Moving to the Netherlands? The Dutch energy market may work differently from what you're used to. This article explains the basics of how energy is supplied, billed, and managed.
Your annual settlement (Yearly bill)
Who does what?
There are three different parties involved in your energy supply.
Energy supplier
Your energy supplier (like NextEnergy) sells you electricity and gas, sends your bills, and provides customer support.
Grid operator (Netbeheerder)
The grid operator owns and maintains the electricity and gas network. They are responsible for:
- Installing and maintaining your smart meter
- Fixing power outages or gas network problems
- Connecting homes to the grid
You cannot choose your grid operator—they are assigned based on where you live.
Your municipality
Your municipality is responsible for your address registration. When you move, always register your new address with your local municipality.
Electricity and gas
In the Netherlands, most homes have:
- Electricity (measured in kWh)
- Natural gas (measured in m³)
Some homes no longer use gas and are fully electric.
Your smart meter
Almost every home has a smart meter.
The smart meter automatically sends your energy usage to your grid operator. Your energy supplier receives this data to calculate your bill.
If your smart meter cannot send data automatically, you may occasionally need to submit your meter readings yourself.
Monthly advance payments
In the Netherlands, you normally do not pay for your exact monthly energy usage.
Instead, you pay a monthly advance payment ("monthly advance amount").
Your supplier estimates your annual energy costs and divides them into equal monthly payments.
Example:
- Expected yearly energy costs: €1,800
- Monthly advance payment: €150
This keeps your monthly costs predictable throughout the year.
Your monthly payments are advance payments. This means they are estimated amounts based on your expected yearly energy costs.
You do not pay the exact amount for your actual energy usage every month. Instead, your actual costs are calculated once a year on your annual settlement bill.
If you paid more than your actual costs, you receive a refund. If you paid less, you pay the remaining amount.
Your annual settlement (Yearly bill)
Once a year, your supplier compares:
- What you actually used
- What you already paid through your monthly instalments
There are two possible outcomes:
You paid too much
- You receive a refund.
You paid too little
- You pay the remaining amount.
After your annual bill, your monthly advance payment may be adjusted if your actual energy usage differs from the estimate.
Dynamic energy prices
Some suppliers, including NextEnergy, offer dynamic energy contracts.
This means the electricity price changes every hour based on the wholesale energy market.
Gas prices may also change daily, depending on your contract.
This allows customers to save money by using electricity during cheaper hours.
Network charges and taxes
Your energy bill consists of more than just the energy you use.
It may include:
- Energy costs
- Government taxes
- VAT (Value Added Tax)
- Grid operator charges
- Fixed monthly fees
Some of these costs are set by the Dutch government and apply regardless of which supplier you choose.
Switching suppliers
You are free to switch to another supplier at any time.
If you have a fixed-term contract, an early termination fee may apply.
Always check your contract conditions before switching.
Moving home
When moving:
- Inform your current supplier.
- Register your new address with your municipality.
- Arrange an energy contract for your new address before moving in.
This helps avoid billing issues and ensures your energy supply continues without interruption.
Power outages
If your electricity or gas stops working:
- Check whether only your home is affected.
- Check your fuse box.
- Visit your grid operator's outage website.
- Contact your grid operator if the problem is outside your home.
Your energy supplier cannot repair network failures.
Frequently Asked Questions
Do I need to arrange an energy contract before moving in?
Yes. It's recommended to arrange your contract before your move-in date.
Can I choose my grid operator?
No. Your grid operator depends on where you live.
Can I choose my energy supplier?
Yes. You are free to choose any licensed energy supplier in the Netherlands.
Why do I pay the same amount every month?
Because you pay an estimated monthly advance payment. Your actual usage is settled once a year.
What happens if I use more energy than expected?
You may have to pay the difference on your annual bill, and your monthly payment may be adjusted for the following year.
Need help?
If you have any questions about your energy contract or your bill, our Customer Service team is happy to help.
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