5 reasons to fix your electricity price for six months
Fixed-rate packages are an excellent choice for those consumers who are looking for stability in today’s ever-changing energy market and want to mitigate the risks of price increases. The “Fixed 6” package fixes the price of electricity at a favourable level for half a year – so the price for a kilowatt-hour of electricity will be the same for you for the next six months.
If the choice of a suitable electricity package turns out to be more complicated than expected, below we have listed five reasons why “Fixed 6” may be just for you.
1. Cheaper than the universal service
While last autumn, many switched to universal service because of the good price, today we have reached a situation where all fixed-price packages offered by Eesti Energia are cheaper than the universal service.
Compared to fixed-rate packages, the price of the universal service is not fixed and depends largely on two components: the production price and the seller’s margin. Since both the production price and margin consist of different variable costs, their increases can affect the final price of the universal service accordingly.
2. More stable than the market price
The market price of electricity changes every hour due to a combination of factors. The logic is simple – if energy consumption is low, the market price is low as well. Colder weather increases consumption, which may increase energy prices. You can read more about the operation of the energy market here.
Such fluctuations do not offer stability to consumers, but require constant monitoring of what is happening on the market. Especially if you want to optimize your energy costs.
Anyone who monitors their daily energy consumption knows that the cheaper unit prices are often late at night, and higher consumption inevitably occurs when prices are high.
With the “Fixed 6” electricity package, you do not have to think about price changes or plan your energy consumption, because the price remains the same for the whole agreed period of time.
3. A solid service for those who don’t want to make a long-term commitment
Fixed-rate packages provide customers with a sense of security, as they allow the price of electricity to be fixed for a convenient time under favourable conditions.
“Fixed 6” is a good solution for those consumers who do not want to make a long-term commitment or who are still figuring out which electricity package fits their values and consumption habits. If you want to fix your electricity price for a longer period of time, you can do so with “Fixed 36” and “Fixed Plus” packages, for 36 or 84 months respectively.
4. Possibility to plan expenses in advance
With a fixed-rate package, you know exactly how much you pay for a kilowatt hour, and thus you can plan your consumption accordingly. This comes in handy if electricity is an important part of your monthly budget.
While others worry about their future bills, you can calculate the approximate amounts. Best of all, you can decide for yourself. This brings us to the next point.
5. You should fix your electricity price at a low point
It makes sense to fix the electricity price when it is low.
Average exchange prices may be lower than the rates in fixed packages, but they are still average prices. Exchange prices are variable, and the price the customer actually pays depends on the time they consume energy.
When the six-month contract period ends, there is no need to worry. We are there for you in all energy-related matters and help you choose a new package that matches your wishes and needs.
You can learn more about all electricity packages on the website of Eesti Energia. To sign a contract, visit our e-service.