2023-05-13 07:54:02
With falling energy prices, it is tempting to wait for even cheaper energy, but it may be more convenient to conclude a fixed annual contract now. Especially because consumers will have to pay much higher cancellation fines for newly concluded contracts from 1 June if they want to terminate the contract in the meantime. You can also wait for a multi-year contract that is not yet offered.
The gas price has been falling for months and this week fell to less than 34 euros per megawatt hour. That is the lowest market price since the end of 2021. Last summer, gas was almost ten times as expensive. And so those lower prices gradually seep through to your energy bill.
You can secure the lower energy prices for a longer period of time in a six-month or full-year contract. For example, with prices that have recently fallen just below the level of the government’s energy ceiling: 1.45 euros per cubic meter of gas and 0.40 euros per kilowatt-hour of electricity.
For the time being, there are few indications that energy prices will rise quickly. So you can wait for even lower rates before entering into a permanent contract. But locking in can be attractive, because it is still uncertain whether there will be enough gas for the coming winter. It is not inconceivable that energy prices will rise once more later this year.
Large consumers can switch immediately
“Particularly for large-scale consumers who have a higher rate than the price ceiling of the government, switching can already be interesting,” says Hans de Kok of comparison site Pricewise. Above a consumption of 1,200 cubic meters of gas and 2,900 kilowatt hours per year, you pay more. Then a switch to a contract with rates around the price cap can save a lot of money.
Switching can also be beneficial for others. The only question is whether you conclude a permanent contract before June 1 or only following that. For the time being, the variable prices are slightly lower than the contract prices.
After June 1, more to choose from and lower prices
An advantage of waiting is that following 1 June there is even more to choose from. Energy suppliers will then offer more permanent contracts for one year or even several years, experts expect. This is due to a new cancellation penalty that takes effect on 1 June. Energy suppliers are excited to now offer permanent contracts, because customers can cancel their contract for only 100 euros. If energy prices continue to fall, customers will leave in no time.
But from 1 June you have to pay a much higher cancellation penalty. You have to pay for the money that your energy supplier misses out due to the cancellation. The fine is comparable to the refinancing fine for a mortgage. “The fear of cancellations disappears, so energy suppliers will soon be offering more permanent contracts once more and also at lower prices,” expects Ben Woldring of Gaslicht.com.
Secure quickly before a higher cancellation penalty takes effect
The approaching cancellation fine can also be a reason to quickly conclude a permanent contract before 1 June. For example, an annual contract, so that you still have fixed prices during the exciting winter. “Then you still fall under the old cancellation rules and you can get rid of your contact for 100 euros if you can get even cheaper energy from another supplier in the summer,” explains Woldring.
At Gaslicht.com, he is currently often asked whether you should sign an annual contract now or better wait. “Many people already want certainty. If you attach to this, you can certainly fix rates before June 1 under the old cancellation rules. Then you also have peace of mind,” says Woldring. After 1 June you can calculate whether the cancellation penalty makes an even cheaper energy contract uninteresting. If not, you can still take advantage of the extra offer from June.
If you have nerves of steel, you can wait even longer. For example, until following the summer, when there is more insight into the gas stocks for next winter. “That might lower energy prices a bit,” thinks De Kok. “But you never know what might happen until then.” He thinks that many Dutch people will wait for multi-year contracts. “That is really very Dutch. We want long-term security, just like with your mortgage.”
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