A new energy contract: what should you be aware of?

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Several companies are now taking steps to analyze their energy contracts. Or, your energy provider is proactive in sending you a new proposal for the renewal of your contract. In this blog article we outline what you need to consider to ensure that your invoice does not contain any hidden surprises.

Future tariffs.

Bearing in mind that the current variable energy tariffs are so low, this may present a distorted picture with respect to the future. These exceptionally low energy prices are not everlasting. When the economy picks up, energy tariffs are also likely to rise again.

Remember to be alert to pricing formulas that use the current (low) variable tariffs to produce sample projections for future months and years. An offer that at first glance looks very attractive may well turn out to be extremely expensive in the future, depending on the price formula.

If you are offered a fixed price for future years you should assess whether it is low enough to warrant subscribing to it. If you purchase energy at a fixed price for a specific period of time, you will no longer qualify for a reduction in variable prices on the exchange at that time.

Would you like an expert to review your contract?

Is it not clear which tariffs you are currently purchasing at, or are you unsure about a quote you have received from an energy provider? If so, send your contract or pricing proposal to us and one of our experts will be happy to analyze what you could save.


Variable versus fixed.

An analysis of the past 15 years shows that in most cases variable exchange prices were cheaper on average than fixed prices. Having said that, you might at certain times be able to obtain very interesting fixed prices for the future.

Odot always negotiates a contract whereby we can buy on both price exchanges, fixed and variable, on behalf of our customers. We continuously monitor the market to ensure that our customers can rely on the best terms at all times. Based on their experience, our experts will make the right choice between fixed and variable at the right time.

Would you like to find out more about our optimum purchasing model?

Odot combines the energy demands of industrial consumers, multi-site companies, SMEs and self-employed operators in order to negotiate the most advantageous energy contracts with maximum impact for each type of consumer.

Find out more here about Electricity & Natural Gas.

Odot
Odot

Odot will lower your energy costs using a unique procurement model supported by AI and innovative software. Our knowledge of the energy market will ensure that you benefit from the most advantageous tariffs, continuous price monitoring and a contract to suit your requirements.