Energy bills will rise sharply when government’s price cap expires

The average gas and electricity bill will increase by some 2,500 euros in 2024, according to the homeowners’ association VEH. The spike is due to the government’s energy price cap expiring, combined with significantly higher energy taxes, VEH director Cindy Kremer said to the Telegraaf.

“We call on the Cabinet to prevent the energy bill from becoming unaffordable for many households after next year with additional policy,” Kremer said. She would also like to see energy taxes rising more slowly and policy to get as many homes as possible insulated before 2024. “Poorly insulated homes must be tackled as soon as possible. Otherwise, residents run the risk of being walloped by high energy rates and taxes after next year.”

VEH sounds the alarm because, according to the association, many people think the government’s measures will indefinitely help them. This month and next month, many households will receive 190 euros per month to help them with the high energy costs. The government temporarily reduced the VAT on gas and electricity from 21 to 9 percent. And next year, there will be a price cap on average energy consumption.

But all these measures are temporary, and households will face a double financial blow in 2024, according to VEH. Homeowners with average energy consumption will then pay 528 euros more in taxes than in 2021, the association calculated. VEH also assumes energy prices will remain high, resulting in the average energy bill increasing by 2,500 euros in one fell swoop once the price cap expires at the end of 2023.

Energy expert Ben Woldring, cofounder of comparison site Gaslicht.com, told the Telegraaf that the VEH has a point with this warning. “For most consumers, 2024 is still a long way off. But it can be good for policy-making in The Hague to bring this up now,” he said.