Energy, Telecommunications, Economy & more | News from the Netherlands

Vattenfall leads the way: Return of multi-year energy contracts and falling prices

Gas stove
Gas stove

Vattenfall leads the way: Return of multi-year energy contracts and falling prices. After a long absence, multi-year energy contracts are back on the market. Major energy suppliers such as Vattenfall, Eneco, and Budget Energie are once again offering three-year agreements. This follows a period when energy companies were reluctant to provide long-term contracts because of the risk of fluctuating energy prices.

Energy companies were reluctant to commit to fixed tariffs for extended periods, mainly because of the energy market's instability following the Ukraine outbreak of war. The fear was that they would be forced to supply energy at prices lower than their purchase prices.

However, energy prices have fallen steadily recently, making year-long fixed contracts possible again. From June, it is even possible to conclude agreements for three years. This also applies to the three most prominent companies in the Netherlands - Eneco, Essent and Vattenfall, which hold about 75% of the market together.

Consumers can use the current low energy prices by locking in a multi-year contract. However, with new rules around the cancellation penalty of fixed price contracts taking effect on 1 June, cancelling an energy contract could become more expensive. In the case of a multi-year contract, this could mean that cancelling your energy contract becomes a significant cost.

However, it is still unclear whether there will be enough gas for the coming winter. It is not inconceivable that energy prices will rise again later this year. Therefore, locking in energy prices now can be an attractive option for consumers who want certainty about their energy costs for the coming years.

Sources:
[1] NU.nl, "Meerjarige energiecontracten zijn terug van weggeweest", https://www.nu.nl/economie/6263915/meerjarige-energiecontracten-zijn-terug-van-weggeweest.html, retrieved on 17 May 2023.
[2] NU.nl, "Kies voor een vast energiecontract voordat de hoge opzegboete ingaat", https://www.nu.nl/economie/6263368/kies-voor-een-vast-energiecontract-voordat-de-hoge-opzegboete-ingaat.html, retrieved on 17 May 2023.
[3] De Limburger, "Budget Energie en Eneco komen ook met energiecontract voor 3 jaar", https://www.limburger.nl/cnt/dmf20230516_94540461, retrieved on 17 May 2023.

 

Other news

Preservation of Net Metering Secures Future of Solar Panels

The controversial net metering regulation for solar panels, a central element in promoting renewable energies, will remain in place for the coming years. Despite plans by the caretaker cabinet to abolish this regulation, the Senate faction of GroenLinks-PvdA, with a decisive majority, has stood against the changes. This marks a significant victory for owners of solar panels and sends a strong signal in support of renewable energies.

Unprecedented Increase in Health Insurance Premium: DSW Raises Alarm Over Accessibility

DSW, a prominent health insurer in the Netherlands, has announced an unprecedented increase in the health insurance premium, amounting to €149 per month in 2024. This increase of €11.50 per month is the largest since introducing the Health Insurance Act in 2006. This development has set off alarm bells regarding the accessibility and affordability of healthcare in the Netherlands.