The Consumer Rights Protection Centre (PTAC) in Latvia is urging consumers to be cautious before entering into contracts with electricity traders. They highlight the importance of understanding contract terms, the principles of electricity pricing, and the risks associated with specific offers. A poorly considered choice could lead to unpleasant surprises in electricity bills, making it crucial for consumers to align their contract choices with their household consumption patterns.

Currently, there are three primary contract models dominating the market: fixed price contracts, dynamic market price contracts, and universal services. A fixed price contract allows consumers to pay a stable rate per kilowatt-hour (kWh) for a set period, usually 12 or 24 months, providing budget planning stability. However, if market prices decline sharply, consumers on fixed contracts may end up paying more than the current market rates, which can be a drawback of this model.

The PTAC emphasizes that consumers should thoroughly assess their energy needs and the associated risks of the offers available to them. Making an informed decision could prevent future financial strain and ensure that consumers select a contract that best fits their usage and financial strategy.