Expert Advice – Rising Electricity Prices: What You Can Do Now

The current situation around Wien Energie, which has fallen into financial turmoil, is also confusing customers who, according to a survey conducted in August, have lost confidence in the energy markets. On the largest independent online comparison portal, durchblicker.at, the number of electricity tariff comparisons has increased by two-thirds since Sunday.

Expert advises against switching providers – currently
Expert Stefan Spiegelhofer currently advises consumers who have an active electricity contract and are not affected by an (imminent) price increase not to switch provider. He recommends waiting until attractive offers are actually available again. When that will be is currently unknown.

Despite the financial fiasco, this also applies to Wien Energie’s customers. Just two weeks ago, the majority of its household customers had announced that they would automatically switch to a new tariff for green electricity that was on average a quarter more expensive. Spiegelhofer advises against objecting to the proposed rate change. The existing rate will be considerably more expensive as of 1 September and will then cost “much more than the new tariff for green electricity”.

Accept a rate change at Wien Energie
He therefore advises customers to take advantage of the extra free months that Wien Energie offers if they are tied to the new green electricity tariff for twelve months. Despite the higher price, this is still the cheapest offer for the Vienna region. Because according to the expert: “It cannot be assumed that energy prices will fall in the coming months.” He does advise keeping your eyes open in the long term and constantly comparing prices.

Switching doesn’t pay off for existing customers
Not only Wien Energie, but also other domestic providers have recently canceled older electricity contracts and at the same time offered new, more expensive tariffs. The same applies here: it is usually not worth switching providers because the electricity price for new customers is usually higher than the price for existing customers. In addition, some alternative providers are currently rejecting new customers due to the situation in the market.

Choose a fixed price instead of float or flex rates
It is also important to pay attention to the type of tariff, says Spiegelhofer. He recommends fixed rates that apply for the entire term and are not subject to monthly price adjustments. The expert advises against so-called float or flex rates. These are linked to the exchange rates for electricity, therefore price changes are passed on directly to the customer on a monthly or quarterly basis.

The best way to compare rates is online
If you have been terminated by the electricity supplier and have not received a new contract offer from them, or if you are moving to a new apartment and therefore have to sign a new contract, you should definitely get an overview of the current electricity rates – for example via an online comparison portal such as durchblicker.at. In view of the current situation, experts recommend fixed rates (see also above).

Although the trend in terms of electricity prices in the markets is currently falling again, one can hardly make recommendations, said expert Spiegelhofer in an interview with krone.at. He suspects that the current fall in prices may be a preliminary reaction to the measures announced by the European Union in the electricity market.