Dagblad van het Noorden reports that a price ceiling is unlikely to be set by 1 November, but The governing cabinet wants to be able to at least soften the impact of the extremely high energy bills many households and businesses are currently facing starting in November.
Relevant ministries have been working urgently to create an emergency package of measures to intervene against the rapidly rising energy costs. The cabinet and the coalition are in favour of a price ceiling, but it is unclear how feasible that will be in the short term. If such a cap proves impossible, the cabinet plans to come up with alternative ways to meet consumers halfway and address the cost of living crisis.
Prinsjesdag
The plans as they stand will be presented on Tuesday as part of Prinsjesdag (continue reading to the end to find out what Prinsjesdag is), including a special fund for emergencies. RTV Drenthe reports that the emergency fund is intended for people in debt whose energy bills have risen very high very quickly. People with a large amount of debt with their energy providers will have at least a portion of that debt forgiven.
But many questions remain about how doable such an intervention would be, such as what kinds of uses (i.e. private homes versus small-to-medium businesses) would a cap apply to and how much time smaller energy companies will have to implement any price ceiling in their rates.
The latest estimate for the price ceiling is based on the market price from the beginning of this year (2022) for 1,200 cubic meters gas and 2,500 kilowatt hours, and should go into effect as of 1 January 2023 with some cost alleviation measures to be introduced as soon as November or December.
Ukraine
Energy prices have risen dramatically as cold weather has set in and access to gas has been impacted by the war in Ukraine. The amount by which energy bills have risen depends on how energy-efficient properties are, as well as whether or not they are rental properties, and of course their size.
According the De Volkskrant, the wide range of price difference (from around 30 euros more per month, to more than 800 euros above the previous bill) is due in large part to the type of energy contract any given household may have.
Last year, around 50 percent of Dutch consumers has energy contracts that capped the price for a period of minimum one year and maximum five years. The longer contracts are still in effect, but the one year contracts are up, and the new contracts reflect the impact of decreased gas supply due to the war.
Groningen gas
More pressure has been placed on Groningen’s gas supplies as the energy crisis worsens, as calls have come from public figures and politicians in recent months to pump more gas from Groningen’s Slochteren field in order to lower prices as supply increases.
However, reporters at Follow the Money found that the gas price would not decrease significantly if more gas is extracted in Groningen, supply would be insufficient to help any shortages this winter, and – as has been well established after years of research – increased gas extraction operations means increased likelihood of earthquakes in the province.
The secretary of state of mining, Hans Vijlfbrief, has consistently stated that there are no plans to open the gas tap. Theodor Kockelkoren, inspector general of the State Supervision of Mines, also warns that revisiting the plans to phase out gas extraction in the region will create more dangerous living conditions for the residents, and says that the public figures and politicians calling for more Groningen gas fail to grasp the level of risk involved.
What is Prinsjesdag?
20 September is the third Tuesday of the month, which marks the traditional Prinsjesdag in the Netherlands. The head of state – King Willem-Alexander – will address a joint session of the Dutch Senate and House of Representatives. The royal address shares what the current governing coalition’s policy aims are for the coming year. The annual budget and state budget are also presented on Prinsjesdag.
Here is some more background on this somewhat mysteriously named day:
“In the Netherlands, Budget Day is known as Prinsjesdag or ‘Prince’s Day’, and is held on the third Tuesday in September. On this day, the King delivers the Speech from the Throne, officially opening the parliamentary year. The King’s speech contains the government’s key plans for the year ahead.
The name Prince’s Day (Prinsjesdag) harks back to the 18th century, and the time of Prince William V. His birthday (8 March) was known as Prince’s Day. During the French occupation, supporters of the House of Orange-Nassau demonstrated their loyalty to the prince by continuing to celebrate this day.
No one really knows why, many years later, the name Prinsjesdag was given to the day on which Parliament opens. Nevertheless, even today it remains an occasion for people to show their affection for the royal family.
The Prime Minister drafts a provisional version of the Speech from the Throne, based on input from the other ministers. He also discusses the text with the King before it is finalised by the Cabinet.”
