Buy at a fixed price or indexed

Recently the electrical trading companies are betting on offer an indexed price, as there is a growing demand for this type of offer. It is not surprising since traditionally indexed price has always been a way to hire the most economical electrical energy.

Why is that?

To understand we can make a comparison with the banking sector. The fixed rate offered by a bank when hiring a mortgage includes detours costs and the risk of fluctuations involving loss to who sells. Indeed, a fixed price is a risk for whom provides it, such risk, let’s call it warranty, is included in the price we finally pay as an additional cost, as well for the fixed interest in the banking sector or the rate of fixed prices in the energy sector. When buying indexed price, we assume that risk. Therefore it is conceivable that it will be cheaper in the medium term. Given that contracts are signed for one year, the risk is negligible.

There is no free lunch

However, the indexed price is interesting whenever we do not charge commission high costs, also called operating costs or fee. The reasonable cost for SMEs is between 3 and 4 € / MWh hired (estimated consumption from consumer or trading company reading). Naturally this is always subject to consumption. Usually, the greater the consumption, the better trading offer.

We don’t need to understand the energy market. Let’s search a good adviser to tell us and ensure that we are paying the right price and, specially that we are optimised over our competitors.

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