Sunday 24 November 2019

A fall in variable rates is being initiated, but for how long?

From 1 January the energy bill for people with a variable rate will fall by 2.5%. We calculated this on the basis of the three largest energy suppliers , Nuon / Vattenfall , Eneco and Essent . They recently announced that the electricity and gas rates remain the same. Subtract the lower taxes from that and you will end up with a lower energy bill.The only question is; for how long?

What was that again?
Freshen up. In the Netherlands you can opt for fixed or variable rates . Do you opt for fixed rates? Then you pay the same amount for the duration of your energy contract . If you opt for variable rates, energy prices can rise or fall twice a year (in June and December).

Calculate sum
The price that you pay for your energy consists of three elements:
• grid management costs
• delivery costs
• taxes
From January 1, 2020, the total energy bill will therefore fall. The delivery costs remain the same and the network management costs go up slightly. But because taxes are falling, there is nevertheless a lower energy bill. This means that the average bill for multi-person households will fall by around € 70 a year.

Expectation for the future
Pricewise director, Hans de Kok , indicates that network management costs will increase further in the coming years. De Kok: " In the future, network operators must pass on higher costs and investments in the network to consumers." According to De Kok, it will be a few tens of dollars a year. He also expects the tax burden to increase from 2021. Consequences that could result in a higher energy bill after 2020. Well, a big comment.

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Fixed rates cheaper than variable rates
If we set variable rates against fixed rates, people with fixed rates pay less. Even now the variable rates are going to fall. They are on average still around € 75 cheaper per year.

If we are still commenting; here is another one. The energy bill does not decrease for all Dutch people with a variable rate. Households that use a lot of gas will pay more taxes. As a result, these people do not benefit from the decline.

What you can do
Unfortunately, you cannot do much about rising network management costs. What you can do is make the switch to a cheaper energy supplier . You do this by filling in our energy comparator. You can see how much you can save on energy in no time . In addition to offering great discounts on your energy bill, we can also offer you our free Outing Discount card (worth € 69.95). This allows you to experience the best days out for a year with substantial discounts! There you have it; white-bearded men dressed in red robes are not the only ones who bring presents.

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