Eneco is significantly lowering energy rates, but still above the price ceiling

Energy supplier Eneco will significantly reduce the variable rates that apply to many of its customers as of March 1. The new prices will remain above the national government's price ceiling that applies for this year. Those customers who use more energy than what is covered by the price cap will see their costs for the overage fall by more than 40 percent compared to the end of January, Eneco said.

The new rates apply to a third of customers with a variable contract, and will likely apply for a period of three months. Once these households exceed the energy covered by the price cap, they will pay a rate of 1.83 euros per cubic meter of gas, while a kilowatt hour of electricity will cost 46 eurocents. Currently, the rate for a cubic meter of gas is over 3.06 euros, and a kilowatt hour of electricity costs nearly 83 eurocents.

Since the beginning of this month, the government has set a maximum of 1.45 euros per cubic meter of gas and 40 cents per kilowatt hour of electricity for consumption below the price ceiling. That is the rate that most households with a variable contract now pay.

Eneco said it hopes that the tariff reductions can continue, given the recent trend of energy prices falling on the markets. According to the supplier, this is the fifth month in a row in which there will be a rate reduction for customers.

Other suppliers, including Vattenfall, also expect to soon lower their high rates. Essent will comment more about their energy prices in the next few days.

The smaller company Budget Energie became the first provider to announce rates that are lower than the price ceiling.