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Energy Contracts

This article explains the default contracts on the platform, how they are structured, and how their costs appear in simulation results.

Written by Jeroen Pleunis

Use energy contracts to define how electricity is priced, taxed, and billed in your simulations.


What is an energy contract?

An energy contract defines how electricity costs and revenues are calculated in a simulation. It determines which prices, taxes, network charges, and supplier surcharges apply to electricity consumption and electricity production.

Energy contracts help you calculate total energy-related costs, compare energy strategies, and evaluate the financial impact of changing usage patterns or using assets such as batteries, solar panels, or flexible loads.

What an energy contract includes

In the simulation environment, an energy contract describes:

  • How electricity consumption is priced

  • How electricity production or feed-in is priced

  • Which energy taxes apply

  • Which network grid charges apply

  • Any extra surcharges from your local energy supplier

These contracts are used as the basis for:

  • Calculating total energy-related costs

  • Calculating revenues or costs related to exported electricity

  • Comparing different energy strategies and assets

  • Evaluating the financial effect of changing usage patterns

Default energy contracts on the platform

The platform includes two default energy contracts:

  • Default Dynamic Contract

  • Default Fixed Contract

Both default contracts:

  • Are based on realistic parameters from the Dutch energy market

  • Use data from Enexis grootverbruik aansluitingen between 126 kW and 1,500 kW, Netvlak MS-D

  • Can be edited or copied to match your local or organizational situation

The Default Dynamic Contract is selected automatically when a new simulation environment is created.

Creating a new energy contract

When you add a new energy contract, you can configure consumption and production separately.

This means you can choose a pricing type for:

  • Consumption: electricity taken from the grid

  • Production: electricity exported or fed back into the grid

For both consumption and production, you can choose between:

  • Fixed pricing

  • Dynamic pricing

This gives you more flexibility than using a fully fixed or fully dynamic contract. For example, you can model a contract where consumption is priced dynamically, while feed-in uses a fixed export rate.

Consumption pricing

Consumption pricing defines how the platform calculates the cost of electricity taken from the grid.

You can configure consumption as either fixed or dynamic.

Fixed consumption pricing

With fixed consumption pricing, electricity consumption is calculated using predefined stable rates.

You can configure rates such as:

  • Peak rate, for example a daytime tariff in €/kWh

  • Off-peak rate, for example a nighttime or weekend tariff in €/kWh

Use fixed consumption pricing when you want to model a long-term fixed-price electricity contract or a scenario where price stability is more important than following market prices.

Dynamic consumption pricing

With dynamic consumption pricing, electricity consumption is calculated using market-based prices, such as EPEX Spot Market prices.

Each kWh of consumption is priced using the market price at the time of consumption.

You can also configure a consumption surcharge. This surcharge is added on top of the dynamic market price and can be used to model supplier margins, administration fees, or other additional costs per kWh.

Use dynamic consumption pricing when you want to simulate:

  • Day-ahead or real-time market exposure

  • Load shifting

  • Demand response

  • Battery charging based on hourly prices

  • Flexible asset optimization

Production and feed-in pricing

Production pricing defines how the platform calculates the value or cost of electricity exported to the grid.

You can configure production as either fixed or dynamic.

Fixed production pricing

With fixed production pricing, exported electricity is calculated using a predefined return rate.

You can configure the return rate, for example a fixed feed-in tariff in €/kWh.

Use fixed production pricing when your supplier pays a stable price for exported electricity, regardless of the market price at that moment.

Dynamic production pricing

With dynamic production pricing, exported electricity is calculated using market-based prices, such as EPEX Spot Market prices.

Each kWh of exported electricity is priced using the market price at the time of feed-in.

You can also configure a separate feed-in surcharge. This is useful when exporting electricity has an additional cost or deduction.

For example, if feeding electricity back into the grid costs €0.02 per kWh, you can include this as a feed-in surcharge. The simulation can then take this cost into account when deciding whether feed-in is financially worthwhile.

In this example, you may only want to feed electricity into the grid when the market price is high enough to cover the feed-in cost and still generate a positive return. If the feed-in cost is €0.02 per kWh, you may choose to feed in only when the price received is at least €0.03 per kWh.

