December 5, 2022

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Minister Kag: The ceiling on energy prices is already temporary

Minister Kag: The ceiling on energy prices is already temporary

This month and next month, each family will receive €190 in contribution to energy costs. The price cap applies for 2023. A reduced rate is applied to the average consumption of electricity and gas, for everything over the amount you pay in full.

The price ceiling will cost the treasury tens of billions of euros. “We can’t go on with this for long,” Kag warns. “We did it now because the uncertainty was too big to help people during the winter.”

Off the track

Last weekend, Klaas Knott of the Dutch central bank appealed to the cabinet to quickly scale back energy compensation for those who really need it. Otherwise, according to Knot, the situation threatens “where government finances go off track.”

It is not yet clear how high the price cap bill will be. This depends heavily on how energy prices develop. In the spring, the government will consider how to pay the bill. Whether the full amount can be collected is up to the Minister.

How does the price cap work? We explain in this video:

In any case, the intent is not to continue to apply the price cap – which applies to everyone – beyond 2023. If energy prices remain high, the Cabinet will have to “look closely” at the support that is still needed for the winter of 2024, but according to Kaag This will be “only temporary and as targeted as possible”.

Energy support for small and medium businesses

Small and medium-sized companies complained last week that energy subsidies for this sector are too small, and many companies are not qualified for it. The important requirement is that at least 12.5% ​​of your sales consist of energy costs.

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Many small and medium businesses face significantly increased costs, but do not meet the criteria to be eligible for support. For them, Kaag has a grim message: “We can’t help every entrepreneur, it’s a daunting task if you yourself are the entrepreneur.”

According to the minister, the scheme cannot be expanded to include small and medium-sized businesses.

The full conversation with Finance Minister Kag will be broadcast this afternoon at 3.15pm on RTL Z and repeat at 4.15pm and 5.15pm.