Dutch government to impose price cap on energy

The Dutch government is set to impose a price cap on energy contracts from Jan 1., 2023 to shield consumers from surging prices, Dutch broadcaster NOS reported on Monday.

Energy prices would be capped at their level in January 2022 for the average amount of gas and electricity used by households, NOS said, citing government sources.

The government is expected to announce its plans on Tuesday, while it was still working out the details with energy companies on Monday evening.

A spokesperson for the government could not immediately be reached for comment.

In addition to the price cap, energy companies would also promise to not cut off any customers in the coming six months, NOS said, and would try to start offering longer-term fixed contracts to customers again.

The measures would come on top of plans to spend around 16 billion euros ($16 billion) next year in an effort to help people pay rocketing bills for energy and food, which are also set to be announced with the 2023 budget on Tuesday.

These expenditures, which include a 10% increase of the minimum wage and higher income-related subsidies for health care and rent, will be mainly covered by hiking wealth and corporate taxes.