Use dynamic production pricing when you want to simulate:

  • Market-based feed-in revenues

  • Feed-in costs or deductions

  • Battery discharge optimization

  • Solar export strategies

  • Avoiding feed-in when export prices are too low

Combining fixed and dynamic pricing

Because consumption and production are configured separately, you can create different contract combinations.

Common examples include:

Consumption pricing

Production pricing

Example use case

Fixed

Fixed

Traditional contract with stable import and export prices

Dynamic

Dynamic

Full market exposure for both import and feed-in

Dynamic

Fixed

Market-based consumption with a fixed feed-in tariff

Fixed

Dynamic

Stable consumption price with market-based export revenues

This makes it possible to model more realistic energy contracts where buying and selling electricity do not follow the same pricing structure.

Shared cost components in energy contracts

Energy contracts can also include baseline cost components that apply in addition to consumption and production pricing.

Monthly network grid costs

Network costs are fees charged by the grid operator. These typically include:

  • Transport fees for transporting electricity over the grid

  • Contracted peak power costs based on the agreed maximum capacity in kW

  • Reactive or blind consumption charges, if applicable

These costs are modeled on a monthly basis in the platform.

Energy taxes

Energy taxes are included according to national regulation. In the Dutch default contracts, these are based on the Dutch tax setup.

You can adjust the tax configuration if your local tax structure differs.

Supplier surcharges

Supplier surcharges can be used to model additional costs from your energy supplier, such as:

  • Retail margin

  • Administration fees

  • Additional per-kWh costs

  • Feed-in deductions or export-related charges

For dynamic contracts, consumption and production can have separate surcharge settings. This allows you to model different supplier conditions for electricity import and electricity export.

Customizing energy contracts

You can edit the default contracts or create a new contract to match your own situation.

Depending on the contract setup, you can adjust:

Consumption settings

  • Fixed peak rate

  • Fixed off-peak rate

  • Dynamic market-based pricing

  • Consumption surcharge

Production settings

  • Fixed return rate

  • Dynamic market-based feed-in pricing

  • Feed-in surcharge or deduction

Network cost settings

  • Transport tariffs

  • Contracted capacity costs

  • Maximum power charges

  • Reactive or blind power charges

Tax and surcharge settings

  • Energy tax amounts

  • Tax structure

  • Supplier surcharges

  • Additional local or organizational charges

This allows you to align the contract with:

  • Your actual contract with a local supplier

  • A specific connection size

  • A specific bulk consumption scale

  • Your organization’s import and export pricing conditions

Limitation: no yearly fixed charges

The simulation currently does not support yearly fixed charges, such as:

  • Yearly fixed charges for transport service

  • Periodic connection fees billed annually

Because these charges are typically invoiced once per year, they are not included in the monthly cost breakdown in the platform.

When needed, you can approximate these charges by converting them to a monthly value and adding them as a surcharge or by calculating them separately outside the simulation results.

How energy costs appear in simulation results

In the simulation output, energy-related costs are grouped into several categories.

Expenses

The Expenses category represents:

  • Electricity consumption and production multiplied by the applicable energy rate

  • Taxes and applicable network costs that are modeled as variable or per-kWh costs

  • Configured consumption or feed-in surcharges

For fixed pricing, expenses use the configured fixed rates.

For dynamic pricing, expenses use the market price at the time of consumption or production, plus any configured surcharges, taxes, or variable costs.

Contracted Capacity, Maximum Power, and Blind Consumption

Some cost items are shown separately in the results:

  • Contracted Capacity: costs linked to your agreed maximum power in kW

  • Maximum Power: charges or penalties related to actual peak demand

  • Blind Consumption: charges related to reactive power usage, if applicable

These values are not included in the Expenses field.

Calculating total energy cost from the results

To calculate the total cost of energy for a simulation period:

  1. Take the Expenses value from the results.

  2. Add the costs for Contracted Capacity.

  3. Add the costs for Maximum Power.

  4. Add the costs for Blind Consumption, if applicable.

  5. Optionally, add any yearly fixed charges you maintain outside the platform.

The combined total gives you the full financial impact of your energy usage under the selected energy contract.

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