Compensation for high energy bills: what do I notice?

1. How exactly will the government compensate?

“Due to the higher gas prices, the price of electricity has also risen. The cabinet is allocating more than 3 billion euros to reduce the tax on electricity, by an average of 170 euros. In addition, the tax credit on the energy tax will be increased. It is now 558 euros and that will increase to 788 euros next year.The allowances will start next year.And apply for one year.Total added, this saves an average household of 400 euros.

Finally, an additional 150 million euros will be made available for insulating homes. Municipalities can distribute this in the form of vouchers among people in poorly insulated homes.”

2. So the government makes no distinction in income?

“No. Someone in a villa receives just as much compensation as a welfare mother. The call from the House of Representatives was to mainly meet the lower incomes, but it now also ends up with people who do not need it. The cabinet gives that. But because the cabinet wanted to do something quickly, it opted for a relatively easy-to-implement scheme, although the House of Representatives will undoubtedly still criticize this.”

3. Who benefits the most?

High consumption households will benefit most from the tax cuts. But keep in mind that the government does not compensate everything. State Secretary Dilan Yesilgöz (Economic Affairs and Climate) calls it a ‘significant concession’. One household may now have something left at the bottom of the line, in many cases the government only compensates for part of the cost increases. Some people may have lost 900 euros more and therefore do not make it by a long way with the compensation measures.”

4. And then there is a difference between a permanent contract or someone who has just signed a new contract?

“Certainly. Someone who has secured his energy contract for, for example, three years can benefit from this. This household will not be the victim of the price increase and will receive 400 euros in compensation, or perhaps even more.

The situation is different for people whose contracts are now expiring and who have already received a new offer from their energy company. Then it can’t hurt to give the company a call to see if the cabinet’s plans make any difference.

People with a variable contract usually have not yet received next year’s rates from the energy company, with the associated advance payment that they will pay monthly. The measures taken by the cabinet will automatically be passed on in those new rates.”

5. When will you get your money back in your account?

“You always pay a monthly advance and at the end of the year you pay. Next year all these compensation measures will be included in your final settlement. But you could also feel these compensation measures in your advance. That is also the reason that the cabinet did not want to wait too long with the compensation measures that will take effect on January 1. Suppliers can now include it in their calculations.”

6. Over the past two weeks, the cabinet has been working on a solution in a crisis team. Why the rush?

“The government expects it will take months for the prices of gas and electricity to stabilize again. People will feel that in their wallets in the coming period and so the cabinet did not want to wait too long. According to calculations, households spend an average of 900 euros more per year on their energy bills in gas and electricity prices. government to take the biggest blow.”

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