Following the amendments to the Energy Act, by 1 October 2020 all small, medium or large business owners must choose their electricity provider, as from this date on, the regulated market for business customers will cease to exist and electricity supply at prices determined by the EWRC will be terminated.
Every business has its unique needs, so we at Synergon Energy offer a wide range of products to choose from based on your individual needs and consumption profile.
In this article, we will examine two of our main products and the differences between them.
Guaranteed Price – also called Fixed Price.
This product offers a fixed electricity rate for the term of the contract (up to 2 years). The price is determined on a market basis when concluding a contract – i.e. the specific price is based on the price levels on the market at that time and the futures products available on the Bulgarian and European energy exchanges for the term of the contract. This product is suitable for businesses that budget their electricity costs over a long period of time and incorporate them into their financial models and planning. Guaranteed Price protects against increases in market prices for the term of the contract, but if prices fall, the business may fail to benefit from that.
Dynamic Price – also called Indexed Price.
This product offers a price indexed to the Day Ahead segment of the Bulgarian Independent Energy Exchange (IBEX) for the contract period. Its advantage are the possibilities for cost optimization throughout the term of the contract, as well as real-time information about the price of electricity for every hour of the day. This information is available at www.ibex.bg The product is suitable for businesses that can limit their peak consumption and thus optimize their costs, as well as for companies for which it is important to buy electricity at current market levels at any time. The final delivery price is determined by the formula “IBEX price + mark-up”. The IBEX price is the specific price in the Day Ahead segment of IBEX for each hour, and the mark-up price is the commercial mark-up of Synergon Energy, which includes forecasting, balancing, financial costs and profit for the company. The mark-up is determined according to the specific consumption profile of each customer and how predictable their consumption is throughout the delivery period.
You can get more information, as well as an individual consultation and offer from our regional representatives, which you will find in the Contact Information section .