Dutch government announces energy price cap for consumers

Oct 4, 2022, 7:29 AM | Updated: 7:57 am

Mark Rutte, Prime Minister of the Netherlands, makes remarks at a press conference with Chancellor ...

Mark Rutte, Prime Minister of the Netherlands, makes remarks at a press conference with Chancellor Scholz after the meeting of the German-Dutch Climate Cabinet at the Federal Chancellery in Berlin, Germany, Tuesday, Oct. 4, 2022. (Bernd von Jutrczenka/dpa via AP)

(Bernd von Jutrczenka/dpa via AP)

THE HAGUE, Netherlands (AP) — The Dutch government unveiled details of its planned energy price cap for households Tuesday, together with the outline of a subsidy system aimed at easing the pain for small-to-medium-sized businesses that use a lot of power.

The moves come amid soaring prices for gas and electricity caused by Russia’s war in Ukraine, and moves across Europe to get a grip on skyrocketing energy bills that have forced some businesses in the Netherlands to halt production.

The government said its consumer price cap will start in January and limit electricity to a maximum of 0.40 euros ($0.40) per kilowatt hour while gas will be a maximum of 1.45 euros ($1.45) per cubic meter. Households will still have to pay market rates on any gas they use each month over 1,200 cubic meters or electricity over 2,900 KwH.

It said the cap should save a family with average energy use some 2,500 euros in 2023.

To help families hit by a cost-of-living crisis this year, all households will receive a discount of 190 euros on their energy bills in November and December, the government said in a statement.

At the same time, the government announced it is establishing a scheme to compensate higher energy costs for small and medium businesses that will be based on their energy use and their turnover.

Economic Affairs Minister Micky Adriaansens said that many companies often can’t avoid high energy bills because of the nature of their business and can’t raise their prices enough to cover the extra costs. “That’s why the government is now introducing extra support” via the new system, Adriaansens said.

Exact details of the system are being worked out to ensure they adhere to European Union rules on state support for businesses, meaning it will likely not be available until the start of next year. The government said it is working on extra support for businesses until the new subsidies kick in.

The new subsidies were announced as a Dutch government delegation led by Prime Minister Mark Rutte met German Chancellor Olaf Scholz and other ministers in Berlin for talks that covered issues including moves to tackle energy price rises.

German Economy Minister Robert Habeck and his Dutch counterpart, Minister for Climate and Energy Policy Rob Jetten, said Germany and the Netherlands were exploring possible cooperation to promote the market ramp-up of hydrogen produced using renewable energy.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

              Mark Rutte, Prime Minister of the Netherlands, makes remarks at a press conference with Chancellor Scholz after the meeting of the German-Dutch Climate Cabinet at the Federal Chancellery in Berlin, Germany, Tuesday, Oct. 4, 2022. (Bernd von Jutrczenka/dpa via AP)


(Mike Stocker/South Florida Sun-Sentinel via AP)Credit: ASSOCIATED PRESS...

Associated Press

Florida police search for 3 gunmen who wounded 9 at crowded beach on Memorial Day

Police are responding to a shooting near the beach broadwalk in Hollywood, Florida.

3 days ago

Crew members assemble the main stage ahead of the 2023 Scripps Nations Spelling Bee on Sunday, May ...

Associated Press

Exclusive secrets of the National Spelling Bee: Picking the words to identify a champion

As the final pre-competition meeting of the Scripps National Spelling Bee's word selection panel stretches into its seventh hour, the pronouncers no longer seem to care.

3 days ago

FILE - Gabby Petito's mother Nichole Schmidt, wipes a tear from her face during a news conference o...

Associated Press

Mother of man who killed Gabby Petito said in letter she would help son ‘dispose of a body’

The mother of the man who killed Gabby Petito told her son in an undated letter that she would “dispose of a body” if needed because she loved him so much, according to copies of the note shared publicly for the first time this week by attorneys for Petito's parents.

6 days ago

A member of the 3rd U.S. Infantry Regiment, also known as The Old Guard, places flags in front of e...

Associated Press

5 things to know about Memorial Day including its controversies

Memorial Day is supposed to be about mourning the nation’s fallen service members, but it’s come to anchor the unofficial start of summer and a long weekend of discounts on anything from mattresses to lawn mowers.

6 days ago

FILE - This artist sketch depicts the trial of Oath Keepers leader Stewart Rhodes, left, as he test...

Associated Press

Officers describe chaos, fear on Jan. 6 as judge weighs prison time for Oath Keepers’ Rhodes

Police officers who defended the U.S. Capitol on Jan. 6, 2021, and public servants who fled the mob's attack told a judge on Wednesday that they are still haunted by what they endured, as the judge prepares to hand down sentences in a landmark Capitol riot case.

7 days ago

Pride month merchandise is displayed at the front of a Target store in Hackensack, N.J., Wednesday,...

Associated Press

Target on the defensive after removing LGBTQ+-themed products

Target once distinguished itself as being boldly supportive of the LGBTQ+ community.

8 days ago

Sponsored Articles

(Desert Institute for Spine Care in Arizona Photo)...

Desert Institute for Spine Care in Arizona

5 common causes for chronic neck pain

Neck pain can debilitate one’s daily routine, yet 80% of people experience it in their lives and 20%-50% deal with it annually.

(Photo by Michael Matthey/picture alliance via Getty Images)...

Cox Communications

Valley Boys & Girls Club uses esports to help kids make healthy choices

KTAR’s Community Spotlight focuses on the Boys & Girls Club of the Valley and the work to incorporate esports into children's lives.


Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

Dutch government announces energy price cap for consumers