Consumers are increasingly opting for stable electricity contracts, although, compared to the variability recorded by the PVPC, they incur a cost necessary to enjoy the social bonus
Which one do I stay with? Fixed? Variable? It is not a mortgage, but the doubt is similar when it comes to choosing the best electricity rate for each home, consumption and features of the home. Historical electricity data shows that the regulated tariff was the most competitive on the market until last summer.
It has not been so profitable to take advantage of this modality since then, following the recovery of electricity market prices in recent months. The basic difference between one model and another is that in the case of free tariffs, a stable price is paid per kWh, which allows predictability in monthly bills: the amount will not change much and it can even be fixed. further.
The advantage of the regulated one is that there can be stages of high prices, but also times with negligible costs, such as the one at the beginning of 2021. To choose the best option, you can scan the QR code that contains all the receipts (usually at the bottom of the last page of the bill, on paper or online), which allows the CNMC to calculate the best rate for that household from the rates currently available in the market. The billing data (consumption, power, etc.) can also be included in the Competition Comparer to obtain the optimal result of the most suitable rate.
Those who have contracted this modality do not know how much they will pay for the price of electricity next month. It is the ‘disability’ of the PVPC (as it is technically called in the contracts). The amount of kWh will depend on how the electricity market behaves every day, even every hour. There will be phases where the price will be very low (when a lot of renewables come in or demand doesn’t skyrocket), and others where it will break records, as has happened in recent months. This lack of knowledge is compensated by the fact that it is the rate at which the electricity companies earn the least money (the margin is regulated by law) and at the same time it is the rate necessary to take advantage of the social bonus (the discount of up to 70% in the consumption part for vulnerable households).
The beauty of this modality is that the customer knows almost in advance what the final amount of his account will be next month. It depends on the terms of the contract, but they are usually fixed or stable rates, which make it possible to know how many kWh will be paid in the coming year (regardless of how the electricity market behaves) and even what it will be the amount of the receipt, as if it were a fixed mortgage. It is the most widespread modality in Spain and in most of Europe, with which companies conduct large commercial campaigns and whose margin varies by electricity company. In this case, your marketing margin is greater than the legally capped regulated rate. That is, the customer is covered with a slightly higher price to ensure stability in the account.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
