There are large differences between gas and electricity providers

A new spring, a new energy price. The general picture is that price drops for gas and electricity will continue. But the pace of declines is slowing, according to new figures for energy rates for new customers.

Because there is a downward trend, it remains the case that dynamic rates show the lowest prices. Gas and electricity prices for consumers respond on a daily basis to price developments on wholesale markets.

Business Insider Netherlands’ monthly overview of energy prices as of April 2, based on data from Energievergelijk.nl, also shows that the differences between the prices of energy suppliers are still significant. Accurate comparison therefore remains important.

The average gas price for all types of contracts, i.e. dynamic, variable and fixed, was 1.22 euros per cubic meter at the beginning of March. That is almost equal to the average price for new customers at the beginning of March.

For electricity, the average price for all types of contracts for new customers is just under 0.28 euros per kWh at the beginning of April. This is also virtually the same as the average price at the beginning of March.

To highlight the differences between different providers, we have broken 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 from more than twenty energy suppliers as of April 2, 2024 relates to contracts for new customers. The data comes from Energievergelijk.nl.

Dynamic gas prices relatively low in April

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 April 2, this is therefore a snapshot.

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

In the table below, the prices of more than twenty providers 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 1.22 euros per cubic meter as of April 2. That is 7 cents lower than the March average. This is mainly due to highly competitive dynamic prices at the bottom of the market.

Due to the persistently low wholesale prices in March, quite low dynamic rates can currently be found from 1.05 euros to 1.09 euros per cubic meter. The result is that the average price development of dynamic and variable rates is depressed.

There is also some movement at the top of the market. The highest variable gas rate at the beginning of April is 1.51 euros per cubic meter, while a month earlier it was 1.57 euros per cubic meter.

If you look at electricity prices, the decline is less rapid. Here the average for the dynamic and variable prices as of April 2 is 0.27 euros per kWh. That’s about 2 cents lower than the average price for new customers in March.

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 0.37 per kWh, while a month earlier this was 0.40 euros per kWh.

Fixed gas and electricity prices: stable market

Those who fix energy prices for 1 year or 3 years have more certainty about energy costs for a longer period. The market image is still that you cannot currently compete with daily fluctuating dynamic rates, but you can compete with variable energy prices.

In the table below we have shown the 1-year rates and the 3-year rates for gas and electricity, as of April 2 for new customers. This list is also sorted from low to high based on gas rates.

The average fixed gas price as of April 2 is 1.21 euros per cubic meter. That is 1 cent lower than at the beginning of March.

On average, the fixed gas price is now close to the average variable/dynamic rate. But especially compared to variable gas prices, prices that are fixed for 1 year or 3 years are relatively favorable.

If we look at the fixed electricity prices, the average is 0.28 euros per kWh as of April 2, which is comparable to the beginning of March. Here too, you are often better off with a permanent contract than with a variable contract where the prices change once a month or every three months.

On balance, it remains the case that dynamic rates are the lowest, but you also run more risk. If market prices rise, you will immediately feel this with a dynamic rate and you should also be able to absorb the higher energy bill costs.

The rates for contracts of 1 year fixed or longer are higher than the dynamic prices, but do offer more certainty about energy costs.