Price fixed for fifteen years. Only the CPI moves it

With Elvy your price stays fixed for fifteen years. Once a year it's adjusted by the consumer price index, the same measure that reprices most of the other things you pay for. It does not follow the spot price. So whatever the electricity market gets up to overnight, you don't need to keep an eye on it. It's a known amount, not a guess.

Below we go through what that fixed price actually means, what the CPI is, why the spot price doesn't set your bill, and what happens in the years the index moves.

That the amount you agreed on at the start is the same amount year after year. No fresh negotiation every autumn, no bill that swings with the season. The same amount in January as in July, with no upfront cost and no loan for the hardware.

The only thing that moves the price is the yearly index adjustment. Its shape is known in advance, even if the exact figure isn't. You see it coming, and it comes once, not every night.

CPI stands for the consumer price index, the measure Statistics Sweden uses to describe how the prices of the things you normally buy change over time. It's the same index behind the repricing of much else in the economy, from pensions to rents.

When your price follows the CPI it moves in step with the value of money at large, not with whatever happens on the power exchange on a windy night. A broad, slow measure instead of a narrow one that jumps.

Because the spot price is exactly what you pay Elvy to avoid. It swings hour by hour, can multiply many times over on a cold evening and fall back before breakfast. A price that followed spot wouldn't be a fixed cost, just your old electricity bill with a new name.

The point of the subscription is that the swing sits with Elvy, not with you. Elvy owns the electricity and trades it, and takes both the risk and the upside in that trade. Whatever the spot price gets up to overnight, you don't need to keep an eye on it.

Yes. If the CPI rises, so does your cost, once a year. That's no promise the amount stands still forever. It moves by a known measure and at a known pace.

The difference from an ordinary electricity bill is that you see the adjustment coming and skip the surprise in the middle of a cold snap. If the CPI falls, it can move the other way.

There is also a limit in the contract, and it sits very high. If the electricity price goes above it, we invoice the difference for the electricity we have to buy right then, with no fees. That limit has never had to be used.

So the hardware has time to pay for itself and so you can stop thinking about it in the meantime. Elvy owns the equipment, runs it and replaces what wears out, and recovers the cost over a long stretch instead of charging it all up front.

Fifteen years at a known price is also what makes it worth lifting the investment off you from the start. A short contract and a large investment don't add up.

This article doesn't say, because that would be a guess. The price is set individually from an energy analysis of your house, and it's the analysis that gives the figure, not a list price.

Elvy is available today for villas and houses across Sweden, but not yet for flats. If you want to know what fifteen years at a fixed price comes to for you, that's where you start.