Is it time to switch to another energy company or to opt for a permanent contract? Yes, say the Vastelastenbond and comparison site Independer, because that saves you hundreds of euros.
In particular, customers with a variable rate from United Consumers, Vattenfall and Eneco can save an average of 524 euros, according to research by the Vastelastenbond. Director Dirk-Jan Wolfert: ,,The average savings when switching from variable to fixed has never been so high and yields hundreds of euros in benefits.”
There have been contracts with prices below the price cap since March. According to comparison site Independer, those who conclude a variable contract now pay 1.02 euros for a cubic meter of gas and 30 cents for a kWh of electricity, which is considerably lower than the rates of the price ceiling of 1.45 euros and 40 cents respectively. And those who opt for a fixed one-year contract will pay 1.27 euros for gas and 38 cents for electricity. By way of comparison: some of the customers with a variable tariff at Eneco currently pay 1.82 euros for gas and 53 cents for electricity. Only one of these days will they get rates at or a few cents below the price cap, and those rates will stay that high for three months.
Speculators
According to Joris Kerkhof of Independer, it is time to make the switch ,,You can see that the market is very volatile. There are speculators in the market. Last week you saw gas prices skyrocket because there was maintenance on a pipeline in Norway. And demand in China is picking up. Then you see that suppliers immediately increase the rates, and consumers take action and switch. Everyone thought that prices would fall even further. That is why I would advise to go for an annual contract now, then you have certainty. I think that price for gas will remain slightly above a euro, that is the new reality. If you want long-term certainty, take a three-year contract, then you pay 1.32 euros for a cubic meter of gas. That is still less than the price ceiling. And electricity then costs 42 cents, 2 cents above the price ceiling. But then you know where you stand for the next three years.”
The worst of the energy crisis is over – last summer some people paid almost €4 for a cubic meter of gas, but the rates are still almost double what they were two years ago. A quarter of the Dutch are still very concerned about their energy bill, according to research by price comparator Slimster. Almost 15 percent of the Dutch spend 29 percent or more of their monthly income on energy costs.
With the new higher cancellation fines that have been in force since 1 June and the amount of which depends on the loss that an energy supplier suffers when a customer leaves, competition is also back on the energy market. More competitive rates and bonuses apply if customers complete the energy contract.
Wolfert: “Energy suppliers use heavy artillery to gain the consumer’s favor. When the survey was conducted, Innova offered a loyalty bonus of 606 euros. Delta offers loyal customers 200 euros, while Budget Energie promises 140 euros. Not all energy companies offer such a bonus, some are lower with their fixed rates.”
Profit Eneco skyrockets
Energy company Eneco saw its profit rise by 30 percent to 272 million euros last year. That was not a result of the high energy rates for consumers, the company claims.
Eneco is late with the annual figures because the bookkeeping is now in line with that of the Japanese owner Mitsubishi, and that bookkeeping is a quarter behind. Over the period January 1, 2022 to April 1, 2023, the profit was 380 million euros. The profit as a percentage of turnover was 2.9 percent in those fifteen months, and 2.5 percent over the whole of 2022 alone. In 2021 that was still 4 percent.
Naturally, turnover skyrocketed due to the sky-high energy prices, but Eneco states that the Netherlands Authority for Consumers and Markets has also investigated the rates and margins and has determined that they are reasonable. The higher profit, the company says, is the result of better results with energy trading.
Eneco CEO As Tempelman speaks of an ‘exceptionally turbulent year’ with an enormous impact on society due to the energy crisis. According to the company, the average monthly bill of Eneco customers increased from 119 to 208 euros.
Eneco, which also includes energy company Oxxio, says that the energy market ‘has somewhat calmed down’. According to the company, there are risks in the market, because more and more energy is generated with wind and sun. This leads to greater dependence on those sustainable sources and a greater chance of price fluctuations. As a result, the financial risks increase. To cope with this, Eneco has wind farms and power stations that can switch off or on if necessary. It also invests in battery solutions and has plans for hydrogen installations to better balance supply and demand.
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