The cabinet yesterday presented the details of the maximum energy ceiling. From 1 January 2023 to 31 December 2023 there will be fixed rates for people with variable energy contracts.
In the video below we explain how the maximum price works.
In summary: for the first 1200 cubic meters of gas you pay 1.45 euros per cubic meter and for a maximum of 2900 kilowatt hours of electricity you pay 40 cents per kWh. Anything that exceeds this ceiling is regulated at the prevailing market price. Those who pay the lowest energy prices through a permanent contract will continue to pay the old tariffs.
1. Who will receive € 190 compensation on the energy bill in November and December?
In principle, all households and other small consumers with their own electricity connection will receive a total compensation of 380 euros for these two months. This also applies to people with lower energy bills. So yes, everyone benefits from it and therefore also people who don’t need it. The cabinet considers it important that the tax breaks are introduced quickly and has opted for a general measure.
2. What happens if you have a lower energy bill in November and December, for example only 150 euros per month?
Then the amount of the advance for November and December will be 0 euros and you will receive a credit note of 40 euros or this will be included in your annual accounts (this varies depending on the provider), because you are entitled to 190 euros in compensation. So you have not lost part of your compensation. Your energy supplier will then transfer you 40 euros to your account that month.
Energy suppliers have experience with people with negative energy bills. With solar panels you can sometimes even generate more energy than you consume, which you then return with a negative energy bill. The same happens if the final settlement shows that the amounts of your monthly payment were higher than the actual consumption.
3. What if you don’t have a smart meter or if the smart meter can’t be read remotely. How does your energy supplier know that you will stay within the energy ceiling of 1200 cubic meters for gas and 2900 kWh for electricity?
Energy suppliers can remotely read a smart meter 12 times a year (or more often with your permission) and know what your energy consumption is. There are now 7 million households with such a smart meter.
If you have chosen your smart meter not to be read remotely yourself, or if you still have an old energy meter with such a turntable, you must report your meter reading yourself to the energy provider at the end of the year. You will receive a message about this from your energy supplier. If no meter readings are known from the energy supplier, an estimate is made.
4. What if your energy consumption now exceeds the maximum energy limit. What price do you pay then?
The moment you consume more than the volume for the maximum price, you pay the agreed contract price. This will eventually be deducted from the annual invoice. The government hopes that people will continue to save on their energy consumption, so that their energy bills are as low as possible.
5. Can you still switch to another energy supplier? And the energy ceiling?
Yes, you can still switch to another energy provider. And no, then you don’t have the advantage of using the energy cap twice. Energy suppliers work with a so-called consumption profile for gas and electricity. In winter you consume much more gas than in summer.
This consumption profile allows you to allocate an average consumption to a period, without detailed meter readings. The volume of the price cap is distributed throughout the year on the basis of the consumption profile. In this way it is possible at any time to draw up a final transaction or change someone. If you change, you must also provide the meter readings and the exact consumption will be calculated.
6. What if you now have block heating and several houses are connected to a collective central heating boiler? And then the compensation?
The government is aware of this problem. According to CBS, this affects 5.5 percent of all homes. There is already an energy tax refund system in place, so that there is an idea of how many households are behind a meter.
“The government will make every effort to offer an adequate solution, but it realizes that it will probably be very difficult,” writes the Ministry of Economy and Climate Policy in the letter on the temporary effect of the price cap.
