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Dutch Government Announces Energy Bill Relief

20 Sep 2022

Governments and energy companies have largely agreed on measures to reduce energy costs. While final details are still being worked on, Dutch Minster Jetten’s climate and energy plans are due to be formally announced this afternoon and are focused on an energy price ceiling. These plans will ensure energy bill relief in the current times of inflation.

Prinsjesdag

The third Tuesday of September is called Prinsjesdag in the Netherlands. The head of state then delivers the Speech from the Throne in a United Assembly of the States General. In this speech, the government indicates in general terms what government policy will be for the coming year. At the same time, the budget of millions and the national budget for the following year will be presented on that day. Currently, the national budget (Miljoenennota) has been leaked and assumptions for the inflation relief can be identified.

Brief overview

The heart of the plan is that the Dutch government takes over a part of the energy bills of households. With this measure starting from the 1^st of January next year, the aim is to prevent a million Dutch people from getting into -further- financial trouble. This year November and December, the monthly advance payment will already get reduced.

Moreover, this winter energy companies are not allowed to cut off households due to difficulty paying. People who cannot pay energy bills are given a six-month grace period. In the case that there is no payment arrangement within this half year is still the subject of consultation. The government also inquires energy companies to offer multi-year energy contracts to customers again. Further, in the leaked national budget (Miljoenennota), the cabinet has already announced a reduction in the energy tax for next year and an energy surcharge of 1,300 euros for people with a minimum income. This is helpful for Dutch citizens to know what they can expect.

Concrete plans

From the start of next year onwards, the first part of the energy and gas bill will mimic the consumption prices from this January – before the war with Ukraine. In reality, smaller apartments with decent insulation can potentially cover their complete energy bill. When energy consumption is higher, people need to pay the energy prices according to the current market price.

Price ceiling

To calculate the “first part” rates, the government will most likely use the average energy consumption per year. According to consultancy firm Milieu Centraal (see NOS), the average is 1169 m3 gas and 2479kWh electricity. Further, the energy companies send the other part of the bill to the government, which adjusts the difference between the costs and what the consumer is charged. Interestingly is that this price cap for household energy bills is based on consumption instead of income. While this can have a levelling effect, since fewer income households live on averagely in smaller houses, people will most likely not be left behind. In this way, the government assists people to pay for their energy consumption but still encourages them to use gas and electricity responsibly.

While it is clear that this relief budget will cost the cabinet many billions, the exact amount has yet to be determined. However, the Dutch government has a strong income flow due to the tax on the raised energy prices and the proceeds of gas that has been extracted from the seabed and ground in the Netherlands. Moreover, the potential European measurement to skim off the profits of electricity producers who are not affected by high gas prices should also benefit the Dutch treasury.

Security

To continue, the government aims to ensure long-term security for Dutch inhabitants again. In the current situation, people can only opt for a variable rate with a new contract. This variable rate is normally adjusted twice a year, but now more frequently due to the market price. As a result, financial security and stability are difficult to take into account. Jetten, Minister for Climate and Energy Policy of the Netherlands, therefore announced that energy companies must offer multi-year contracts again to regain financial stability. To compensate for the financial risks of the energy companies, the fine to terminate a long-term contract will be raised from 50 euros to 100 euros per contract. In this light, the attractiveness to cancel a permanent contract if prices suddenly fall sharply, and thus leave the energy companies with expensive energy with a potential bankruptcy, as a result, is less attractive with new and realistic penalty clauses.

Sources

https://nos.nl/artikel/2445215-overheid-springt-bij-energierekeningen-vanaf-november-omlaag

https://www.hln.be/nieuws/nederlandse-regering-en-energiebedrijven-akkoord-over-prijsplafond~a0dddd3f/

https://www.rtlnieuws.nl/nieuws/nederland/artikel/5334240/prijsplafond-energiecrisis-gas-elektra-energierekening-november

Amelkis Opera: Consolidation Software Solutions

13 Sep 2022

Current news

Amelkis is the software publisher of Opera, the consolidation software with the highest growth of users. Over 3000 groups have been consolidated on Opera, in both legal and business visions. Located in Paris, France, Amelkis Opera offers a global solution with secure hosting that applies the highest level of security and guaranteed stability. An easy web connection allows you to work without any technical constraints from your chosen location. The application is available in SaaS mode, offers statutory consolidation, reporting and planning.

