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ANNOUNCEMENTS•
The House of Representatives debated late into the night with Minister Jetten for Climate and Energy on the hastily put together energy price cap for consumers that will take effect on 1 January. There have been many questions and concerns, but a large majority in the House would rather have a cap price with flaws than no cap price.
A major concern of the House is the complicated calculation method where the date of consumers’ annual declaration can affect exactly what they receive in compensation. This “cut” in the maximum price for gas and electricity cannot be fixed, the minister said.
“But for 95 percent of households this does not cause a disadvantage with normal energy consumption,” Jetten assured MPs. He understands that the calculation method raises questions. “In fact we should have explained it better and actively ourselves. But energy suppliers can only do it this way.”
MPs also wonder whether energy companies can now hedge their business risks with the help of taxpayers’ money and still make big profits.
MP SP Leijten would prefer to see the government buy the energy companies. “Helping the poor by allowing companies to make big profits, we can’t put our signature on that.” But that idea has not found support. “We’re not going to make it in twelve business days until January 1 anyway,” PvdA and GroenLinks said.
The VVD also believes that the scheme is too generous for energy companies. “Why don’t we give them a one-time compensation for implementation costs and reduce profit margins?” asked VVD deputy Erkens.
Jetten said he would permanently monitor the implementation of the cap with accountants and the ACM (Consumer and Markets Authority) and would intervene if energy companies make excess profits.
Heating regulation lockout Friday
Jetten has promised the House that next Friday the regime for families with blocking of heating and blocking of electricity will be announced. “The financial compensation these people receive corresponds to the maximum price and has retroactive effect,” said the minister.
But there is still no solution for housing types where multiple apartments use a single connection and energy meter, such as buildings with staggered floors. For the time being, these families “share” the maximum price. Jetten promised to look into it.
More or less 23.5 billion euros
The Cabinet stipulates the maximum price for energy approximately 23.5 billion euros it will cost. This is the money the government pays energy companies to keep energy prices artificially low. But it can also be much more or less.
That will only become clear next year, Jetten told a concerned House. At the moment he doesn’t want to give guarantees because it depends on the energy market prices.
A majority support financial support for families, but view the program as far from perfect. “This will not be the most brilliant scheme the government has ever devised,” said Bontenbal, a CDA deputy. “There are holes.”
On Thursday, the House will vote on the price ceiling and the various adjustment proposals from the political groups, but it is certain that the price ceiling will arrive on January 1st.
