Compensation for high energy bills: The price cap and TEK

November 8, 2022

Compensation for high energy bills: The price cap and TEK

Unfortunately, we have all noticed that energy prices have skyrocketed. This is hitting entrepreneurs hard. That's why the government is trying to help you out. For both individuals and entrepreneurs, there is an energy price cap. For some energy-intensive businesses, there is also another scheme: the TEK (allowance for energy costs scheme). Thanks to these schemes, energy costs will decrease slightly. In this article, we will explain the TEK.

Energy price cap

For both entrepreneurs and individuals, there is an energy price cap for the year 2023. This means that there will be a maximum energy price, which will result in lower energy costs. The maximum rate for gas is €1,45 per m3 of gas and for electricity €0,40 per kWh. You will pay this adjusted rate in 2023 for a consumption of up to 1200 m3 of gas and 2900 kWh of electricity. Above that, you will pay the market price. The cap applies from 1 January to 31 December 2023. It's good to know that this energy price cap only applies to small-scale users. You can see on your energy bill if you have a connection as a small-scale user.

Energy discount

The price cap described above will only come into effect from 1 January 2023. Last year (2022) you may have received an energy discount of €190 per month in November and December. This compensation is for all small-scale users. Your energy supplier would have automatically provided you with this discount. You have likely already received information about this from them.

Compensation for Energy Costs Scheme

Furthermore, entrepreneurs who use a lot of energy and gas are also being helped with the compensation for Energy Costs Scheme. Through this scheme, some large energy/gas users will receive a part of the higher energy costs back. The TEK applies to the period between 1 November 2022 and 31 December 2023. The TEK cannot be applied for yet. It will likely only be possible from the second quarter of 2023.

How does the TEK work?

The TEK scheme works as follows. There is a threshold price of €1,19 per m3 of gas and €0,35 euros per kWh of electricity. If you pay more than these amounts, you will receive half of what you pay above these prices back. There is a maximum of €160.000 for this.

Example: You own a bakery and you use 20,000 m3 of gas and 30,000 kWh of electricity. You pay 2.50 euros per m3 for gas and 0.70 euros per kWh for electricity.

You actually pay 20,000 * 2.5 + 30,000 * 0.7 = 71,000 euros.

According to the threshold prices, you would pay 20,000 * 1.19 + 30,000 * 0.35 = 34,300 euros. So, you pay 71,000 - 34,300 = 36,700 euros more. You will receive half of this back, so that is 36,700 / 2 = 18,350 euros.

Who is eligible for the TEK?

The TEK is intended for energy-intensive small and medium enterprises (MKB). To use the TEK, you must meet the following conditions:

  • Your company consumes more than 5,000 m3 of gas or 50,000 kWh of electricity in a year.At least 12.5% of your turnover goes to energy costs.
  • You meet the European small and medium enterprise (SME) definition.
  • Your company is registered in the Trade Register of the Kamer van Koophandel (KvK).

Hopefully, these arrangements will help you pay less for energy. Another way to reduce energy costs is simply to use less energy. You can do this by making your business more sustainable. To assist entrepreneurs with sustainability efforts, the government has announced an expansion of the BMKB guarantee. You can read more about the expansion of the BMKB here.