Home » Business » Beware: Dynamic Energy Contracts Could Cost You 4% More Than Fixed Contracts, Says Creg Report

Beware: Dynamic Energy Contracts Could Cost You 4% More Than Fixed Contracts, Says Creg Report

Anyone who switches to a dynamic energy contract and does not adjust their consumption pattern will be 2.5 percent more expensive than with a variable contract and even 4 percent more expensive than with a fixed contract. You have to be careful, especially with solar panels.

In a new report, energy regulator Creg warns that dynamic energy contracts are “not interesting for everyone” and can even lead to “a significant increase in the bill”. Unlike fixed contracts, where the price does not fluctuate during the duration of the contract, or variable contracts, where the price is adjusted every month, quarter or year, dynamic contracts work with prices that change every hour.

Shift consumption

Based on 2023 prices, the Creg calculated that with an unchanged consumption pattern, the pure energy cost, i.e. without taxes and levies, for an average family was 354 euros with a dynamic contract, while for a permanent contract it was 340 euros and for a variable contract it was 346 euros. .

READ ALSO. Energy prices continue to fall, but why is that? And shouldn’t we switch to a permanent contract?

“In general, the most financially interesting period to purchase energy is between midnight and 6 a.m. and between 1 p.m. and 5 p.m.,” says Creg. Families who adjust their consumption accordingly and, for example, charge their car and switch on their heat pump when prices are low, can save with a dynamic contract: if they completely shift their own consumption to the cheapest hours for at least six hours a day, the price for 2023 to 290 euros.

Be careful with solar panels

Owners of solar panels in particular should be careful. If they cannot consume all their self-generated power, the excess production will be injected into the grid. If the hourly price is low at that time, they will receive less money for their electricity. And if the hourly price is negative (due to oversupply), they even have to pay to inject their electricity. It is therefore in their interest to maximize their consumption at that moment, to store excess power in a home battery or to switch off the solar panels manually or automatically.

2024-02-06 19:57:35
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