Opera is a simple and intuitive solution with powerful and universal import duties that allows you to import all your accounting data automatically and enables automatic real time reconciliation of your intra-group balances. This intuitive application allows for to-the-point menus with a practical and interactive interface, and easy access to reports.

Opera is supported by many chartered accounting firms such as KPMG and PWC who consider Opera as the most efficient solution on the market. The application provides dynamic auditability data on all cells and allows you to instantly justify each amount by going back to the origin of the data and offers complete compatibility with Excel, leaving you with a complete audit trail.

The first step in the consolidation application is to create the group entities and the consolidation groups. Enter the conversion and rates and apply the selection by country and by reporting type. Create the report by applying the collection package; your scope, and your rates. The user can import their data from any scale format. These reports are easy to customizable according to the required criteria.

The advantages of Amelkis Opera are self-explanatory; this simple and intuitive solution offers powerful and universal import functions, with dynamic data auditability on all cells. It offers office integration for better productivity, excel based restitution, and reversible Excel add-ins with additional planning and budgeting tools. A complete pre-configured solution with intellectual reporting capabilities such as convergence; analysis axes; and extra-financial indicators.

Watch the Amelkis Opera demonstration here:

https://www.youtube.com/watch?v=1B52nbrDOiI

Photo by RODNAE Productions: https://www.pexels.com/photo/close-up-of-pencils-on-a-chart-7947835/

Germany invests another tens of billions to help the country through winter

06 Sep 2022

Actual, Europe, Inflation

Germany, Inflation

In the third support package totalling more than 65 billion euros, the German government attempts to combat inflation and high energy costs. German Chancellor Scholz announced in the press conference that while “this is the largest package to date”, the investment is necessary for “our country to get through this crisis well”. Read more to learn about the German measurements taken to withstand the crisis.

Support packages

For the third time this year, the German government has announced a comprehensive relief package that needs to assist the Germans in the contemporary period of inflation. The previous two support packages (in total around 30 billion) presented by the German government included an energy surcharge, a reduction in excise duty on fuel and the 9-euro public transport ticket. The latter could be bought and utilized by both German nationals and internationals and enables the buyer to unlimitedly use the public transport for a month. Whilst these measurements assisted the German inhabitant, a third relief package is recently announced.

After negotiations of around 20 hours, Olaf Schultz and his coalition parties announced this new package. In the attempt to assist Germans through the winter, the slogan of this package: “You’ll never walk alone” signifies the feeling of unity. Scholz argues that “we will never leave anyone behind”, which emphasises the fact that this relief package is mainly focussed on the lower incomes, the students and the retirees. While concerns are growing in Germany about the high cost of living, the trade unions and opposition parties Die Linke and AfD are considering demonstrations and the German trade union movement is warning that inflation could lead to considerable social unrest. However, Scholz argues that he is completely aware of this and that “we take all these concerns very, very seriously. You will never be alone. We will not leave anyone behind.”.

New measurements

To compensate these groups, this new package includes a reduced price for basic electricity consumption, an energy surcharge for students and pensioners, and a prolongation of the discounts on public transport. Moreover, retirees can receive a one-off of 300 euros to compensate for the energy inflation, for students this compensation is 200 euros. For single-person households, that are entitled to housing benefits, this amount is 415 euros, and for a household with two people, this one-off compensation is 540 euros and increases by 100 euros per additional family member.

