The inner cabinet has reached an agreement on an energy support package. A total of 80 million euros has been made available, 60 million of which will go to help commuters. The measures will apply for a period of three months, from May to July. Here is a summary of the measures.
Climate & Environment
What’s in the government’s energy deal to help people struggling with fuel bills?
Colin Clapson
Published:
A significant portion of the package is allocated to commuters: €20 million per month has been earmarked to encourage employers to increase or introduce a mileage allowance. Specifically, any increase of up to 20 per cent, with a maximum of 10 cents per kilometre, will be fully offset via a tax break.
Moreover, any additional allowance will not be taxed at the employee’s end. When introducing a new allowance of at least 10 cents per kilometre, 20 per cent of the cost will be compensated, again with a maximum of 10 cents per kilometre.
In addition, the flat-rate mileage allowance for business travel using a private car will be modified. €1.66 million per month has been earmarked for this, €5 million in all.
Helping the vulnerable
€15 million has been allocated to local social services to help them assist vulnerable families who heat their homes using fossil fuels.
The planned increase in excise duties for households that heat their homes using fossil fuels has been postponed until 1 August.
Ministers Rob Beenders (Flemish socialist Vooruit) and Mathieu Bihet (Francophone liberal MR) will lead a government campaign designed to help people reduce their energy consumption, thereby lowering demand for energy.
The government aims to encourage remote working, promote carpooling and eco-driving, and increase the use of public transport. In addition, a public awareness campaign will be launched to promote the CREG price comparison tool to make citizens more aware of their energy contracts.
Finally, Prime Minister Bart De Wever (Flemish nationalist N-VA) has been given a mandate to express Belgium’s active support for a Europe-wide tax on excess profits. In concrete terms this could entail: a contribution from the oil companies in the event of excessive or large profits.
Re-evaluation after 3 months
Budget Minister Vincent Van Peteghem (Flemish Christian democrat CD&V) is pleased that a decision has been taken on energy support measures. ‘We have found a good package to support working people and the most vulnerable.’
It will be evaluated after3 months.
Raising funds from windfall profits
For government party Flemish socialist Vooruit party, a tax on the windfall profits of energy companies was also a key priority.
“There is a very clear agreement that Bart De Wever, as Prime Minister, will be given a mandate actively to advocate in the European Council in favour of a strong European framework to tax windfall profits,” says Deputy Prime Minister Frank Vandenbroucke (Flemish socialist Vooruit).
“It is a political battle in which the Belgian government will side with countries advocating in favour of European regulation that allows countries to demand a solidarity contribution in the event of truly excessive profits in the petroleum sector,” Vandenbroucke asserts.