Variable electricity contract for businesses
With a variable electricity contract, your company pays market price – the spot price on Nord Pool – plus a fixed mark-up. It's often the most cost-effective choice for businesses that can handle some price variation.
How does it work?
A variable electricity contract means the price per kWh changes in line with the market price on the Nord Pool exchange. The price varies hour by hour or is calculated as a monthly average, depending on the contract model.
In addition to the spot price, a fixed mark-up from the electricity supplier is added – this is the supplier's margin. The mark-up varies significantly between suppliers and can range from 1 öre to over 10 öre per kWh. This is where Savera can help you negotiate down the cost.
Advantages
- Historically lower average price than fixed contracts
- No lock-in period – freedom to switch anytime
- Pay the actual market price without hidden margins
- Ability to adapt consumption based on price level
Disadvantages
- Harder to budget with varying monthly costs
- Risk of high costs during price spikes, especially in winter
- Requires some market monitoring to maximise gains
Is a variable contract right for your business?
A variable contract is particularly suitable for businesses that have flexibility in their electricity consumption and can accept some variation in monthly costs. If your business has steady consumption without major seasonal peaks, a variable contract can provide significant savings compared to a fixed price.
Want to benefit from low spot prices while still having a safety net during winter? Consider a winter-secured contract instead.
