Many changes are coming to the Netherlands in 2024, including to the energy market. So, how will these changes affect you — and what does this mean for your wallet?
From increasing taxes to new policies, this is how energy prices in the Netherlands are changing next year.
The Netherlands is getting rid of the price ceiling
At the start of 2023, the Dutch government introduced a price ceiling for gas and electricity meant to protect households from price fluctuations, reports the NOS.
For example, the maximum rate for gas was €1.45 per cubic metre, up to 1200 cubic metres. Helaas, in 2024, there will be no more price ceiling, and households will have to deal with fluctuations in the market.
Looking for a new 2024 energy contract? We’re collaborating with PartnerPete, who can calculate your utility costs and compare energy contracts to pick the best option for you. Get in touch with them to arrange your utilities entirely in English.
Taxes on gas will increase further
Yep, you read that right. The Dutch Senate still has to approve the increase in gas taxes laid out by the government, but this increase will also hike up your gas bill.
READ MORE | How to set up your utilities in the Netherlands (in English!) with PartnerPete
To give you some perspective, customers of Essent with a variable contract will see prices rise from €1.33 to €1.45 per cubic metre.
And Essent isn’t alone in this, unfortunately. Across the board, gas providers will hitch up their prices.
Electricity prices will drop in 2024
On the flip side, electricity prices will decrease in the Netherlands in 2024. This can be seen when we take a look at Essent and Vattenfall, for example:
- Variable prices for electricity at Essent will drop from €0.39 to €0.38 per kilowatt hour (kWh)
- Variable prices at Vattenfall will drop from €0.34 to €0.33 per kWh
Why is this the case? The answer is simple: the Dutch government wants to encourage people to use electric heating over gas heating.
READ MORE | Utilities in the Netherlands: the ultimate guide to gas, electricity, and water
By reducing electricity prices while increasing gas prices, the hope is that they can stimulate the transition from gas heating to electric heating
How does this affect my energy contract in 2024??
How these changes will affect your utility bill next year will depend on whether you have a fixed or variable contract.
What this means for those with a fixed contract
A fixed energy contract means you pay a set price per kilowatt hour (kWh) of electricity and cubic metre (m3) of gas consumed within a month.
READ MORE | How to calculate your utility costs in the Netherlands
These contracts usually last at least a year (up to three) and have new energy prices when you renew them a year later.
While a fixed contract ensures that you don’t fall victim to fluctuating prices, those with fixed contracts will also feel changes in their wallet in 2024.
For one, it won’t protect you from higher taxes on gas — which will certainly appear on your energy bills starting in 2024.
That being said, you won’t fall victim to any drastic fluctuations in the energy market, unlike someone with a variable contract.
PartnerPete can help you ensure you choose the right contract for 2024! Make an appointment and have your first chat about finding the perfect contract for you.
What this means for those with a variable contract
A variable contract means the price you pay for electricity and gas changes depending on the price fluctuations in the energy market, and the prices are only established for a set period.
Good to know: You may want to consider switching to a fixed contract to avoid huge changes to your bill.
Variable contracts can be as short as three months up to a year. If you have a variable contract, the above changes will be especially significant for you.
Without a price ceiling, variable contract prices in the Netherlands are expected to rise next year — pair that with increased taxes and an unstable world economy, and you run the risk that energy bills will skyrocket.
Even with all the new policies, fluctuating prices, and new taxes, understanding your utilities doesn’t have to be confusing! Here’s to a bright 2024. 🥂✨
What do you think of the changes to the energy market in the Netherlands? Tell us in a comment below.