Home energy costs could rise by 200 euros this year

Variable electricity rates in the Netherlands have jumped up by 22 percent during the first four months of the year, while natural gas prices climbed by 19 percent. The rates are expected to climb even higher after falling to a record low last year, with bills for many individuals likely to rise by 200 euros per year or more, said price comparison site Gaslicht.com.

The home energy cost increase is partly due to the cold spring. The months of April and May were significantly colder than usual, which resulted in higher gas use. CO2 emissions allowances have also gone up in price. That cost is passed on by suppliers to network providers, and ultimately to consumers.

"The corona crisis has ensured that energy prices were historically low in the past year. But now, just like at the gas station, that price has exploded. Energy prices are on the rise and prices are expected to go up even further", said Ben Woldring, the site's founder.

The site advises against closing a new contract with an attractive low variable rate, as it is expected to rise sharply. A fixed rate contract is more advisable, and deals should be closed before prices jump higher.

“The variable rates will follow the current upward trend from 1 July. It is expected that for an average household this will result in a significant increase of approximately 200 euros on an annual basis," he said.

In the first four months of the year, new energy contracts rose by about 125 euros per household, according to the site.