Energy sector wants new emergency support for low-income households

The energy sector wants the Cabinet to establish its own emergency fund to help low-income households cope with rising energy costs, according to the energy association Energie-Nederland.

The association highlighted the surge in last-minute applications for the Tijdelijk Noodfonds Energie, the Temporary Emergency Fund, an initiative by major energy companies to help low-income individuals handle increased energy expenses. In the past 10 days, 50,000 applications were received, raising the total to over 150,000. Households had been given slightly more time, until Friday at noon, to apply for compensation. Eligible low-income people are those who spend a relatively large portion of their income on gas, electricity, or district heating.

The association reported that energy suppliers were willing to extend the fund with additional financial support, but the government did not agree. As a result, the industry is urging the government to "establish its own fund for the upcoming winter to ensure that households in need get support to pay their energy bills."

According to the association, it was expected that the emergency fund containing tens of millions of euros from both the government and the energy sector would be depleted by now. However, that is still not the case. "A number of affected energy suppliers have provided extra funding, but the central government has indicated that the government contribution scheme cannot continue," Energy Netherlands stated.

The Temporary Emergency Energy Fund is an initiative by the major energy companies, including Eneco, Essent, Vattenfall, Greenchoice, and Budget Thuis. Essent CEO Resi Becker previously expressed her support for extending the duration of the fund. "The government should provide special support for households struggling financially, and should take measures if the price cap disappears,” she told the Telegraaf.

The Temporary Emergency Energy Fund offers a reduction in energy bills for households earning up to 200 percent of the social minimum, provided they meet certain criteria. For example, a relatively large portion of their income must be spent on gas, electricity, or district heating.

Over 165,000 people have applied for the Temporary Emergency Fund. About 56,000 of them have already received approval and will receive an average of 150 euros per month for their bills from October to March. Roughly 61,000 applications are still pending, while 48,000 have been rejected.