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Energy compensation also threatens to end up with people with low rates & More Latest News Here

 

The price ceiling to be introduced from 1 January ensures that households pay no more than 1.50 euros per cubic meter for gas and no more than 70 cents for a kilowatt hour of electricity. People who are so happy that they have a lower rate are not compensated extra as a result, because that is not necessary either.

Temporary intermediate variant

But that kite probably does not apply to the interim solution that the cabinet wants to introduce from 1 November. Then there is no real price ceiling yet, but the intention is that energy suppliers ‘simulate’ a tariff ceiling from that moment on, Minister of Finance Sigrid Kaag wrote in a letter to the House this week.

That idea comes from the energy companies themselves. The minister did not yet give away many details on Budget Day: “In this intermediate variant, an amount is processed for the months of November and December to reduce the installment amounts”, the letter states. The state transfers a subsidy amount to the companies, which reduces the monthly payments. That’s what it comes down to.

‘Overcompensation’

However, the simulated ceiling does have a very big disadvantage compared to the real ceiling, according to government notes that have been made public. The proposal that was put on the table on Monday means that the airlines will divide a fixed amount among all customers. And therefore also about customers who, because they have a long-term contract at a fixed price, do not suffer from a high rate at all.

Officials from the Ministry of Finance are aware that this money does not necessarily end up in the right place. “In practice, this means that people who now have a low rate will receive an even lower rate and therefore receive overcompensation,” said Minister Kaag and State Secretary Marnix van Rij.

A spokesperson for the Ministry of Economic Affairs, which ultimately has to implement the subsidy scheme, says that the exact details are still being discussed with the suppliers and that it is not yet possible to say exactly how the scheme will work.

Not feasible

In the advice to the ministers of Finance, it was also proposed to try to arrive at a more intricate plan with the energy companies, so that the subsidy only ends up with people who actually have a high rate to choose from.

But that just doesn’t seem feasible. A spokesperson for Energie Nederland, the club of energy companies that consults with the cabinet about what is possible, says that it assumes that it will be a ‘generic measure’. That is, the money is distributed among all customers and not just the customers who need it. She points out that previous attempts to provide compensation to specific groups proved impracticable for the energy companies.

see difference

Minister Kaag maintains today that ‘customers should see the difference’ as of November 1, but adds that the details still have to be worked out. “There is still a lot that is unclear.”

Last year, when the energy crisis had just broken out, the cabinet also came up with a hastily put together scheme to compensate people for rising energy bills. Research by RTL Nieuws showed that this compensated 2.1 million households that did not have to deal with an increasing bill in 2022.

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