With an energy deal, do you choose fixed or variable?

01The differences between a fixed and variable energy tariff

So we are going to talk about the choice between a fixed or variable tariff for your energy contract. For this it is useful to know what exactly the difference is between these two types of tariffs. With an energy contract with a fixed tariff you pay fixed tariffs for the supply of gas and electricity during the period. However, this only applies to the costs that go to your energy supplier, so the fixed supply charges.

With an energy contract with variable tariffs, the price for the supply of electricity and gas can vary during the term of the contract. The tariffs can therefore rise, but also fall during that period. Whether the tariffs will become higher or lower in a certain period is very difficult to predict. It is therefore important to weigh up for yourself whether you want to and can take the risk of choosing variable tariffs, or whether you can and would rather go for the certainty of a fixed tariff. Should the variable tariffs fall, this of course seems a big advantage and a good reason to choose them. There are various advantages and disadvantages to both variable and fixed tariffs. We give you an overview of these advantages and disadvantages, so that you can make a good assessment for yourself.

The advantages and disadvantages of a fixed or variable energy tariff

The difference between fixed and variable costs really lies only in the supply costs of electricity and gas. Other costs that are added, such as tax, government levies, Opslag Duurzame Energie en Klimaattransitie and grid operator charges, stay the same and are therefore identical for both fixed and variable energy contracts. This is because these costs are not for the supplier, but go to the government and the grid operator.

The advantages of a fixed energy tariff are mainly the certainty and the fact that you do not have to worry about your contract for a long time. You know what you pay and you know how long that will stay the same. The biggest disadvantage of a fixed tariff is that you cannot benefit from any falling prices. The advantage of variable tariffs is that you pay less when the tariffs fall, but on the other hand you may also end up paying more than the fixed price, should the tariffs rise. Then this is a disadvantage instead. Another disadvantage is that you do not have much certainty, since the tariffs can change at any moment.

How often do variable tariffs for electricity and gas change?

To know whether or not you want to choose variable tariffs for electricity and gas, it is of course also useful to know roughly how often the tariffs change. Normally suppliers' tariffs change every six months, on 1 January and 1 July. Since 2014, however, there are also suppliers that change their tariffs every quarter. But in some cases suppliers can also adjust their tariffs in the interim, if the market gives reason to do so.

This is not permitted with energy contracts with a fixed tariff. The other costs for the grid operator and the government can change once a year, on 1 January. When a contract with a fixed tariff expires, it turns into a new variable contract, often with higher tariffs than the contract with a fixed tariff. The fixed tariffs, just like the variable tariffs, only apply to the supply costs for electricity and gas. You cannot have the costs for the grid operator and the government fixed.

02When should you receive information about price changes from the supplier?

With both variable and fixed energy deals, changes can therefore in some cases take place in the tariffs you pay. However, a number of obligations for the supplier are attached to this. For example, informing you in time about price changes.

As of 1 January 2015, energy suppliers are obliged to let you know in good time, explicitly and personally, that the tariffs are going to change. An email referring you to the website has therefore long since no longer been sufficient. In addition, the supplier's general terms and conditions must clearly state how they deal with price changes. You always have rights if changes are made to the tariffs.

30 days in advance

An energy supplier must therefore let you know in good time that the tariffs are going to change. This is because you have a right to cancel with certain changes in the tariffs, which must also be clearly stated in the supplier's general terms and conditions. But what is actually regarded as in good time? No specific number of days is mentioned, as is the case with telecom companies. These companies are obliged to inform customers 30 days in advance about changes in the tariffs for calling, internet and TV. If the changes are to your disadvantage, for example the price goes up or channels disappear, then you have the right to cancel the subscription without extra costs.

On the energy market this unfortunately works differently. The Autoriteit Consument & Markt follows the notice period for consumers. This period is 30 days, so that period is also applied by the regulator for informing about changes in the price of variable tariffs for electricity and gas. If you do not agree with the new tariff, you have enough time to switch supplier if necessary. So the supplier must inform you by 1 June and 1 December at the latest of any adjustments to the tariffs for 1 January or 1 July.

So what is the most advantageous for energy: fixed or variable?

In general, a contract with fixed rates is therefore cheaper for consumers. The annual costs of this are therefore usually lower than with a variable contract. Many energy suppliers also offer welcome discounts with fixed contracts, and a fixed contract of course offers more certainty.

Fixed or variable: how do you make the choice? | EnergieAanbieding.nl

Find out all about the advantages and disadvantages of fixed and variable.