Market price, forecasts
There are now many different pricing options to choose from. There is no one correct answer, different products suit different people. Please look through the following to see what best suits your needs.
- Fixed price suits consumers who like to reduce risks and plan a budget for longer periods. With this package you will not be affected by market price changes. you always pay a fixed cost.
- Market price is meant for those who value freedom and want to take more risks by not fixing the electricity price. With this package, the electricity price comes from market where new prices are calculated on an hourly basis. It is possible to maximize the amount of money you save with this package but as nobody can predict how the market price changes, it is also possible to lose.
- Semi-fixed price is meant for customers who want to reduce risks by choosing a longer period fixed price package, but still win from market price changes/
Although you used to pay for electricity according to the tariff approved by the Public Utilities Commission, the market price of electricity varies constantly.
The different factors influencing it are:
- Weather – as most of the energy produced in the Nordic comes from hydroelectricity plants then there is a direct correlation between the electricity price and the weather. Elektrum also produces about 60% of its electricity in its three hydroplants situated on the Daugavariver. The dryer the weather is, the less energy is produced by hydropower and as a result the higher the electricity price is.
- Availability of CO2 emission allowances. This is most important for power oil shale electricity producers as the higher the rising price of CO2 emission, on the bigger the impact on the electricity price for the end user.
- Supply and demand dynamics. When the supply of energy is bigger than demand (e.g. in springtime during floods), prices can drop sharply. Because of the large portion of hydroenergy produced, there is a big fluctuation in the energy price between wet and dry seasons.
- Fuel costs. There is a direct link between fuel costs and electricity prices - the higher the cost of the fuel, the higher the electricity price.
- The state of world economy. When there is a rapid expansion in the world economy, there will be more demand for electricity, which will raise prices. The opposite effect occurs when the economy slows down.
In addition, as a security measure the market exchange is constantly monitored by a third party market supervisory board to see that market participants do not give price advantages.