Energy Prices Soar: Fixed-Rate Contracts Now €600 More Expensive per Year
Households signing new fixed-rate energy contracts are facing significantly higher costs due to increased energy prices. According to data from Keuze.nl, those who signed a contract in February paid an average of €1.20 per cubic meter of gas, while the current price is nearly 27% higher at €1.52. The electricity price has also risen by approximately 22%, from €0.23 to €0.28. This translates to increased costs for households consuming 1,000 to 1,500 cubic meters of gas, with prices now being €300 to €450 higher than in February.
The sharp rise in gas prices is primarily attributed to the ongoing conflict between the United States and Iran, which has disrupted freight traffic through the Strait of Hormuz. This important shipping route for gas exports has led to Qatar reducing its liquefied natural gas (LNG) shipments, causing a surge in global prices. As a result, gas-fired power plants are becoming more expensive to operate, further contributing to increased electricity costs.
Keuze.nl director Geert Wirken advises households that need to renew their fixed energy contract soon to opt for a fixed contract if they want certainty. However, he notes that variable or dynamic rates may be cheaper on average, especially for those willing to take on fluctuating prices. The ongoing geopolitical situation makes it challenging to predict when energy prices might drop.