Electricity has become a basic necessity for most buildings in the country and beyond. This is largely because a lot of the household amenities are electricity-powered. However, it might interest you to know that the first hydroelectric plant did not exist until 1870.
To provide a better perspective, that was 153 years ago, as of the time of writing this article. This simply shows how much the power sector has evolved in this space of time.
By the way, the way electricity utility bills are determined is one of the ways that the sector has greatly evolved.
For example, Norwegians can either opt for a fixed or spot price plan from electricity suppliers. Whichever it is that is chosen, people need to settle for the right plan.
Of course that includes getting the best prices. For this purpose, this article discusses how to get the beste fastpris strøm (Norwegian for “best fixed-rate electricity plans), as well as the best spot price electricity plans.
But first, you need to understand the core differences between both, so that you choose the right one for you.
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Fixed vs Spot Price Plans – What Are the Differences?
The frequency at which price changes occur is the major difference between both plans. In the case of spot prices, the changes are very frequent, depending on several factors such as:
- Demand and supply
- Market conditions
- Power generating source’s capability per time
- Consumption per time
For the record, the aforementioned factors also influence power supplied to people who opt for a fixed rate. However, people who opt for this plan get a fixed amount for every kilowatt consumed.
For example, imagine that a consumer opts for a fixed plan of 1 year with an agreement to pay 15 Norwegian kroner for every kilowatt-hour consumed.
This means that consumption will constantly be calculated based on this agreement, for the slated period. This is regardless of the changes in market prices.
One of the implications is that suppliers can run at a loss if the changes are not in their favor. As a result of this possible dynamic, fixed plans are usually more expensive. However, drastic price increases can change this narrative.
For the record, this has played out a couple of times in Norway. On the other hand, people who opt for spot price plans experience frequent price changes. The changes are so frequent that the price is not the same throughout the day.
There are peaks, as well as cheap periods. Tariffs are higher during the peak periods and lower during cheap periods.
Having explained both kinds of plans, the first rule for choosing the best electricity plans is to understand the aforementioned options.
After that, you should make the right choice based on this understanding. Whichever it is that you choose, the subsequent parts of this article discuss How To choose the best supplier.
Tips on Getting the Best Fixed Rate Electricity Prices in Norway
Getting fixed plans in the Northern parts of the country is a lot easier. This is down to the fact that electricity prices are more predictable in these parts.
As a result, people in the southern parts may not enjoy the relative ease that people in the northern parts have when it comes to choosing fixed-rate plans. Regardless, discussed below are some tips for choosing the right fixed-rate supplier:
Research Several Options
People are spoilt for choice when it comes to choosing suppliers that offer fixed-rate plans. Of course, this is especially true in the northern parts of the country as mentioned early on. In other words, the industry does not operate on a monopolistic basis in this regard.
Well, it is better to make the most of the competition. To do this, you should not only consider one, but several suppliers in the market.
You should go all out comparing what they all have to offer as this puts you in a good position to choose the best one. This is instead of just tagging along with the first supplier that you come across.
By the way, it is a wise thing to spend enough time comparing several options before making your choice.
The reason is because you are a bit handicapped when you make your choice. The lock-in agreement and the violation penalty that applies if you call it quit before the agreed date are reasons for this.
So, you should not be in a hurry to choose a supplier. Rather, be more concerned about choosing the very best out there.
Furthermore, it is good to know that there are Tools that can make your comparison task a lot easier. For example, there are online sites with easy-to-use tools and information that help you make the right decision. You can make the most of such.
Read & Understand Fine Prints
Deciding to subscribe to any plan means that you are entering into an agreement with the supplier. As a result, a contract is usually drafted and both parties consent to the terms and conditions stipulated in the contract in question.
One grievous mistake that some people make is not going through and understanding the details of this agreement. For starters, prospective clients are not obliged to agree to the drafted terms and conditions.
There is even room for negotiation but many people are unaware or refuse to exercise this consumer right. Firstly, take out time to go through the drafted contract.
The goal here is to identify clauses that are not favorable and those that are. You should then negotiate based on the gathered information and your peculiarities.
For example, while cancellation penalties may be impossible to eliminate, you may negotiate for lower penalty fees just in case you need to terminate the contract before the expiration date.
Check Incentives
Predictability and ease of planning are some of the highlights of this plan. However, it does not rule out the fact that it is usually more expensive. As a result, subscribers can make do with as many incentives as possible.
For this reason, you are advised to consider very generous suppliers. For example, there may be early renewal incentives up for grabs.
Consider Bundle Services
In the spirit of cost reduction, you can also consider using bundle services. This suggests that you would not only get power from the supplier but other things as well. This can be Internet connectivity for instance.
Tips on Getting the Best Variable Rate Electricity Prices in Norway
For starters, getting spot-price suppliers is not a daunting task regardless of where you are situated within the country. This is because suppliers consider it a safer option. After all, price changes can be reflected daily.
As a result, getting suppliers that offer this kind of electricity plan is no challenge even in the southern parts of the country.
The same cannot be said about fixed plans as mentioned early on. On the whole, discussed below are some tips especially for finding the right spot price electricity supplier.
Compare Several Options
Of course, this tip applies regardless of whether you are opting for fixed or spot-price plans. By the way, there are several others like that.
Several suppliers offer this plan and they do not offer the same incentives and terms & conditions. The advice here is to compare as many options as possible and settle for one that represents your best interest.
Some tools can also be engaged for this task as mentioned earlier. Using them increases your chances of making the best choice and even doing so quickly. So, it is also about time-efficiency.
Ensure that Contract Terms Are Flexible
Flexibility is one of the major highlights of this plan. However, this would only be the case provided that you do not settle for something with a rigid contract. For example, short-term commitments are usually advised because long-term ones can be unfavorable.
Regular Monitoring of Market Conditions
Spot price plans can be very beneficial, especially in the area of cost-effectiveness. However, enjoying this benefit calls for serious monitoring of market trends and consumer behavior.
For example, while power consumption patterns are mostly defined by peak and cheap periods during certain periods of the day, this can change.
National holidays can cause swift changes for instance. Understanding things like this can help you make the most of this kind of consumer electricity plan.
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Check Customer Reviews
Sadly, some suppliers are not true to their word. They make enticing promises but turn out to be selfish in their treatment of consumers. You most definitely want to avoid them.
One of the proven ways to discover them is by reading customer Reviews. This would help you understand how reliable and committed suppliers are.
For example, you can find out whether or not a supplier has a good, excellent, average, or terrible customer service approach.
Conclusion
Choosing the best-priced electricity plan is important. However, this would not be possible if you are not aware of how to go about this.
This is why this article has shed light on this subject by sharing 4 tips for choosing the best-priced fixed rate, as well as spot price rate plans. So, make sure to bear these tips in mind when making your choice.
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