The much-discussed energy price cap will actually kick in from January 1st. It was created by the government to compensate people with high energy bills. It sounds very simple, but the implementation is a bit more complicated. We will explain.
What is the maximum price?
The price cap means that as a consumer you will benefit from maximum tariffs, up to a certain consumption. If you consume more energy, you pay the rate stipulated in your energy contract. If you have a floating contract, your rate will soon be above the maximum price cap rates.
What are the price cap rates and up to what consumption do they apply?
For gas, you pay 1.45 euros per cubic meter of gas up to a consumption of 1200 cubic meters within the tariff limit. For electricity you pay €0.40 per kilowatt hour up to a consumption of 2900 kilowatt hours. If you are connected to a heating network (district heating) you pay 47.38 euros per gigajoule up to a consumption of 37 gigajoules of heat.
With the arrival of the maximum ceiling, the VAT reduction on energy will expire on 1 January. The VAT will therefore go from 9% to 21%. Unfortunately, this is also reflected in your energy bill.
To whom does the price cap apply?
The price ceiling applies to small consumers, i.e. to all those who have a small energy connection. Think of families, self-employed workers, small businesses and associations. The building with the connection must be used for living or working. Think of a home, office or café. Therefore it does not apply, for example, to a garage box with a separate connection.
When will I know what my new monthly amount will be?
This information comes from your energy supplier, but will likely not follow up until after January 1, 2023.
I’m stuck with block heating, how is it calculated?
Households with a collective connection, the so-called block connection, are not included in the price ceiling. They receive a fixed amount per house. The government has not yet decided what the amount will be.
The price limit starts on January 1st, but my contract ends in April. How is it calculated then?
Well, that’s quite complicated. The maximum price applies from 1 January 2023 to 31 December 2023. According to the Ministry of Economy, the maximum price is only feasible if it is in line with the annual energy bill.
That is why the maximum consumption is divided into two parts, namely the first part up to the annual energy bill and the second part after the energy bill. That annual statement falls on everyone’s mat at a different time, because it just depends on when you closed it.
To make it easier, the central government has an example of calculation done. If you have a contract until April 13, you can use the first part of 610 cubic meters of gas and 976 kilowatt hours of electricity at the rates of the maximum price. If you consume more, you pay the rate of your energy contract. From 13 April to 31 December, 590 cubic meters of gas and 1924 kilowatt hours of electricity can still be used within the tariff ceiling. Want to know how much you can use up to the expiration date of your contract? RTL News has a calculation module done.
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