At the end of last year, when energy prices were also alarmingly high, it was a frequently heard advice. Energy prices would fall again in the spring, so households with a variable or expiring fixed energy contract had better wait before concluding a new contract. But because of the war in Ukraine, those households are now no better off.
Anyone who currently wants to conclude an energy contract with fixed prices is faced with a closed counter. Prices for gas and electricity fluctuate so fast that suppliers do not offer permanent contracts.
There are almost only so-called ‘model contracts’ available. These are contracts that suppliers are legally obliged to offer. Prices are currently very high.
Not wise
“The market is completely unpredictable. We cannot look six months or a year ahead and therefore cannot offer permanent contracts,” says an Eneco spokesperson. Essent does that too. “A permanent contract is not possible for a while,” says Henriëtte Setz, director at Essent. “The prices have risen so much that it is difficult to make a good offer. We hope that this period will pass soon.”
Vattenfall has only had model contracts since the end of December. “Current price levels in the procurement market are very high and have been for several months,” said a spokesperson. “A customer who would like to conclude a fixed price during this period would thus commit to this rate for a lower period. We do not think that is wise for the customer.”
In addition, the company says it runs more risk if permanent contracts are now offered. For customers who would now conclude a permanent contract, energy is purchased in advance for a relatively high price. “If the customer does cancel during the contract period, there is a good chance that we will be left with these high volumes purchased.”
Well need
Nevertheless, there are indeed consumers who, for fear of further price increases, now want to have a contract with fixed prices. “We notice that there is a great need among consumers to conclude a permanent contract, consumers are looking for certainty,” says Ben Woldring of Gaslicht.com. Last week he saw a spike in applications, even after the invasion of Ukraine. “Thousands of people a day quickly concluded an annual contract, like ‘it can get even more expensive’. The people who did that last week are now happy that they were able to arrange it.”
Almost all price comparison sites have temporarily suspended their services due to the lack of options. “We no longer offer comparisons since February 24,” Independer said. “Energy companies no longer offer contracts. So no annual contract, no variable contract, but only the legally required ‘model contract.”
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