Dutch power companies scrapping fixed-rate energy contracts as gas prices climb

Gas prices are rising due to the war in Iran, and Dutch energy suppliers are responding by hiking the rates for their fixed contracts, or even removing the fixed-rate option altogether, comparison site Overstappen.nl discovered. All 24 energy suppliers active on the platform have adjusted their fixed contracts in the past two days.

All of the energy companies have increased their fixed rates and reduced their cashbacks for new customers. Eneco and Oxxio have taken their three-year contract offline. Vattenfall, Powerpeer, Clean Energy, VrijopNaam, Pure Energie, and Engie all withdrew their fixed-rate contracts. “None of the suppliers have yet indicated when new offers will be available,” the comparison site said.

The adjustments are in response to an increased demand for fixed contracts. Consumers seek certainty now that European gas prices are rising in response to the United States and Israel attacking Iran, and Iran closing the Strait of Hormuz, a very important shipping route for liquefied natural gas (LNG). Many are thinking back to February 2022, when Russia invaded Ukraine and triggered an energy crisis and skyrocketing energy bills.

According to energy expert Martien Visser, it’s not surprising that consumers are seeking more fixed energy rate contracts at this time. And it also makes sense that energy suppliers have stopped offering them. “It has to do with the unpredictability of the market,” he told NOS. There’s too great a risk that suppliers won’t be able to keep to their promised fixed rate.”

Finance Minister Eelco Heinen has stressed that it is too early to panic about another energy crisis, saying that the Netherlands is much better equipped to withstand price shocks than it was in 2022.

But energy expert Rick Boenink still advised consumers looking for price certainty not to wait to take out a fixed-rate contract. There are still plenty of suppliers offering them, if at less competitive prices than a week ago. “As long as geopolitical tensions and low gas supplies influence the market, the risk of further price fluctuations remains,” he told Overstappen.nl. “Anyone who wants certainty about their monthly payments would be wise to consider the feasibility of a fixed-term contract in good time.”