The child benefit (currently 219 euros per child) will be increased considerably. After the New Year, the child benefit increases by 18 euros per month for their first and second child. Furthermore, the 9-euro ticket introduced in the previous package gets prolonged but will likely be more expensive. An amount of 49 to 69 euros per month is considered to freely use German public transport. In addition to this, more Germans will be able to apply for housing benefits. The limit will be raised to 1,600 euros per month, and 2,000 euros per month next year. It is estimated that this will increase the number of subsidy recipients from 700 thousand to 2 million. This group of “low earners” will have to pay less for their social contributions and employers give an up to 3,000 euro tax-free “inflation premium”. Especially for smaller businesses to keep running, there will be more tax easing. This does not apply to the “low earners” due to their relative low spending budget.

More measurements

The German coalition consisting of the social democratic SPD, The Greens and the liberal FDP, have argued about even more measures to include in the package. While the SPD and the Greens were fond of an excess tax, where companies have to pay more tax on their profits above a certain threshold, the FDP argued that this excess tax will be harmful to the German business climate and the attraction of businesses. However, while the excess tax is not part of the relief package, the German government has promised to explore the possibilities at the European level to skim off the high profits of energy companies. In this proposal, a price ceiling for exceptionally profitable energy producers is considered. The German government first wants to look at including this measurement on a European level, but in the case that this is deemed unsuitable, the government will regulate this in a short period on the national level.

Conclusion

In conclusion, Scholz argues that the enormous rise in energy prices is the result of the ongoing gas war. Scholz continues about the Germany-Russia relationship: “He has committed a breach of contract, something that never happened even in the Cold War, and in doing so he has proved that Russia is no longer a reliable energy supplier”. In establishing this new relief package, Germany aims at supporting the lower incomes, retirees, and students through the high energy consumption of the winter. According to Scholz, German needs to become independent from Russia- as soon as possible.

Sources

https://nos.nl/artikel/2443251-duitsland-steekt-nog-eens-tientallen-miljarden-in-lastenverlichting

https://www.volkskrant.nl/nieuws-achtergrond/lees-hier-het-liveblog-van-zaterdag-3-en-zondag-4-september-terug~b71c17db/?referrer=https%3A%2F%2Fwww.google.com%2F

https://www.volkskrant.nl/nieuws-achtergrond/eenmalige-uitkeringen-lagere-belastingen-en-overwinstbelasting-voor-energiebedrijven-zo-wil-de-duitse-regering-het-land-door-de-winter-helpen~b1d7c56a/

https://www.focus.de/politik/deutschland/zdf-sommerinterview-im-liveticker-kurz-nach-merz-stellt-sich-scholz-den-fragen-zu-neuen-entlastungen_id_140694526.html

https://www.merkur.de/politik/wen-entlastungspaket-deutschland-ampel-koalition-scholz-spd-gruene-fpd-preise-soeder-massnahmen-wann-fuer-zr-91766057.html

But first, cookies

30 Aug 2022

Current news

What are cookies?

A cookie is a tiny file on a computer that attracts data that it recognizes as useful to the browsing patterns of the user. Cookies are accessed by web browsers such as Google Chrome, Microsoft Edge, and Firefox or by the website owner itself, and uses that data to automatically fill in the blanks each time you visit a website with the aim of providing a quicker browsing experience for web users. Cookies also benefit business owners, as it can provide information such as how the site visitor came to find your website, how many times a page is viewed by a customer and also notify you when a specific visitor accesses your website.

The contents of the EU Cookie Directive:

The General Data Protection Regulation (GDPR) which came into effect in 2018, paired with the EU cookie law, forms the overall data privacy regime in Europe. The extraterritorial scope of the EU cookie law means that any website that has visitors from the EU must be compliant to the law, regardless of where in the world the site is located. This is one of the world’s strictest data privacy regimes which have inspired newer privacy laws such as POPIA (Protection of Personal Information Act) which provides privacy rights and consumer protection under the South African law and Brazil’s Lei Geral de Proteção de Dados (LGPD) which governs both online and offline personal data.

