All the major steps that governments have taken in reaction to the crisis, from lowering the value-added-tax to conducting checks on households and setting a price ceiling, have been implemented.
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| [Energy bills in Europe] |
Families and companies all throughout Europe are experiencing hardships as a result of the energy crisis that was triggered by the conflict in Ukraine. The United Kingdom was the latest nation in the EU to offer a plan to mitigate the effect that rising costs have had on individuals and companies, but almost all EU governments have already put some measures into place to calm prices. According to the findings of a study conducted by the Bruegel think tank, the governments of the continent in the past year have spent up to 500 billion euros with their interventions. London has taken the lion's share, having allocated a good 178 billion euros alone, while the twenty-seven have spent a total of 314 billion in total. According to the findings of the institute's research, Italy is the fourth nation in terms of the number of interventions carried out, which account for 3.3% of our GDP. Let's have a look at some of the most significant standards used in other European countries.
United Kingdom
Unquestionably, the United Kingdom is the nation that has taken the most significant actions to date in this regard. After putting a limit on the amount that homeowners might pay for their energy bills, the city of London has now imposed a limit on the amount that companies, schools, and charitable organizations can spend on their gas and electricity. All companies that are eligible for the reduction will have it automatically deducted from their bills; the cap on the price of electricity will be around 211 pounds (240 euros) per megawatt hour, and the cap on the price of gas will be 75 pounds (85 euros). The energy firms will subsequently be compensated by the government for the price differential, which, according to the projections made by Westminster, might potentially be more than twice the current amount. A limit of the same kind was placed earlier this month on the amount that families may spend on their annual energy bills, and it is set at a maximum of £ 2,500 (€ 2,857) for the next two years. In addition to the £ 400 (€ 457) return on energy bills that was promised earlier this year for each home, this comes as a total refund of £ 900 (€ 1,033). Families with the lowest incomes will also get a one-time contribution to the "cost of living" rise of 650 pounds (743 euros), while pensioners will receive an additional payment of 300 pounds (343 euros) this winter. Both of these payments will be made in addition to their regular benefits.
France
France is among the nations that have provided the least amount of direct aid. At the moment, Paris has limited itself to providing a one-time contribution of only 100 euros to all of those who earn less than 2,000 euros per month. This amounts to approximately 38 million people. France is among the nations that have provided the least amount of direct aid. The maximum rise in costs for gas and electricity was then fixed at 15%, and according to the estimates, the average monthly energy bill of homes will only cost 20-25 euros extra, which is a significant decrease from the 180-200 euros that would have been there otherwise. been otherwise. However, Paris interfered at the heart of the issue by taking steps to fully nationalize the EDF energy provider and compelling it to cap growth in wholesale power prices. These actions were taken in order to fix the situation. From € 22.50 per megawatt hour, the national tax on final electricity use has been decreased to to € 1 for homes and € 0 overall.
Germany
Berlin has chosen to grant all taxpayers a one-time flat rate on energy expenses of 300 euros, which will be transferred to paychecks. This comes after the city decreased the rate of VAT on electricity from 18 to 7%. Families who are already receiving a maintenance allowance will get an additional one hundred euros for each kid, while families that are already receiving a grant would get a one-time payment of two hundred euros. Citizens were also given the opportunity to purchase a pass that would enable them to ride on all national public trains for the modest price of 9 euros per month. However, in addition to that, a levy of around €500 per year was also agreed in order to assist companies in coping with the growing costs of energy. In key gas industries, nationalization efforts are also being carried out in Berlin, much as in Paris.
Spain
Similar to Italy, Spain has increased the value added tax (VAT) on electricity to 5% and then opted to charge the additional profits that energy firms are making as a result of the ongoing economic crisis. After a difficult fight in Brussels, Madrid has won the power to put a cap on the prices that corporations may charge for the sale of energy. This ceiling ensures that the costs will stay below an average of 50 euros per megawatt hour. This victory was won for Madrid and Portugal. The businesses have voiced their displeasure over the fact that the limit is not being placed on the rates that they must pay for gas imports. After that, the government implemented a policy that was quite similar to the one that is in place in Germany, and it made it possible for commuters to ride the train for free until December.
Netherlands
A one-time energy subsidy of 800 euros was provided by the Dutch government to families with lower incomes. In addition, the VAT on energy was increased from 21% to 9%, and excise tax on gasoline and diesel was reduced by 21%. A price limit will also be placed on gas and electricity in Amsterdam, although it will only apply to the amount of energy that is anticipated to be used annually by the typical family. If this fixed threshold of energy consumption is exceeded, the additional energy will be bought at market pricing.
Poland
Poland has proposed tax cuts on energy, fuel, and essential food goods. Additionally, Poland's government has granted a one-time payment of 3,000 zlotys (€633) to families in order to assist with covering the growing cost of coal. It also prolonged until 2027 the period during which prices of gasoline are regulated for families and institutions like as schools and hospitals.
Denmark
Including a reduction in a charge on power costs, the city council in Copenhagen adopted a number of measures totalling 3.1 billion Danish kroner (417 million euros), one of which was an allowance for seniors. A so-called "thermal allowance" in the amount of 2 billion Danish crowns (269 million euros) was also authorized by the parliament. This allowance will be provided to more than 400,000 households who have seen a rise in their energy bills as a result of the price hike.