Skyrocketing energy bills, price ceilings, and energy subsidies. If you live in the Netherlands, these are issues you’ve probably been hearing a lot about lately.
With the current European energy crisis, many Dutch households are struggling to make ends meet with their energy costs.
Thankfully, the Dutch government has been working on developing some financial schemes to help consumers with their rising energy bills.
And they’re acting quickly. With winter right around the corner, the cabinet has already organised a new Dutch energy subsidy.
The new Dutch energy subsidy: what is it?
Starting next month (November), the Dutch cabinet will offer all households €190 in compensation for their monthly energy bills. This subsidy will only be applied in November and December 2022.
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This discount was settled between energy providers via a subsidy from the cabinet, which will cost a casual €2.6 billion in total.
While this doesn’t entirely solve the energy problem, it allows the Dutch government to ease the load for all consumers, especially poorer households which are less likely to have well-insulated walls, for instance.
The 2023 energy price ceiling: how will this affect my energy bills?
On top of the energy subsidy, the Dutch cabinet will put in place a price ceiling on household energy costs starting January 1. This will last until the end of 2023.
While the term “price ceiling” sounds self-explanatory, there are other, more complex, things to keep in mind when it comes into effect. 🧐
How will the Dutch energy price ceiling work?
The price ceiling will cap energy costs by setting a definitive price on energy for consumers. This amounts to €1.45 per m3 for gas and a maximum of €0.40 for electricity.
These lower prices will count towards the price ceiling only if your consumption rate falls below 1,200 m3 of gas per year and 2,900 kWh of electricity per year.
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Previously, the Dutch cabinet set out to have a limit of 2,400 kWh on electricity per year. But, this has now changed to 2,900 kWh, which gives electricity usage a higher ceiling than before.
That being said, it’s safe to say that the cabinet’s plans are subject to change due to the instability of the situation. 🤷🏻♀️
For now, the maximum price for electricity rests at €0.40 per kWh. In terms of gas, the consumption rate will be limited to €1.45 per m3.
The price ceiling covers 1,200 m3 of gas and 2,900 kWh of electricity.
Households that consume more energy than the above-mentioned rates will have to pay the full market price for that part, in addition to the price ceiling costs.
To get a clear picture of the cabinet’s current energy plans, let’s use an example to show what will really happen once the price ceiling comes into effect next year.
Example scenario: single-person household
Sarah lives alone in a flat in Amsterdam (yes, this is probably unrealistic in the current housing shortage, but let us dream for explanation purposes 😭).
She consumes about 700 m3 of gas and 1,600 kWh of electricity per year, which is below the average yearly consumption of gas and electricity for a single-person flat in the Netherlands.
Her gas bill will come out at 700 x 1.45 = €1,015 while her energy bill will cost her 1,600 x 0.40 = €640.
Thanks to the price ceiling, her monthly gas and electricity costs (1,015/12 = €85 and 640/12 = €53) will come out at approximately €138, starting from January 1, 2023.
Still got questions? No problem, this is a complex issue! Check out our FAQ below for further information. 😉
What do you think about the cabinet’s energy plans? Tell us in the comments below!
How will the Dutch government reduce my energy bill in the near future?
The Dutch government will introduce an energy subsidy of €190 for all households during the months of November and December 2022. Starting next year, the cabinet will put a price ceiling on energy costs to lessen household bills.
When will the Dutch energy price ceiling come into effect?
The Dutch energy price cap will come into effect on January 1, 2023, and will last until the end of 2023.
Will I have to pay the Dutch market energy price next year?
Next year, you will pay less for your energy costs thanks to the price cap. However, if your energy consumption goes above the price ceiling, you will have to pay the full market price for the remaining costs.
How can I get the best contract for my Dutch energy bill?
In order to compare different energy contracts, it’s important first to find out how much gas and electricity you’re consuming on average. On top of this, you need to consider whether you want a contract with fixed or variable costs.
What are the supply costs in my energy contract?
Speaking of energy contracts, costs don’t stop at consumption rates. There are other costs, like fixed supply costs, to keep in mind. These supply costs can go up to €50 – €60 per month and aren’t included in the price ceiling since the rates differ per supplier and per area.
This is not geared for those that need it. The poor people that sit in accomodation that is not well insulated will probably use more than that 1,200 m3 of gas per year.
If you use more than 1,200m3 before January, does that count for the 2023 usage? Or do we start from scratch in January?
So basically this is a form of discrimination against non-single non-small households.
a family of 4-5 people living in a 120sq m rijhuis shouldn’t have the same price cap as a teenager living in a warm tiny studio in an apaprtment. This is a blatant discrimination. The price cap should be determined by amount of persons in a household and house size. Is should be much higher than this laughable 1200m2 and 2900kwh. Baseline consumption of a family of 5 is 5500kwh and 2000m3. Non capped prices are so high that the price cap for that family gives no visible help. It’s sad. My new contract is for 800 per month and it’s like second mortgage. It’s brutally unfair.