ANNOUNCEMENTS•
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Eva Wiessing
Economics journalist
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Sjoerd Mouissie
Data journalist
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Eva Wiessing
Economics journalist
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Sjoerd Mouissie
Data journalist
The price cap will help many households reduce their energy bills, but if your consumption is above that limit, there’s a chance you’ll pay more than you pay now. The large energy companies Essent and Vattenfall will sharply increase their tariffs from 1 January. And for all consumption above that ceiling, you pay full price and more, because energy taxes also increase.
According to comparison site Gaslicht.com, more than a million households are more expensive than before the price cap. They benefit from the scheme because all consumption below the roof is capped at 40 cents per kilowatt for electricity and 1.45 cents per cubic meter of gas. But all of the above consumption is so much more expensive that on balance they will pay more than they used to.
Last week, CPB calculations already showed that the price cap benefit is partially offset by the energy tax hike. The price cap reduces consumer inflation by 2.5 percentage points, while the additional energy tax raises consumer inflation again by 1 percentage point.
This is because the VAT on energy, temporarily reduced to 9 percent, returns to 21 percent. And the energy tax is also increasing. The idea behind this is that people are therefore encouraged to be thrifty and to keep their consumption below the maximum consumption limit as much as possible.
According to Gaslicht.com, the consequences are serious. “I think a lot of people are latching onto the idea of the cap and thinking that, if we look into it a little bit, it will work,” says energy expert Sinie Oskam. “Only, if you go over it again, you’ll immediately pay a lot more. Not a little more. And then it will add to that already high bill.”
More than a million families
The government predicts that 60% of households will fall below the maximum price, taking into account that everyone will save about 10% of energy. So 40 percent is higher. They use more than 1200 cubic meters of gas and/or 2900 kWh of electricity per year.
The comparison site looked at the number of large private consumers in the Netherlands who consume more than 2,000 cubic meters of gas per year and have a variable tariff. Then it turns out that one in six families (1.3 million) will soon pay more than 30 euros more a month than now.
One family out of sixteen (500,000) even exceeds 2,500 cubic meters. “Then you will soon be talking about 100, 150 euros or more,” says Oskam. “I can imagine that a lot of people can’t financially afford these kinds of raises.”
Because it’s certainly not always about wealthy people in a large villa. According to research agency TNO people outside the Randstad are vulnerable, often living in large houses that are poorly insulated and on relatively low incomes, especially in northeastern Groningen, Enschede or Heerlen. They consume a relatively large amount of gas. and often they cannot become more sustainable because they live in rented accommodation.
And there are also many households that go over the roof just because of their electricity consumption.
Single mother Nicole Tersteeg and her six children will lose more than 200 euros a month under the price cap. She can’t afford it, because she is indebted to counseling:
Higher energy costs despite price caps: “We go to bed early because of the cold”
Last year, Nicole’s family used 7,936 kWh of electricity. This means that for the first 2900 kWh it benefits from the price cap of 40 cents per kWh. But most importantly, it goes to 84 cents in its energy company. According to calculations by Gaslicht.com, Nicole will pay 459 euros per month, including delivery costs, for electricity alone. With gas it remains below the energy ceiling. This means that next year your energy bill will go from 366 to 579 euros per month.
For a family of four, with just a heat pump, electricity costs can also be significantly higher. Average and forecasted energy prices were used for the following calculation: