ACM: start of the heating period is the perfect time to check your energy contract
It is that time of the year again when many households turn on the heating for the first time after the summer. Since most households consume the most natural gas and electricity between October and April, this is the perfect time to check whether your current energy contract is still the right fit for your preferences and personal situation. The Monitor on the consumer energy market, published by the Netherlands Authority for Consumers and Markets (ACM), reveals that there is a wide selection of different types of contracts.
Manon Leijten, Member of the Board of ACM, explains: “Our monthly Monitor reveals that the conditions and prices for natural gas and electricity can vary a lot. You can often take out different types of contracts even with the same supplier. So it can pay off to take a critical look at your current energy contract, and to compare it with what other suppliers have to offer. If you do, you know that your energy contract will be ready for the upcoming winter period.”
Fixed, variable, or dynamic contracts
Households can choose between variable, dynamic, or fixed energy contracts. With variable contracts, suppliers can change the prices during the contract period, for example because prices on the energy market went up. With dynamic contracts, there is a direct link between the price that you as a consumer pay and the prices on the wholesale market. That means that the price that you pay per hour (for electricity) and per day (for natural gas) can vary. With fixed contracts, the prices that you pay are fixed for the entire contract period.
If you wish to cancel a fixed contract before the end of the contract period, you often need to pay an early-termination fee. This fee is equal to the costs that the energy supplier incurs as a result of the early switch. When cancelling variable or dynamic contracts, consumers do not need to pay early-termination fees.
The Monitor on the consumer energy market also reveals that, compared with last month, variable contracts have become, on average, 3 to 4% more expensive. The prices of advertised fixed contracts dropped, on average, 2 to 4% compared with last month. The Monitor also shows that the prices offered by suppliers for fixed, variable, and dynamic contracts can vary substantially. It is therefore important to compare the offers of different suppliers carefully, and to take your time when making a choice.
Check reviews
In addition to checking the contract type, conditions, and price, it is recommended to check the experiences of other customers as well. On the website of ACM’s consumer information portal ACM ConsuWijzer, you can find tips on what to look out for when checking reviews. You can also find more tips and recommendations for choosing an energy supplier.