Mining energyEnergy is eight times cheaper today on wholesale exchanges than in August 2022, but kilowatt-hour prices for energy suppliers are falling less quickly. You're paying about five times less now than you did during the height of the energy crisis. These two speeds are great, especially with the variable prices. Mijnenergie.be I searched and found several explanations.
With a fixed price, the price of energy remains unchanged during the entire duration of the contract. If you have a variable price contract, the energy supplier will adjust the price every month or on a quarterly basis based on developments on the energy exchanges. As a consumer, with a variable rate, you assume that the price you pay follows the movements in those energy markets individually. To determine why this isn't the case, we take a closer look at your energy contract rate formulas.
Have you taken on a fixed energy contract that was too expensive? This is how you can get out of it.
Fixed tariffs and fees
Each fixed rate is generated according to the formula “Ax Index + Value B”. The power supply therefore multiplies the value a by the indicator value applied at that time. Suppliers regularly manipulate the A value. For example, Luminus used a multiplying factor of 0.100 in September 2022. In February 2024, this will be a factor of 0.102. So you pay more for the same indicator value.
The value b covers the energy suppliers' costs and their profit margin. Suppliers have also adjusted this value in recent months. In September 2022, the easy indexed Engie contract traded at 2.8350, compared to 3.8043 today. Again, this part will now have a higher price for the same index value.
In addition to this price formula, energy suppliers also charge fixed fees or subscription costs. In Mega, this contribution increased from €42.40 to €58.30 between September 2022 and February 2024.
Be careful with contract extensions
It is important to know that energy suppliers determine the price formula at the beginning of the contract. They cannot change this while your agreement is in effect. This is possible with a contract extension proposal. Since the vast majority of consumers have a one-year contract, the price has already been adjusted in most cases. When renewing a contract, it is always important to compare the updated price formula with the prices of other energy suppliers.
However, this adjustment by the energy supplier does not always have to be at the expense of the consumer. In an analysis of ten current energy rates by Mijnenergie.be, four of them showed positive development. Only one modification was harmful to the customer. Therefore, the more stable market situation is also slowly being reflected in the pricing of energy suppliers.
Do you have the most advantageous contract? Here you can easily compare current prices for electricity and natural gas and filter out the best deal for you.
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This article is brought to you by our partner Mijnenergie.
MijnEnergie.be is an independent energy price comparison site for electricity and gas offers.
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