Switching electricity suppliers may seem simple, but an ill-considered decision can lead to unpleasant surprises in your bills. Before signing a contract, it is essential to understand how the electricity price is formed, what risks are associated with the specific offer, and whether it matches your household’s consumption habits. The Consumer Rights Protection Centre (CRPC) explains what to consider to ensure a smart and financially sound choice.
Currently, three main pricing models dominate the market:
1. Fixed-Price Contract
The consumer pays a fixed price per kWh for a defined period (usually 12 or 24 months).
Pros:
– Protection from market price fluctuations
– Easier household budget planning
Cons:
– If market prices fall significantly, the consumer continues paying the higher fixed price
Be cautious about early termination penalties. Many suppliers also offer “partially fixed” plans where the price is reviewed every six months.
2. Dynamic (Market-Based) Contract
The price changes hourly in line with the Nord Pool electricity exchange.
Pros:
– Opportunity to pay significantly less if major consumption (laundry, dishwasher use, EV charging) is shifted to nighttime or weekends, when prices are typically lower
Cons:
– Risk of high costs during peak demand hours (e.g., weekday mornings)
This option is generally more suitable for households with smart appliances and monthly consumption above 200 kWh.
3. Universal Service
This is usually the most expensive offer on the market. The price is fixed for 12 months, is not revised, and there are no penalties for early termination.
Pay Attention to the Billing Method
Consumption-based billing:
You pay for the electricity actually used in the previous month.
Equalised payments:
The supplier estimates annual consumption and divides it into equal monthly payments.
Monitor your actual electricity consumption regularly. If it changes, request an adjustment to avoid large discrepancies.
⚠️ At the end of the year, you may face a significant additional payment if actual consumption exceeds the forecast.
Before Signing a Contract
1. Compare prices on independent platforms
Use www.energija24.lv or www.elektroenergija.lv to view current offers from all suppliers in one place.
2. Check the distribution tariff
Sometimes your bill can be reduced not by switching suppliers but by reviewing your connection capacity (amperage) with Sadales tīkls.
3. Social support
Large families, persons with disabilities, and low-income households may be eligible for state support. Make sure the supplier participates in the Protected User Data Information System (ALDIS).
Remember:
Do not focus solely on the price per 1 kWh. Always check the monthly subscription fee as well. Some suppliers advertise a low kWh rate but offset it with a high fixed monthly charge, which can be disadvantageous for households with low consumption.