Flexible price (NordPool SPOT)

This plan suits businesses that seek the best electricity price based on the situation in the power market

Electricity price

Electricity price includes: price index + supplier’s margin

  • Price index - wholesale price in the Nord Pool power market in the Lithuanian market area.

    For example, the electricity price in Nord Pool power market on 31 December 2023 at 8 am was 44,07 EUR/kWh, and at 9 am – 60,00 EUR/kWh.

  • Supplier’s margin (fixed price component) about = 14,90 EUR/MWh.

    This margin is preliminary and depend on your consumption, balancing costs, the source of electricity, supplier’s share, your payment history, etc.

Flexible Ignitis electricity price

 Average monthly price in Nord Pool power market in 2023, EUR/MWh

Check the electricity price in the Nord Pool power market in the Lithuanian market area here

Electricity price

When should you choose the ‘Flexible price’ plan?
Saules elektrinė ant stogo

Choose this plan, if:

  • you want to save in the long term
  • you want to pay the marketprice for electricity
  • you are able to react and proportionally adjust your electricity consumption at specific periods. Electricity prices in the Nord Pool power market are provided for each hour and are known a day ahead of electricity consumption
  • you wish to have flexible contract conditions, an open-ended contract
  • you intend to buy electricity based on one of the most popular plans we provide to our B2B customers.
DETAILED INFORMATION

What should I know about the ‘Flexible price’ plan?

How is the bill for the ‘Flexible price’ plan calculated?

B2B customers pay for the electricity supplied and consumed during the reporting period in accordance with the provided VAT invoice, where we disclose:

  1. Flexible price = electricity consumption at every hour x weighted electricity price.
  2. Fixed supply margin = the sum consumption of the reporting month x supplier’s margin.
  3. Excise duty = 0.00052 EUR/kWh (for business needs). Excise duty shall not apply if the electricity is generated using renewable energy sources (RES), i.e., green energy.

We provide the bill after receiving the data from AB “Energijos skirstymo operatorius” (ESO). The B2B customers pay for the electricity transmitted and related services provided during the reporting period in accordance with the VAT invoice submitted by AB “Energijos skirstymo operatorius” (ESO).

What is a weighted electricity price? How is it calculated?

For example, weighted electricity price is different from average price because it is not the average that is accounted for, but the leverage, i.e., the price of the specific hour applied to the consumption of the same hour.

Meaning, the weighted electricity price highly depends on consumption intensity and timeframe: the more electricity is used at the hours when the price is low, the lower weighted price (EUR/kWh) will be calculated. Usually, the electricity is cheapest at night.

The weighted price is calculated by multiplying the energy consumption of a specific hour by the wholesale price of the same hour provided in the Nord Pool power market in the Lithuanian market area, and by dividing the product by the electricity consumed during the reporting month.

The hourly price of the intraday market is available at any time, and the day-ahead price – from 2 pm of the current day. The price is available publicly here.

Please note: the Nord Pool power market prices (EUR/MWh) are provided for the time zone in Sweden – UTC +2, which differs from the Baltic states by one hour. For example, the electricity price in Nord Pool on 1 April 2022 at 1 am was 111.72 EUR/MWh (0.11172 EUR/kWh), however, this price was applied to Lithuanian customers for their consumption at 2 am.

Why does flexible price differ between the companies?

Flexible price is calculated according to the weighted price, which depends directly on the price in the Nord Pool power market in the Lithuanian market area at the hour when the electricity is consumed. If electricity is mostly consumed at the hours when it is the cheapest, the weighted price will also be lower. For example:

  Consumption by company A, kWh Consumption by company B, kWh Electricity price, EUR/kWh
10 am 10 30 0,04
11 am 2 50 0,05
12 am 40 100 0,07
1 am 100 40 0,08
2 am 50 2 0,03
3 am 30 10 0,02
Weighted price, EUR/kWh 0,057759 0,061034  

So, considering that businesses consume electricity differently, the weighted price is calculated for each business individually.

How is the price calculated when electricity is consumed at an object without an automated metering?

With non-automated meters (non-smart metering), electricity consumption at each hour is distributed according to the balance graph by applying the coefficients of electricity consumption fluctuations. These coefficients are calculated by AB “Energijos skirstymo operatorius” (ESO) in accordance with legal acts based on the factual consumption of the entire Lithuania of the specific month.

The total consumption of the reporting month is multiplied by the coefficient of each hour in the balance graph, thus, resulting in individual consumption for each hour.

Example:

Day Hour Consumption per month, kWh Coefficients of the balance graph Hourly consumption data, kWh
2021-06-01 00-01 3000 0,001088964 3,27
2021-06-01 01-02 3000 0,000966541 2,90
2021-06-01 02-03 3000 0,000913916 2,74
2021-06-01 03-04 3000 0,000891321 2,67
2021-06-01 04-05 3000 0,000885769 2,66
2021-06-01 05-06 3000 0,000938268 2,81
...        

This electricity consumption is multiplied by to the price in the Nord Pool power market in the Lithuanian market area at that hour and adding the fixed supplier’s margin.

Day Hour Hourly consumption data, kWh Nord Pool market index Added fixed supplier’s margin (0.005 EUR/kWh) Total, EUR
2021-06-01 00-01 3,27 0,06198 0,06698 0,21882
2021-06-01 01-02 2,90 0,05894 0,06394 0,18540
2021-06-01 02-03 2,74 0,05650 0,06150 0,16862
2021-06-01 03-04 2,67 0,05623 0,06123 0,16373
2021-06-01 04-05 2,66 0,05558 0,06058 0,16098
2021-06-01 05-06 2,81 0,06200 0,06700 0,18859
...          
6 hours’ total value:   17,05     1,08613

The product of totalling the values of all hours is the total electricity price (EUR) and dividing the product by the total electricity consumed at the object during the reporting month results in individual average price for that month.

The example includes only 6 hours of one day, but the actual calculation includes 24 hours of all days of the month.
In the example: the price 1.08613 EUR / the consumption of six hours 17.05 kWh = 0.06370 EUR/kWh, and the VAT invoice would indicate:
3,000 kWh (the consumed electricity declared by the customer during the reporting period) x 0.06370 (the calculated price) = 191,10 Eur.

How much can a company save by choosing the ‘Flexible price’ plan?

In the long term, by purchasing electricity price under a flexible price plan, on average, a business can save 10% from the electricity supply price compared to purchasing under a fixed electricity price.

Order this plan now

After concluding the contract, electricity supply will begin from the first day of the following month or later