Amsterdam offers extra support as Essent increases variable electricity rates by 50%

Essent is significantly increasing its variable rates for electricity and gas as of October 1. The rate for electricity will increase by over 50 percent, and the price of gas by over 30 percent, Essent informed customers. The Amsterdam city council allocated 3.5 million euros to extra support for low-income households facing difficulties because of the rising prices.

The current electricity tariff at Essent is 0.29447 euros per kilowatt hour. From next month, that will be 0.44395 euros per kilowatt hour. The rate for gas will increase from 1.51371 euros per cubic meter to 1.99440 euros. These rates are based on customers who receive a 10 percent “Discount Home Advantage.”

“Energy prices are still rising very quickly. Unfortunately, your variable supply rates will increase as a result as of 1 October 2022,” Essent said in an email to customers. According to Essent, over 1 million of its customers have a variable contract. Their energy bill will rise by an average of 30 percent.

According to Esent, the new rate is “still among the lowest in the market” because Essent “is doing what it can to keep the bill as affordable as possible even in these difficult circumstances.”

Amsterdam will offer extra support to low-income families struggling with the increasing prices, alderman Hester van Buren (finance) announced on Thursday with the city’s budget for next year.

Low-income parents can receive an extra 100 euros to spend on clothing and school supplies for their children. Amsterdam residents with a low income and a chronic illness will get a once-off 100 euros extra. There will be a separate scheme for residents in debt restructuring and facing difficulties because of the high energy prices. They won’t have to pay their monthly repayment to the Kredietbank in full this winter.

Amsterdam is also raising the income limit for low-income schemes (the city pass, the student allowance, and free public transport for the elderly) from 120 to 130 percent of the minimum wage as of January 1. The city expects this will help another 8,000 Amsterdam residents on top of the over 85,000 people who already qualify for this.

“We see that many Amsterdammers are having a hard time. Their livelihoods are under pressure due to an accumulation of costs. I am concerned about this, and it requires rapid intervention. That is why we looked at what we can do quickly so that we can still support the Amsterdammers who need it most,” said alderman Van Buren.