Energy prices fall further: an annual contract now or not

From next month, you can take up a fixed power contract for a period of over a year if you wish. Energy company Vattenfall offers a contract for a minimum of three years. And many companies offer one-year contracts.

And such a long period of uncertainty about your energy costs wasn’t possible for many people last year. Energy companies have stopped offering these contracts due to the rapid rise in prices in the wholesale gas market.

That has completely changed since mid-March. Little Mega was the first to come up with a one-year contract. And if one sheep is over the dam, more will follow. You can now enter into a one-year contract with many companies, including all major providers. And for prices below the price ceiling

Energy giant Vattenfall has entered into a three-year contract. The company can do this because purchase prices have fallen further. At the same time, prices are still above pre-war levels. In short: is it a good idea to close a contract now or wait until prices drop further?

The need for security…

The big advantage of a permanent contract is that as a consumer you know where you are for a year. Very nice, with the uncertainty of last year’s energy bill soaring still fresh in the memory.

It’s “definitely smart” to close out an annual contract now, said Joris Kirkhove of price comparison site Independer in March. Since then, prices on the wholesale market have fallen even further. With an annual contract, you don’t risk increasing your energy bill if the price of gas goes up, according to Kerkhof. “And you have the advantage that this price remains stable until after the winter, while the price cap expires on December 31

… has a price

“With an annual contract, you can be sure you’ll be well prepared for the coming winter,” Ben Woldring, director of price comparison site Gaslicht.com, previously explained. “We don’t want geopolitical uncertainty in the living room.”

Stocks must be filled

Something else is involved, Kirkhove says. China hardly participated in the battle of liquefied gas because of Corona.

Tags

energy prices / falling energy prices / energy 2023 / giant energy / giant energy company