My energyA year ago, only one energy supplier offered a fixed energy rate. A large majority of families therefore switched – often unwillingly – to a variable rate. Now that the contract is coming to an end for many, the question arises: will you extend it, or will you opt for the security of a permanent contract again? Mijnenergie.be weighs the pros and cons.
By Kurt Deman, in collaboration with Mijnenergie 05-10-23, 10:11 Last update: 10:21 Source: Mijnenergie.be
Risk premium
The list of energy suppliers with a fixed rate has expanded significantly in recent months. You can now go to Octa+, Luminus, Engie, Eneco, Elegant, Mega and TotalEnergies. However, if you compare all energy rates, you will find that these fixed rates are all at the bottom of the price ranking.
This additional price can be explained by the risk premium that energy suppliers link to their fixed rates. In this way, they want to prevent the customer from entering into a contract with a fixed rate, only to switch again after a few months to a supplier with a cheaper offer. In that case, your current energy supplier will be left with the supplies that he had provided for you, and which he may have to sell to another customer at a cheaper price. To hedge against this, the supplier charges a little more for a fixed-price contract.
Do you enjoy the best price on the energy market? Compare the current offers here and find a tailor-made contract.
25 percent opt for a fixed rate
From figures from Mijnenergie.be it appears that the risk premium of more than 250 euros for electricity and 350 euros for natural gas does not prevent many consumers from opting for a fixed rate. About a quarter of households that switch energy suppliers opt for a rate that remains unchanged for the entire contract term.
Armed against fluctuations
Volatile energy prices undoubtedly play an important role in this. With a variable rate, energy prices change throughout the year, which means you are exposed to the vagaries of the electricity and gas markets.
The energy crisis resulting from the Russian invasion of Ukraine was an extreme example, but in recent months the effect of a strike threat at LNG terminals in Australia and the impact of lower capacity in Norway have proven that the market is still very strong. responds to kinks in the energy supply.
Switching to a new supplier: Thanks to these contract conditions you can easily save on your invoice.
Winter temperatures
How the price will evolve in the coming months depends, among other things, on winter temperatures and external factors that influence energy supplies. If winter hits hard and there is unrest on the markets, we can expect a strong price increase. With a mild winter and stable energy supplies, major fluctuations seem less likely.
Today the market price on the leading TTF natural gas exchange fluctuates around 40 euros per megawatt hour. That is almost thirty percent higher than at the beginning of September. Electricity prices are also approximately twenty percent higher than last summer. If you are considering a fixed rate, it is best to get in today to avoid the impact of any further price increases.
Will prices continue to rise?
Anyone who chooses a fixed rate can still switch to a cheaper fixed rate during the course of the contract year or opt again for a variable alternative. This is possible free of charge, provided you respect a transfer period of one month.
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Read more on Mijnenergie.be:
The ten most expensive natural gas products represent 53 percent of the market
How much more expensive was energy in 2022 compared to a year earlier?
This article was brought to you by our partner Mijnenergie.be.
Mijnenergie.be is an independent energy price comparator of electricity and gas offers.
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2023-10-05 08:11:28
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