Home » Business » Energy is in danger of becoming unaffordable, who will foot the bill?

Energy is in danger of becoming unaffordable, who will foot the bill?

ANP

NOS Newstoday, 18:00

  • Charlotte Klein

    editor economics

  • André Meinema

    Economics reporter

  • Charlotte Klein

    editor economics

  • André Meinema

    Economics reporter

The energy crisis is increasing and energy bills are rising. The time when we happily went shopping for the cheapest gas and light is just behind us.

You now pay the main price for a new energy contract. Anyone who concludes an energy contract as of 1 July for an average use of 1200 m3 gas and 2400 KWh electricity, has now lost 360 euros per month. A year ago that was still 120 euros.

This makes the Dutch consumer much more expensive than other Europeans. Energy prices are nowhere as high as here, according to the European Household Energy Price Index of the energy consultancy VaasaETT and calculations of Energievergelijk.nl. At the moment it does not appear that energy prices will fall again in the foreseeable future.

Peak gas price

The bare gas price on the international gas market is the main price driver. In June and July, gas prices peaked to more than 200 euros per MWh, twice as high as in May.

The price of gas and electricity in a country is then determined by a whole series of factors that differ from country to country.

Energy bill in Europe for an average household (1200 m3 gas and 2400 KWh electricity)

Average energy consumption Gas Electricity Annual amount Monthly amount
The Netherlands 3295 1005 4300 358
Belgium 1595 965 2560 213
France 1321 605 1926 160
United Kingdom 2153 1513 3666 305

—-

“We owe our high gas price to a large extent to the high taxes,” says Koen Kuijper of Energie Compare.nl. “More than 37 percent of our gas bill consists of government levies, namely energy tax and VAT. Nowhere else in Europe is this share so large.”

In a number of European countries, the government has taken measures to keep prices down. In France, the government applies a price ceiling for gas and electricity prices. In Portugal, the government has lowered taxes on gas. Taxes on electricity have also been reduced in Italy and Austria. The tax on electricity has also been reduced in Greece and Spain.

In the Netherlands, the VAT on energy has been temporarily reduced as of 1 July, from 21 to 9 percent. At current prices, this saves an average household about 35 euros per month. Previously, the energy tax was reduced and lower incomes were promised an extra allowance.

But the pressure on the government to do more is increasing. This is how FNV chairman Tuur Elzinga argued Tuesday for setting a price ceiling: a maximum price for energy. It is a measure that has led to the necessary complications in France.

The largest French electricity company, EDF, is in financial difficulties due to the price cap. For that reason, the French state wants to nationalize EDF completely, France already owns 84 percent of the energy giant. EDF is the operator of dozens of nuclear power plants, an important pillar of the French energy market.

Energy companies in the Netherlands do not think a price ceiling is a good idea at all. Essent top woman Resi Becker: “Our purchase price for gas is currently very high. If we sell it to households for less money, it will lead to instability. This poses risks for parties that have to ensure the supply of energy.”

Essent believes that three things should be done: a lower energy tax, subsidies to insulate houses and simplifying long-term contracts. Becker: “Customers can easily switch suppliers, which makes it more difficult to offer longer contracts. It is precisely with long-term contracts that we can keep the price lower.”

‘Make subsidy income dependent’

Eneco advocates introducing an income-related energy subsidy in 2023, with an extra tax discount on the energy bill. According to Eneco, this measure will help the households that need it most: the low and middle incomes. It is also easy to implement and it maintains incentives to save energy.

The employers’ organizations VNO-NCW and MKB-Nederland think it is a good idea if a package of measures is drawn up with all parties involved, just like in other European countries: “It is important that we do not rule out any measure in advance and explore all options.”

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.