Elektrum launches a unique hybrid package combining fixed and market-based electricity pricing

Elektrum is launching a new hybrid electricity package in Estonia called Paindlik Klõps (Flexible Click), where the price is determined 50% by a fixed rate and 50% by the market price.

“Until now, household customers have had to choose whether their consumption is priced according to a fixed tariff or whether they pay the market price for electricity. Elektrum’s Paindlik Klõps package makes it possible to combine the advantages of these two solutions to achieve the best balance between price benefits and risk mitigation,” said Agnes Makk, CEO of Elektrum Eesti.

According to her, the sharp market price spikes at the beginning of the year resulted in surprisingly high electricity bills for many households, prompting many people to review their existing packages.

“Elektrum’s new hybrid package offers an alternative for those for whom a fixed price is too rigid, but who at the same time want to reduce the risk of price fluctuations and benefit from lower and negative market prices,” Makk explained.

She added that the company has previously offered similar flexible pricing solutions primarily to business customers, whose consumption is higher and who are more sensitive to price fluctuations.

“This solution has been highly anticipated, as experience clearly shows that combined pricing provides the most reasonable average annual price while mitigating risks and eliminating the inconvenient need to constantly monitor prices. We are pleased to now bring this opportunity to household customers,” Makk added.

According to her, the solution is unique on the market. Elektrum does not limit the customer’s potential price benefit in any way – if the market price turns negative, the negative price is included in the customer’s market-based share and automatically reduces the final bill.

“For most of the year, market prices tend to be relatively low, meaning that the market-based share helps reduce the bill. At the same time, the fixed portion provides reassurance at moments when market prices rise sharply. Over the course of the year, the result is a balance that no other package on the market has offered so far,” explained Agnes Makk.

According to Makk, the new hybrid package is suitable for all household customers, but households with larger and more uneven consumption will benefit the most.

“Homes where electric vehicles are charged at night, where electric saunas are used in the evening, where heat pumps are in operation, as well as other households that can shift larger consumption to lower-price hours, will undoubtedly see the greatest savings,” said the head of Elektrum.

Elektrum Eesti is an energy sales company that, in addition to electricity, also offers natural gas, solar energy and electric vehicle charging solutions under the Elektrum Drive brand. Elektrum Eesti belongs to the Latvian energy company Latvenergo Group, the largest energy supplier and producer of green energy in the Baltics. The group’s companies serve a total of 911,000 customers across the Baltics, and 69% of the group’s energy production comes from renewable energy sources.