European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure NL-2023-1/2957 Updated – measures in Netherlands

Temporary price cap on energy

Tijdelijk prijsplafond op energie

Country Netherlands , applies nationwide
Time period Temporary, 01 January 2023 – 31 December 2023
Context War in Ukraine, Green Transition, Restructuring Support Instruments, Cost of Living Crisis
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Support for energy bills
Author Thomas de Winter (Panteia)
Measure added 25 October 2022 (updated 01 April 2023)

Background information

Due to rising energy costs, the Dutch government introduced a price cap on energy for households and other small consumers. The price cap will be introduced on 1 January 2023. To help households already earlier this winter, households and other small consumers will receive a fixed discount of €190 per month on energy bills in November and December. This compensation is the same for all small consumers and will be settled through the energy suppliers.

Content of measure

Price caps for energy sources are as follows:

  • Gas: the maximum tariff will be €1.45 per cubic metre up to a consumption of 1,200 cubic metres.
  • Electricity: the maximum tariff will be €0.40 per KWh and the maximum consumption is 2,900 kWh.
  • Energy consumption above the ceiling, households and other small consumers will pay the tariff as included in the energy contract.

For November and December, households will receive a fixed discount on energy bills of €190 per month. Energy suppliers receive a fee for energy consumption below the cap. This compensation will be fully used to reduce energy prices for consumers and other small users. By doing so, the support reaches households and other small consumers and the government prevents energy suppliers themselves from getting into financial difficulties due to the implementation of the cap.

The total cost depends on the development of energy prices. If energy prices remain at similar levels, the total cost of the price cap and the relief in November and December is estimated at around €23.5 billion.

Updates

The following updates to this measure have been made after it came into effect.

01 January 2023

The measure is for the year 2023 only.

Use of measure

All households are eligible. No additional on uptake is currently available,

Target groups

Workers Businesses Citizens
Does not apply to workers Solo-self-employed
One person or microenterprises
Start-ups
Applies to all citizens

Actors and funding

Actors Funding
National government
Social partners jointly
Company / Companies
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Consultation through tripartite or bipartite social dialogue bodies Consultation through tripartite or bipartite social dialogue bodies

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners were involved in the design phase of the measure on the initiative of both the social partners and the government. How they actually influenced the measure is not known, but the social partners are generally happy with the existing measure. This is mainly reflected in supportive messages of trade unions and employer organisations alike.

Views and reactions

Most reactions by social partners were supportive. They welcome the energy subsidy and emphasize the need for this measure. However, some social partners point out the problems with for example people sharing one energy meter or using collective heating systems. The partners are still involved in fine-tuning the measure also for these groups.

Sources

Citation

Eurofound (2022), Temporary price cap on energy, measure NL-2023-1/2957 (measures in Netherlands), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/NL-2023-1_2957.html

Share

Eurofound publications based on EU PolicyWatch

30 January 2023

 

Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.

Article

12 September 2022

 

First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.

Article

12 September 2022

 

Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.

Article

5 July 2022

 

Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.

Article

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.