Yup, you read that right. If you draw up a new energy contract in the Netherlands, gas and electricity will set you back almost €6,500 annually.
That’s a whopping €4,000 more expensive than last year, reports NU.nl. 🥲
To make matters worse, Statistics Netherlands announced that inflation reached an all-time high in July this year — and we’re talking a historic, since 1975 kinda high. They attribute this mainly to skyrocketing energy prices and rental costs.
What’s the deal with new energy contracts?
In the Netherlands, energy contracts come in two forms: fixed and non-fixed.
- If you have a fixed contract, the price you pay for energy is locked in for a certain amount of time. At the moment, many people’s fixed contracts are expiring, and they have to draw up new ones based on current prices.
- If you have a non-fixed contract, you’re at the mercy of the market. This means your energy bill will increase with the current energy prices. Lately, the rapid market developments have resulted in contracts being adjusted more frequently than the standard two times a year.
The number of people who drew up their energy contract back when rates were still affordable is decreasing — which means they’re about to get slapped with a crappy surprise.
READ MORE | How to take control of your Dutch utility bills in 5 simple steps
Energy rates are three times higher than last year
Wholesale prices on gas and electricity are now eight to ten times higher than normal.
All of this is passed on to the consumer, so an average household will pay almost three times more for drawing up a new energy contract today than when they did last year.
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An annual contract for gas and light, drawn up on August 1 this year, will set you back €6,466 euros annually, according to figures from Gaslicht.com requested by NU.nl.
Last year, it cost just €2,308 on the same day. 😱
Reduced VAT on energy
The seemingly ever-increasing energy prices have forced the Dutch government to take action with more and more households finding themselves in financial difficulties.
READ MORE | 10 dang smart ways to save on energy costs in the Netherlands
To help alleviate the burden, a temporarily reduced VAT on energy went into effect on July 1. The VAT on energy is now 9% instead of the standard 21%. Additionally, low-income families in the Netherlands can receive an energy allowance.
How’s your energy contract looking? Have you had to draw up a new one? Tell us in the comments below!
