Energy prices in the Netherlands

With a fixed energy contract, your electricity and/or gas rates stay the same for a set period, such as one year, two or three years. That gives you price certainty: if prices go up, your bill doesn’t. The flip side? If prices drop, you won’t benefit. Keep in mind that leaving a fixed contract early usually means paying an early termination fee.

With a variable energy contract, your supplier can adjust the rates, usually once a month or every six months. Your contract states how often this happens. You still pay a fixed monthly instalment, so you always know what to expect. Any difference is settled in your annual statement. You can also switch whenever you like, without an early termination fee.

Dynamic energy prices follow the day-ahead market, also known as the spot market. Electricity prices change every hour, or sometimes even every 15 minutes, and gas prices change every day. Around 3 PM, you can see the prices for the next day. Instead of a fixed monthly instalment, you pay for what you actually used, at that month’s prices. When prices drop, you benefit straight away. When they rise, you’ll pay more too.

This is what you pay your energy supplier for electricity and gas. It has two parts:

Usage costs: what you pay for the electricity and gas you actually use. Your energy supplier sets these rates.
Fixed supply costs (also called standing charges): a fixed fee you pay your supplier, no matter how much energy you use. Each supplier sets its own amount. Some keep the fixed fee low and charge slightly higher usage rates, or the other way round.

Network costs are charged by your regional network operator, such as Stedin, Liander or Enexis, and you pay them through your energy supplier. They’re the same whichever supplier you choose. Network costs have four parts:

Connection fee: an annual fee for maintaining your connection to the grid.
Fixed transport fee: covers the cost of transporting energy to your home. This is a fixed amount, however much you use.
Capacity-based transport fee: a fixed annual amount based on the capacity of your connection. Network operators use it to build and maintain the grid.
Meter rental: what you pay for using, installing and maintaining your electricity and gas meters, which are owned by the network operator.

Three types of tax apply to energy:

Energy tax: the government charges energy tax on every kWh of electricity and every m³ of gas you use, to encourage people to save energy.
Energy tax reduction: everyone needs a certain amount of energy for basic needs. That’s why the government gives you a fixed annual discount on your energy tax for each electricity connection to a home. You’ll see this as a deduction on your energy bill.
VAT (value added tax): you pay 21% VAT on your entire energy bill, including the energy tax. Your energy supplier passes this on to the tax authorities.