Fixed or variable price product – which is right for you?

As of 1 May this year, the natural gas market in Latvia is fully open, giving customers broader choice and more flexibility when choosing the right natural gas product and supplier.

Statistics show that Latvijas Gāze is the number 1 choice for customers when it comes to natural gas. We believe that product offers should be simple, understandable and transparent.

What should I pay attention to when choosing the right natural gas product for my home?

  • The price of natural gas – when comparing different natural gas product offers, please pay attention to the price as it may be indicated with excise duty and VAT or without (only the price for the natural gas).
  • The type of natural gas price – fixed or variable.
  • Frequency of price changes – if the conditions provide for a variable price, how often it can be revised, check how you will be informed.
  • Whether or not there is an early termination fee – flexibility of the offer chosen if you want to change it at some point, whether or not there is a fee.

There are two types of pricing products available to household users of Latvijas Gāze fixed price products (UNIVERSĀLAIS pakalpojums and FIKSĒTAIS) and variable price product (MAINĪGAIS). Below is a brief description of the main features of each product.

Fixed price product – the price of natural gas is fixed for a certain period of time, with a guarantee that it will not change. That is the main advantage of this product – it gives a feeling of security. If you plan your family’s monthly budget and expenses, a fixed price product is the right choice for you. It will allow you to determine the amount of your monthly invoice more accurately, so you know how much you need to set aside for its payment each month. Your invoice may go up or down depending on your consumption of natural gas, so we strongly recommend that you make sure that you use your natural gas energy efficiently in your home, but the price you pay per unit of natural gas will remain the same during the trading period.

Is a fixed price product right for you?

We offer two periods for which you can fix the price of natural gas – 6 months for the UNIVERSĀLAIS pakalpojums or 12 months for the FIKSĒTAIS product.

With the UNIVERSĀLAIS pakalpojums, the price of natural gas is fixed for 6 months, so you can plan your monthly expenses for the next 6 months and not worry about what happens in the natural gas market. The UNIVERSĀLAIS pakalpojums is concluded on the terms of an open-ended agreement, which means that it is a flexible product and allows you to change your choice at any time in favour of another offer. In the event of a change, there is no termination fee, as this product does not have one. Although the price is fixed for 6 months, the agreement is open-ended, which means that you do not have to keep track of the agreement, as it will remain in force after 6 months, only with a new price for natural gas according to the situation on the natural gas market. We will inform you in advance of the price for the new 6-month trading period. You can use the UNIVERSĀLAIS pakalpojums both if you use natural gas for cooking and if you use it for heating. The price is set according to the purpose of use. Predictable, safe, flexible and without additional costs in the case of a product change.

If stability and security are your primary concerns when considering offers, then fixing the price of natural gas, especially as the heating season approaches, is advisable. The FIKSĒTAIS product provides a 12-month natural gas agreement with a fixed price that will remain unchanged throughout the term of the agreement. This product includes a termination fee, which means that if you choose a different product or a different provider, you will be charged an early termination fee. The early termination fee is calculated in proportion to the remaining term of the agreement, so the shorter the period until the end of the agreement, the lower the early termination fee. When the end of the agreement approaches, we will inform you in advance and offer you a new agreement with one of our most up-to-date products.

Variable price product – for this product, the price of natural gas varies according to what is happening on the global natural gas market. The agreement is open-ended and there is no early termination fee, which means you can choose another product that suits you better at any time.

When choosing this product, you should bear in mind that the monthly costs will be slightly more difficult to predict than for a fixed price product. In the event of a price change, which may not be every month, you will be informed 30 days in advance of the price change, which will allow you to always assess in advance whether to stay with your current MAINĪGAIS product or to conclude a fixed price agreement, for example. However, if you are moving home quite often, a variable price product can provide the flexibility you need (this is also an advantage of the UNIVERSĀLAIS pakalpojums with a fixed price for 6 months), making it easy to change to another product that suits you better. Although the monthly cost is variable, with the MAINĪGAIS product, the annual cost may be lower than if you have a fixed price for a fixed term, when natural gas prices fall on the exchange, because the risk of price fluctuations is borne by you and not by the trader.

Once you have chosen the type of product that suits your daily habits, it will be easy to conclude an agreement. Click here to

CONCLUDE AN AGREEMENT

Log in with your online banking or e-signature details, fill in the required information about the object and you will receive the agreement in your e-mail.

To ensure long-term satisfaction, it is important to choose a provider that offers not only competitive prices but also reliable energy supply, customer service you can rely on, flexibility to meet your needs and a great customer experience.

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