Rising energy costs in 2022 will be hard on low- and middle-income households

Millions of households in the Netherlands can expect their energy bill for electricity and gas to creep up in 2022. The rise in energy costs will particularly hit low- and middle-income households hard, the AD reported.

One year ago, the average annual price a four-person household spent on energy was 507 euros. In the meantime, the cost of energy has crept up to 1,229 euros per year, according to Sanne de Jong-Bins from the website Gaslicht.com.

“The average household already loses 200 euros per month on gas and light,” De Jong-Bins said.

Across Europe, there has been a shortage of gas. “The price of natural gas determines the energy prices,” market analyst Rick Marsman told the AD.

Last winter, was colder than usual meaning that more gas was used. Normally, in September the Dutch gas reserves would be filled up to 85 percent. Currently, the gas reserves are only half full.

Gaslicht.com, a website that compares energy prices, predicted that the energy bill could rise by a few hundred euros next year. “If the price increase continues, the average household will also at least 400 extra euros for gas and 150 extra euros on electricity,” De Jong-Bins said.

An earlier study, by the financial advisory company Nibud showed that 650 thousand people in the Netherlands already had problems paying their energy bill.

“The rising energy prices are incredibly worrisome,” chair of the association for debt relief provider NVVK Marco Florijn said. Social assistance for energy consumption needs to be increased, according to Florijn. “I don’t want to overdramatize, but I see a huge problem. We are creating a vulnerable class,” the NVVK chair said.

The energy provider Vattenfall said they want to let their clients know as soon as possible how high the energy costs will be in the upcoming year.