The ePrivacy Directive’s cookie requirements requires you to obtain the explicit consent from end-users prior to cookies being activated on your website. The minimum requirements in terms of the EU directive whether a user is based in the EU or deal with EU customers, are as follows:

Inform the user that the site uses cookies;
A notification that makes cookie use clear, like a banner in the header;
Explicit, voluntary consent before cookies are used; and
The choice for users to opt-out.

These requirements are adapted from the EU e-Privacy Directive, as part of Europe’s endeavor to provide online privacy for its people.

The European Privacy Directive (EPD) will eventually be replaced by the ePrivacy Regulation (EPR), which aims to expand the definitions and ambit of the EPD. The EPR was set to be enacted in 2018 at the same time the GDPR came into effect, but only incomplete drafts of the document were available up to 10 February 2021, when a finalized text was agreed upon by the EU Council.

Although it is scheduled to be completed this year there is no date yet for its implementation. In the European Union a directive must be incorporated into national law by EU countries while a regulation becomes legally binding throughout the EU the date it comes into effect.

The scope of the draft ePrivacy Regulation 2021 extends to all electronic communication. This includes WhatsApp, mobile text messaging, Facebook messaging, email, etc and protects individuals inside the EU from third-party interference into their private communication unless explicit and informed consent is given upfront. The 2021 draft centralizes user consent as the core to electronic data privacy and is targeted at website trackers and cookies.

The EPR will also address the practice of digital fingerprinting whereby a code runs in the background of many websites that collects information about a visitor’s device, location & habits without requiring their permission. What is important however, is that consent is here to stay. While cookies are continually evolving and the rules which regulate them are still being set, the onus of maintaining an updated cookie policy and properly informing your users about the cookies your website is using and obtaining their consent will ensure you stay compliant with the GDPR and maintain your client satisfaction.

Sources:

https://www.privacypolicies.com/blog/eu-cookies-directive/

https://www.cookiebot.com/en/cookie-law/

https://gdpr.eu/cookies/

https://www.cookiebot.com/en/eprivacy-regulation/

Photo by Taryn Elliott: https://www.pexels.com/photo/close-up-photo-of-cookies-on-wooden-surface-6119145/

The Nitrogen Problem in the Netherlands: How it Works

23 Aug 2022

Actual, EFRAG, EU, Netherlands, nitrogen

While the Dutch society needs to deal with new nitrogen regulations, the European Commission has hardly any insights into the nitrogen problems in the individual EU member countries. While these countries do no research or are not sharing information regarding nitrogen, the approach in regulations differs from country to country. How does this work while all living in the European Union?

Utilizing handkerchiefs and the reversed Dutch flag (blue-white-red), farmers and their aficionados show their displeasure with the new nitrogen regulations. The Netherlands, which is according to the experts the country with the greatest nitrogen problem, is also the only country that is consistently reporting these figures. In the EU, passing on nitrogen figures is not mandatory and is therefore not linked to a fine. In the case these figures are present, the “culprit” for the nitrogen crisis can be identified and thus extra regulations can be made.

Every six years, EU countries are required to assess the quality of the Natura 2000 protected areas. This way, the threats to nature are identified and the data is shared with the European Commission. In the latest report in 2022, it is argued that Dutch nature is doing bad and even worse than the other EU countries. While the quality of Nature 2000 protected areas is used to form this conclusion, the reported nitrogen data by the Netherlands also played a huge role in determining the effect of nitrogen on these protected areas.

According to Van der Sluis, Wageningen University and contributor to the reports on behalf of the European Commission, other Western countries have similar nitrogen problems. However, these countries do not report “nitrogen” in the same manner or the same amount of information. These countries most often report on “agriculture” and “fertilisation”. In general, it is argued that the consequences of nitrogen in the EU are therefore underestimated. EFRAG aims at motivating the agricultural sector to participate in sharing CSR data. In the future, this might become mandatory for specific enterprises.

