Winter-secured electricity contract for businesses
A winter-secured contract combines the best of variable and fixed pricing. You pay spot price during summer and have a price cap during winter months that protects against extreme price spikes.
How does it work?
During April–October you pay spot price plus a fixed mark-up, just like a regular variable contract. During November–March, the price cap activates – if the spot price exceeds a predetermined level, you never pay more than the cap.
The price cap works like insurance: it costs a little extra in the form of a premium, but protects you against extreme price increases that can occur during cold winters with high demand.
Advantages
- Variable pricing during summer with low spot prices
- Price cap during winter months protects against extreme peaks
- Best of both worlds – flexibility and security
- Often lower total cost than a fully fixed contract
Disadvantages
- The price cap means extra cost compared to purely variable
- More complex to understand and compare
- Not all suppliers offer this type
Is a winter-secured contract right for your business?
A winter-secured contract is perfect for businesses that want to benefit from low summer prices but don't want to risk extremely high electricity costs during winter. It's particularly suitable for property managers, hotels, and other operations with high winter consumption.
