A new electricity package sets a cap on the exchange price

Enefit has introduced a new electricity package that sets both a price cap and a price floor for the electricity exchange price. The package protects consumers from price spikes while still allowing them to save on electricity costs during low-price hours.

‘The new electricity package is intended for people who believe in the exchange pricing model but still want some degree of price certainty. The Price-capped Exchange Package enables consumers to manage their electricity consumption during cheaper hours while ensuring that the price does not exceed the agreed cap, even on days when exchange prices are highly volatile,’ explained Sander Randver, Head of Business Development at Enefit.

Under the new electricity package, the price cap is set at 19.99 cents per kWh, which means the price will not rise above that level for the consumer. At the same time, a price floor of 5.99 cents per kWh also applies. When the Nord Pool exchange price remains within these limits, the corresponding market price is applied to the customer. The package also includes a monthly fee of €3.99 for the standard package and €4.99 for those who prefer fully renewable energy.

‘The past few years have shown that a sharp increase in the electricity exchange price can occur simply when a major generation unit or interconnection cable is under repair or maintenance, and that during the autumn and winter period, even cold and windless weather alone can lead to high prices,’ explained Randver. ‘We have seen large price fluctuations throughout the year, but this has an especially strong impact on consumers during the heating season, when people’s electricity consumption is above average. ‘Similarly, those who heat with electricity do not have the option to choose whether to keep the room warm or not,’ he noted.

According to Randver, statistics show that the energy consumption of many households tends to concentrate in the morning and evening hours, when the electricity exchange price is usually higher. Therefore, the average exchange price often does not reflect the actual level that a consumer with an exchange package can achieve. ‘It is precisely for such households, whose electricity consumption mainly takes place in the morning and evening hours, that the new electricity package is suitable, as it allows them to use electricity even during peak hours without having to worry about an unexpectedly high bill,’ added Randver.

Consumers can enter into a 12-month contract for the Price-capped Exchange Package, and an early termination fee applies if the contract is ended before its expiry.

Nearly two thirds of Enefit’s customers have fixed their electricity price, while one third prefer the exchange price.