NewsRescue
Despite government subsidies and a consumer price cap, household energy expenditures in the Netherlands have risen dramatically since last year.
The average gas and electricity bill increased by 37% in June compared to the same month last year, according to Statistics Netherlands (CBS) figures released last week. The hike will add €630 ($702) to annual home energy prices, raising the average annual bill to €2,320 ($2,586), up from €1,691 in June.
Wholesale energy prices in the EU climbed considerably last year as Russian supplies fell as a result of sanctions imposed as a result of the Ukraine crisis.
The Dutch government issued a €23.5 billion relief package in October to compensate for the increase in energy costs. In addition, the country has implemented a consumer price cap of €1.45 per cubic meter of gas and €0.4 per kilowatt hour of electricity.
However, even with governmental assistance, energy expenditures in the country are still higher than last June, owing in part to increasing taxes, according to the NL Times news portal. The Dutch government has reduced energy tax breaks, and a temporary drop in the VAT rate has also been overturned.
According to CBS, rising energy prices have caused Dutch families to reduce their energy consumption, saving them an average of €40 on their monthly gas and electricity bills.
Economists warn that if the state-imposed price restriction expires in 2024, the average household energy bill in the Netherlands might reach €2,500.