Published: July 24, 2023 5:50 am
Author: RT
Electricity costs are soaring despite price controls and state aid, figures have shown
Household energy bills in the Netherlands are up drastically from last year, despite government subsidies and a consumer price cap.
The average gas and electricity bill rocketed by 37% in June compared to the same month of last year, data released last week by Statistics Netherlands (CBS) revealed. The increase will add €630 ($702) to annual household energy costs, bringing the average bill to €2,320 ($2,586) per year, compared to €1,691 last June.
Wholesale energy prices across the EU rose dramatically last year as Russian supplies shrank, following sanctions resulting from the Ukraine conflict.
Last October, the Dutch government announced a relief package of €23.5 billion to compensate for the rise in energy tariffs. The country has also introduced a consumer price cap, amounting to €1.45 per cubic meter of gas and €0.4 per kilowatt hour of electricity.
However, even with state aid, energy bills in the country are still higher than last June, partly due to increased taxes, the NL Times news outlet noted. The Dutch government has provided fewer tax discounts on energy, while a temporary reduction in the VAT rate has also been reversed.
READ MORE: EU countries cut gas consumption – report
Higher prices have forced Dutch families to slash energy consumption, taking an average of €40 off annual bills for gas and electricity, according to CBS.
Economists warn that the average household energy bill in the Netherlands may reach €2,500 once the state-imposed price cap expires in 2024.
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