a discount in November and December are estimated at about 23,5 billion euros.
Publication Date: 19.10.2022