While the overarching picture remains partly unclear, Van der Sluis argues that the nitrogen problem in the Netherlands is remarkably evident. Due to the intensive livestock farming, as Van der Sluis continues, the 2020 report states that 88% of Dutch nature is identified as “moderate” or “poor” condition. However, the arbitrarily of the figures and the lack of shared information makes the issue difficult to assess. For example, when an EU country shared the issues or presence of “agriculture” but lacks the division between “nitrogen” or “fertilization”, the impact of nitrogen is unclear. This is linked to the recognition or the ignorance of the nitrogen crisis.

Due to consistently sharing data regarding nitrogen, the situation in the Netherlands now has become a nitrogen crisis. Since the agricultural sector, in special the livestock farmers, are the leaders in nitrogen emissions, regulations are made by the Dutch government. These regulations can have the form of an emission counter on the farms, or scaling the farm/livestock down. The regulations can vary on the state of the nitrogen emissions in that specific area.

One might argue to stop sharing the nitrogen data with the European Commission. However, lawyers emphasise that the Netherlands cannot suddenly halt sharing this information While other countries refrain, De Graaf, professor of administrative law and sustainability at University Groningen, argues that it does not mean that the Netherlands can ignore this problem. De Graaf emphasises that “once you have the data, you know what to do. You cannot suddenly delete it.”

To conclude, European countries often have missing or incomplete data regarding the protected nature areas and/or nitrogen emissions. While the Netherlands report all the data accurately, eleven countries skip the assessment of these protected areas and twelve countries do not report the threats to the protected wildlife. In retrospect, the Netherlands create new and strict regulations (mainly for the agricultural sector) to tackle the nitrogen crisis, while just across the border in Germany this problem is unexistent. This showcases the difference in approach under the common denominator of the European Union.

Sources:

https://nos.nl/artikel/2441696-veel-eu-landen-rapporteren-cijfers-stikstof-niet-aan-brussel

https://www.ft.com/content/90e38fb5-e942-4afd-994d-048dc40579a2

https://www.efrag.org/Assets/Download?assetUrl=%2Fsites%2Fwebpublishing%2FSiteAssets%2FEFRAG%2520Due%2520Process%2520Procedures_V04.pdf&AspxAutoDetectCookieSupport=1

https://www.eea.europa.eu/publications/state-of-nature-in-the-eu-2020

Webinar: Efficient Consolidation Software Solutions

17 Aug 2022

Actual

webinar

Is your company state-of-the-art concerning international financial reporting?

In a globalised society, many German and Dutch companies are active across Europe or even worldwide. This leads to complex challenges in the area of an international tax strategy and an optimal corporate structure for different business areas.

Information: We give you – free of charge – an introduction to Amelkis Opera, the consolidation software with the highest user growth. The webinar will focus on the benefits and how this intuitive solution works and how you can get support with the implementation and use of the Opera consolidation technology.

Target group: This webinar is aimed at companies that have business contacts with Germany and/or the Netherlands or are planning activities in one of these countries. The webinar is aimed at managing directors, financial controllers and finance managers as well as employees from the finance department. The number of participants is limited to 12; therefore there is a waiting list for external consultants. The webinar language is German.

About the expert lecturer: Frank Huster is Managing Director at Global Connect Admin BV in Amsterdam as well as at the sister company Global Connect Consultancy B.V. Both companies are your competent partner in questions of international company administration, financial management as well as bookkeeping and accounting. He and his staff support German and Dutch companies worldwide in consolidation, XBRL, IFRS 16, intercompany and leasing processes.

About the webinar: The webinars are free of charge and given in German on 07-09 and in English on 14-09-2022. Be aware that the registration deadline is on 2 and 9 september consecutively. For further questions, please contact us via mail or telephone.

Registration can be done on via the DNHK: German webinar registration (7-9) and English webinar registration (14-9)

Employment Law changes in 2022

16 Aug 2022

Current news

Various amendments were enacted in 2022 which change the landscape of Dutch employment law. In this article we briefly outline the main changes.

