Advisor: The biggest energy companies’ tariffs are not unreasonable

After an investigation, the Consumers and Markets Authority (ACM) concludes that the tariffs currently imposed by the Netherlands’ three largest energy companies, Essent, Eneco and Vattenfall, are not unreasonable. According to the regulator, profits are currently no higher than in previous years. Last year it was between 0 and 5 percent.

ACM director Martijn Snoep says he understands that people find prices unreasonable. “There is a suspicion that energy suppliers are making excessive profits. That’s not the point. After deducting all costs, the maximum profit is a few tens per household and year.”

price will drop

The high prices are due to the high gas and electricity purchase costs that suppliers have to bear. ACM also notes that companies are paying more for the insurance they have to take out to cover the risks associated with the “turbulent energy market”.

All three energy companies buy energy at least a month in advance, and often sooner. As a result, the falling energy price in the market is not immediately reflected on your own bill. This is expected to happen in the coming months. CEO Snoep says he will be watching this closely.

Confidential documents viewed

For the research, ACM and experts visited the headquarters of the three largest energy companies. There they were allowed to look through the ledgers and systems, as well as access confidential company documents related to the acquisition strategy. ACM will also closely examine the tariffs of other major providers in the coming period. There are no tangible signs that something is wrong there either.

ACM will release a new monthly monitor at noon so consumers can see what the energy tariffs are for new customers. New floating contract prices fell 10 to 20 percent from the previous month.

Source: NOS