Sometimes the cost of electricity and gas is already included in the rent. In most cases, this is not the case. Then you have to enter into your own contract for electricity and gas with an energy supplier. When taking out your energy contract for electricity and/or gas, you can choose from two types of contracts: a fixed contract and a variable contract.
Fixed contract
A fixed energy contract is an agreement with an energy supplier for a fixed period of time. It is usually a contract for 1 to 5 years. As a result, you pay a fixed amount every month for as long as the contract runs: the same price for electricity and/or gas. If you terminate this agreement before the end date of the contract, you pay a termination fee to the energy supplier.
Please note: Since Russia's invasion of Ukraine, gas prices have skyrocketed. Therefore, it is difficult to secure a permanent contract for a longer period of time.
Advantages and disadvantages of a permanent contract:
Throughout the contract, you pay the same price for your energy use each month.
If energy prices rise, this does not affect the price you pay.
However, if prices go down, your bill will not go down either.
You must pay a termination penalty if you switch to another energy supplier before the end of your contract.
Variable contract
A variable energy contract is an open-ended contract. This means you can cancel the contract every month. The rate with a variable contract is a fixed rate for six months. The supplier usually sets the rates on 1 January and 1 July.
Please note: Since Russia's invasion of Ukraine, gas prices have skyrocketed and more and more suppliers are changing their variable rates more frequently. Sometimes they change rates every month.
Advantages and disadvantages of a variable contract:
The contract can be terminated on a monthly basis.
As your rates are usually allowed to change every six months, you can take advantage of price decreases, but the supplier is not obligated to do so.
When prices rise, you immediately pay more, too.
On this website of Independer you can compare energy suppliers.