Cabinet targets energy price ceiling in November

To combat rising energy bills, the cabinet is aiming for a price ceiling for energy that may have to take effect on November 1. According to The Hague sources, that plan was discussed this afternoon at a meeting between some cabinet members and the group leaders of the coalition parties.

It

is hoped that the emergency plan can still be presented the day after tomorrow, on Prinsjesdag. This partly depends on the energy companies. The question is whether they can implement the scheme quickly.

The cabinet is thinking of a compensation scheme whereby households with energy consumption below a certain limit pay a lower rate. An additional advantage is that people are then encouraged to be economical with energy, is the idea.

17 billion euro

The consultation at the Ministry of Finance lasted about two and a half hours this afternoon and was about an emergency plan that should be in addition to the previously leaked Prinsjesdag measures. In these plans, the cabinet is allocating an additional 17 billion euros to compensate for the loss of purchasing power. But more is needed, says the cabinet.

Behind the scenes, there has been a lot of discussions recently, including with energy companies, to discuss plans. In these discussions, a price ceiling was discussed in various variants.

Executable

Minister Jetten for Climate and Energy said earlier that he is open to all kinds of ideas, but that they must be feasible. This afternoon, he said in the Abel Herzberg lecture that he wants to arrange for energy companies to offer long-term contracts again, in addition to flexible contracts. Details are not known yet.

Minister Kaag of Finance has emphasized about the emergency plan that this is โ€œnot cheapโ€. An additional amount of about ten billion euros is assumed.