1-year or 3-year energy contract: what suits you?
1-year energy contract
With a 1-year contract, you fix the rates for 1 year. This gives you extra flexibility, because your rates end after a year and you can fix them again. This is useful if you expect that the energy rates will go down. You can benefit from lower rates after a year.
The advantages and disadvantages of a 1-year energy contract
- Flexibility: After 1 year, you can easily choose a contract with new rates.
- Possible rate decreases: When the energy rates decrease, you'll have lower rates faster.
- Risk of rate increases: Sometimes, the rates increase after the first year. Because of this, your new contract has higher rates.
3-year energy contract
You fix the rates for 3 years with a 3-year contract. This gives you security: you know exactly what you're going to pay. This is convenient when the energy rates increase. You also don't have to think about the rates of your contract for the next 3 years.
The advantages and disadvantages of a 3-year energy contract
- Rate security: You're assured of the same rate for 3 years, even when the rates increase.
- No hassle: You don't have to worry about renewing your energy contract for 3 years.
- Less flexible: You're bound to the rates for 3 years, even when the energy rates decrease.
What's the best choice?
Which choice is best depends on your situation and expectations. Do you expect that the energy rates will increase? A 3-year contract offers security and peace of mind. Do you prefer flexibility to benefit from possible rate decreases? A 1-year contract suits you better.
