Electricity and gas contracts: some useful tips

Free market or greater protection?

Yet another expensive bill, and then doubts and questions arise: "Should I switch suppliers?" and "What type of plan should I get? Gas only, electricity only, or a combination?" and even "Is the free market or the protected service better?" In this article, we'll try to clear up some doubts and discuss some offers for 2018.

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With the free market, the most visible change is the separation between distribution and sales, two activities that were previously the responsibility of a single operator. For each area, in fact, one distributor remains physically responsible for managing the distribution network (as well as emergency response), while multiple sales companies coexist, supplying gas and electricity directly to the customer. Prices, in this case, are agreed directly between supplier and customer. Those using the free market can therefore choose between the various operators' offers , switch operators, or change terms . Customers who choose not to switch to the free market are instead offered the enhanced protection service, a set of economic and contractual conditions defined by the Authority. The protection service also applies to customers who are left without a supplier (for example, in the event of bankruptcy) and to those who do not have access to the free market. Furthermore, anyone who has chosen the free market can return to the protection service at any time , without additional costs. Some advice on the types of tariffs and contracts.

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Fixed or indexed price?

The difference between fixed and indexed prices depends on the customer's risk appetite , much like investors. The customer can choose whether to accept a potentially higher price, but one guaranteed and with no surprises ( fixed ), or whether to risk paying a little more, but also having the opportunity to save if energy prices drop ( indexed).

Electricity consumption time slots: how to choose?

The flat-rate tariff is only worthwhile if your consumption is evenly distributed throughout the day or if you don't want to worry about choosing the cheapest time to consume electricity. The two-rate tariff and the multi-rate tariff are convenient and allow you to save money if you concentrate your consumption in the evenings and on weekends. The multi-rate tariff is particularly convenient if you have no problems operating appliances, especially at night or on holidays. This is an option that not everyone can fully exploit, perhaps due to condominium regulations. How to change provider: methods, times, and costs?

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When you decide to switch providers, especially if you've never done so before, it's normal to have some apprehension. Choosing a new provider, however, doesn't involve any risks or disadvantages; on the contrary, it allows you to take advantage of the best rates on the market and save money.

The modalities

Thanks to the liberalization of the energy market, customers can freely choose who to purchase energy from (electricity and gas) and under what contractual terms. When a consumer decides to change energy supplier and switch to the free market, they simply need to sign a new supply contract, which replaces the protected service. Furthermore, it is always possible for a customer to switch from one supplier to another within the free market.

The times

The expected date for the actual switch must be communicated by the new operator to the customer at the time of signing the contract and is generally between one and two months.

The costs

Switching from one provider to another costs nothing , except for any stamp duty and security deposit (or guarantee). The security deposit is an amount the provider can request when signing the contract and must be returned within thirty days of the contract termination, including legal interest. Discover the offers for 2018.

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Only light

Engie Italia spa: Energia 3.0 light – Price fixed for 1 year – Estimated annual cost €580 AGSM Energia: AGSM TOP MONO – Variable price – Estimated annual cost €587

Gas only

Engie Italia spa: Energia 3.0 light – Price locked for 1 year – Estimated annual cost €885 Gas Sales: GAS 2.0 –  Price locked for 1 year – Estimated annual cost €885. Finally, we wonder how much it's worth to sign up for a combined "electricity and gas" plan from the same supplier, rather than signing up for two separate contracts for electricity and gas. Often, the resulting annual cost is the sum of the two separate plans from the same supplier, so in most cases, there's no additional savings. Happy saving!