An example is the case of Naturgy with their flat rate Zeenn. “Peace of mind by paying the same fee every month,” says the slogan of the company that offers a free month of electricity and a free month of HBO when hiring it. The marketer makes a personalized offer according to the consumption of the last 12 months of the client and maintains the same quota throughout the year, as long as the consumption of the previous year is not exceeded by 30%, in which case a regularization would have to be made of the amount.
Very similar to the One Luz fare from Endesa which sets a fixed price per kilowatt-hour each month. “A washing machine started at dawn will cost you the same as if you put it on at noon,” says the energy company in its offer. “It is for those who want to be unconcerned and think only about a cheap electricity bill,” he adds. Also Iberdrola It has a similar proposal, ‘Stable Plan’ is called and it also involves a fixed rate for electricity.
Offers with stable prices for a very long period of time are not usually the cheapest of all possible, but rather the opposite, since electricity companies have to establish a large enough profit margin as so they can hold the fluctuations which has the price of electricity in the wholesale market.
The offers of these three companies are part of the proposal of free market trading companies, but also the reference marketers They offer electricity contracts with a stable price for a long period of time that are also more expensive than usual.
In fact, reference marketers must compulsorily carry out an alternative offer to the PVPC, the regulated tariff, for those consumers who can benefit from it, with a fixed price of energy for one year (this is not a regulated price). The objective is to give the customer the possibility of having a more stable price that does not vary each month, as is the case with regulated rates.
However, according to the National Commission of Markets and Competition (CNMC), “The prices of these offers are usually higher than the offers made by the free marketers of the group of the reference marketer”. A fact that has not prevented the number of consumers benefiting from this option, although it is low compared to the market as a whole since it is only 10,000 users, from multiplying by 2.5 in 2019, according to the presiding regulator Fernéndez dogs in the latest report published on the retail electricity market that analyzes the market in 2019. For this reason, the CNMC asks the Government to eliminate this obligation, which it considers unnecessary.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.