From 1 June we will again be offering energy contracts with a fixed rate. Is this something for you? To what extent do these differ from the “old” fixed price contracts? Read all about our new fixed price contracts below
Is a fixed rate energy contract better for me than a variable rate contract?
The question is what you find most important about your contract. Because both fixed contracts and variable contracts have advantages and disadvantages.
With a fixed contract, you pay the same rate for the delivery, solar return fee and administrative charge for the entire term of your contract. Your rates do not go up or down when energy prices change. And you pay a cancellation fee if you terminate your contract before the end date.
With a variable contract, your delivery rates change several times a year. You pay less when rates fall, but more when rates rise. You can cancel your contract monthly.
Are you unsure about a fixed or variable contract? Then our energy advisors will help you on your way by talking with you over the phone in any country worldwide. We will help you acquire the information to make the best choice yourself.
You can easily schedule an appointment on our website PartnerPete.com.
Free of charge and no strings attached.
Is it wise to pin my energy rates now ?
It is difficult to know in advance whether choosing a permanent contract is the right choice. That depends on when you pin your fixed energy contract for, for example, 1 or 3 years. And what happens in the period after that. It works the same as buying or selling stocks. Do you pin a permanent contract and do the energy rates rise sharply afterwards? Then your delivery rate will not increase.
No one can exactly predict how energy prices will develop. Of course there are certain patterns. For example, there is often a price reduction after the winter. But does something big or unexpected like a war happen? Then it could be different. With a fixed contract, you mainly buy security for an agreed period. It depends on the energy market whether your energy costs rise sharply or fall sharply at the end of the contract.
Take a look at our energy shop to see how fixed energy rates relate to each other day by day
Is a fixed rate contract cheaper compared to a variable rate contract?
Sometimes. But sometimes not. The honest answer is that you don’t know in advance whether a fixed price is cheaper than a variable rate. That depends on how energy prices develop after the conclusion of the contract. No one can predict this exactly. You can only make the real comparison afterwards.
In what way do fixed rate contracts differ compared to the “old” ones ?
The fixed price contracts from 1 June 2023 differ from the ‘old’ fixed price contracts in one way: there are new rules for the cancellation fee. These rules apply if you terminate your contract before it expires.
As a result, the amount of the new termination fee varies. The remaining value of your contract determines what it costs to terminate the contract early.
Check out our previous blog to learn more about the new ROVER 2023 cancellation fee
Benefits & Disadvantages of a Fixed Rate Contract
An energy contract with fixed delivery rates has certain advantages and disadvantages.
Fixed Rate Contract Benefits:
- You have the assurance of a consistent, fixed delivery rate throughout the duration of your contract.
- Price increases do not impact your delivery rate, providing stability and predictability.
Disadvantages of a Fixed Rate Contract:
- If you decide to switch before the contract’s end, you may be required to pay a cancellation fee.
- You do not benefit from potential decreases in energy prices, as your supply rate remains unaffected.