"Embankment" in the wave of price increases of electricity can be set up by households through the selection of special programs provided by energy suppliers and ensure stability in the price per kilowatt hour.
The benefit that home consumers can reap varies on an annual basis from 35 until 150 euro, for four-month consumption 1.250 kWh (kilowatt hours). Electricity bills have already increased by about 19% from May until the first fortnight of August, and the estimates with the continuing rally of the stock market value of electricity bring to the fore new increases.
The bloating of electricity bills will be caused by the activation of the wholesale market adjustment clause applied by all electricity providers in order to pass on part of the costs to their customers.. The mechanism of operation of the clause is complex and difficult for home consumers. It applies to programs with variable tariffs and companies in order to reduce the impact on their customers follow two paths.
- Provide consistency discounts on energy charges for variable tariffs.
- They provide alternative products with fixed tariffs which will not change as the wholesale price adjustment clause does not apply to them..
According to the NEWS, in fixed tariff plans most suppliers offer a 24 month contract and a minimum of 12 months. This means that for these time periods the prices per kilowatt hour will not change. So in view of the high price increases and uncertainty they give a security to the consumers. In addition, fixed tariffs are lower than variables as energy companies make discounts on timely payment of bills.. Benefits also include zero fixed charge, offered by suppliers or the same price regardless of the amount of consumption.
The disadvantages of this option are the length of the contract, such as 24 months. During this time the conditions of international energy prices may change, to have reductions and thus the consumer to be trapped at a high price. also, to leave pays a penalty.