All larger Dutch companies are obliged to take energy-saving measures that pay for themselves within five years via a lower energy bill. This obligation to save applied to medium-sized companies, but the cabinet now also wants to add large consumers of gas and electricity. The measure will not solve the acute gas crisis: the large companies will only have to take action from next year.
Since 1993, Dutch companies have been obliged to take a number of predefined measures to reduce their energy consumption. These measures must then pay for themselves within five years through lower energy costs.
There has been criticism for years. There was little control and enforcement – and large consumers remained out of range† On top of that is the current oil and gas crisis. And therefore also the extension of the obligation to save to large companies.
“Energy saving is certainly of crucial importance now,” says Rob Jetten, Minister for Energy and Climate. “We don’t have to produce, pay for or import energy that we don’t use.”
According to the minister, companies can make an important contribution to this. “That is good for energy costs, the climate and it makes us less dependent on fossil fuels from Russia.”
Every little bit helps, provided they come quickly
Tightening and expanding can indeed be a step to lower that dependency. If the measures are implemented immediately, it can take up to approx 1.5 billion cubic meters of natural gas. This emerged in May from a calculation commissioned by the Dutch Association for Renewable Energy.
In comparison, additional consumption of coal can save about 2 billion cubic meters of gas, and a more comprehensive package of energy savings can save about 5 billion cubic meters – all on an annual basis. With an annual national consumption of 40 billion cubic meters (2021), these are relatively small, but important steps.
However, that fruit will not be picked anytime soon. From the brief that Jetten presented to the House of Representatives on Monday, it appears that the expansion will only take effect in 2023. The obligation then applies to all companies and institutions with an annual energy consumption of 50,000 kilowatt hours of electricity or 25,000 cubic meters of natural gas, or more.
The problem is that with this dependence we risk getting into trouble in the short term. Gas storage facilities are barely half full. And the situation threatens to worsen from next week, if the gas supply from Russia to Germany via the controversial Nord Stream pipeline is expected to stop completely.
Money for the enforcement of the obligation to save remains
When asked by NU.nl, the spokesperson for the Ministry of Economic Affairs and Climate was unable to say why the expansion will not be extended to large consumers in 2022. “But you want to give companies time to prepare for this.”
Efforts are being made to immediately realize better enforcement for the existing savings obligation of medium-sized companies.
“Tightening in enforcement is acute, and there is still money available for that in the current pot.” Earlier, 19 million euros was made available to the 29 Dutch environmental services that are responsible for enforcement. It turns out that only ten of those environmental services have applied to receive that funding — money intended to hire outside auditors.
“From 2023, we have increased that pot, so that the services can also structurally hire people for the enforcement of the savings obligation,” said the spokesperson.
So far little targeted government policy
How are things going with the government’s savings plans? A national savings target was announced two weeks ago, but it is still on the drawing board.
To underline the dedication, the website of the national government contains the following: text: “The cabinet is fully committed to energy savings. For example, in the first five months of this year, a third less gas was used compared to previous years.”
The savings are alone no policy meritbut mainly the result of a mild winter and very high energy prices, which have led to citizens and companies saving gas on their own initiative.
Moreover, this incentive to save – the very high energy prices – has been weakened by government policy this year, by successively lowering the energy tax, fuel excise duty and VAT on energy.
The above three measures have probably led to extra energy consumption. Smaller measures, such as lowering the heating temperature in government buildings since April, are unlikely to outweigh this. All in all, serious austerity policies have yet to begin.
–
