Experts warn against long-term energy contracts as prices remain high

Experts warned against entering into long-term contracts with gas and electricity companies as prices hit record highs. “It’s getting more serious,” Energy Professor Machiel Mulder told NOS.

“We do not recommend entering into a long-term contract. A maximum of one year, ”said Elske Thomassen from Energiebank Rotterdam. “Otherwise it is best to stay in a variable contract at the moment.” Long-term contracts may seem like the better deal, but customers get stuck on high rates should energy prices fall again.

“The prices on the futures markets are based on expectations,” said Mulder. “This means that they can fall again quickly. It therefore makes sense for citizens to remain flexible.”

The price increase is mainly due to tensions between Ukraine and Russia threatening the construction of the Nord Stream 2 gas pipeline between Russia and Germany. The rise in energy prices in Europe also has other causes, such as less wind and closed power plants.

All households receive a tax deduction on their energy expenditure with an additional reduced rate for those on the lowest incomes.

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