Some operators offer fixed price tariffs for a decade, from 10 to 12 cents per kWh. However, be careful of withdrawal penalties, which can reach hundreds of euros
Price of electricity blocked for ten years, as is done with the rate of a mortgage. After the one or two year contracts come ten-year electricity offers, a formula that is still not very widespread. It happens in an autumn in which the big energy companies compete for customers with offers. With the boom in energy prices, operators are competing by promising savings of hundreds of euros on the bill. Among the proposals there is also that of those who look much further ahead: ten years. On the one hand there is the promise of bills without surprises, on the other a constraint that weighs heavily if you change your mind.
Fixed price electricity offers for 10 years: who offers them and how much they cost
Ten-year offers are currently on the market three operators. There is Dolomiti Energia, with a fixed price of around 11 cents per kilowatt hour (kWh). Then Nen, a company of the A2A group, with around 12 cents per kWh. Finally, A2A itself, with a mixed formula: 70% of consumption is at a fixed 10 cents, the remaining 30% is at an indexed price, i.e. linked to the market trend, with an increase of 2 cents (the spread). The comparison with the wholesale price, indicated around 20 cents per kWh, makes these rates very attractive today. The question is what will happen tomorrow.
How ten-year electricity offers work: why the price can remain fixed
But how is it possible to keep a fixed price for ten years, in a rapidly changing market? The answer lies in the way energy is produced, according to Marco Vignola, energy manager and vice president of the National Consumers Union. Those who use renewables do not depend on the price of gas: once the system has been repaid, the maintenance costs remain above all and therefore the expenses are more stable and predictable. Something similar happens with the capped prices of gasoline and diesel of some large companies, which control every step, from production to sale, and can give up a part of the margin in each. This is not the case for those who produce with gas nor for the majority of sellers, who buy energy wholesale and resell it: for them blocking the price for ten years would be too high a risk.
Withdrawal penalties on ten-year electricity offers: how much you risk paying
For ten-year electricity offers the critical point is the early exit. Dolomiti Energia asks for up to 8 euros for each month missing the deadline, Nen 2 euros. A2A, however, does not apply withdrawal charges, also thanks to the indexed quota of 30%. Just do the math, starting from the expected maximums. Leaving Dolomiti after three years, 84 months remain to be paid: up to 672 euros. With Nen, in the same case, the penalty reaches 168 euros. After just one year the figures rise to 864 and 216 euros. These are sums that can cancel out the economic advantage.
Ten-year electricity offers: is it really worth it and what to check before signing
Are fixed price electricity offers for ten years worth it? As with the mortgage, it depends on how much uncertainty you fear. The ten-year anniversary is designed for those who want to know in advance how much they will spend and prefer peace of mind, even at the cost of staying with a supplier who in the future may no longer be the cheapest. It is less suitable for those who often change offers to obtain the best price: if the market drops, a fixed price of 10-12 cents could become disadvantageous. Before signing you must check the price of energy and any indexed part; the duration and conditions of withdrawal, with penalties. How much you consume makes a difference. If you use a lot of energy, even a few cents more per kWh can be felt at the end of the year. If little is used, the fixed monthly fee and the clauses of the contract, such as penalties, weigh more. It is therefore better to always compare the total cost on the bill, not just the price per kWh.
