Check if you should choose spot price, variable or fixed price.
Buying power may seem complicated. There are a lot of sellers and contract types. In addition, the electricity bill is divided into three parts: grids, taxes and the actual electricity price.
– It’s only the electricity price you can do something about yourself. At current price. no, you will find a complete overview of all power sellers and all agreements, says Henrik V. Ebne, Communications Adviser in the Consumer Council.
He recommends that you take some time to understand what the various agreements entail and what pays for your consumption.
Spotprice, fixed price or variable price
First, you pay for more than just the power. In addition to the electricity price as set on the North Pool Spot, a common power exchange for the whole of the Nordic region, you pay net lease – electricity transfer and taxes and fees such as VAT, taxes and electricity tax (consumption fee).
When you choose a power deal, you also choose, among other things, whether you want spot price, variable price or fixed price. When you select the Consumer Council Power Exchange Service, Power Price. no, choose between spot price, variable, fixed price and other appointments.
Ebne gives us an overview:
Spot and Purchase Price
This means that the price you pay for the power follows the prices on the Nord Pool power exchange, where prices vary every hour depending on supply and demand. It usually means expensive electricity when it is cold and high consumption. In return, the price is often very low during the summer or if the winter becomes mild. In addition to the stock price, you pay a surcharge on the amount of electricity you use, plus a monthly fee.
Here’s the price you pay the market price two weeks in advance. That is, prices fluctuate less than spot or purchase price. This means that you are not hit as fast by price increases, such as on an extra cold winter morning. At the same time, you will not get as soon as you enjoy the sharp fall in prices in the power market.
Means that you enter into an agreement on a specific price for a certain period, often a year. The advantage is that you know exactly what the power costs. On cold winter days, you can pay less than market price. In return, you pay significantly more in the summer semester. You can also not switch supplier during the binding period.
Power sellers offer ever more contract types, such as electricity prices all months, different subscriptions to a certain amount of power, mix of fixed and spot prices with and without maximum security. Common to all the agreements is that it makes it harder for you as a customer to keep track of what you actually pay for the flow. In addition, they often give higher prices.
In addition to this, you can choose whether you want power with original warranty; «Warranty of Origin for Power Consumption». This is a label that in practice means you are guaranteed that the amount of power you use is being produced as renewable power somewhere in Europe. The scheme is an EU scheme that will make it easier for the consumer to choose environmentally friendly, and therefore, for more suppliers to invest in renewable energy.
Only 15 percent of the power we use in Norway is guaranteed renewable, despite the fact that 98 percent of the power we produce is renewable.
Spot price has been low at low prices
According to the Norwegian Water Resources and Energy Directorate (NVE) is quite clear spot price it is common to choose. Their numbers from 2012 show that 60 per cent had a spot deal, 30 per cent variable price, and only 4 per cent had a fixed price.
Section chief of electricity market supervision in NVE, Heidi Kvalvåg, says that spot price agreements in recent years have proved to be a cheaper alternative over time than both variable price and fixed price.
– We look at our statistics that it has been a matter of choosing a spot price. From September 2013 to September 2015, for an average household that consumes 20,000 kwt of electricity, it cost 16800 kroner with fixed price and 12400 kroner with spot price.
In other words, it has been $ 4400 to save on choosing a spot price agreement, if you have spent 20,000 kwt a year for two years.
Keep in mind, however, that you are driving a greater risk at spot prices, as this constantly varies as prices on the power exchange.
– Now when the electricity prices have been low for a while, and they think they will be a while, I think people choose spot prices because it turns out to be cheaper, says Kvalvåg.
However, she remembers to make sure to find the right spot deal – or power deal by the way. You may risk being sold an agreement where there are other costs in what they call the spot price. Kvalvåg recommends that you use the Consumer Council’s service, Electricity Price. No to find the best deal for your consumption.
Much money to save on power
Click. No has previously written that Norwegians generally switch electricity suppliers rarely, and many pay more than they need. According to the general manager of electricity prices. no, Hilde Uthaug, electricity is generally something we think little about.
In addition, we spend a lot of power and we can not put all the blame on the cold.
– The Norwegian waste of power has given us a fifth place over the world’s highest power consumption in households, showing figures from the World Energy Conference in 2015. We use twice as much power as our Swedish neighbors and three times as much as Danish, “says Consumer Economist at DNB, Silje Sandmæl.
The first January increased the electricity tax from 17. 06 øre per kWh to 20 øre per kWh.
– This means an average household with a consumption of 20. 000 kWh a year must pay out with 560 kroner more in electricity charges.
– Now that the power has become more expensive, it becomes even more important to tighten up on consumption. There’s not much you need to do to reduce power consumption and save thousands of chips a year. For each degree you lower the indoor temperature, you can save five percent of the power costs, according to Hafslund.
According to her, many of us use power unconsciously. Long hot showers, tumble dryers instead of hanging up clothes and heating on the house when we do not use it are among the things she thinks we can drop to save both environment and money.
– To cut your bill, you should set up an overview of where you and your family are using unnecessary power and where you can cut down. Put a common savings target for the family for what your money will be spent on. In this way, it is more motivating for the children to participate, she thinks.
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