Falling gas prices make fixed-rate energy contracts cheaper than variable ones
With European gas prices sliding, fixed-term energy deals now cost less than the cheapest variable contracts, though some suppliers will raise variable rates soon.
European gas prices have fallen sharply in September, leading many energy suppliers to lower their fixed-price tariffs for new sign-ups. According to the comparison site Energievergelijk, a three-year fixed contract was €248 cheaper per year than the cheapest variable contract on 28 September when electricity costs, fixed fees and welcome bonuses are included. Providers such as Energiedirect, Vattenfall, Eneco and Essent reduced their gas rates per cubic metre, with Essent’s three-year price dropping to €1.558.
Meanwhile, Essent will increase its variable rates on 1 October, making a typical variable plan about €195 more expensive annually for a household using 2,300 kWh electricity and 900 m³ gas. Consumers can cancel variable contracts without penalty, but early termination of fixed contracts may incur fees. Upcoming changes to energy taxes and network charges from 1 January also affect overall costs.
