Fixed or variable tariff energy: which is more convenient?

Fixed or variable tariff energy: which is more convenient?

The main difference between variable and fixed tariff energy depends on whether or not the unit cost of the energy component can vary over time in a predefined manner.
In particular:

  • A fixed-tariff offer provides for a fixed, invariable energy component price for at least 12 months . This type of contract may be useful, for example, to a customer - who, knowing their consumption, wants to make a more accurate plan of their energy expenses since the unit price of the energy component, expressed in €/kWh, and its duration are fixed by contract.

  • A variable tariff offer, on the other hand, envisages that one or more of the components contributing to energy costs (e.g. the price of the energy component) undergo variations linked to the prices of energy or gas on the wholesale markets or resulting from the application of an index defined in the contract (e.g. PUN Index GME - Prezzo Unico Nazionale) and which varies at time-based intervals (e.g. monthly). This type of contract may be useful, for example, to a customer wishing to seize all opportunities related to changes in the wholesale energy markets.

The amount billed will then also be made up of other items in addition to the energy component (e.g.: the other items that make up the cost of the energy raw material, the cost of transporting energy and meter management, and the other standing charges), which will then determine the final cost to be paid by the customer.

Depending on consumption habits, customers can choose the type of contract that best suits them.

Also affecting the electricity bill are the time bands in which consumption takes place: find out about time bands in Italy and which are the cheapest.