The government previously set up an emergency support system during the energy crisis, but now a permanent mechanism is in place. This time, the support is targeted at a narrower range of the population.
The rules adopted on Tuesday, September 3, provide for state support in the event of price increases for electricity, natural gas, district heating and decentralized fuels. To qualify for this support, household expenditure on housing per month per household member must be at least 30% of monthly income.
Households with a per capita income of up to €473.53 will be eligible for State support in the event of a specific increase in energy prices.
"This time we took into account the experience with the previous state aid. There were good responses, but there were also cases where support was given to those who did not need it. So now we have a precise mechanism in place, targeting low- and middle-income earners," said Climate and Energy Minister Kaspars Melnis (Greens and Peasants Union).
The support is not planned to be provided on a permanent basis - for the whole heating season or for the whole year - but to be granted in situations where an exceptional increase in energy prices on the market is detected. These households will receive support if the price of the energy resource on the stock exchange exceeds the threshold price of the resource by 30% for three consecutive months.
Price thresholds for energy resources where state aid is granted:
- Electricity - the average Nordpool day-ahead price is above €208/MWh;
- Natural gas, petroleum gas, diesel used for heating purposes - the average futures price of natural gas on the Dutch TTF is above 91 €/MWh;
- District heating - in at least five out of 10 large cities, the tariffs approved by the Public Utilities Regulatory Commission (SPRK) are above 111 €/MWh;
- Pellets, firewood, briquettes - the average biomass price on the Baltpool exchange is above 76 €/MWh.
The Energy Cost Information System will automatically identify households that qualify for support. Support to households will be provided by electricity traders, natural gas traders, heating system operators, and municipalities. The traders will then claim compensation from the State.
Electricity prices will be monitored by the Ministry responsible for energy policy. Monitoring will start in October.