The price ceiling for energy prices raises questions among many Dutch people. What does this energy cap mean for my monthly energy costs? Will I move on soon?
Update 4 October 2022: the final energy ceiling is known, check it here.
According to the cabinet, around 50 percent of all Dutch people would not exceed the price ceiling under any circumstances. However, there are also a number of groups that does not surplus or even decline, according to calculations from this site.
We discuss them one by one.
1. Households with a heat pump
Households with a new, well-insulated home and a heat pump do not have a gas connection. So they have nothing to the gas price ceiling.
But these households usually have nothing to do with the price ceiling for electricity. This is because the limit of 0.70 euros per kWh is quite high. Most existing electricity contracts are still well below this with their tariff.
Lots of electricity, little gas
Households with a heat pump – which works in a sustainable way – use relatively much electricity, but no or much less gas. The price cap feels unfair to them. They have probably invested heavily in sustainability or a modern newly built home, but are not reaping the benefits.
It would be fairer if people with minimal gas consumption were given a higher consumption cap for electricity, for example 5,000 kWh instead of 2,400 kWh.
Koen Kuijper (Energiecomparison.nl)
A person using 7,000 kWh of electricity pays around 300 euros per month in advance. We assume a rate of 50 euro cents per kWh, which is quite normal these days.
On the other hand, the VAT on energy rises again to 21 percent in 2023. This ensures that all energy-related costs will be higher. So not only the variable prices, but also the energy tax, ODE, network costs and fixed delivery costs.
Kuijper is concerned about this ‘forgotten’ group:
Households with a heat pump and good insulation will probably even be disadvantaged from next year due to the higher VAT rate.
Koen Kuijper – Energy expert
Another uncertain factor is the reduction of the energy tax (tax credit). This discount may even decrease next year, as this year it would be a ‘temporarily’ higher discount. But details of this are not yet public.
Remains a good investment
According to the government, the heat pump is still a good investment. After all, the energy ceiling is only a temporary measure, while a heat pump provides year-on-year savings on costs, especially if combined with solar panels.
Students often live together in larger homes. They then get one connection to electricity and gas, which everyone uses for heating and electricity. In addition, the student houses are often poorly insulated. Their total consumption therefore exceeds the values in the energy ceiling.
The price cap certainly reduces the costs for the student somewhat, but only to a limited extent, because the market interest rate must be paid for most of the consumption. And that market rate has only increased recently. For example, Essent announced that they would raise rates sharply from 1 October. And next year everyone gets another increase in the VAT rate.
3. Families with district heating
Another large group that does not benefit or receives significantly less benefit from the price cap are households with district heating.
The cabinet seems to have forgotten households with district heating. There is no built-in ceiling for this type of heating. At the same time, there is often a higher electricity consumption because the households have an electric boiler.
Koen Kuijper – Energy expert
The prices of the heating network and the gas prices are even linked. So a high price is paid for the district heating, but there is currently no ceiling.
8 questions about the energy ceiling
The exact design of the energy ceiling still needs to be worked out, the cabinet shows. Many details are still missing.
You can read answers to the 8 most important questions about the ceiling here.