In Europe, Dutch consumers are among the most willing to switch energy providers

In 2014, 13.3 percent of Dutch consumers switched energy providers. This percentage is higher than the EU average of 6 percent, making the Netherlands one of the leading nations in Europe (second with regard to switchers for natural gas and fourth with regard to switchers for electricity). This has been revealed by the report on trends in the energy market in the second half of 2014, which the Netherlands Authority for Consumers and Markets (ACM) published today. Another finding is that even more switchers in 2014 were satisfied with the switching process than a year before. In 2014, 96 percent of all switchers said they were satisfied, compared with 94 percent in 2013. Anita Vegter, Member of the Board of ACM, adds: “Compared with other consumers in Europe, Dutch energy consumers are able to fulfill their envisaged role pretty well. They switch providers more and more easily, forcing providers to differentiate themselves on price, conditions, and customer service.”

Price is the most important incentive to switch

Since 2004, more than half of all Dutch consumers who have switched have done so just once (55 percent), while almost a quarter (23 percent) have done so twice, and 12 percent have switched three times. Forty-four percent of all consumers say they wish to switch (again or for the first time ever) within the next two years. Price is the most important incentive to switch for this group. By switching, consumers are able to save up to EUR 420 per year. For consumers, one key reason not to switch is the high level of satisfaction with their current providers. Another factor is their fear of ‘hassle,’ while those consumers that have switched are in fact very satisfied with the switching process. In 2014, 7 percent of consumers switched contracts with their current providers. Almost 40 percent of consumers consulted a price comparison website as their first stop for information when planning a switch.

Contracts and energy bills

With regard to natural gas and electricity, more than half of all consumers (59 percent) have permanent contracts with variable tariffs. Most Dutch consumers (64 percent) have green-power contracts. In 2014, the energy bill of an average Dutch household dropped to EUR 1,688. In 2013, it was EUR 1,727.

European context

Portugal, Norway, and Belgium are the top three European countries where consumers switch electricity providers the most. The Netherlands is in fourth place. The top three for natural gas is Ireland, the Netherlands, and Belgium.

The Dutch energy market continues to be a concentrated market. In 2014, the three largest energy companies had a combined market share of almost 80 percent. However, their combined market share has been shrinking gradually since 2012.