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Understanding Variable Energy Prices and Saving Options: Insights from Mijnenergie.be

MijnenergieLast winter, energy prices rose sharply. It was not only the peaking wholesale prices that led to a higher invoice. In order to limit the risks of non-payment, among other things, the energy suppliers adjusted their formulas upwards. For prosumers, the price parameters also evolved to the detriment of the customer. That teaches Mijnenergie.be from an analysis by the VREG. Interesting reading with a view to the next winter period…

By Kurt Deman, in collaboration with Mijnenergie 05-09-23, 09:20 Last update: 09:33 Source: Mijnenergie.be

How are variable energy prices calculated?

Each variable price is built up according to a rate formula. It consists of several components and looks like this: (a * X) + b.

X represents the wholesale exchange following the contract. If the value on the energy exchange rises, this directly affects the price you pay. The supplier itself therefore has no influence on the evolution of that parameter.

The other values ​​a and b are determined by the energy supplier itself. They include, among other things, the costs incurred by the supplier to cover its default risks and the costs of balancing the power grid. In addition, the energy supplier also allocates its margins to those parameters. As a result of the energy crisis, these various cost items rose. The logical effect was that in 2022 the values ​​a and b also increased.

Reading tip: Fixed, variable and dynamic rates; contracts of one, two, three years or even an indefinite term, etc. The extent to which you are sure of the energy price you have to pay and for what period it applies, varies considerably. Moreover, the terminology is not always clear. That’s how the fork is on the stem.

Injection rate adjusted downwards

Those who have solar panels and a digital meter receive a ‘feed-in fee’ from their energy supplier, the so-called injection rate. The VREG notes that the values ​​determined by the energy supplier also changed in 2022 to the detriment of the consumer. Although the Flemish energy regulator sees a positive evolution in 2023.

Your options for saving

A recent analysis by the federal energy regulator CREG showed that 1 million families could save hundreds of euros by switching to a cheaper supplier. It is therefore advisable to regularly compare the estimated variable annual prices at different energy players.

Another possibility is to opt for a permanent contract with a constant price during the entire contract term.

Number of energy supplier changes sharply decreased: Is your family also missing out on hundreds of euros in savings?

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Read more on Mijnenergie.be:

Can you take out an energy contract now and have it come into effect later? And why would you do that?

Commotion in the Netherlands because of levy for solar panel owners: Belgian prosumers also pay with these energy suppliers

Dynamic energy tariffs: these were the risks and savings potential in 2022

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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2023-09-05 09:05:00
#Cheaper #financial #security #variable #energy #price #calculated

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