Dagens industri: Godel Warns of High Risk in Fixed Electricity Contracts

Electricity provider Godel is advising consumers to carefully consider the substantial risk premiums incorporated into fixed-price electricity contracts offered by major suppliers such as Vattenfall, Fortum, and Eon. Godel, which does not offer fixed-price contracts, estimates these premiums could cost homeowners upwards of 7,000 SEK per year. Godel CEO Maria Erdmann cautions that consumers often mistakenly assume they are securing low summer rates when entering into fixed-rate contracts during the autumn months. She explains that electricity retailers price these contracts based on forecasts for the upcoming months, rather than the current month's price, resulting in a significant premium. To demonstrate this, Godel analyzed one-year fixed-price contracts from major providers in late September. The company calculated the risk premium by comparing the fixed-price offers to futures market prices for the subsequent 12 months, factoring in standard fees and VAT. For a homeowner with an annual consumption of 20,000 kWh, Godel estimates the premium ranges from 6,600 to 7,600 SEK per year, varying based on location within Sweden's electricity price areas. In response, Vattenfall acknowledges that increased price volatility has made fixed-price agreements more expensive. However, the company maintains that these contracts are a suitable option for consumers who prioritize predictable energy costs, particularly ahead of winter when prices are prone to significant fluctuations.