Maximum heat tariffs in 2024 are slightly below the current price cap
Households that are connected to heat networks will pay no more than 46.69 euros per gigajoule (GJ) in 2024 for their heat, VAT included. This is slightly below the price cap of 2023, which is 47.38 euros per GJ. This has been revealed by the calculation of the maximum heat tariff by the Netherlands Authority for Consumers and Markets (ACM). The tariffs that heat suppliers charge must always remain below the maximum tariff set by ACM.
The price cap will cease to exist in 2024. As a result, the maximum tariff of 46.69 euros per gigajoule (GJ) will apply to a household’s total heat consumption. This is lower than the maximum tariff in 2023, as the natural-gas price is lower. The variable heat tariff is linked to the natural-gas price for households that have gas-fired central-heating systems. In addition to the variable tariff per GJ, heat users also pay fixed costs for their connections. This maximum tariff is also linked to the costs for households that have gas-fired central-heating systems, and this maximum tariff in 2024 will not be higher than 618.82 euros. That is 12.5% more than in 2023. Some of the reasons for this increase are, for example, the increased costs for maintenance and depreciation of gas-fired central-heating systems.
The current Dutch Heat Act (in Dutch: Warmtewet) stipulates that ACM must set the maximum heat tariffs on the basis of the average costs of households with gas-fired central heating systems. That is why, for the maximum tariff per GJ, ACM must use in its calculation the average price of a one-year contract for natural gas on 1 January. At the time, the legislature introduced this mandatory link with the natural-gas prices to protect consumers against unreasonably high tariffs for heat. This is also called the ‘no-more-than-otherwise’ principle (in Dutch: niet-meer-dan-anders principe). ACM has, for several years now, argued for amendments to the Act, as this link with the natural-gas price has unintended effects in real life. In the draft bill for the Dutch Collective Heat Act (in Dutch: Wet Collectieve Warmte, WCW), this principle will be phased out, and the bill also proposes that the tariffs are set on the basis of the heat suppliers’ actual costs. ACM finds it important that, even in that situation, consumers are protected against extremely high tariffs, and it has recommended the legislature to take additional measures to that end.
A 2023 assessment conducted by ACM revealed that nearly all licensed suppliers stayed below the statutory maximum tariff with their fixed and variable tariffs. In 2024 too, ACM will make sure that suppliers in 2024 only charge the maximum tariff if that is necessary because of the costs incurred, and that heat suppliers are transparent about this towards their customers. ACM will therefore keep a close watch on the tariffs of heat suppliers, and will launch investigations if necessary.