Consumers of one Dutch energy company will have a cadeautje (small present) this holiday season: lowered energy rates! 🎁
Unlike big Dutch energy providers Vattenfall and Essent, Eneco will reduce their variable rates from January 1, reports RTL Nieuws.
What does this mean for consumers?
Those that receive a new variable rate in January will be paying 10% less per month.
With 67% of all Dutch households holding variable energy contracts, this news definitely sounds like an early Christmas present for Eneco customers! 👀
Eneco’s reduced rates will apply to consumption above the governmental price cap.
What is the price cap?
The price cap sets a price ceiling of €1.45 for the first 1200m3 of gas and €0.40 for the first 2900kWh of electricity used, in order to protect consumers from being bombarded by sky-high energy costs.
READ MORE | All you need to know about the Dutch energy subsidy and price cap
At present, the current rate for gas and power are €3.04 per m3 and €0.76 per kWh, respectively (factoring in energy taxes for 2023 and 21% VAT).
Enjoying that price cap? There’s a catch
In order to account for the current price cap, the government will raise taxes in 2023.
VAT cuts will go from 9% to 21%, and tax credits (the amount of money that taxpayers can expect to see back) will take a nosedive.
Meanwhile, De Autoriteit Consument&Markt (the Dutch Authority for Consumers and Markets) recently announced that grid management costs are increasing by ten euros on average, which consumers are also expected to foot the bill for.
What do you think of Eneco’s decision? Tell us all about it in the comments below!
Eneco is lowering to 2,99 euro per cubic gas en 0,69 cent per kW power for 1/3 of their customers without fixed price. By comparison Essent raised their price a while back to rates of: € 0,53 per kWh for power and € 2,15 per m3 gas.
It seems Eneco was way more expensive to begin with.
Yes my thoughts exactly. When you are more expensive to begin with it is easy to lower 10%, but in the end still being more expensive.
Not really a present.