New Energy Cap Rules: Don’t think you’re rich

Ben Woldring: ‘The price cap plan was implemented very quickly, within a weekend. Everyone was watching. Many details had not yet been filled in at the time. For example, the agreement of the energy companies, so that they do not make too much profit. The details of the situations in the event of a transfer, transfer or the consequences for the time of the annual declaration were also unclear. Now they have become partly known.’

‘We had to study the meaning of all this a little bit. Our analysis shows that only households with average energy consumption benefit from the price cap. Many people will like the details less than they initially thought. This is because the ceiling is spread over all months of the year.

Who will notice the consequences of the adjustment the most?

‘It was already true that people whose energy use exceeded the ceilings of 1200 cubic meters of gas and 2900 kWh of electricity in 2023 would be most affected by high energy prices. The ceiling used to offer some protection, but this is now partly lost due to the settlement method with the monthly ceilings.’

‘Furthermore, the reduction of the energy tax will be reduced and the energy VAT will return to the old level of 21%. A VAT rate of 9% has been applied for the last six months. The annoying thing is that this happens in the winter period, when it has maximum use. What a loud tapping for those who rise above the ceiling. If you stay indoors, the VAT increase won’t bother you because the 1.45 euros for gas and the 40 cents for electricity are simply fixed».

‘In general, high energy prices hit people outside the big cities hardest because they often live in bigger and older houses. However, the government is looking at an average energy consumption that also includes all cities. This is therefore disadvantageous for homeowners in rural areas. They will exceed the maximum price and will therefore be hit even harder.’

Saving energy is the motto, but do you have any tips?

‘We see huge variation in energy tariffs above the energy ceiling. There are suppliers who charge more than 3 euros per cubic meter of gas and 90 cents for a kilowatt hour, but there are also energy suppliers who charge 20 percent less. Look carefully when you plan to exceed the energy limit and change if necessary.’