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Sample providers dynamic contracts

The difference between dynamic, fixed or variable contracts

Fixed contract

With a fixed energy contract, you fix the rates for a specific term, usually 1, 3 or 5 years. When you sign a fixed contract, you are protected from price changes for the entire term of your contract. This is very advantageous when prices rise but can be disadvantageous when prices fall. If you terminate a fixed contract early (before the end of the term), you must pay a termination fee pay.

Variable contract

A variable contract is freely terminable contract with variable rates. Freely terminable means that you do not get a penalty when you break the contract, you can cancel at any time. However, there is often a 30-day notice period. The rate of a variable contract can be adjusted several times a year. In the past, this was always done twice a year, on January 1 and July 1 of each year. But due to the violent price fluctuations within the energy market, this standard is nowadays deviated from.

Dynamic contract

With a dynamic energy contract, electricity prices change every hour and gas prices change every day. So when prices fall, you benefit immediately, while when prices rise, you also pay the higher prices immediately. Most suppliers of dynamic prices do not apply a notice period or a 30-day notice period.

Conclusion

So with fixed contracts your rates are fixed for at least 1 year, with a variable contract 1 to 6 months and with dynamic contracts you get different rates for electricity every hour and new rates for gas every day. So unlike fixed or variable rates, you have a lot more flexibility, but also less certainty about your future energy costs. Do you want certainty? Then opt for a fixed energy contract. Are you someone who keeps a close eye on the rates and adjusts your consumption accordingly? Then choose a dynamic energy contract.

Suppliers with dynamic rates

There are 13 energy suppliers in the Netherlands that offer dynamic energy contracts. All of these suppliers have received a supply license from the regulator, the Authority Consumer & Market (ACM) to supply energy. In addition, the ACM has made agreements with industry association Energie Nederland on informing customers about dynamic energy tariffs. These include the creation of the "tailor-made offer," the most realistic possible estimate of expected costs. These agreements are included in the Consumer and Energy Supplier Code of Conduct. of Energy Netherlands.

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