THE Scottish Government last week announced a £4 million scheme to help people with soaring energy bills while regulation of the energy sector is reserved to Westminster.
With households likely to be landed with a £2000 per year energy bill after the price cap rises again in April, how are neighbouring European countries tackling the crisis and what can we learn from their approach?
There has been a staggering fourfold surge in energy market prices in Europe, with households set to pay an average 54% more for their energy than in 2020.
READ MORE: Boris Johnson says Scottish independence is 'just not going to happen'
It comes amid rising inflation, rising food costs and in the UK higher National Insurance contributions which are set to come into effect in April. Households are facing a cost of living crisis as wages remain low in comparison.
Many European governments have moved quickly to protect consumers from rising prices, while the UK Government has failed to act or even consider a windfall tax on oil and gas firms who returned record profits last year.
France
With the French presidential election fast approaching in April, Emmanuel Macron swiftly brought in measures to stem rising costs. State energy giant EDF will charge electricity well below the market rate and is expected to take an €8.4bn (£7bn) financial hit because of the plans.
EDF has also been ordered to sell more nuclear power to rivals below the current market price, as it operates 56 nuclear reactors which generate 70% of the country’s electricity.
The French government has also cut electricity taxes in a bid to slow the increase to bills and 5.8m low-income households were given a €100 chèque énergie in January to help with bills.
Gas prices are soaring in the UK and across Europe
Germany
The German government’s approach to the crisis is to reduce a green surcharge on bills which support renewable energy projects from 6.5 cents per kilowatt-hour to 3.7 cents.
The outstanding levies will be covered by €3.3bn in carbon taxes collected by the Treasury. There is also a €130m pot for lower income households to help with the bills, ranging from €135 for a single person home, €175 for a two person household and €35 per additional person.
As Germany had the highest energy prices in Europe before the current crisis, many have said they do not go far enough, with some calling for a €500 subsidy per household.
READ MORE: UK must 'guarantee Covid test funding' amid reports scheme to be scrapped
Spain
Last September, Spain agreed to remove taxes from home energy bills until 2022, replacing this with a windfall tax on utility providers who were set to make profits from the soaring market prices.
This is expected to raise €2bn, and the policy was seized upon by Labour who called for a similar tax on oil and gas producers in the North Sea.
Ireland
In the Republic of Ireland, each household will be given €200 (£169) credit to offset heating costs, and public transport costs will be reduced by 20% until 2022.
Those already claiming the fuel allowance will be given an extra €125 (£105). The €300m (£253m) plan is part of a €1.5bn package being spent on mitigating the cost of living and problems caused by inflation.
Many EU countries have given householders subsidies for electricity bills
Italy
Households in Italy pay one of the highest rates for energy bills in Europe and are set to see some of the steepest rises in costs, forcing the government to cut tax on gas for all consumers and introduce extra grants for low-income families.
Like Germany, Italy will also reduce charges on subsidies that support renewable energies. The Italian government has spent more than €8bn since July to keep bills down.
Bulgaria
Already existing issues including poor insulation, high levels of poverty and cold winters make it difficult for Bulgarians to heat their homes, something which has been exacerbated by the crisis.
The government has therefore frozen regulated heating and electricity prices until the end of March, but according to public broadcaster Bulgarian National Television, only 10% of the public have a positive view of the policy.
READ MORE: UK urged to BAN Scottish Parliament from working on independence referendum
The Netherlands
In a bid to save households around €400 a year, the Dutch cabinet agreed to cut energy taxes in October last year.
A further €150m is being set aside to boost home insulation, and €500m will be used to compensate smaller firms with lower energy taxes. The €3.2bn package came in on January 1 and will run for a year.
Sweden
A six million kronor (£473m) pot was set aside by the Swedish government to soften the impact of soaring bills, and the nation announced plans for winter-bill subsidies of up to 6000 kronor for 1.8m households between December last year and the end of February.
Norway
The Norwegian government’s package of measures to help households totals more than eight billion kronor (£664m). In January, Norway committed to covering 80% of electricity costs between January and March when the rate for electricity is above 70 Norwegian øre (6p) per kilowatt-hour.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel