Electricity prices - Netherlands

Netherlands Electricity Market Overview

Primary Electricity Sources

In 2024–2025 roughly half of the Netherlands’ power generation came from renewables. According to national statistics, renewables (wind, solar, biomass) produced about 50–53% of electricity in 2024, led by wind power (≈27% of total generation, thanks to new offshore farms) and solar PV (≈18%), with modest biomass (≈5%). Fossil fuels (mostly natural gas) accounted for the remaining ~45% (with coal almost phased out, only a few TWh remaining) and nuclear roughly 3%. The Netherlands was a net exporter of power (export ~24 TWh vs import ~20 TWh in 2024).

• Wind: Fast growth from <10 TWh (2015) to ~33 TWh in 2024, driven by new offshore fields (e.g. Hollandse Kust).
• Solar: Rapid rise to ~22 TWh (2024) with continuing expansion of rooftop and utility PV.
• Biomass & other: Around 6 TWh (2024) from biogas/wood (peat plants and some biomass co-firing).
• Fossil fuels: Mainly natural gas-fired plants. Gas-based generation has fallen sharply (Russia’s 2022 war and high prices pushed a 27% drop in gas use 2022–2024 vs 2019–21). Coal output is now minimal (about 8–9 TWh in 2024).
• Nuclear: The single Borssele reactor produced ~4 TWh (≈3%). Plans exist to extend its license to 2033 or beyond.
• Imports/Exports: The Netherlands’ smart grid and cable links mean it often trades power. In 2024 it exported slightly more than it imported, thanks to high wind output.

Policy Trends: The shift to renewables is driven by EU and Dutch climate targets. The government aims for ~49% total greenhouse reduction by 2030 (climate law) and carbon neutrality by 2050, with coal phase-out by 2030 and steep cuts in gas use. Recent energy crises accelerated this trend: low gas use and high renewables have made renewables the marginal source (53% in H1 2024). Future growth is expected in offshore wind and PV, while natural gas generation recedes.

End-Customer Electricity Pricing

A consumer’s electric bill comprises several parts: the energy commodity charge, network (grid) fees, taxes/levies, and VAT. Key components are:

• Supply and fixed fees: The supplier’s energy price is charged per kWh (variable) plus usually a small monthly fixed fee (“vastrecht” or “leveringskosten”). For example, Tibber and other “app” providers charge €5–8/month plus wholesale-based €/kWh rates.
• Grid charges (netbeheerkosten): All users pay distribution and transmission tariffs to the grid operator. For a typical household (3×25A connection), netbeheerkosten are ~€700 per year in 2025 (≈€55–60/month on average) and make up about 25–35% of the bill. These fees (regulated by ACM) include fixed connection fees, meter rent, and capacity-based transport charges. Network tariffs vary by region (Enexis, Liander, Stedin, etc.) and can rise with grid investment needs (ACM raised electricity grid tariffs ~14% for households in 2025).
• Energy tax (energiebelasting): A high excise tax is levied on consumed kWh. For households in 2025 this is about €0.123 per kWh (incl. 21% VAT) (roughly €0.102/kWh before VAT). There is a fixed annual rebate (“vermindering energiebelasting”) of about €631 (2025) on the bill. Notably, small consumers pay far more tax per kWh than large users: by law households pay ~32× the energy tax of very large industrial users. As a result, taxes can be ~30–33% of an average household’s total energy bill (for 2,479 kWh + 1,169 m³ usage, about €853/year in energy tax).
• Value Added Tax (BTW): A 21% VAT is applied to the sum of all charges (energy, grid, excises).
• Other levies: Until 2022 there was a renewable surcharge (ODE), but this was merged into the general energy tax from 2023. No separate renewable subsidy charge appears on the 2025 bill.
• Differentiation (residential vs commercial): Large commercial/industrial contracts have much lower excise rates – effectively near-zero (~0.3 ¢/kWh) – so their bills have a much smaller tax component. However, businesses often pay higher absolute network fees due to larger capacity connections.

In sum, an average Dutch household’s retail price (with fixed contract) might break down roughly into ~30–40% commodity cost, ~25–35% grid fee, ~30–33% taxes, plus 21% VAT on top of all of that. This tax-heavy structure has prompted calls (by industry and consumer groups) to reform levies (e.g. lowering VAT or excise).

