Norwegians have recently definitely been unhappy with their power bills, and there is a reason for that. The prices have increased and people have started feeling those increases in their wallet and their overall budget. While the situation is generally not as great as it once was, we cannot deny the fact that it has started improving and that consumers are becoming more and more comfortable with their bills. In any case, that doesn’t mean that they are still not thinking about finding ways to lower them. Here are some ideas on how to do that: https://www.nerdwallet.com/article/finance/how-to-save-money-on-your-electric-bill
If you’ve just recently started thinking about the electricity in your property in general and about the bills you are getting, you may have also decided that it is time to start doing something about reducing those bills. For one thing, you’ve decided that it is time to get better acquainted with the actual types of prices and the types of agreements you can find on the market. Only by getting your facts straight on all of that will you be able to ultimately choose the right contract for you and enjoy fair electricity prices. The fact you’re here tells me that you are ready to learn about one particular thing, that is, about one particular type of agreement and of electricity prices in general.
When you’ve done a little bit of research in an effort to understand your bills better, you’ve realized that there is a concept known as a strøm spotpris, as opposed to the fixed price for electricity. And you have, of course, become curious about what it actually entails and how it all works. That is, obviously, the topic that we are going to cover for you below.
If you read on, you will learn what the spot price actually is, as well as whether a spot price agreement is actually right for you, after which you will also get a better idea about how to get a great contract for yourself. Those are all some rather important questions, and you can’t make any decisions regarding your electricity contracts if you don’t get your answer. So, time to get the answers right now.
What Is The Spot Price?
Let us begin with the very basics here. What exactly is the spot price in the first place? In the simplest words possible, this is the exact same price that the electricity providers will get when buying electricity on the actual market – that is, in this case, on the Nord Pool. So, when you go for this type of contract, it means that you are paying the same price for electricity as the providers, which in itself sounds very beneficial.
It is just like paying a market price for any other product whatsoever, including, say, a T-shirt, or anything else, before the provider, or the shop, adds certain surcharges to it. What is the deal with the spot price, though, and why is there a reason for you to think about it at all before getting it? Shouldn’t it be logical that paying the same price as the provider is the most favorable solution? Well, I get where this is coming from, but there is something you should know, so as to understand why it is that you have to think things through before making any final decisions.
Basically, the price on the market fluctuates, and on a daily basis for that matter. This means that you won’t be able to always accurately predict what your bill will look like for the previous month until you receive it. Sure, you can always check the spot price on the Nord Pool so as to make better predictions, but the point is that the bill won’t always be the same. Sometimes it will be lower, and sometimes it will be higher. How and why will the price fluctuate, though? When will it be higher and when will it be lower?
The basic market law – the law of the supply and the demand – plays a crucial role here, and I suppose that you can guess all on your own what it is that will happen with the costs when the demand is high and the supply is low and vice versa. If you’re not sure you understand this perfectly, let me make it clear.
When the demand is high and the supply is low, the price is, logically, bound to go up. This can sometimes happen during the cold winter months, meaning that you can expect your bills to be higher in those months. On the other hand, the prices will drop during the summer, allowing you to enjoy rather low bills. The season is, however, only one of the factors that affect this type of price and, thus, your bills. There is also the situation on the whole European electricity market, and it is bound to affect the costs as well.
Norway sometimes has to import electricity, when the production in the country is not enough to cover everyone’s needs. In those cases, the spotpris is definitely going to increase as well. And, in addition to all of that, we cannot deny the fact that your specific consumption will affect the overall bills, which is why you may want to find and use some tricks on how to save on electricity.
Contrary to this type of solution, there is a fixed-price contract. This is when you get a contract for a specific amount of money and a specific period of time. Thus, no matter what happens on the market, no matter how high the demand or the supply is, your price will remain unchanged. This may sound like a good solution, but when you think about it more closely, you will realize that it can also be quite unfavorable, given that you won’t feel the benefits of lower bills in summer, for example, or during any other periods when the spot price is lower.
Is A Spot Price Agreement Right For You?
Now that you’ve understood how these types of prices actually function, you are wondering if this is the right type of agreement for you. There are pros and cons to both options, but time has shown that the spot price agreement appears to be the more favorable solution for everyone in the long run.
Sure, there will be periods when you will pay more, but when you put everything on paper, this will turn out to be the more cost-effective solution for you. So, I say you should go for it and give it a try. And, remember, you can always change your mind and go for a different type of contract if you decide to do so, especially given the fact that these types of agreements usually don’t come with binding periods.
How To Get A Great One?
You would think that all of the spot price agreements are the same and that you don’t have to worry about how to choose the right provider and how to get the perfect contract. That, however, is definitely wrong. You do need to be careful and you do need to do your best so as to get a billig spotpris agreement and thus not be frustrated with your power bills. Different providers can add different surcharges to the spot price, and it is your task to check all of those out in more detail, aiming at ultimately choosing the option that will be most favorable for you.
So, take your time to make this choice. Search for the providers online, but also remember to get some suggestions from the people around you if you find that they are happy with their specific energy bills. Whatever you do, though, don’t rush into making this choice, and don’t make any hasty decisions. Instead, research the various providers in more detail and check out their specific contracts, so that you can compare them and ultimately decide on the right option for you.
When researching the providers, focus on checking their reliability above everything else, because you want to work with those companies that you know will provide you with a reliable source of energy and that will do so at fair prices. You can read some reviews on the different providers to get a better idea about this. And, once you’ve gotten all the information you need about the provider and their contracts, simply compare it all and decide on the option you want to use.