Indexed tariffs remain very low. In March, there were several days when the price of electricity on the wholesale market was at or near zero. As you know, this type of tariff (which many companies have) consists of you paying the price at which companies buy electricity + a small profit margin that varies from company to company. Some take the average from the previous month, others use the hour-by-hour electricity price formula. You have to ask.
See here the graph of OMIE prices (Iberian electricity market prices) in March. As you can see, on several days he barely paid anything.
If you’re one of those people who doesn’t mind always looking for the best price, it’s still worth taking advantage of. As you will see in the graph I just made, it is almost 3 times cheaper than the largest electricity companies in Portugal, namely EDP. In March, it was 7 cents per kWh (note that you should also look at the price of contracted power, which varies from company to company).
Don’t be fooled: there are very different prices between companies. It’s only at the most expensive if you want.
Compare the prices on your invoice with the competition’s prices that I will present in this article. And change if you confirm that you will pay less for the kWh (and by the way, also for the contracted power).
Fixed or indexed?
For those who don’t know, there are two types of tariffs: fixed (in which you know the price per kWh and which is the same throughout the year) and indexed (in which the price varies up or down every month, depending on the price of the electricity in the Iberian market). This month might be great, and the next month it might not. You have to know how to leave when it’s no longer worth it. Right now, it’s quite worth it.
I must warn you that the indexed tariff is not for everyone. It is only for those who are always aware of what is happening in the electricity market. And they are available to change companies again, as soon as they find it cheaper.
If you don’t know what an indexed electricity tariff is, read this article.
VIDEO | Savings of 50% on electricity with indexed tariffs
This is the average for March. In the image following this one, there is the price using the Luzboa formula, which is the only one I know in detail.
Whatever your situation, try to renegotiate prices first with your own company. Almost all companies do this, if they threaten to change companies and show that there are lower prices in the competition.
Called customer support… reduced the price of electricity by 16% (A practical case)
As you can see below, with data from the ERSE simulator at the beginning of March, there are many companies cheaper than SU Eletricidade. Galp lowered prices significantly this month. EDP – which has the most customers – is currently one of the most expensive (maintained the same price, at 18.6 cents/kWh). Evaluate if you can’t find a cheaper price. Please note that the prices for the ERSE simulator may not correspond to the prices you have on your invoice or what they can ask you when you call customer support.
NOTE: In this research I removed all criteria for offers for new customers and conditional offers. For example, Coopérnico and others have good prices, but it requires you to be a member or subscribe to products or services. Carry out your own simulation at ERSE.
Don’t forget that – when comparing companies – you should also take into account the price of the contracted power. You can change these accounts, especially for those with very low consumption. But I continue to insist that, in my opinion, you should take into account above all the price per kWh as the main criterion, because it is what weighs most on the bill.
If you are on the index, only change when you have a cheaper kWh in another company. If you don’t want to do the math, you have at least 4 options to choose from (Galp, Alfa, Plenitude, Goldenergy/ACP, Repsol, Endesa and others). This must take into account the price of the contracted Power and other discounts that interest you. This comparison does not include all companies: there are a few more small and little-known companies with prices below the regulated market (SU Eletricidade). Use the ERSE simulator and see them all. There are more than 20.
To find companies that have cheaper tariffs, use the ERSE simulator or search on Google for “electricity tariffs”, contact the companies and compare the price per kWh you are paying on your invoice with the prices they offer you. They are the ones who handle the transition from your current company to the new one. You don’t have to do anything. I have no connection to any company. You choose whatever you want. In this video I explain how it’s done.
If you want to save, you have to be careful and be an informed person. And act quickly as soon as you find it cheaper. You can save many tens or even hundreds of euros per year, depending on your consumption. Don’t forget that electricity is unbranded. It’s all the same.
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