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What is the cheapest company now?  (December 23)

What is the cheapest company now? (December 23)

Key conclusion: For more than one year, having an indexed electricity tariff is what pays off the most. Thousands of you have saved several hundred euros in these months. Tell us in the comments if this is true, so that more and more Portuguese realize that we can live better with the same money, as long as we are willing to stop being lazy and do some work so that more money stays in our pockets instead. Instead of going to companies, whatever they are.

He explained – for those who have no idea what we are talking about – that when I talk about indexed definitions, I am talking about several companies. It is not the “name” of the company. It’s not a company called Indexado, okay? Some even have two types of tariffs: fixed (in which you know the price per kWh and it is the same throughout the year) and indexed (in which the price changes up or down every month, depending on the price of electricity in the Iberian market).

Warning: In January, all companies (indexed companies as well) will increase prices due to the increase in network access fees charged by ERSE. Only we will know the exact amount everyone will raise on December 15th. But if you have a cheaper company, your bill will increase less. Get ready for a significant increase in your electricity bill.

Over the past few months, I’ve mentioned that the best tariff ever is Goldenergy/ACP (for Clube de Portugal members). This month is no longer. For two reasons: Goldenergy has raised the price of this protocol since November 16 from 8.5 cents to 10.5 cents; The indexed price fell a lot last month. There were several days with no or near zero power.

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On the ACP website there is a warning that those who signed up until November 16 will keep the “good” prices until December 31. On January 1, Goldenergy also announced that it would increase prices further. Some of you have done the math and are talking about 30 and 40% increases. So, I think it will not be a good option as it was until the middle of last month.

Should I switch to indexed?

I must warn you that the indexed tariff is not for everyone. It is only for those who are always aware of what is happening in the electricity market. They are available to change companies again, once they find it cheaper.

If you do not know what an indexed electricity tariff is, read this article.

Video | Save 50% on electricity with indexed tariffs

The average for November, with the month complete, was €63 per MWh. At this value, the final indexed price was 7.5 cents per kilowatt-hour, much lower than “normal” tariffs.

Whatever your situation, try to renegotiate rates first with your own company. For example, last month Iberdrola reduced prices for some customers who requested it. You can read the example I did with them recently here. Almost all companies do this if they threaten to change companies and show that there are lower prices in the competition.

Contacted customer support.. Reducing the price of electricity by 16% (practical case)

As you can see below, with the data from the ERSE simulator at the beginning of December, there are many companies cheaper than SU Eletricidade and EDP (all indexed, Plenitude, Goldenergy, Iberdrola and Endesa).

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Don’t forget that – when comparing companies – you must also take into account the price of the contracted energy. You can change these accounts, especially for those with very low consumption. But I still insist that, in my opinion, you must take into account above all the price per kilowatt-hour as the main criterion, because it is what burdens the bill.

If you are already indexed, only change when you have cheaper kWh from another company. Even then, no matter how much they pay, it is less than they would pay elsewhere. Do your math. If you don’t want to do the math, you have at least 4 options to choose from (Plenitude, Goldenergy, Endesa, and Iberdrola). This should take into account the contracted energy price and other discounts that are important to you. This comparison does not include all companies. Use the ERSE simulator and see them all. There are more than 20.

As you can see, expectations are that the index will remain low in January and in the first quarter of 2024 as well.

To find companies with cheaper tariffs, use the ERSE simulator or search Google for “electricity tariffs”, contact the companies and compare the kWh price you pay on your bill with the prices they give you. They are the people who handle the transition from your current company to the new company. You don’t have to do anything. I have no affiliation with any company. You choose what you want. In this video I explain how this is done.

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If you want to save, you have to be careful and be an informed person. And act fast as soon as you find it cheaper.

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