Dutch households face highest fixed gas rates in 3 years

Consumers who want to sign a new fixed-rate gas supply contract now face the highest rate in three years. Fixed-rate electricity contracts have also risen, according to a new report from the Netherlands Authority for Consumers and Markets (ACM).

Household rates track wholesale gas and electricity prices, which have risen sharply. As a result, prices for fixed gas contracts increased by about 4 percent over the past months. Rates for fixed electricity contracts rose by about 1.5 percent from August.

The European wholesale gas prices have climbed sharply because of the Iran war and other geopolitical tensions in the Middle East. It now stands at about 80 euro per megawatt-hour - a level not seen since January 2023.

“Many households turn the heating back on in October and therefore start using more gas,” ACM board member Manon Leijten said. “That is why September is traditionally a good month to check whether your energy contract is still the best fit for your situation.”

That check is even more important this year because of relatively low storage levels, uncertainty in international markets, and volatile gas prices, Leijten said. Dutch gas storage is 52 percent full - considerably lower than at the same point last year. Europe’s gas stocks are also smaller than a year ago.