Dynamic vs fixed energy contract
| Dynamic | Fixed | |
|---|---|---|
| Electricity price | Changes every hour (day-ahead market price + markup) | Fixed price per kWh for the contract term (1–5 years) |
| Gas price | Changes every day | Fixed for the contract term |
| Risk | You carry the market risk: peaks and dips | The supplier carries the risk; you pay a premium for that |
| Cancelling | Usually cancellable every month | An early termination fee may apply |
| Smart meter | Required | Not required |
| Pays off if… | You can shift your usage (EV, heat pump, home battery, washing machine) | You want certainty about your monthly payment |
How is the dynamic price set?
Every day around 12:00 CEST, the EPEX Spot day-ahead auction closes. It sets the wholesale electricity price in the Netherlands for each time slot of the next day. The result is public on the ENTSO-E Transparency Platform. Your supplier passes this price on, plus a markup (purchasing fee), energy tax and 21% VAT. You also pay fixed supply charges and network charges. At sunny or windy moments the market price can even turn negative. How we estimate the price incl. tax.
What are the risks?
If the wholesale price rises, as in 2022, your bill rises straight away. A fixed contract protects you from this for as long as the contract runs. A dynamic contract pays off mainly if you use electricity when it is cheap.
Feeding back and the net metering scheme
The net metering scheme for solar panels (salderingsregeling) ends on 1 January 2027. After that, your supplier pays you a feed-in fee for the electricity you feed back to the grid. On a dynamic contract this fee often depends on the hourly price, so feeding back can cost money at times of negative prices. Check your supplier’s terms.