As expected, electricity prices in the index market increased during the summer months. At the moment, according to my calculations, they reach practically the same values as the largest electricity companies on the market such as Endesa, Goldenergy and Iberdrola. However, it is much lower than EDP, SU Eletricidade and GALP, in terms of price per kWh. If you also calculate contracted energy, and if your consumption is very low, the calculations may be different. Is it time to move away from indexing and return to fixed prices?
The best option on the market remains the ACP/Goldenergy partnership. ACP members can get a great price on electricity. We are talking about 250,000 Portuguese who do not pay more for electricity unless they want to.
At the moment I’m writing, based on the ERSE simulator values, those indexed are there at the moment you warn of your arrival, as they will have to decide whether to continue or leave.
If you do not know what an indexed electricity tariff is, read this article.
Video | Save 50% on electricity with indexed tariffs
The indexed type is still the cheapest, but only by a hair
The average for September, with the month complete, was 104 euros per megawatt hour. With this increase (which I expected to be larger) the final indexed price is about 13 cents per kilowatt hour. In other words, they are very close to “normal” definitions.
The expectation, according to the OMIE page, is that prices will continue to rise. In October, the average is expected to rise to 105 euros. And in the first quarter of 2024 to 114 euros. If this happens, you will no longer be paid for indexing.
Whatever your situation, try to renegotiate rates with your own company. For example, Iberdrola is reducing prices for some customers who ask. You can read the example I did with them recently here. Almost all companies do this if they threaten to change companies and show that there are lower prices in the competition.
Contacted customer support.. Reducing the price of electricity by 16% (practical case)
As you can see below, with data from the ERSE simulator in September, there are several companies cheaper than SU Eletricidade (all indexed, Goldenergy, Iberdrola, and Endesa).
EDP decided to cut a few tenths in order to stay under the regulated market, but it remains expensive compared to the competition. GALP is one of the most expensive, considering only the price per kWh. But don’t forget that you must also take into account the contracted energy price. You can change these accounts, especially for those with very low consumption. In the case of Galp, they informed me that there are instances where the price is competitive. But I still insist that, in my opinion, you must take into account above all the price per kilowatt-hour as the main criterion, because it is what burdens the bill.
If you are in the index, only change when you have cheaper kWh at another company. Even then, no matter how much they pay, it is less than they would pay elsewhere. Do your math. If you don’t want to do the math, you have at least 3 options to choose from (Goldenergy, Endesa and Iberdrola). This should take into account the contracted energy price and other discounts that are important to you. This comparison does not include all companies. Use the ERSE simulator and see them all. There are more than 20.
To find companies with cheaper tariffs, use the ERSE simulator or search Google for “electricity tariffs”, contact the companies and compare the kilowatt-hour price you pay on your bill with the prices they give you. They are the people who handle the transition from your current company to the new company. You don’t have to do anything. I have no affiliation with any company. You choose what you want. In this video I explain how this is done.
If you want to save, you have to be careful and be an informed person. And act fast as soon as you find it cheaper.
Since I cannot tell you whether the indicator will go down or up, I just want to put on record that it is time to make a decision whether to stay or go.
If it were me, until I had a cheaper alternative, I would still be indexed. But I know that many of you don’t like to risk an unexpected climb, so decide for yourself. It was good while it lasted. From now on we are talking about a difference of a few euros or cents.
I hope you have made good use of almost free electricity for several months! If it happens again, I’ll be here to let you know.
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