The development of electricity and gas prices during 2022 has shown us how things on the wholesale market can change rapidly due to swings in supply and demand and, even more so, due to external factors such as wars and geopolitical crises. By choosing a supply at a fixed price what happens on the wholesale market doesn’t matter: the price of electricity and gas remains constant for the period of time indicated in the contract, regardless of the value assumed by the reference prices (the PUN for electricity and the PSV for gas). Fixed price tariffs are an excellent solution for those who prefer stability, but you need to be careful. In fact, fixed price tariffs do not always translate into actual convenience. With the help of the experts at SOStariffe.it we try to understand if it is worth paying more to have a fixed price offer or if the savings are greater with indexed tariffs.
How much do you spend for a fixed price rate
When moving to the free market or changing electricity or gas supplier, one of the most important decisions to make concerns the type of tariff to subscribe to. The choice is essentially between indexed price rateswhich follow the trend of wholesale prices, and fixed price rates, which set a price for electricity and gas that remains unchanged for a specific period of time, generally equal to 12 or 24 months. Fixed price tariffs usually have a slightly higher price per kWh or Smc than indexed offers, because supplier companies need to protect themselves in the event of future price increases. Currently on the free market the best electricity offers at indexed prices they cost starting from €0.15/kWh, while fixed price offers start from €0.17/kWh. Moving on to gas offers, prices for indexed tariffs start from €0.46/Smc, while for fixed price rates starting from €0.66/Smc. Considering a family with average consumption (2,700 kWh for electricity and 1,400 Smc for gas), the expense for bills by choosing the best fixed price tariffs of the moment would be higher by just over 300 euros per year compared to the expected expenditure with the best rates at an indexed price (assuming constant prices). The difference in spending between the two types of tariffs is significantly reduced for those who have reduced energy consumption.
Is it worth spending more to freeze rates?
Although fixed price tariffs currently involve a higher expense than that required by choosing an indexed tariff, this does not necessarily mean that they are an inconvenient solution. In particular, it may be worth spending more on a fixed price offer if you expect imminent price increases and if you want to be able to estimate fairly precisely your own spending on bills. On the contrary, fixed price offers are not very convenient if the forecasts announce a future drop in prices and if you want to take advantage of the lowest electricity and gas tariffs on the wholesale market.
What to consider when choosing a fixed price rate
To understand if it is worth choosing a fixed price tariff it is important to do a comparison between fixed price proposals and indexed price proposals. Furthermore, it is a good idea to check the structure of the electricity offers and understand which solution is most convenient between single-hourly, bi-hourly and three-hourly tariffs. Another aspect to consider concerns the duration of the period in which the rates remain fixed. Suppliers usually lock the price for 12 months, but in some cases you can find offers locked for 24 or even 36 months. Before signing a blocked price offer, it is also useful to check what the contract provides at the end of the price freeze period: the supplier company can provide for the transition to an indexed price offer or the proposal of a new blocked offer .
How to find convenient electricity and gas offers
To compare offers from multiple energy and gas suppliers (nofollow link) and considering various types of tariffs is the best way to find the electricity and gas offers that guarantee maximum savings. It is equally important to consider your family’s consumption and electricity and gas usage habits. Precisely starting from consumption, through the SOStariffe.it comparator it is possible to simulate the amount of bills to be paid with the various suppliers on the free market and establish, consequently, whether it is worth choosing a fixed price offer or whether the variability of an indexed offer is preferred.
2023-11-11 10:59:48
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