3. Select an energy supply contract

3.1 Example 1: fixed-price contract

A textile factory consumes an average of 80 MWh per month. It is offered a 3-year fixed-price contract at €110/MWh.

Annual cost of energy consumption (excluding taxes and network) equals monthly cost 80 MWh/month x €110/MWh, i.e. €8,800/month. The annual cost is therefore €8,800/month x 12 months = €105,600/year.

• If the market price rises to €130/MWh in the second year, what would her annual cost be with this new price if she hadn't opted for a fixed contract? Annual cost with the new price: (80 MWh/month x €130/MWh) x 12 months = €124,800/year

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