Godel warns that fixed electricity contracts from major suppliers are too expensive

El-company Godel warns that fixed-price electricity contracts from major suppliers are too expensive, potentially costing homeowners over 7,000 kronor annually due to embedded risk premiums. Godel claims these fixed contracts include a significant risk premium, making variable-rate contracts generally more advantageous for consumers. They analyzed one-year fixed contracts from Vattenfall and Eon, finding the premium to be substantial. Vattenfall acknowledges increased electricity price volatility makes fixed contracts pricier but still recommends them for customers prioritizing winter price predictability. They also note that some long-term fixed contracts signed before the 2022 energy crisis proved cheaper than variable rates.