How is a variable price for electricity calculated?

The variable price is based on the hourly prices of the daily market. Each hour is weighted in accordance with a residential off-take profile so that you know the correct daily price. The annual volume is then redistributed to a daily volume and recalculated to the corresponding daily price. This is a technical explanation to say: this way you never pay too much.

Let’s look at a concrete example:

Suppose these are the electricity prices on a particular day: 

• at night: €0.10/kWh
• during the day: €0.15/kWh
• in the evening: €0.25/kWh

A typical household does not use the same amount of electricity every hour. For example, more is used in the morning and evening than at night. That is why you cannot simply say that the price for that day is €0.10/kWh or €0.25/kWh. An average daily price is calculated that takes into account a household’s typical consumption.

Suppose you use 3,500 kWh per year. That consumption is spread across the different days of the year according to the expected residential consumption pattern.

In short, we take the market prices and combine them with a typical household’s consumption to calculate your variable price.