The Council of Ministers allocates 3.2 billion euros for this purpose. Of this, 2.7 billion should go to homes and 0.5 billion to businesses. This is what Foreign Minister Dylan Yesilgosz (Energy) said after the cabinet meeting on the rise in gas and electricity prices. The Cabinet intervened because the energy bill threatens to rise sharply due to the high prices. According to calculations, this is about 900-1000 euros per year for an average family.
Some of them are now being collected. For example, the tax cut on your energy bill, which is a fixed amount that everyone gets, will increase by 230 euros per year. In addition, the Cabinet reduced the energy tax on electricity. Added together, they save the average family more than €400 a year in taxes on the energy bill, says Yesilguz.
She talks about “big compensation”: “I think we have limitations on those high prices.” According to her, the exact amount depends on “what kind of contract you have, what kind of house you live in, what kind of family you have.”
Over the past two weeks, the Cabinet has been working on a crisis team to find a solution to the rapidly rising energy bill. Several options were discussed, such as a tariff freeze, a general reduction in income tax, and a lower VAT on energy bills.
The main question was how to get compensation for the low-income people, the people most affected by the high bill. In practice, it turned out to be difficult to make it targeted. Yesilgöz admits that it will also “partly reach people who don’t need it”. “But I can’t see exactly what kind of contract people have behind every front door. We also want to be able to switch quickly. That’s why we chose this.”
This relates to a one-time compensation for higher energy prices, which should be reflected in the energy bill as of January 1. The surgery lasts for a year.
In addition to the billions the government sets aside for the energy bill, there will also be additional money to insulate homes. Minister Olungren (Home Affairs) will receive 150 million euros for this purpose. This money goes to the municipalities, which can encourage people there to take isolation measures in their homes. According to Olungren, it is up to the municipalities to determine this.
We spoke earlier with economists from ABN AMRO who said we’re not done with high gas prices yet.
Avid music fanatic. Communicator. Social media expert. Award-winning bacon scholar. Alcohol fan.