Supply of energy contracts dries up, “market is completely unpredictable” –

Supply of energy contracts dries up, “market is completely unpredictable” –

At the end of last year, when energy prices were also worrying, this advice was often heard. Energy prices will fall again in the spring, so households with an expiring variable or fixed energy contract should wait before entering into a new contract. However, the situation of these households has not improved due to the war in Ukraine.

Anyone wishing to contract energy at current fixed prices will be faced with an exhausted window. The prices of gas and electricity fluctuate so quickly that suppliers do not offer contracts for an indefinite period.

Almost only so-called “model” contracts exist. These are contracts that suppliers are legally obliged to offer. Prices are now too high.

not wise

An Eneco spokesperson: “The market is completely unpredictable. We cannot look six months or a year ahead and therefore not offer a CDI,” he explains. So is Essence. “A CDI is not possible for a certain period of time,” explains Henriëtte Setz, director of Essent. “The prices are so high that it is difficult to make a good offer. We hope this period will be over soon.”

Vattenfall has only had standard contracts since the end of December. “The current price level in the procurement market is very high and has been for several months,” said a spokesperson. “A customer who wants to make a fixed price during this period, therefore commits to this rate for a lower period. We don’t think that’s wise for the customer.”

The company also states that it now runs a greater risk if permanent contracts are offered. For customers who now enter into an open-ended contract, energy is purchased in advance at a relatively high price. “If the customer cancels within the contract period, there is a good chance that we will purchase these large quantities.”

necessary

Still, there are consumers who are now willing to negotiate a fixed price for fear of further price increases. “We realized that there is a great need among consumers to enter into an open-ended contract, consumers are looking for security,” said Ben Woldring of Gaslicht.com. Last week we saw a wave of applications even after the invasion of Ukraine. “Thousands of people a day quickly signed up for an annual contract of ‘it could get even more expensive’. Those who did it last week are now happy to be able to do it.”

Virtually all price comparison sites have temporarily suspended their services due to lack of choice. “As of February 24, we will no longer offer comparisons,” says Independer. “Energy companies no longer offer contracts. So there is no annual contract, no variable contract, only the legally required ‘model contract’.”

Source: NOS

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