Household energy costs in the Netherlands have increased by 24 percent since 2017, mainly due to the energy crisis caused by the Russian invasion of Ukraine. As these prices are likely to remain high, the government plans to extend the emergency fund to help low-income households pay their energy bills.

Dutch energy costs likely to remain high

An analysis by the economists at ABN AMRO determined that when comparing energy prices in 2024 to seven or eight years ago, households are paying 24 percent more for gas and electricity. According to the Dutch bank, this is mainly due to the energy crisis caused by the invasion of Ukraine. 

However, support from the government and fixed energy contracts means that many households only experienced the high costs of energy as recently as 2023. With Dutch gas prices currently the third-most expensive in Europe and not showing signs of decreasing by much, it is likely that energy prices will stay high. “A decrease in household energy costs will therefore have to come from savings on energy consumption,” wrote ABN AMRO economists.

Energy fund extension for Dutch households

Earlier this month, the Dutch government reached an agreement with energy companies and grid operators to extend the emergency energy fund. With the government putting aside 60 million euros and the other organisations making their own contributions, people who are struggling to pay their energy bills will continue to receive compensation. 

According to AD, the benefit has helped more than 28.000 households in the past two years, with a total of 110 million euros being paid out. Initially, the energy fund was scrapped for 2025 as there was not “sufficient joint funding”. However, due to the new agreement, it will start up again.