Competition Authority urges caution over electricity package choice

Consumers are being advised to be cautious when thinking about changing their electricity package by the Competition Authority after a week of record-high prices.

Consumers can choose between an exchange tariff package, a fixed-tariff package with a contract duration of between six and 36 months, and a package based on a combination of the two, the Competition Authority said on Friday.

Although increases and decreases in electricity prices are difficult to predict, it is worth thinking carefully about all options, such as by using the and electricity price comparison portals. 

The authority said long-term data suggest packages based on free market price have proved more favorable for the consumer than fixed-price packages.

However, it should be noted that a free market package will be more favorable than a fixed-price package if the consumer consistently buys electricity at the free market price over a longer period of time.

At the same time, if the consumer wants to set forth electricity costs more precisely in their budget, this can be done better with a fixed-price package.

Read more: ERR.EE

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