After the uncertainty over the introduction of the energy cap on January 1, another plan by Energy Minister Rob Jetten also seems uncertain. Energy companies say it is “impractical” to offer fixed energy contracts again on January 1, writes FD.
The companies argue that with the current high gas and electricity prices it is not profitable to offer permanent contracts. The simultaneous introduction of the price cap, which is still uncertain, will also create problems in the offer of a permanent contract. An Essent spokesperson tells FD that it is not possible to offer permanent contracts from 1 January, because “two big changes in any number of weeks will have a major effect on the systems”.
Jetten announced the plan along with the price cap, in order to provide more certainty in the energy market for consumers. However, vendors still have many questions. For example, from 1 January it would become even more difficult to switch suppliers.
FD journalist Carel Grol explains that it is very disadvantageous for suppliers if customers cancel their contracts early, because companies have already bought energy in advance, often at high prices. “So they’re left with energy that’s not being used and that’s costing them a lot of money.”
ACM is late
The Consumers and Markets Authority must draw up that ‘sanction plan’, but there is still little clarity for suppliers, they say. Jetten said switchers must pay a fee that matches the “true residual value of the contract,” for which ACM has yet to make a plan.
Grol points out that it has not been made clear that permanent contracts should be offered again from 1 January. ‘It was a goal, but as a precondition with fines. (…). However, ACM now says it’s not sure it will work starting January 1, so if they can’t, the companies won’t even offer the contracts.
computer problems
When it is known what the fines system will look like, this also needs to be worked out in the supplier administration. They need time for this, say Eneco and Budget Energie at FD. According to Budget Energie, it would be “difficult” to elaborate in the IT field, because changes are also underway in the field of energy tax, VAT and the price cap.
High guarantee
Besides the technical difficulties, there are also financial problems in implementing the permanent contracts. Energy suppliers are required to hold guarantees for an indefinite contract. Before the energy crisis, it was around €25 per contract, but due to the explosive rise in energy prices, it is now around €1,000 per contract.
Source: BNR
Fernando Dowling is an author and political journalist who writes for 24 News Globe. He has a deep understanding of the political landscape and a passion for analyzing the latest political trends and news.
