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HomeEconomyWhat is the cheapest company now? (January 2024)

What is the cheapest company now? (January 2024)

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January saw very significant increases across all electricity suppliers. No exception. Prepare for significant increases in your electricity bill. This doesn't mean it was a mistake to change companies in 2023. Compare the prices on your bill to the competition prices I show in this article.

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).

ERSE forced all companies with more than 50,000 customers to impose indexed tariffs as well. This means that EDP, Galp, Iberdrola and Goldenergy currently have definitions indexed as well. Are they cheaper? no! Since these tariffs do not matter to them, they set a “huge” profit margin to be more expensive than a normal fixed tariff. I investigated the formulas of some of these companies and concluded that they are not completely understood. For example, EDP packaging is impossible to replicate. I wasted over an hour on the phone with EDP customer support and no one was able to explain/replicate the formula on their online page. I would say they do this on purpose so we don't notice their bills.

In 2023, I mentioned several times that the best tariff ever is Goldenergy/ACP (for Clube de Portugal members). This month is no longer. Goldenergy raised prices from 8.6 to 14.6 cents. Since you have to pay a monthly membership fee of around €5, it's (in my opinion) no longer worth it. The index was the cheapest again (based on the first half of January).

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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 January average is 78 euros per megawatt hour. At this value, the final indexed price was 14.2 cents per kilowatt-hour.

Whatever your situation, try to renegotiate rates first with your own company. 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 in mid-January, there are many companies cheaper than SU Eletricidade and EDP (indexed companies, Goldenergy, Iberdrola and Endesa, etc.). The EDP – which has the largest number of customers – is one of the most expensive products out there. It is still incomprehensible to me how people can pay 30% less or almost the same and still be the same. But everyone knows their own wallet.

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.

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If you are in the index, only change when you have cheaper kWh at 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 (Repsol, 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.

To find companies with cheaper tariffs, use the ERSE simulator or search Google for “electricity tariffs”, contact the companies and compare the kilowatt-hour 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.

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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