Gas Prices climb as dynamic contracts gain momentum

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Energy companies have raised the prices of their variable gas contracts by roughly 7 percent this month. According to calculations by the Authority for Consumers & Markets (ACM), variable gas rates are now 12 percent higher than they were just before the outbreak of the war in Iran.

Suppliers typically adjust variable‑contract rates four times a year, which meant prices stayed unchanged for a long period after the conflict began. Because a growing share of Dutch electricity comes from wind and solar, rising gas prices have less impact on electricity tariffs. As a result, variable electricity rates increased more modestly, by about 3 percent on July 1. In contrast, fixed‑rate energy contracts have become 1 to 6 percent cheaper this month, driven by temporarily lower wholesale market prices. ACM notes that around half of all electricity generated in the Netherlands now comes from renewable sources.

Immediately after the war began, many consumers opted for fixed contracts. In March alone, 110,000 households signed up—far above last year’s monthly average of 25,000. Despite this surge, the number of consumers switching to a different supplier has remained unusually low for months. The rise in fixed contracts, therefore, mainly comes from customers who previously held variable contracts with their existing supplier.

Meanwhile, dynamic contracts continue to grow steadily. A net increase of 17,000 in March, 23,000 in April, and 30,000 in May.

@anp | NEWSBRAINPORT

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