Minister Jetten (Climate and Energy) assumes that the upper price cap for the energy bill could be introduced on 1 January as planned. “Everything is geared towards that. There is no reason to doubt that we will succeed. We are working hard on it. “Almost day and night,” Jetten said in the House of Representatives.
He wants to use the time ahead to set up so that the energy companies that have to implement the program don’t make much money out of it. He wants to determine a suitable profit margin for energy companies and calculate wages accordingly. If it turns out later that the energy companies are getting too much support, that will be undone.
He hopes this will allay most of the concerns in the House of Representatives. Many parties find regulation complicated and fear that too much tax money will be lost into the pockets of energy companies’ shareholders.
Limited profit margin
Because of the price ceiling, consumers pay a fixed maximum price for energy from 1 January until a certain use. The government compensates energy companies for the difference between this maximum price and the price they would normally charge.
The government and the House of Representatives want to pay off billions of dollars in aid based solely on the purchase price of energy companies and a limited profit margin. The idea is that by limiting the price, companies will take a lot less risk because there will be fewer people who can’t pay their energy bills.
The Dutch Consumers and Markets Authority (ACM) was originally supposed to determine what a reasonable profit margin was before January 1, but this organization withdrew the order because it was too difficult to calculate. Therefore, Jetten recommends that energy companies be compensated on a purely consumer price basis until March 1, 2023 for the time being. Meanwhile, an outside party has yet to determine what a reasonable profit margin is.
“Don’t bother people with troubles”
“As politicians, we promised that from January 1, people will be able to enjoy such a price ceiling. “Let’s make sure that the upper limit is valid, and then we don’t bother people with all the efforts at home,” he said. He promised to make more precise arrangements as soon as possible. By March 1, but possibly sooner. “The shorter this period, the better.”
Energy companies do not want to predetermine what they can gain. At a hearing this morning, they told lawmakers that it is very difficult to predict in advance what their costs will be. It depends on all sorts of factors like supply or outside temperature.
Jetten is still working on a special arrangement for those who have the block heater and are currently excluded. To qualify for an exemption in the form of an annual fixed amount, they must be able to report to the tax authorities. The minister warned that the implementation of this program would take several months.
Source: NOS
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
