Categories: Economy

Criticism of the energy price ceiling: ‘Unheard-of measure!’ Related Articles

Economist Arnoud Boot calls energy compensation for households the “most expensive compensation measure in Dutch history”. “The discussion in the House of Representatives always threatens to be about that person who doesn’t get enough of it, but doesn’t realize that it’s an unheard-of measure,” says Boot, who is attacking the price cap for gas and electricity.

Boot warns that there may be a parliamentary inquiry into the upcoming policy in the future. “Implementation is so crucial that it prevents any kind of parliamentary inquiry in the future.” He also notes that criticisms are ignored. Thousands of excuses are invented to refute criticism in advance. Microeconomists Maarten Pieter Schinkel and Marco Haan ensure that it is already criticized in advance’, Boot refers to the debate in the House of Representatives on reparations.

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“We have to approach this in the right way. The money must go to the consumers and not lead to extra profits on the products, that’s crucial. We also need to ensure that people have an interest in using energy sparingly. If it goes away, we’re wasting money, delaying the energy transition and making energy companies richer,’ warns Boot.

Economist Arnoud Boot calls energy compensation for households the “most expensive compensation measure in Dutch history”. (ANP / Lex van Lieshout)

‘Extend 190 euros more’

He wants that discussion to take place and other steps taken to replace price cap compensation. “Compensation should never, ever be linked to the price of energy that the consumer has to pay. The energy company shouldn’t be decisive, because that mechanism ensures that companies can charge extra.’

Boot sees that a “wrong policy” is emerging because there has been a great deal of haste in drawing up the plans. “If you can’t arrange it properly now, just roll over the 190 euros a month for another two months,” suggests Boot. “That’s pretty much what every Dutchman gets.” Boot predicts that energy companies will then be less inclined to raise energy prices. “So the consumer will change, so keep the competition going.”

Author: BNR web editor
Source: BNR

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