Vattenfall, one of Europe's leading energy suppliers, has announced that it will significantly reduce prices for electricity and gas in the Netherlands from 1 July, undercutting the price limit. The new tariffs will apply to customers with variable contracts, which comprise many of Vattenfall's 1.3 million customers. This price reduction follows the trend of competitors such as Eneco and Essent, which have also lowered their tariffs.

The falling prices are due to decreasing trade prices for gas, which allow energy suppliers to buy their energy more cheaply. The decline in trading prices is so substantial that traders currently pay about 32.50 euros for a megawatt hour, less than 10 per cent of the peak price in August.

Vattenfall also plans to offer long-term contracts again from June, allowing customers to fix their tariffs for one or even three years. This development is supported by new rules from the regulator ACM that make it more expensive to cancel energy contracts. This reduces the risk for energy suppliers and allows them to offer longer-term contracts.

This positive news comes after a setback for Vattenfall a few months ago when a customer sued the company for raising prices more than allowed in the contract. The court ruled in the customer's favour, which could have far-reaching consequences. However, Vattenfall believes the ruling only applies to this case and will not impact other customers.

Although the exact tariffs for the long-term contracts are unknown, this announcement is a positive step for Vattenfall and its customers. The utilities seem willing to take the risk and offer long-term contracts again, which could mean more security and potentially significant customer savings.