Dutch households switching to fixed energy contracts as price ceiling ends
The number of people switching energy providers is increasing in the Netherlands, as reported by consumer organization Vastelastenbond on Thursday. This rise is due to increasing variable energy tariffs and the approaching end of the price ceiling.
With the government's support measure ending in 2024, households with variable energy contracts exceeding the price ceiling will lose governmental protection. Consequently, many are opting for fixed-rate contracts.
Research from the Authority for Consumers & Markets (ACM) shows a growing preference for fixed-rate energy contracts among Dutch consumers. The consumer watchdog advises making the switch, a recommendation that is being widely adopted.
Dirk-Jan Wolfert, the director of Vastelastenbond, welcomes ACM's recommendation to switch: "ACM's advice couldn't have come at a better time. The difference between variable and fixed contracts is already nearly 700 euros a year. By switching now, consumers can benefit from low rates and welcome discounts. Those staying on variable rates are missing out and risk higher bills, especially with increased heating needs."
Vastelastenbond’s comparison of variable rates from Essent, Vattenfall, and Eneco with the cheapest annual contracts available shows Innova offering the most favorable rates. On average, switching to fixed-rate contracts can save over 675 euros. Essent's variable rates are the most expensive, costing 675 euros more than fixed-rate contracts, with Vattenfall and Eneco also being notably higher.
Switching can protect low-income households from escalating costs in 2024. "Families with tighter budgets need the certainty a fixed-rate contract provides, as it's cheaper and prevents surprises," Wolfert said. He warned that inaction and sticking with variable rates can lead to deeper energy poverty. "Switching to fixed rates is essential," he concluded.
