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The Netherlands introduces an electricity and gas price cap for 2023

The government of the Netherlands will spend about €23.5bn on a price cap on energy contracts to shield households from soaring energy prices. For the year 2023, prices will be capped at €40c/kWh for electricity (from €70c/kWh) and €1.45/cm for gas, for a maximum of 2,900 kWh and 1,200 cm respectively. Before the introduction of the new measures, prices were capped at €70c/kWh for electricity and €1.50/cm for gas, for a maximum volume of 2,400 kWh and 1,200 cm respectively.

Dutch households will also receive energy bill refunds of €190 on average in the last two months of 2022. In addition, low-income households will also be able to apply for an additional €1,300 in help to pay their energy bills in 2023. The measures follow a plan to spend about €18bn in 2023 to help people deal with high inflation, particularly those on lower wages, as inflation in the Netherlands jumped to 17.1% in September 2022.

Gas is a major source of energy for households in the Netherlands. In 2021, gas accounted for 71% of the residential sector's final energy consumption.

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