Economic affairs minister Henk Kamp is to get tough on companies which have not done enough to cut their energy consumption.

The minister told MPs on Tuesday evening that energy intensive companies, such as steel and chemicals, have until October 1 to reach agreement on cutting energy usage. Offices must have an official C energy label and new agreements must be made to reduce the energy used in private homes, the minister said.

Without sufficient progress, sanctions may follow, the minister said in a briefing.

The energy agreement between government, industry, unions and green groups was signed in 2013. Its provisions include a commitment to ensure 14% of the energy used in the Netherlands by 2020 comes from sustainable sources.

The figure is currently around 5%, making the Netherlands one of the worst performers in terms of sustainable energy in Europe.

Kamp said a formal evaluation of the energy agreement, which was signed by 47 different organisations, will be published in October.