Paying for energy: bank account and advance payments
Most suppliers bill by direct debit and ask for a Dutch bank account. Here is how paying works, and what to do if you do not have one yet.
Most suppliers bill by direct debit (automatische incasso) and ask for a Dutch bank account (IBAN); a few accept other SEPA accounts. You pay a fixed monthly advance (termijnbedrag) based on estimated usage, and once a year the annual settlement (jaarafrekening) refunds or charges the difference. Some suppliers ask a deposit if there is no payment history. If you do not have a Dutch account yet, opening one is usually the first thing to arrange.
Do I need a Dutch bank account?
In practice almost always yes. Most Dutch suppliers bill by direct debit and ask for a Dutch IBAN. A few accept other SEPA (European) accounts, but a Dutch account makes sign-up and identity checks far smoother, and some suppliers require it. If you have just arrived, opening a Dutch bank account is usually one of the first things to sort, alongside registering with your municipality.
Paying by a one-off transfer (overboeking) instead of direct debit is sometimes possible but less common and occasionally costs a little more; check per supplier.
Direct debit and the monthly advance
You do not pay for exactly what you used each month. Instead you pay a fixed monthly advance (termijnbedrag), an estimate based on your expected yearly usage, collected by direct debit. Keep this amount realistic: set too high and you overpay and get it back later, set too low and you owe money at the annual settlement. You can ask your supplier to adjust it if it does not match your real usage.
The annual settlement (jaarafrekening)
Once a year you receive an annual settlement that compares your real usage to the advances you paid, and refunds or charges the difference. This is your actual cost; the monthly amount was only an estimate. Give accurate meter readings so this settlement is right, and check that your new monthly advance for the coming year is realistic.
Deposits and no payment history
Because you are new, a supplier may occasionally ask for a deposit or run a credit check, especially without a Dutch payment history. This is not universal, and many suppliers ask for nothing. If a deposit feels high, it is worth comparing suppliers, as terms differ. A deposit is refundable and settled later, not an extra cost.
Frequently asked questions
Can I get an energy contract without a Dutch bank account?
Usually you need a Dutch IBAN, because most suppliers bill by direct debit. A few accept other SEPA accounts, but a Dutch account makes it far easier and some suppliers require it. Opening a Dutch bank account is usually the first thing to arrange after arriving.
What is a termijnbedrag?
It is your fixed monthly advance payment, based on an estimate of your yearly usage and collected by direct debit. It is not your actual cost; the annual settlement (jaarafrekening) later refunds or charges the difference against your real usage.
Will I be asked for a deposit?
Sometimes, especially without a Dutch payment history a supplier may ask for a deposit or run a credit check, but many ask for nothing. A deposit is refundable and settled later, not an extra cost. Terms differ, so it is worth comparing.
How does the annual settlement work?
Once a year your supplier compares your real usage to the monthly advances you paid and refunds or charges the difference. That is your actual cost. Give accurate meter readings so it is correct, and check the new monthly advance is realistic.