What does a variable electricity price mean?
A variable electricity price or exchange-traded electricity is an electricity contract that follows the price level on the Nordic electricity exchange Nordpool. In the long run, a variable electricity price is statistically a cheaper alternative.
Daily price, market price, variable price, stock market price, spot price…
On the electricity exchange, the electricity trader buys electricity at a daily price, spot price, and then sells it on to his customers. The purchase price for electricity varies depending on supply and demand and affects the price that the electricity trader in turn charges the customer – it is thus a variable price that goes up and down and fluctuates every hour and month. However, the spot price on the Nordic electricity exchange Nord Pool is not directly the same as the electricity price to the consumer, but it can be classified as a guiding price. Nord Pool's spot price does not include e.g. taxes or transmission prices on electricity networks.
What is it that affects the stock market price?
The spot price is set hour by hour according to supply. If there is a large supply of energy on the market, e.g. it has been a windy or rainy autumn, the spot price will fall, but also the opposite – if the supply is weaker, the price rises easily. A customer who buys electricity at a fixed price does not notice the rising electricity prices, but also does not benefit when they fall.
Who is a variable electricity plan suitable for?
An electricity plan at a market price is suitable when you live in a small apartment or have lower energy consumption. Our variable plans are continuous and have only two weeks' notice. You can also easily switch to a fixed-term electricity contract if it feels safer and more stable!
Did you know? Statistically, variable contracts are the cheapest in the long run.
Sign an electricity contract online or contact our customer service!