Dynamic Electricity Tariffs

Dynamic (spot) tariffs are contracts where the price is tied directly to short-term market prices. In practice, the supplier passes through the day-ahead wholesale price to the customer (often hourly for electricity and daily for gas). For example, if you sign up for a dynamic contract, your kWh price next day will be the EPEX SPOT exchange price for each hour (plus a small fixed margin/month). A smart meter is required so the utility can measure hourly consumption. By shifting usage to off-peak hours, customers can save money.

By EU law (Electricity Directive 2019/944), all consumers have the right to a dynamic price contract, and suppliers above a threshold (200k+ customers) must offer at least one dynamic tariff, along with clear information on its risks and benefits. In the Netherlands, the regulator (ACM) and industry body (Energie-Nederland) have set voluntary rules to protect buyers of these products: suppliers must explain the possibility of higher winter bills, provide transparent (“koopprijs”) pricing, and prepare an “offer op maat” (a projected annual spend) once per month so customers can compare dynamic versus fixed deals.

Key differences: Dynamic tariffs fluctuate hourly/daily, unlike traditional fixed or variable contracts. A fixed tariff locks in a € per kWh for 1–3 years. A variable tariff can change (typically once or twice yearly) but is set in advance by the supplier. Dynamic tariffs move continuously with the spot markets. They offer more flexibility (and potential savings) but require active energy management. Under dynamic contracts, smart apps or IoT devices are often used to automate use (e.g. running appliances when wind power is abundant). The goal is to give price signals that smooth demand and better match renewable output.

Providers Offering Dynamic Tariffs

A growing number of Dutch retailers now market dynamic/spot-based contracts for both homes and businesses:

• Tibber – A technology-led supplier (via app). Tibber charges ~€5.99/month and passes through hourly wholesale prices (no profit margin). Its app tracks hourly rates and consumption.
• Zonneplan Energie – Specializes in spot pricing. It supplies electricity and gas at the purchase (market) price, helping customers save (Zonneplan reports average savings ~30% on electricity). Solar owners especially use its app to consume during “green” cheap hours.
• Vandebron – The green cooperative offers a “dynamisch energiecontract” where electricity is priced per hour and gas per day, reflecting the market. Its app shows next-day prices from 13:00, so users can shift demand to low-price intervals.
• Greenchoice (via EnergyZero) – Greenchoice’s dynamic product is powered by EnergyZero (Greenchoice handles customer service). EnergyZero emphasizes transparency: no extra markup is added to the spot price. Users pay a fixed monthly fee and the actual hourly/daily market rate.
• Frank Energie / Budget Energie / Next Energie / Vrijopnaam – These commercial suppliers have introduced dynamic plans. For instance, comparison tools (May 2025) list Budget Energie, Next Energy, Frank Energie, Tibber and Vrijopnaam among the cheapest dynamic suppliers. They charge modest monthly fees and tap the exchange price per kWh.
• EasyEnergy (Nieuwestroom) – A major supplier (with >15,000 business customers) now offers dynamic tariffs for both households and companies. It actively promotes demand flexibility.
• Innova Energie – Offers a “dynamisch energiecontract zakelijk” for businesses, with prices tied to spot markets (with daily and hourly variations).
• Other brands: Traditional utilities are beginning to experiment (e.g. Vattenfall’s “Actief Benutten” product or Eneco’s pilots). Even Essent and Engie have looked into real-time pricing. However, uptake is still highest among the above specialized or green suppliers.

Each provider’s offering typically includes an online portal or app. The contract will list a fixed delivery fee and then a variable component (market price + small “inkoopvergoeding”). For example, Zonneplan and EnergyZero highlight that customers pay exactly the market cost of power, while other suppliers use similar models. In sum, by 2025 dynamic tariffs are readily available from several Dutch energy companies, allowing consumers and businesses to choose spot-linked pricing instead of traditional fixed/variable rates.

Peak and Off-Peak Hours

Netherlands 2024 – Average Hourly Wholesale Electricity Price (EPEX)