Choosing between a spot price and a fixed price is one of the most important decisions when signing an electricity contract. Both options have their advantages — it comes down to your risk appetite and how you use electricity.
What is a spot price?
A spot price contract means you pay Nord Pool's actual hourly price plus a fixed markup from your electricity supplier. The price varies hour by hour, around the clock, and is set the day before on the Nord Pool electricity exchange.
Advantages of spot price:
- You follow the market — when prices fall, you pay less
- Historically cheaper than fixed price in the long run
- Transparent pricing — you know exactly what you pay
Disadvantages of spot price:
- Prices can be high during cold winters or low electricity production
- Hard to budget — monthly bill varies
What is a fixed price?
With a fixed electricity price, you lock in the price for a set period, usually 1, 2 or 3 years. Regardless of what happens in the market, you pay the same price per kWh.
Advantages of fixed price:
- Predictability — you know exactly what electricity costs
- Protection against price increases
- Easier to budget household finances
Disadvantages of fixed price:
- You miss out if market prices fall
- Often more expensive than spot price over longer periods
- Binding period with possible cancellation fee
Which should you choose?
Choose spot price if you are flexible with your electricity use, can shift consumption to cheap hours (e.g. smart EV charging) and accept a varying bill.
Choose fixed price if you want certainty, predictability and don't want to worry about electricity price movements.
Whatever you choose — always compare electricity contracts on our site before signing.