In recent years, energy expenses for hospitality businesses—from restaurants to large chains—have surged significantly. This continuous rise is driven by factors such as geopolitical tensions, scarcity of fossil fuels, and the ongoing transition to renewable energy sources. In addition, grid management fees and energy taxes have been increasing, placing further pressure on your business’s operating costs.

This article explains why market volatility is expected to persist over the coming years (2025-2028), and which measures you can take to maintain control over your energy bills. We specifically highlight the benefits of a five-year fixed energy contract and the use of a professional energy monitoring solution such as CEI (COMCAM Energy Intelligence). By making smart choices, you can shield yourself from sudden fluctuations and also meet the sustainability goals set by the government and your customers.

1. The causes of persistently high energy prices

1.1 Geopolitical tensions and scarcity

International conflicts, trade boycotts, and embargoes make the supply of oil and gas unpredictable. If the supply is disrupted or tight, energy rates can spike rapidly. Moreover, European countries are competing with emerging Asian economies for liquefied natural gas (LNG), leading to stiff global competition. This volatility is likely to remain for the foreseeable future.

1.2 Changing energy mix

The energy transition to renewables is in full swing: coal and gas are being phased out, while wind and solar power are being encouraged. Although this could lead to a more stable, cleaner energy supply in the long run, limited infrastructure or insufficient energy storage capabilities can cause marked price swings during this transitional phase.

1.3 Increasing grid management fees and energy taxes

Both grid management fees and government taxes on energy are on the rise. The government uses higher levies to discourage the use of fossil fuels. At the same time, grid operators are making substantial investments to expand and enhance the electricity network, resulting in higher fixed costs for businesses.

2. Price volatility: Why do rates keep fluctuating?

2.1 Global market influences

A production issue in Norwegian gas fields or escalating conflicts in the Middle East can quickly affect energy prices in the Netherlands. This global interdependency makes it challenging to predict price trends accurately.

2.2 Seasonal factors and weather conditions

During extreme cold spells or underperformance in wind and solar energy, demand for gas and electricity surges while supply declines. Conversely, a mild winter may lead to unexpectedly low prices. Seasonal volatility is here to stay.

2.3 Evolving regulations

Europe and the Netherlands are progressively charting a course toward a climate-neutral energy system. Regular policy changes related to emissions, energy taxation, and subsidy programs can (in)directly influence the market. This dynamic regulatory environment complicates long-term financial planning, especially when trying to stabilize cost projections.

3. Implications for the hospitality sector

3.1 Pressured profit margins

Many hospitality businesses are already grappling with rising labor costs and higher prices for raw materials. Additional energy costs eat into already narrow margins. Winter months are especially challenging, given the heightened demand for heating and indoor climate control.

3.2 Competitive position and price passing

The option to pass on higher energy prices to your customers has its limits. In times of high inflation, consumers are more price-conscious. At the same time, delaying the move to secure your energy rates could result in soaring variable tariffs.

3.3 Legislation and sustainability goals

Stricter environmental regulations, such as the Energy Conservation Obligation, compel hospitality owners to adopt more sustainable practices. Aside from the ethical and legal rationale, lowering consumption offers financial benefits. Reduced consumption makes you less susceptible to price hikes.

4. How to maintain control over your energy costs

4.1 Opt for a five-year fixed energy contract

One of the most effective strategies for creating certainty in a volatile market is to lock in a multi-year fixed-rate contract. A period of five years strikes a good balance:

• Budget Certainty: You know exactly what you’ll pay per kilowatt-hour or cubic meter of gas, simplifying stable cost forecasting in your business plan.
• Protection Against Price Surges: In the event of a new crisis or supply disruption, you’ll be less directly affected if you’re on a fixed tariff.
• Better Negotiating Position: Suppliers may offer more favorable terms for a longer commitment, as it reduces their own sourcing risk.

Although a fixed contract doesn’t entirely shield you from market developments—think rising grid management fees or taxes—it does prevent your bill from rising dramatically in lockstep with unfavorable market fluctuations.

