Did you know that in the same way as with a fixed interest rate on your mortgage, you can also fix electricity prices and ensure predictability during periods when electricity is expensive?
Are you concerned about the price of electricity and feel that you are freezing a bit? When electricity prices take off as the temperature creeps down, you can get better predictability by agreeing on a fixed price per kilowatt hour for two months at a time. The customers who entered into such an agreement in the cold winter of 2021 made a good deal.
“While the floating spot price of electricity in January and February 2021 was just over 70 øre per kilowatt hour in Norway, those who had a price protection agreement paid no more than 39.90 øre for the same electricity”, says Kathinka Blauenfeldt. She is a Business Manager at Fortum Norway and responsible for the price protection product in Norway. The same product is sold in other Nordic markets as well. The spot price for each hour of the day is set in a daily auction where buyers and sellers of electricity are bidding for the next day. There are many reasons for the current, high electricity prices, but dry weather and less wind than is typical have been playing a big role when it comes to the Nordic countries.
“How price protection works is that we go to the power exchange and buy electricity for a fixed price on behalf of our customers, negotiating to get the best possible agreement, which is valid for two months at a time. Having such an agreement with Fortum allows you to freeze the price four times a year for two months each time. There is no guarantee that you will save on the agreement, but so far we have had good results”, explains Kathinka.
Positive feedback from customers
According to Business Manager, Fortum has the best conditions for success with the price protection agreement on behalf of its customers. It can mean big savings for an ordinary household, when the price per kilowatt hour varies as it has done.
“Price protection is for the price-conscious consumer and for everyone who wants predictability. We promise a fixed price, but you have to take responsibility for your electricity consumption”, Kathinka Blauenfeldt says and encourages everyone to take measures to keep electricity consumption at a low level.
Many people find that such predictability provides security in a period when expenses often pile up. At the same time, you also become more aware of your own electricity consumption.
“The feedback we have received from customers who have a price protection agreement with Fortum has been very positive. I predict that demand will increase this winter, as many are now seeing the benefits and the predictability this agreement provides”, says Kathinka.
You can read more about Fortum’s price protection agreement on your local Fortum website:
Key tips to save energy:
Turn down the thermostat at night
Increase the home’s insulation
Use an efficient heat pump
Lower the temperature of your thermostat
Install solar cells or solar panels
Use an energy-saving shower head and lighting