New energy contract €4,000 more expensive than a year ago

Netherlands residents who have to conclude a new energy contract will pay almost 6,500 euros for gas and electricity annually. That is over 4,000 euros more than a year ago, NU.nl reports based on figures from comparison site Gaslicht.com.

According to the comparison site, an annual contract for gas and light cost an average of 6,466 euros annually on August 1. That includes the VAT reduction the Cabinet implemented to help keep energy prices lower. Last year it cost 2,308 euros on the same day. The comparison is based on the average consumption of the average household.

Energy prices have been rising since May last year, but the Russian invasion of Ukraine exacerbated the increase significantly. “Energy prices have been exceptionally high for seven months. The longer they remain high, the more people will have to deal with this,” Gaslicht.com founder Ben Woldring said. People with fixed energy contracts notice the increases when their contract needs to be renewed. People with variable rates see it when energy companies increase their prices.

“Wholesale prices are now eight to ten times higher than usual. 1 kilowatt hour of electricity cost 20 euro cents last year and is now 50 to 70 cents. For gas, that was 80 cents per cubic meter, and those rates are already rising from 2.50 to 3 euros per cubic meter,” Woldring said.

On Thursday, Statistics Netherlands reported that Dutch inflation topped 10 percent for the first time since 1975 in July, largely due to the high energy prices. ABN Amro warned that the price increases will be here to stay for a while yet.

Budget information institute Nibud and debt relief association NVVK warned that the price increases cause financial problems for more and more households. One in three Dutch households is struggling to make ends meet, Nibud calculated last month