Higher Taxes on Energy Bill in Netherlands Reduced in 2020?

Home / Higher Taxes on Energy Bill in Netherlands Reduced in 2020?

Are the purchasing power plates still correct now that it appears that the government used old figures from 2017 to calculate the energy bill? The public and politicians are moving because energy is one of the factors that determine purchasing power.

Economist Mathijs Bouman finds it a stupid and political mistake, but also raises a few questions about the accusing finger towards the government. “The biggest disappointments are the energy prices, you can just view them. Because it is not the government that makes the energy more expensive: for example, oil has become more expensive.”

Energy Challenges In The New Economies

Bouman says there has been a catch-up in the field of energy prices on the free market. “They have fallen for a long time and now the oil price has risen. That is because of the unrest in Venezuela, in Iran. In principle, there is no reason to say: because the oil price has risen we have to lower the tax. That would be politically bad policy, you actually reward the oil sheiks with that. “

Higher tax

Politically clearer Arjan Noorlander says that the government has opted for a substantial increase in the tax on energy because the government calculated an increase in energy prices for the Budget Memorandum for 2019 that seemed to be better than expected. “Reason to announce a considerably higher tax on Prinsjesdag.”

“If they had then calculated with more recent figures (from September 2018), they could have known that expectations had been adjusted and energy prices would rise much more.” As a result, the government’s tax increase hurts much more than expected. “And that is not only the market but also the policy is responsible.”

What will change in the energy tax in 2020?

The burden reduction for households is the result of the Climate Agreement that the cabinet presented in June. In it, the government strives for a fairer distribution of burdens between citizens and businesses, so that more justice is done to the ‘polluter pays’ principle, writes the Eigen Huis Association.

As of 2020, the share that companies contribute to sustainable energy storage (ODE) will be from half to two thirds. As a result, households see their share falling from half to a third. Although Minister Eric Wiebes of Economic Affairs and Climate proposed an average energy tax reduction of one hundred euros, the benefit according to calculations by the Home Owners Association amounts to 70 euros.

The burden reduction does not apply to natural gas. The energy tax on gas, on the other hand, increases by 3.99 cents per cubic meter. The gas ODE increases by 2.51 cents per cubic meter. On electricity, the energy tax falls by 0.09 cents per kWh, but the ODE increases by 0.84 cents per kWh.

According to the central government, the big advantage for households is a reduction in energy tax per connection. Because of the fixed amount per energy connection that is deducted from the energy tax increases by 178 euros on an annual basis to a total of 435 euros. As a result, households pay less energy tax regardless if they use high-end standard or industrial pendant lights.

A comparison site has calculated the total tax benefit for different types of households in 2020. Only households with old, large detached houses, with relatively high gas and electricity consumption, are slightly more expensive on balance.

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