The energy price rises
We are on the January blues and suffer a new increase in energy prices, but this time it seems to be abnormally high.
Apparently, according to some medium-sized suppliers not as well-known as frequent (Endesa, Gas Natural Fenosa, Iberdrola, etc) “the circumstances that cause this transitional situation are:
- The cold wave that is affecting Europe is increasing the electric demand and heating using fossil fuels.
- The stop of an important part of French nuclear park is increasing the electric exportation from Spain to the neighbouring country.
- The absence of renewable resource – mainly hydraulic – and its deflator effect on prices is forcing producer to use more non-renewable thermal generation process – such as gas or coal – in the auction.”
It seems this situation is atypical for this time of year and as we go, electricity prices should return to values close to the average recorded in previous years.
For more information, consult this page:
“Extraordinary rise in the price of electricity: a perfect storm”.
To avoid market volatility and the price at current rise, a customer may choose to hire a fixed price, considering that historically indexed prices have always come out cheaper over a year, the normal term of a contract of supply. Therefore, we continue to recommend the hiring of variable supply prices, unless the customer is very reluctant to minimal risk, which in any case would be covered in all likelihood because after the year you can return to renegotiate the terms.