Gas prices for 1 year fixed are skyrocketing

For the first time in months, there has been a turnaround on the energy market, after a period of steadily declining electricity and gas prices.
Gas prices in particular for 1-year and 3-year contracts are significantly higher at the beginning of May compared to the previous month.
Business Insider Netherlands provides an overview of developments in dynamic, variable and fixed energy prices.
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It may be coming, but after months of falling gas and electricity prices, there seems to be a small turnaround. At the beginning of May, energy prices are on average somewhat higher than in April and March.

The increase in energy prices is partly due to the increased tensions in the Middle East, which have mainly caused prices for the purchase of gas for delivery next winter to rise slightly further on wholesale markets.

Business Insider Netherlands’ monthly overview of energy prices as of May 1, based on data from Energievergelijk.nl, shows that the differences between the prices of energy suppliers are still large. Especially if you are considering a new contract, it is worthwhile to compare prices.

The average gas price for all types of contracts, i.e. dynamic, variable and fixed, was 1.24 euros per cubic meter at the beginning of May. That is about 2 cents higher than at the beginning of April.

For electricity, the average price for all types of contracts for new customers is almost 0.29 euros per kWh at the beginning of May. This is almost 1 cent higher than at the beginning of April.

To highlight the differences between different providers, we break down the gas and electricity prices below between dynamic and variable rates on the one hand and contracts where the price is fixed for 1 year or longer on the other. This provides a better picture of the competition between providers in different market segments.

The overview of energy prices at more than twenty energy suppliers as of May 1, 2024 relates to contracts for new customers. The data comes from Energievergelijk.nl.

Variable energy prices slightly higher

The energy prices for dynamic and variable energy contracts show significant differences between providers.

In the case of dynamic prices, the price for consumers is adjusted on a daily basis, with the development of gas and electricity prices on the wholesale market being leading. For the dynamic prices as of May 1, this is therefore a snapshot.

Energy suppliers usually adjust variable energy prices once a month or once every three months.

In the table below, more than 20 offers are sorted based on the gas price from low to high. For most households, gas is the highest cost item on the energy bill.

The average gas price for dynamic and variable contracts is 1.23 euros per cubic meter as of May 1. That is 1 cent higher than the April average. This is mainly due to the strong increase in variable energy prices at the top of the market. Dynamic gas prices remain relatively low.

For example, the lowest dynamic rates still vary between 1.05 euros and 1.09 euros per cubic meter.

If you look at the electricity prices, the average for the dynamic and variable prices as of May 1 is 0.28 euros per kWh. Just like with gas, this is 1 cent higher than the average price for new customers in April.

For the dynamic contracts, the lowest rates have remained between 0.22 euros and 0.23 euros per kWh. At the top of the market, the highest variable electricity rate is 0.40 per kWh, while a month earlier this was 0.37 euros per kWh.

Fixed prices: gas in particular is more expensive

Those who fix energy prices for 1 year or 3 years have more certainty about energy costs for a longer period. There was a somewhat stronger increase in fixed energy prices in May, compared to April.

In the table below we have shown the 1-year rates and the 3-year rates for gas and electricity, as of May 1 for new customers. This list is also sorted from low to high based on gas rates.

The average fixed gas price as of May 1 is 1.25 euros per cubic meter. That is no less than 4 cents higher than at the beginning of April.

On average, the fixed gas price is now slightly above the level of the average variable/dynamic rate.

If we look at the fixed electricity prices, the average is 0.29 euros per kWh as of May 1, which is 1 cent higher than at the beginning of April. Here too, fixed prices have become, on average, slightly more expensive than dynamic/variable prices.

On balance, it remains the case that dynamic rates are the lowest, but you also run more risk if prices on the wholesale markets suddenly rise. However, the strongest upward movement is currently in gas prices that are fixed for 1 to 3 years.