Energy price cap might not be implemented by January

It is highly questionable whether the energy price cap can be implemented on January 1. Energy suppliers still don’t know exactly what the scheme will look like and worry they won’t have time to change their systems accordingly. The uncertainty is so great that there is even a Plan B in place, sources told Nieuwsuur.

If the price cap can’t be implemented by January 1, households will receive a fixed compensation like in November and December. According to Nieuwsuur, it will likely again be 190 euros per household.

The Cabinet announced on Budget Day that it would cap gas and electricity prices for average consumption from January 1. Energy suppliers, who have to implement the price cap, told the Cabinet they need three months to adjust their systems. So the Cabinet promised to clarify what the scheme would look like by early October.

It is now early November, and according to the energy companies, there are still question marks around crucial points about the energy price cap. Minister Rob Jetten for Climate and Energy will inform parliament about the status of the negotiations with the energy suppliers on Friday.

The energy companies also worry that agreements they made with the Ministry of Economic Affairs and Climate in the negotiations will be scrapped by parliament. For example, they agreed that the government would reimburse companies based on the consumer price - the price customers see on energy providers’ websites. A parliamentary majority wants energy companies to be reimbursed on the price the supplier pays when purchasing energy. According to parliament, reimbursement on the consumer price increases the risk that companies can make excess profits.

The energy companies also don’t want extra checks on how they spend the over 23 billion euros in compensation for the measure and want guarantees that the government will pay out the subsidies they apply for within a few days. Otherwise, they will have to finance the price cap themselves, and they don’t expect to be able to.

The Ministry of Economic Affairs and Climate told the program that “all those involved are working hard to have this arranged by January 1. All efforts are now focused on that.”