The Netherlands Authority for Consumers and Markets (ACM) enforces compliance with the rules and regulations on the energy market among businesses. The energy market is a free market where supply and demand determine prices. For its energy supply, the Netherlands is still largely dependent on the import of natural gas. That is why it cannot be ruled out that a sudden supply shock will result in very high prices again. That will particularly affect vulnerable households. ACM makes this argument in its paper ‘Policy options for tackling energy poverty in vulnerable households’.


In its paper, ACM outlines three ways in which the government can make sure that vulnerable consumers are protected against too high energy prices: general purchasing-power policy, introducing a social rate, and making homes more sustainable.


General purchasing-power policy means that the government uses taxes and subsidies to ensure that the disposable incomes of households are high enough to pay for basic needs. A social rate means that the government mandates suppliers to supply energy to a defined group of vulnerable consumers for a maximum rate. In return, suppliers are compensated by the government. By promoting projects to make homes more sustainable, the government seeks to reduce energy consumption, which also results in lower energy bills. Making homes more sustainable helps reduce energy consumption, but it is not a real alternative to general purchasing-power policy or introducing a social rate. The insulation of homes still takes up a lot of time, and, even after making homes more sustainable, energy bills can still be high.

ACM's Recommendations to Address Energy Poverty in the Netherlands

The Netherlands Authority for Consumers and Markets (ACM) emphasizes the vulnerability of households to high energy prices due to the country's reliance on natural gas imports. ACM proposes three measures for the government to safeguard vulnerable consumers: implementing general purchasing-power policies, introducing a social rate for energy supply, and promoting sustainability in homes to reduce energy consumption. These measures aim to ensure affordable energy for all consumers, particularly those at risk of energy poverty. The energy market's free nature poses challenges in maintaining affordable prices, necessitating government intervention to protect vulnerable households.

ACM's Recommendations to Address Energy Poverty in the Netherlands

The Netherlands Authority for Consumers and Markets (ACM) highlights the risk of high energy prices for vulnerable households and suggests government interventions to protect consumers.