Be a smarter consumer! Three important lessons about electricity packages and pricing
If the last time you thought about you home’s electricity issues was years ago when the contract was signed, it is worth updating what you should know about electricity bills and the choice of packages.
What is the stock exchange price of electricity?
From 2013, the price of electricity is determined on the Nord Pool Spot market. The exchange price of electricity is variable and fluctuates from hour to hour, depending on, for example, the maintenance and emergency work of power plants or submarine cables, international transmission capacity, the general economic climate and the weather.
As the stock market price fluctuates, many customers who join the stock exchange package use this information to schedule their household appliances (washing machine, boiler, electric heater) to work at the best price per hour. In this way, it is possible to save on costs.
If you are not interested in managing consumption according to the stock market price, it is possible to choose another path. Fortunately, electricity is one of the few products whose price can be fixed for years. If you have chosen a package with a fixed price, you will not be affected by price fluctuations on the power exchange and the price risk will be borne by the electricity seller.
How do I know which electrical package is best for me?
Eesti Energia has made the choice easy - you can choose between three packages.
In a Exchange package, the price of electricity depends entirely on the stock exchange price. The price of electricity changes on the stock exchange every hour due to a combination of many different factors. At the exchange price of electricity, you can most conveniently keep an eye on Eesti Energia's mobile app.
With the Fixed package, you can fix the price of electricity for 6 to 36 months - this way you know that during this period the price of a kilowatt-hour of electricity is the same at your expense and fluctuations in the electricity exchange price do not affect your electricity bill.
The Fixed Plus fixes the price of electricity for 84 months and the agreed price never changes during that time. Your electricity comes from Enefit Green's renewable energy units, so you can be sure that you are consuming 100% green energy and you are one step closer to a cleaner future. Considering your monthly electricity consumption, you will have a long-term overview of your home expenses. Considering your monthly electricity consumption, you will have a long-term overview of your home expenses.
When choosing a package that suits you, think about whether you are willing to take the risk of electricity price fluctuations or whether you want to leave it to the electricity seller? If you prefer not to take risks, the Fixed or Fixed Plus package is for you.
There are many different lines on an electricity bill, what do they mean?
In short, the electricity bill consists of three components: electricity, network charges and state taxes (renewable energy charges and electricity excise duties).
The total cost of electricity depends on your electricity price and how much electricity you have consumed. If you choose a fixed price package, you will know your kilowatt-hour price in advance for the entire contract period. If you choose a package with a stock exchange price, your price will depend on what is happening on the power exchange.
The network service fee is paid to the network service provider for delivering electricity. This means maintaining and developing the necessary infrastructure. The price of the network service cannot be influenced by the customer, it is confirmed by the Competition Authority every year. However, you can choose a network package suitable for your home from your network operator (eg Elektrilevi).
Renewable energy charge is a charge set by the state, the purpose of which is to support the production of electricity from a renewable source or in the mode of efficient cogeneration in Estonia. The renewable energy charge is calculated and published annually by the transmission system operator Elering. Electricity excise duty is a state tax that finances environmental protection.