MARCH/APRIL 2022 | 5
NATIONAL
Extreme rise in energy costs hits the Netherlands In the autumn of 2021, energy prices in the Netherlands reached a historically high level. As Statistics Netherlands (CBS) estimated, based on the energy prices in January 2022, this year a household with average energy consumption will pay €2800 for energy bills. Compared to the previous year, this means that the energy price will increase by 86%, since in 2021 the bill for electricity and gas in an average household was around €1321. This drastic change follows the sharp increase of the purchase price of gas and electricity, which energy suppliers pass on to consumers.
The price of energy rose mainly due to the higher variable supply rates that consumers pay per cubic meter of gas or kilowatt hour of electricity. These rates rose by almost 350 percent in a year, states CBS Energy prices differ greatly per household and housing type; in old buildings they tend to be higher. According to CBS, the least affected will be small apartments in new buildings with one resident, although their energy costs will still increase by 70%. The most affected will be households with two or more residents in old, freestanding houses: their energy bill will be almost double compared to last year. Energy tax lowered Those who have a fixed contract for energy costs will not yet notice the extreme increase. As CBS states, households that had a contract with a multi-year fixed supply price in January 2021 will not be affected by rising energy costs, but will benefit from lower taxes. To compensate at least partly for the high supply tariffs, and ensure that electricity remains affordable for everyone, the government decided to lower the energy
tax. As CBS calculated, a household with an average annual consumption will pay €417 less in tax in 2022 than a year earlier. In 2022, that allowance will increase by €265 due to the higher energy prices. The total amount of the energy tax allowance is therefore €824.77, according to Wijzer in Geldzaken, an informative website initiated by the Dutch Ministry of Finance. The energy tax on electricity will decrease by 6.9 eurocents per kWh, which – with an average consumption of 2,384 kWh per year – results in €160 less to pay.
As opposed to the decreasing tax on electricity, the energy tax on gas will increase in the coming years. In 2022 it will go up 2 eurocents per m3. With an average gas consumption of 1,170 m3 per year, the payment in tax for gas will thus be €23 higher. With this measure, the government wants to further reduce gas consumption in the Netherlands. Corona hit first, now energy prices Not only households are affected by the increasing energy prices. As a manager of an Italian restaurant close to Dam Square in Amsterdam said, a lot of places, including his restaurant, were closed in January this year due to the Covid measures. As they reopen again, those who don’t have a fixed energy price in their contract can expect higher bills. Some businesses won’t be affected by the energy price increase yet, but already know that in a few months’ time they will be spending much more on gas and electricity. “We still have a contract with fixed prices until June, so we don’t notice any difference in the bills yet. However, we already got a price offer and from June the energy costs will triple,” says Rens Geisterfer, owner of Rene’s croissanterie at Damstraat.
Currently, Geisterfer pays approximately €2000 per month for energy; from June he will be paying €6000. He says that means he will lose a lot of profit, but he will not have to fire any of his employees. The problem is that his business, like many others, is already in a difficult position because of the lockdowns. About 70% of his clients are tourists, and because of the Covid measures, the bakery made only 10% of its usual profit in 2021. Of course, with the current situation in Ukraine, it’s not certain that the price hike will be limited to the current figures – if the Netherlands will no longer receive gas from Russia, the situation may become much more serious. Written by Zusanna Kuffel
The Netherlands scraps most Covid-19 restrictions as pandemic ‘past its peak’
Just like its neighboring countries, The Netherlands has also moved to scrap most Covid-19 restrictions, as it is now clear that the virus has become endemic. The omicron variant undoubtedly pushed infection rates to record height, but the hospitalization rate is dropping with each passing day, indicating that the booster shots and milder variants will enable the Dutch to return to normal life with minimal restrictions in place. Two years after the outbreak of the Covid pandemic, the cabinet has taken the foot off the brakes and is ready to open the country, easing most of the restrictions. From 25 February, all venues and events are fully open and restrictions such as social distancing and wearing face masks are no longer in place, with the dissipation of the Omicron-fueled Covid wave.
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In the press conference that announced these changes, Minister of Health Ernst Kuipers warned, however, that Covid-19 is still considered a dangerous infectious disease, but that the current situation is no longer considered serious and the peak of infections and hospitalizations is over. While presenting an optimistic message, he also believes that the country must be realistic. For example, if you are celebrating carnival or going out to cafes, he advised to avoid large groups. He also reinforced the message that “there is no guarantee that there will be no change in restrictions and other measures in the future”, but believes that the Dutch “are more resistant to the virus through vaccinations and immunity that people have built up.” An overview of the current rules: • Outdoor events such as football matches and festivals can be carried out without a vaccine or test requirement. • In the case of busy indoor events with 500 or more guests, a negative Covid test is compulsory – a vaccine certificate is not sufficient. • Basic rules such as washing your hands regularly, coughing in your elbow, staying home in case of complaints, and ventilation are still in place. • The 1.5-meter distance rule is no longer in force. • Face masks no longer have to be worn in public places, except for public transport, at airports, and in airplanes. • Infected people are required to isolate for 5 days (instead of the previous 7 days). They can leave isolation if they
are symptom-free for at least 24 hours. • The work from home advice has been scrapped, but the government recommends that those who can work from home, do so half of the time. • The Covid passport is no longer required in public places, such as restaurants, cinemas and theaters. • The Covid passport is still mandatory in case of international travel, which means that proof of vaccination, proof of recovery, or a negative test is required. The Netherlands’ booster vaccination program picked up pace after the country saw a sharp surge in Covid cases in December, with over 7 million people boostered within six weeks. The third shot has improved immunity in most people and has brought down the number of hospitalizations, as shown by the steadily declining number of people in hospital. It is the most important step towards getting life back to normal and to improving quality of life. Health experts have urged people who are at risk, such as those who suffer from immune deficiencies, to continuing to follow Covid-19 guidelines, including wearing face masks in public, maintaining social distancing and avoiding crowded places. Others are urged to be considerate when visiting people in risk groups. “Learning to live” with Covid-19 means accepting all the disruption, uncertainty and instability that may arise in the future. No one knows what lies ahead, but widespread global vaccination remains the best way to end the crisis. Written by Parul Sachdeva
03-03-2022 08:14
