Experts caution against long-term energy contracts as prices remain high

Experts warned not to enter any long-term contracts with gas and electricity companies as prices reach a record high."It's getting more serious," professor of energy economy Machiel Mulder told NOS.

"We advise not to enter a long-term contract. Maximum one year," Elske Thomassen from the Energiebank Rotterdam said. "Otherwise, it is best to remain in a variable contract at the moment." Long-term contracts can appear as the better deal, but clients are stuck with high rates should energy prices fall again.

"Prices in futures markets are based on expectations," Mulder said. "That means they can quickly drop again. It is therefore useful for citizens to remain flexible."

The price rise is largely due to tensions between Ukraine and Russia threatening the construction Nord Stream 2 gas pipeline between Russia and Germany. There have also been other causes for the rise of energy prices in Europe, such as less wind and closed power plants.

All households get a tax deduction for their energy expenses with an additional reduced rate for people with the lowest income.