Two of the three biggest energy providers in the Netherlands have partly stopped offering fixed-price contracts to new customers because of developments in the Middle East.
Energy prices have risen sharply since the US and Israeli attacks on Iran, making it difficult for suppliers to set tariffs, broadcaster NOS reported.
Vattenfall had stopped issuing fixed-price contracts but has now resumed the option for existing customers. In particular, clients on variable contracts have been switching to fixed terms, the company said.
Eneco has stopped offering three-year fixed-price contracts but is continuing with 12-month deals. Essent said it is still offering fixed contracts but told NOS it is not sure for how long.
Around half of Dutch households now have a fixed contract. The rest have either a variable tariff which are usually fixed for between one and six months, or a dynamic tariff which follows real-time market prices.
Gas prices
Energy firms are facing soaring gas prices, with a 36% rise on Monday and a 30% rise on Tuesday, NOS said. Qatar, one of the world’s biggest gas producers, has halted production because Iran has closed the Strait of Hormuz, which is key to Qatari exports.
Koen Kuijper from Energievergelijk.nl said consumers should not make rushed decisions and rather wait for spring and for the situation in Iran to stabilise.
“Households would be sensible not to take out a new contract at the moment,” he said. “Fixed tariffs have risen sharply because of the geopolitical unrest and the discounts for switching suppliers have largely disappeared.”
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