Pros and Cons of Electricity Price Guarantee in Germany –
Introduction –
One of the things that you should know is that electricity supplier or the electricity companies in Germany, most of the time entice or trap in the consumers with electricity price guarantee – besides that, the tariffs which stays fixed no matter the cost fluctuations. Apart from all of that, the consumers should do electricity with price guarantee –electricity comparison also. Many people do not understand or want to know the price guarantee electricity meaning, so as per Niklas Hirmke, price guarantee in electricity would mean that the price won’t soar sky high, but most of the time price guarantee often ends up being more costly for the consumers. Let’s look at some of the reasons for electricity price increase despite price guarantee. Here are some of the reasons.
Not So Reassuring –
The concept of Strom mit Preisgarantie, or the price guarantee in electricity sounds to be very reassuring, in all the theoretical concepts. Another thing, that you ought to know is that soon you will find out, that it has become like a process for traditional energy providers or electricity suppliers to keep their margins – that too literally at the expense of the consumers. And, there is no such thing as electricity price guarantee reasonable. You should stop thinking about electricity with price guarantee and begin thinking of them more of like a price or cost lock-ins.
Do a Comparison –
Besides that, as a customer, we often or most of the time think that we are securing the finances and saving the money with the electricity with price guarantee option or price guarantee or Vattenfall price guarantee and others. But we should do a price of electricity comparison, and know why electricity price increase despite price guarantee. Also, we should ask ourselves, why the energy companies or the electricity supplier and municipal utilities are so curious to offer the consumers with price guarantee thing. And, why do the gas or petrol station do offer price guarantee, especially when the fuel cost changes just like the cost of the energy.
Profit of the Energy Companies –
The fact is that, why the electricity supplier or the companies of energy love to give a price guarantee is the reason is that it gives them profit. So, this is the reason why electricity price increase despite price guarantee. And, there is no such thing as electricity price guarantee reasonable. Besides all of that, they have a group of analysts who will purchase the energy on average way below the cost they have set for your cost guarantee. Therefore, doing an electricity comparison is also necessary. This the main reason why price guarantee is a good thing for the electricity supplier companies like eon price guarantee or enbw price guarantee or eprimo price guarantee.
Why You Should Not Switch to Price Guarantee Concept –
It comprises of municipal utilities and not for consumers. Let’s look more into details as to why consumers are better off without a cost guarantee or price guarantee or electricity with price guarantee. – Firstly, your charge will not go down, even if the electricity prices go. The net price guarantee will make it look like the energy cost are constant, but when the actual truth they change every day, every hour, and every minute. This is the margin, the arbitrage through which the traditional or the electricity supplier companies makes money from the price guarantee system. As the energy or electricity cost goes up and down all the hour, the consumers are used to checking the cost of the diesel or gas when they refuel it.
Fixed Cost Benefits –
When the cost goes up, the cost of the gas or petrol also goes up, and when they go down, the consumers also expect the cost that they pay at the pump to go down. In distinction, the traditional energy supplier or the electricity supplier tries to keep the cost fixed over the period of contract. So, the consumers are not able to experience the advantages of the price drop, as these kinds of reduction don’t get approved along. To put this into viewpoint, let us take a look at the hourly electricity cost for the office in Berlin. The normal cost per kwh so far this year has been 37,15 cents. Last year electricity with price guarantee was being offered by the electricity supplier companies between 43,58 to 70,04 cents kwh.
How the Company Benefits –
This would mean that if your cost guarantee or price guarantee or net price guarantee is fixed or closed at more than 37,15 cents per kwh, then, your electricity company is making a big profit margin, as they are capable of purchasing electricity at a low cost than they are charging you with be it Vattenfall price guarantee or eon price guarantee or eprimo price guarantee companies. Besides all of that, price guarantee is one such thing that will lock you into paying more for a long time. The energy company or electricity supplier contracts are not very elastic in Germany and nor are their cost guarantees. To know more see check24 online. Also, check in the web for Verivox.
Auto-Renewal Clauses –
Mostly, you will be locked into spending that rate for the duration of your contract i.e., mostly 12 to 24 months for electricity with price guarantee or Strom mit Preisgarantie. Also, you cannot do the cancellation before your contract expires and you will have to wait for long hours before you can get into a cheap provider. Besides that, until march 2022, it was a normal tactic of traditional energy supplier with net price guarantee to have in the contracts the auto-renewal clauses. When or if the user forgets to cancel the contract, then it would get renewed again for a long time contract, locked in for paying more for another year or 2 years or as the case may be. You can check online about verivox and check24.
