ACM’s Monitor on the consumer energy market: rates have slightly gone down, start of the heating season is a good time to review energy contracts

The rates for variable and fixed energy contracts went down slightly in August. This is one of the conclusions of the Monitor on the consumer energy market of the Netherlands Authority for Consumers and Markets (ACM). The feed-in costs for individuals that feed power back into the grid have remained relatively stable these past few months. The ‘heating season’ starts in October, which is a good time for households to check whether their energy contracts are ready for the upcoming winter period.

Manon Leijten, Member of the Board of ACM, adds: “Households consume the most natural gas and electricity during the winter months. That’s why it’s a good time to review your energy contract, so that you know whether you’re still good. ACM’s monitor shows there’s a wide of selection of various fixed, variable, and dynamic contracts.”

On track for reaching the minimum filling rate for gas storages

The Dutch gas storages have been filled further, and the filling rate was at 66 percent in late August, which means the Netherlands is on track for reaching the minimum filling rate. The mandatory minimum filling rate for gas storages by November 1 is 74 percent in order to guarantee security of supply during the winter period. The import of liquefied natural gas (LNG) to the Netherlands remained at a high level in August, with more LNG import in the month of August than ever before.

Dynamic prices soon to be determined per quarter of an hour

Starting in October 2025, the day-ahead electricity prices on the European energy market will no longer be traded per hour, but per quarter of an hour. As weather-dependent electricity production is rapidly gaining ground, it is becoming more and more challenging to balance supply and demand on the grid. By using a price per quarter of an hour, the day-ahead market is better able to meet this challenge.

Every day around 4 p.m., customers with dynamic energy contracts are able to see what the electricity prices will be the next day. Soon, they will no longer see 24 hourly prices, but rather 96 different prices: one price for each quarter of an hour. Some dynamic suppliers will implement this change on October 1. Other suppliers will continue to use hourly prices. ACM believes it is important that energy suppliers inform their customers clearly about the switch to prices per quarter of an hour. Dynamic contracts work differently for natural gas: in that market, the daily price is used because natural gas is not traded per hour or per quarter of an hour.

Dynamic contracts are particularly interesting for households that are able to change their electricity consumption, for example, by turning on the washing machine when electricity is cheap. Households with dynamic contracts have the ability to benefit from lower prices, but have more uncertainty about the level of their energy rates.

Significantly higher rates

ACM keeps a close watch on the prices of energy suppliers. In that context, ACM looks at, among other aspects, the price differences between suppliers as well as at the reasons behind those price differences. ACM’s Monitor on the consumer energy market reveals that the prices of the below contracts for households this month are significantly higher than comparable contracts from other suppliers.

ACM’s Monitor on the consumer energy market also reveals that several suppliers charge significantly higher prices for their model contracts. This is the case with ANWB Energy, EnergyZero, Hallostroom, Slim met Energy, Easyenergy, Innova, Zonneplan, Kikker energie, PZEM Energy Company, Tibber, and Clean Energy. A model contract is a standard contract with a variable price that can typically be adjusted on January 1 and July 1. Every energy supplier is statutorily required to offer such a model contract, even suppliers that wish to offer dynamic contracts only. The fact that prices of these model contracts are significantly higher says nothing about the prices of other contracts offered by these suppliers.