4.2 Monitoring and energy management with CEI (COMCAM Energy Intelligence)

In addition to a fixed contract, insight into your consumption is crucial. Without reliable data, you risk missing energy inefficiencies. A professional energy monitoring system (EMS) provides a solution. One such system is CEI (COMCAM Energy Intelligence):

• Real-Time Insights: CEI offers 24/7 up-to-date data on your energy usage, broken down by device or area. You can quickly detect any “unexplained peaks.”
• Fixed Monthly Fee: For an agreed monthly rate, you gain access to all relevant metrics and reports, free from hidden charges.
• Advanced Analytics: Expect automated alerts when consumption crosses a certain threshold or trend analyses to identify the most cost-effective measures.
• Support with Compliance: Such systems simplify meeting your legal obligations under the Energy Conservation Obligation, providing a digital log of improvements and a clear overview of your CO₂ reductions.

By integrating CEI, you significantly enhance professional energy management: it simplifies detecting inefficiencies and supports decisions about further energy-saving measures.

5. Investing in energy efficiency measures and renewable generation

5.1 Insulation and energy-efficient equipment

Many hospitality businesses start with “low-hanging fruit” to meet the Energy Conservation Obligation. Examples include better insulation, switching from fluorescent lighting to LEDs, or phasing out outdated kitchen equipment. These initiatives often recoup their costs in less than five years.

5.2 Electrification and heat pumps

Switching to electric kitchen equipment (induction cooking) and installing a heat pump for heating and hot water reduces your reliance on gas. This transition is particularly appealing in the long run, given gas prices’ vulnerability to volatility.

5.3 Solar panels and energy storage: Optimize with independent advice

Generating your own energy through solar panels remains a solid investment, despite the gradual phasing out of net metering. With an EMS like CEI, you can optimize the use of self-generated electricity, especially if you also invest in battery systems for storage. This allows you to maximize the benefits of renewable production and become less dependent on costly peak times on the grid.

However, many market vendors prioritize selling large quantities of panels or expensive battery setups. They may not objectively calculate your actual gains and may focus solely on maximizing sales. Therefore, it’s essential to always have the feasibility and profitability of solar and battery storage solutions validated by an independent expert or an energy portfolio manager from a provider like COMCAM. A specialist can guide you in:

• Determining the optimal size of your solar panel system
• Calculating the expected payback period, factoring in the reduction of net metering credits
• Defining battery capacity requirements (if it’s viable at all)
• Assessing relevant subsidy and financing opportunities

Through a thorough, independent assessment, you avoid over-investing and ensure a realistic return on investment over the long term.

Leverage subsidies and tax incentives

Several policies make sustainable investments financially appealing:

• Energy Investment Allowance (EIA): You can deduct a significant portion of your investment costs from taxable profits, speeding up payback periods.
• MIA/Vamil: Offers additional tax benefits and accelerated depreciation for environmentally friendly business assets.
• Local and Regional Subsidies: Municipalities and provinces sometimes provide additional grants or loans to support energy-saving or CO₂-reducing initiatives.

Developing a comprehensive action plan and applying for the most relevant governmental incentives can substantially reduce your outlay, accelerating your transition to a greener, more energy-efficient business.

Outlook for 2025–2028

Although the energy transition in the Netherlands is accelerating, the market remains volatile as the country shifts toward renewable energy. Localized shortages can occur due to grid congestion, and geopolitical unrest is expected to persist for some time. The hospitality sector must therefore remain vigilant about sudden rate hikes and increasing taxes.

By choosing a multi-year fixed energy contract (preferably five years) and implementing a professional EMS such as CEI (COMCAM Energy Intelligence), you can mitigate financial risks and streamline your operations. This strategy helps you save money in the short term and build a future-proof business.

Conclusion

Persistently rising energy costs and volatile market rates pose an ongoing challenge for the hospitality industry. Nonetheless, there are effective ways to minimize risk. A five-year fixed energy contract shields you from abrupt cost hikes and ensures budget certainty, while an energy management system like CEI provides actionable insights to guide your energy-saving measures and enhance sustainability.

Remember that not all suppliers of solar panels or battery systems will prioritize your business objectives. Always have your investment plans independently assessed by a specialist or an energy portfolio manager to ensure a realistic business case and avoid unnecessarily high expenses.

Keen to learn more about other key topics in commercial energy for the hospitality sector? Our articles will delve into issues like grid congestion, stricter legislation, and emerging energy technologies. With a well-thought-out approach and the right partners, your hospitality venture can stay competitive—and future-ready.