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Compensation also for students’ high energy prices

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Soon students with collective gas and electricity connections will also receive compensation for higher energy costs. This is very good news for our target group, who saw almost half of their income go to living expenses even before the rise in energy prices. Processing the compensation in the service costs will, however, be a complex puzzle for DUWO. This is because the subsidy scheme is quite a bit more complex than the price cap used for individual connections. The Dutch government will announce the details of the scheme in mid-February at the earliest. DUWO has already started preparations.

The scheme is coming

Previously, students could make no claim to compensation schemes. The discount of 190 euros that was paid out twice, in November and December 2022, did not apply to students without an individual energy contract, and this group was also not included in the energy cap effective from 1 January. We estimate that more than 75% of our tenants have a collective connection. Fortunately, there is now an alternative financial scheme for our residents. The broad lines of this scheme are known, but it is extremely important to know the details of it before the scheme can be implemented.

Preparation

Unlike the price cap, the compensation scheme is a subsidy scheme. Lessors like DUWO must apply for this for each connection and each energy flow (gas/heat/electricity) and then divide this pro rata among the tenants. This has certain consequences and the solution chosen is not our first choice, to put it mildly. At the same time, however, we are naturally enormously pleased that a compensation scheme we can use to assist our tenants is being created.

Complex scheme

Although only the outlines of the scheme are known, it is now already clear that adjusting the service costs entails more than just entering a tick mark in our automated system and implementing the compensation amounts with a push of a button. There is not one compensation amount, but different amounts for gas, heat and electricity as well as different amounts for self-contained dwelling units versus shared rooms. These are a few examples of the multiple aspects* that complicate the implementation.

We are working hard on the preparations. We are trying to be ready by 1 April, but that remains dependent on the final State scheme. Legally, by the way, an adjustment of the service costs and advance payment amounts is allowed only once per year. We already did this on 1 January, but we assume that our tenants will not object to a second adjustment if that involves a reduction.

Conserving energy

In addition to establishing this compensation scheme, it is naturally also important to save costs and be more energy efficient in other ways. In many large complexes, DUWO has already made adjustments to central heating systems. During recent servicing, the settings have also been adjusted for small, shared groups who have their own heating installation. In the other complexes, an assessment will be made of whether and how the central heating system can be adjusted. This involves, for example, matters such as reducing the water pressure, the temperature of the tap water and the central heating temperature.

More information and advice about conserving energy can be found on our website (https://www.duwo.nl/en/saving-energy).

A block connection may supply separate or shared housing units but also both types. And the situation is different for electricity than for gas and heat. A distinction between low-volume and bulk use is also made. What’s more, a minimum may apply for connections with fewer than 2 to 3 separate housing units or 3 to 5 shared housing units. And the government is also considering an “n-1” rule: less subsidy is provided for one housing unit than the number of residences supplied by a connection. Finally, a different subsidy amount may be applied for the second half of the year. Such rules make the implementation more complicated, as it means that, for a large number of tenants, we must precisely determine which amount they are entitled to, for electricity as well as heat/gas. 

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