As an energy consumer, these are turbulent times and we know this better than anyone.
Nearly everyone has now expired their fixed-price-contract with fixed rates and is therefore now at the mercy of the rates in the energy market. Fortunately, the energy suppliers and the government have come up with a consumer price ceiling on energy for 2023. that were partly presented on Prinsjesdag (the day the government presents its budget for the coming year). Below is a small selection of important information that concerns you in the near future.
What is a price ceiling?
A price ceiling guarantees a maximum price for electricity and gas. You do not pay more than this price for the first part of your consumption. That first part of your consumption is called the base consumption. If you use more than the base consumption, you pay the rate in your energy contract with your supplier.The price ceiling ensures that base consumption becomes more affordable for many people. At the same time, it encourages energy savings, which is always a good thing.
When does the price cap take effect?
The price cap will come into effect on January 1st, 2023. The government and energy suppliers need some time to arrange all this properly. This is because it is a solution that should fit 7.5 million households in the Netherlands. An additional fee of 190 euro per month. Yhis will be paid out by your supplier if you are a customer and have an electricity meter on the 1st of the months November and December 2022. After this the price ceiling will kick in.
What is a base consumption?
A base consumption can be seen as a consumption bundle. You pay a lower rate for consumption within the bundle. If you use energy outside the bundle, it is more expensive. In this way, the energy we need anyway becomes more affordable while at the same time we are stimulated to save energy.
The base consumption is now set by the government at 2,900 kWh of electricity and 1,200 m3 of gas. This basic consumption applies to everyone. So it doesn’t matter how big your property is.
What rate will I pay within the price cap?
For 2023 the prices are set at:
Electricity
Up to 2.900Kwh/year Max 0,40euro/Kwh
Above 2.900KwH/year Your rates with your supplier
Gas
Up to 1.200 M3/year Max 1,45euro/M3
Above 1.200KwH/year Your rates with your supplier
Who does the price cap apply to?
The price ceiling will apply from 1 January 2023 for all households and companies with a small-scale connection.
Good to know:
This concerns connections that supply electricity and gas to addresses that are intended for living, working or staying. The price cap only applies if your rate is higher than the fixed price of the price cap.
Does the price ceiling also apply to district heating?
There is currently no price ceiling for district heating. The rate for district heating has not changed since 1 January 2022. As every year, we expect an adjustment beginning of 2023. We will inform you in December about this, and whether there is a price ceiling for district heating.
What happens to the energy tax and VAT?
As of January 1, 2023, the energy tax will increase again. The VAT will also be increased from 9% to 21%. These were temporary measures to keep energy affordable. The advantage of a price cap is that it protects better against further price increases.
All in all, there is still quite a lot of uncertainty, but keep an eye on our website and newsletters because as soon as things become more clear or change, we will inform you.
Tip: If you need more clarity and if you want to receive a notification from us when you can switch to a fixed-price contract or a contract with better rates, go to our website and click on our energy alert.
Team PartnerPete