Dutch government expects to spend $23 billion on energy price cap

AMSTERDAM (Reuters) - The Dutch government expects to spend about 23.5 billion euros ($23.3 billion) on a price cap on energy contracts to shield consumers from surging prices, it said on Tuesday.

The government last month said it would cap prices but had yet to agree final details.

During the whole of 2023 prices will be capped at 0.40 euros per kilowatt hour of electricity and 1.45 euros per cubic metre of gas for a maximum of 2,900 kilowatt hours and 1,200 cubic metres respectively.

Households will also receive energy bill refunds of 190 euros on average in the last two months of 2022, the government said.

The measures come on top of plans to spend about 18 billion euros next year to help people contend with high inflation, particularly those on lower wages.

Inflation in the Netherlands jumped in September to 17.1%, its highest in decades, driven by soaring energy prices.

($1 = 1.0084 euros)

(Reporting by Bart Meijer; Editing by Andrew Heavens and David Goodman)