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Energy prices rise sharply as government price cap expires

According to the Homeowners Association VEH, the average gas and electricity bill will increase by around €2,500 in 2024. VEH director Cindy Kremer said the surge was due to the expiration of the government’s energy price cap and a significant increase in energy taxes. Telegraph.

“From next year onwards, I will ask the Cabinet to add additional policies so that energy bills will not become a burden for many households,” Kremer said. She also hopes that energy tax hikes will be gradual and policies will be introduced to insulate as many homes as possible by 2024. Otherwise, residents risk high energy bills and taxes in the years to come. ”

The reason VEH is sounding the alarm is that many believe the government’s measures will help indefinitely, according to the association. This month and next, many households will receive €190 per month to help with their high energy costs. The government has temporarily reduced the VAT on gas and electricity from 21% to 9%. And next year there will be a price cap for average energy consumption.

But all these measures are temporary and households will face a double economic hit in 2024, according to VEH. The association calculates that a homeowner with average energy consumption will pay €528 more in taxes than in 2021. VEH also assumes that energy prices will remain high and that the expiration of the price cap at the end of 2023 will lead to a sharp increase in average energy prices of €2,500.

Ben Woldring, an energy expert and co-founder of comparison site, told Telegraaf that VEH’s warning has a point. “For most consumers, 2024 is still a ways off.

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