Fair rates at the three largest energy companies?
The Netherlands Authority for Consumers and Markets – also known as ACM – has investigated the tariffs of the three largest energy companies: Eneco, Essent and Vattenfall. In 2022, the profit made was between 0 and 5%. This is no higher than the profit made in previous years. Read more in this blog.
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Causes of rising energy prices
The energy crisis started in September 2021. All energy suppliers are faced with high energy prices. Energy consumers will bear the brunt of this. The war in Ukraine turned the energy upside down during the spring of 2022. Russia has started giving less gas and oil to European countries. Since May 2022, the Netherlands will no longer receive Russian gas.
In addition, there was a limited supply of gas. This shortage was caused, among other things, by the reduction in gas extraction in Groningen. The Netherlands also received less gas from abroad. The higher demand for gas and the reduction in supply led to higher energy prices.
Delay in passing on price
Energy companies purchase energy on the wholesale markets. Gas is purchased at the Title Transfer Facility. For power, this is the EPEX. The same investigation by ACM has shown that gas and electricity are purchased on the market by suppliers for at least a month, and often even earlier. That is why there is a delay between the falling purchase price and the price that the consumer ultimately has to pay.
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Energy rates unreasonable?
Many people consider the rates for energy to be unreasonable. Yet it appears that the rates are reasonable and no additional profits are made by the suppliers. Among other things, ACM has investigated confidential business documents about the purchasing strategy. After all costs have been deducted from the energy tariffs, a maximum profit of a few tens is made.
The expectation in the future
Energy prices are expected to remain high for longer. Despite the introduction of the price cap, this will not be a structural solution. The price cap reduces the risk of higher household energy bills, but government finances are getting worse. The price ceiling alone costs the government more than 8 billion euros in the base scenario
In order to find a structural solution, it is necessary to focus on sustainability and energy saving. With this measure, gas prices have less influence. Secondly, the advice is to only compensate vulnerable households with an amount, instead of all households. Finally, higher wages help purchasing power. In 2023, wages will have increased by an average of 4.7 percent.
