September 25, 2022

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The Cabinet wants a price ceiling for electricity and gas

The Cabinet wants a price ceiling for electricity and gas

Insiders say that exactly what that maximum price will look like is still the subject of frantic consultation and calculation. There are still “about five” variants on the table. The plan is in line with proposals already made by opposition parties GroenLinks and PvdA.

According to insiders in The Hague, the initial agreement reached by the Cabinet on this was made at the initiative of the group’s leaders in the coalition. They held consultations yesterday and told Cabinet to take GroenLinks and PvdA’s plans seriously. Then it happened. This afternoon there will be consultations on the plan between coalition parties and leaders of the GroenLinks Group and PvdA.

Variables

The government has stated several times that it basically wants to take measures that mainly help people with low and middle incomes. But, as it seems from politicians in The Hague, the more targeted the measure, the more difficult it is to implement.

So it is clear that the Cabinet will set a price cap on budget day that applies to everyone, but is related to energy consumption: even average consumption (1500 m3 of gas and 2500 kWh of electricity per year) you pay the fixed rate, on top of that you pay full blow.

Many Dutch people have problems due to high energy costs, such as Jasmijn and David:

But also the variables associated with your home’s energy label, or income, still counts a lot.

One drawback is that the price cap entry has to go through energy companies. There are dozens of energy companies in the Netherlands. For larger companies, it will be much easier to introduce such a price ceiling than for many smaller energy companies.

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Implementation takes a long time

Sources from The Hague warn that of all the measures before the Cabinet, it is the most difficult to implement. The opportunity to put up such a maximum price this year is considered nil.

“It also means we have to take other actions,” says an insider.

Earlier this week, the Secretary of Climate and Energy, Rob Getten, promised to ensure that no one would be cut off from electricity and gas this winter.

Cabinet is also looking into a special emergency fund for the coming months for people who can no longer pay their bills. This procedure is considered very promising.