Your energy contract is ending and a new offer arrives. Should you fix the price, choose a variable rate or try a dynamic energy contract? All three can sound attractive, but they give you different levels of certainty.
If you are weighing a fixed against a variable energy contract, start with your household budget. How much room do you have if energy becomes more expensive? Then look at your usage and the terms. This guide explains how the contracts work and which could suit your situation.
This article concerns households in the Netherlands. Information was checked on 14 October 2026. All figures in the worked examples are fictional, not supplier offers.
The three energy contracts side by side
A fixed contract sets a supply rate for an agreed period. With a variable contract, the supplier can adjust that rate under the contract terms. A dynamic contract follows market prices much more directly. This determines how much price certainty you have. ACM ConsuWijzer: types of energy rates.
| Feature | Fixed | Variable | Dynamic |
|---|---|---|---|
| Electricity and gas prices | Agreed for the contract period | Change at intervals under the terms | Electricity usually hourly or every quarter-hour; gas daily |
| When rates rise | Your agreed supply rate stays the same | Your rate can rise | Market increases feed through more directly |
| When rates fall | Your rate does not automatically fall | The supplier can lower your rate | Market decreases feed through more directly |
| Switching early | An early termination fee may apply | No early termination fee | No early termination fee |
| Main trade-off | Certainty versus commitment | Flexibility versus rate changes | Flexibility versus rapid price changes |
Check the notice period for variable and dynamic contracts. Having no early termination fee does not mean your contract ends immediately. ACM ConsuWijzer explains the differences and switching terms.
A fixed energy contract: certainty about your rate
With a fixed contract, the agreed supply rate stays the same throughout its term. For example, you pay the same price per kilowatt-hour of electricity and cubic metre of gas for one year. A kilowatt-hour, abbreviated kWh, measures electricity consumption. A cubic metre, or m3, measures gas consumption.
That certainty concerns the rate, not your entire bill. Using more energy costs more. Taxes and grid fees can also change. Grid fees cover your connection and the transport of energy. ACM ConsuWijzer: fixed rates and other charges.
A fixed contract may suit you if your budget has little room for price increases or you prefer planning ahead. You have fewer changing supply rates to think about. However, you do not automatically benefit when new contracts become cheaper.
Want to leave before the end date? The supplier may charge an early termination fee. For fixed contracts taken out from 1 June 2023, this depends on the supplier’s loss rather than a standard amount. Ask for a calculation before switching and subtract the fee from your expected saving. ACM ConsuWijzer: fixed-contract termination fees.
Fixed or variable energy contract: how much flexibility do you want?
Under a variable contract, the supply rate is not fixed for the whole term. The conditions say how often the supplier may change it, for example quarterly or monthly. New rates must be announced at least a month beforehand. ACM ConsuWijzer: variable rates.
Variable rates may suit you if you want flexibility and can absorb price changes. You can review your options when a rate-change notice arrives. But a low starting rate does not tell you what you will pay over the entire year.
Suppose your fictional gas rate rises from € 1.20 to € 1.40 per m3, including taxes and VAT. Using 150 m3 in a winter month would add € 30 to your gas consumption costs:
150 × (€ 1.40 − € 1.20) = € 30.
This example isolates the rate increase. Electricity and fixed charges are excluded. The practical question is whether you could cover that higher bill without squeezing other essential spending.
A dynamic energy contract: the price follows the market
With a dynamic contract, your supply rate is linked to the market price. Electricity rates usually change hourly or every quarter-hour; gas rates change daily. Check which interval your supplier uses. A purchasing fee, taxes, VAT and fixed charges may apply on top of the market price. Milieu Centraal: dynamic energy contracts.
You need a smart meter that records consumption by time interval. With typical contracts, the following day’s prices are known beforehand. This lets you plan usage, but does not tell you next month’s rates. ACM: how dynamic prices work and their risks.
A dynamic contract may be worth considering if you can shift a substantial share of electricity use, such as charging an electric car. Occasionally running the washing machine later shifts a much smaller share of consumption.
Here is a fictional example: you move 100 kWh from periods with a total electricity price of € 0.30 to periods costing € 0.20 per kWh. The difference is € 10:
100 × (€ 0.30 − € 0.20) = € 10.
Both example prices include taxes, VAT and the purchasing fee. Fixed charges do not change and are omitted. The saving only applies to those shifted 100 kWh; more expensive periods can reduce the benefit elsewhere.
A negative market price does not automatically mean you get paid to use electricity. Taxes and additional charges can keep the total consumption price positive. Look at the full price you actually pay. Milieu Centraal: basic and total energy prices.
A low monthly payment does not mean cheap energy
The monthly instalment is an advance payment. On the annual statement, the supplier compares your advances with your actual costs. A lower advance can therefore leave you with a larger balance to pay. ACM ConsuWijzer: monthly instalments.
Assess offers using the same annual consumption and all charges. Include fixed supply fees and the conditions of any discounts. Expected annual costs under a dynamic contract are estimates: future rates are not fixed. ACM ConsuWijzer: assessing energy offers.
A second fictional example illustrates this. For 2,000 kWh of electricity, the partial calculations are:
| Fictional offer | Price per kWh | Annual fixed supply fees | Partial total |
|---|---|---|---|
| A | € 0.25 | € 120 | 2,000 × € 0.25 + € 120 = € 620 |
| B | € 0.27 | € 60 | 2,000 × € 0.27 + € 60 = € 600 |
Here the higher kWh price still works out cheaper. Both rates include taxes and VAT. Gas, grid fees, the energy-tax reduction, discounts and solar panels are excluded from this partial example. It is not a comparison of real suppliers.
Read how to calculate monthly energy costs and check your annual energy statement.
Solar panels? Check the terms for 2027 too
With solar panels, feed-in compensation and feed-in charges matter. Compensation is what you receive for electricity supplied to the grid. Feed-in charges are costs your supplier may charge for that electricity. Under dynamic prices, you may export when market prices are low or negative. Milieu Centraal: solar panels and dynamic rates.
The Dutch net-metering scheme, called salderen, ends on 1 January 2027. Net metering lets you offset electricity exported to the grid against electricity you draw from it. From 2027, that offset ends and you receive compensation for exported electricity. Dutch government: end of net metering.
Will your new contract continue into 2027? Ask how consumption, exports and related charges will be calculated from that date. An assessment based only on the 2026 rules is incomplete.
Which energy contract should you choose? Start with three questions
No contract type gives the best outcome for every household. Use these questions to narrow your choice:
- How important is price certainty? If a higher bill would be difficult to manage, give a fixed supply rate particular attention.
- How much usage can you shift? With dynamic prices, what matters is how much electricity you can actually use at other times.
- How long do you want to commit? Consider possible moves, changes to your home and the cost of leaving early.
This week, find your annual statement and current contract. Note your usage, end date and any electricity exported. Assess offers with the same figures and ask about unclear terms. To tackle other monthly expenses too, read our steps for reducing recurring household costs.
Choosing between a fixed and variable energy contract mainly means weighing certainty against flexibility. A dynamic contract adds rapid price changes and the timing of electricity use. Choose based on what you can afford and how you use energy, without needing to predict the market.
This article is for educational purposes only and is not financial, tax, or legal advice. Consider consulting a qualified professional about your personal situation.