The age at which employees will receive their first state pension changed from 66 years and three months to 66 years and seven months. A tax-free allowance of EUR 2.00 per day has been given the okay for employees who work from home to cover their general expenses. Both changes are retrospectively effective from 1 January 2022.

Employers should take note of the complete ban on smoking areas in the workplace. From 1 January 2022, all buildings, spaces and establishments where people work must be completely smoke-free and all designated smoking areas in the workplace must be closed.Inspections are planned to be routinely carried out by The Netherlands Food and Consumer Product Safety Authority (Nederlandse Voedsel en Warenautoriteit, NVWA) and in case of any violations an administrative fine of EUR 450 up to EUR 4,500 can be imposed. Employers should amend their smoking policy if necessary and duly inform employees of any changes.

As from 2 August 2022, a nine week parental leave benefit during which period the employee is entitled to an allowance of half of their current daily wage, capped at 50% of the maximum daily wage. This paid parental leave must be taken in the child’s first year of life. The remaining 17 weeks of the total of 26 weeks remain unpaid and can be taken until the child’s 8th birthday. Perhaps now is the time to plan that well deserved vacation with the family?

The Implementation of the Transparent and Predictable Employment Conditions Act takes effect from 1 August 2022. While only a few new rules will come into effect, these will inevitably create both rights and obligations for employees in its pursuit of creating more stability to employees in the Netherlands.

The Bill on the Implementation of the EU Directive on Transparent and Predictable Terms of Employment was submitted to the Lower House on 11 November 2021, with the main aim of improving employment conditions by promoting more transparent and predictable employment conditions while ensuring adaptability on the labour market. These amendments will have major consequences for employees too.

Employers are obliged to provide more information to employees on employment conditions, rights and correlating responsibilities, this includes probationary periods and the rules and procedures on dismissals and related disciplinary actions. It includes the right to training and reimbursement of the costs of training as well as all additional costs such as transportation and material. In the case where an employer is required by law or by collective labour agreement to offer training to an employee, this training must also be free of charge and the time involved qualifies as working time. This rule only goes for legally entitled training under a collective labour agreement or the required training which is necessary to work at your job.

All employment contracts will permit an employee to engage in a side job next to their regular employment. The only valid justification for the prohibition of ancillary activities by an employer is where there is objective justification such as carrying out work for a competitor, conflict of interest or working too many hours leading to the inability to perform functions adequately.

On 1 January every year the statutory minimum wage is increased. As from 1 July 2022, the minimum wage for employees aged 21 and older will be increase from EUR 1,725 gross per month to EUR 1,756,20 gross per month, EUR405,30 per week and EUR 81,06 per day. The legislation does not lay down how many hours are in one full week, but this ranges from 36, 38 or 40 hours. Employees should be made aware of this increase.

The Collective Labour Act (Verzamelwet SZW) 2022 resulted in an amendment of the Works Council Act (Wet op de ondernemingsraden, WOR). Currently, employees have the right to vote after being employed for six months. After twelve months, employees can become members of the Works Council (OR). Both of these periods will be shortened to three months as of 1 January 2022. In addition to the above a temporary agency worker will qualify as an employee sooner, acquiring participation rights after 15 months from 24 months, thereby acquiring active and passive voting rights after 18 months.

Improved workplace regularity brings about a higher level of obligation for employers and employees alike. For those who work irregular hours this has more consequences. An on-call worker and employer must determine work hours in advance. If the employer decides to call the worker outside the agreed times, the worker may refuse. In turn, this also means that employees must come to work during hours that they indicated to their employer, as a “no-show” can be seen as a refusal to work.

Sources:

https://www.burenlegal.com/en/news/employment-law-changes-2022

https://certa.nl/the-most-important-employment-law-changes-in-the-netherlands-for-2022-and-the-corresponding-required-actions/

https://dutchreview.com/news/new-dutch-labour-laws-come-into-effect-august-1/

https://business.gov.nl/changes-law-and-regulations-3rd-quarter-2022/

Photo credit: https://www.pexels.com