What is the 65% Risk Premium in a Fixed-Term Electricity Contract Based On?

What is the 65% Risk Premium in a Fixed-Term Electricity Contract Based On?

As per the information provided by Helen’s manager, there has been a noticeable increase in the risk premiums of fixed-term contracts. This is directly related to the increase in the fluctuation of electricity prices. In the process of selling electricity, it is the seller who carries the risk of the price and consumption on behalf of the customer.

In the realm of power, we have seen the stock exchange price escalating once more in recent days. This trend has likely led many consumers to reconsider their contract options. In fact, during the peak prices observed in early January, a significant number of consumers switched to fixed-term electricity contracts.

It’s important to note, however, that the prices of these fixed-term contracts were also high at that time. In recent times, there has been a slight decrease in these prices. As per the comparison service provided by the Energy Agency, the cheapest fully fixed two-year fixed-term contract was available from Tampereen Energia on Friday. The price for this contract was 8.6 cents per kilowatt hour, which is relatively more affordable than previous rates.