Flemish energy minister Depraetere to oblige suppliers to offer fixed and dynamic energy contracts

Fixed contracts were the standard in Flanders for a long time. Until early 2022, more than 70 per cent of households had fixed-price contracts for both electricity and gas. But during the 2022 energy crisis, with sharply rising energy prices, most energy suppliers scrapped fixed contracts.

Consumers who took out new contracts had to switch to variable tariffs. ‘Because of the energy crisis, energy prices rose sharply and there were hardly any fixed contracts left on the market,’ says Flemish Energy Minister Melissa Depraetere. ‘That led to many people feeling insecure.’

Today some suppliers are still not marketing fixed-price contracts. By the end of 2024, such contracts were available from half the players on the market - for electricity, for example, from 10 out of 21 suppliers.  That’s according to data from the Flemish utility regulator. About 30 per cent of households had fixed contracts.

Fixed, variable and dynamic contracts mandatory

The Flemish minister now wants to make it mandatory for consumers to be able to get fixed contracts from the biggest energy suppliers. ‘We notice that people need the security of having a fixed energy contract,’ she says.

The measure will affect energy suppliers with more than 200,000 customers like Engie Electrabel, Eneco, Luminus and TotalEnergies. These companies must offer a fixed contract of at least one year, for electricity and gas, by 2027.

But in addition, the big energy suppliers will still have to offer variable and dynamic contracts. ‘It is important that people have a choice between different energy contracts,’ the minister says. By 2029, the obligation to offer all 3 types of contract will also affect all energy suppliers.

The Flemish government will then oblige energy suppliers to offer a dynamic contract too. Under such contracts, the energy price varies from hour to hour, based on the wholesale market.