The government will examine whether it can levy more tax on extra profits made by energy producers due to the high gas price. Minister Rob Jetten (Climate and Energy) has promised this to the House of Representatives. The idea is that the proceeds can be used to support vulnerable households who are struggling to pay their sharply increased energy bills.
Jetten immediately added that this ‘seems complicated at first glance’, but the cabinet is ‘willing to find out what the options are’. The D66 minister will discuss the options with the Minister of Finance, his party colleague Sigrid Kaag. They will, among other things, look at examples from other countries and will send a letter about this later.
Stress due to high energy bill
The House of Representatives will discuss the cabinet’s climate plans on Wednesday. The left-wing opposition argued during the debate for an additional tax on the profits of companies that benefit from the sharp rise in market prices. Member of parliament Suzanne Kröger (GroenLinks) is happy with the promise. She believes that an oil and gas company such as Shell is now making ‘improper profits’ thanks to the high gas price. Renske Leijten (SP) also argued in favor of using these profits to lower the energy bill ‘of people who can no longer afford it’.
Jetten acknowledged that many people have ‘extreme stress’ due to their increased energy bill. The minister went on to say that he is “devastated” by how many Dutch people have flexible energy contracts and therefore immediately feel increases in energy prices: “I really had no idea.” He will look at how consumers can be better informed about this.
He repeated that the cabinet wants to examine how purchasing power is developing this spring and whether additional compensation should be provided. If that is the case, the minister wants to do this ‘as specifically as possible’. “Not everyone needs it,” he said. Jetten did not want to make any promises about compensation yet.
Russia
The debate also focuses on the high dependence on Russian natural gas. Due to the conflict between Russia and Ukraine, various parties are insisting that the cabinet must quickly come up with plans to reduce dependence on Russian gas.
Jetten is on the same page. “It is precisely because of this crisis that we see that we have to invest in the climate and the energy transition. Not only to combat climate change and extreme weather, but also to be less dependent on fossil fuels that we import from Russia, for example.”
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