Dutch cabinet grants industry compensation for high electricity costs

The Dutch government will provide 150 million euros in additional compensation to the industrial sector next year to offset high electricity prices.

The cabinet announced the measure in a letter to the Tweede Kamer, the Dutch parliament. The government also accelerated the release of funds previously agreed upon in the coalition agreement, which will reach 345 million euros in 2028 and 495 million euros annually from 2029.

Companies must spend at least half of the received compensation on sustainability measures, such as improving energy efficiency or generating renewable power. The cabinet chose this method because European state aid rules prevent them from providing direct compensation to the industry. The government noted that Dutch companies currently pay more for electricity and network costs than competitors in Belgium, Germany, France, and the United Kingdom.

The trade association Energie-Nederland welcomed the support but stated the funding is insufficient for companies needing long-term, predictable policies to invest with confidence. The association argues that the industry requires more money and a structurally available fund to maintain competitiveness.