“Far from ideal,” D66 calls the price cap. “It’s an imperfect proposal,” says VVD MP Silvio Erkens. Tom van der Lee (GroenLinks) calls it a “pretty difficult emergency connection, but we’ll have to make do with it”.

And Henri Bontenbal of the CDA hits the nail on the head: “This is not the most brilliant plan ever imagined by the government.”

“Privatization of Social Security”

Nevertheless, a majority of the House of Representatives supports the price cap, which Minister Rob Jetten (Climate and Energy) introduced last week.

The Council of State is not asked for an opinion as usual. The SP, PVV and MP Omtzigt are the most critical of the plan, which was drawn up under great pressure. Omtzigt calls price caps the “privatization of social security.”

Profits of energy companies

But supporters (in addition to the coalition parties, including the PvdA and GroenLinks) are certainly not reassured about this “incredibly complex file”, as it turned out last night. They fear that the companies are still making substantial profits. They are also concerned about the supervision and control of the regime. In this context, they plead for a greater role for the ACM.

According to Minister Jetten, energy suppliers are subject to “thorough scrutiny” to prevent them from making excessive profits.

Profit Margin Calculation

The profit margin is based on the last four years, the worst year can be crossed out. This does not please all parties. Nevertheless, according to Jetten, this is necessary because there have not always been regular business operations in recent years, for example due to corona and war and Ukraine.

The PvdA and the VVD were not really satisfied with this response.

Annual Solution Statement

There is a cut in the plan, namely before and after the annual statement that a client receives. These fine print prevent some people from taking full advantage of the price cap. Here you can calculate if you will stay below the price cap.

According to Jetten, 95% of households will not be affected by this. Nevertheless, a majority of the House wants the minister to see if anything can be done about it.

What’s new? Here’s how the price cap works:

It also bothers the House that the regulations for bulk connection are not yet in place. Jetten promises to send it to the House this week.

This concerns 700,000 households that share a gas, heating or electricity connection, such as apartments or student residences. Their compensation will not come in January, but will be applied retroactively.

Costs billions

The price cap applies for one year and, according to current estimates, will cost more than 11 billion euros. It can become much more. The cabinet had previously said it could cost 23 billion and possibly even 40 billion. More will become clear in the spring, Jetten promised.