Ecopower distributes among its customers the power from its own cooperative production installations, from friendly cooperatives and from the cooperatives that inject the surplus of their solar panels into the power grid. The organization does not make any profit on the supply of electricity, which means that it has been much cheaper than the other energy suppliers to date.
On an annual basis, Ecopower does have sufficient green civilian electricity to cover the total supply, but at some times there is electricity and at other times there is a shortage. The prices at the time of sale are much lower than the price at the time of purchase. The result is that the costs for the supply of electricity by all developments in the current energy market are rising sharply.
The price increases that Ecopower has already implemented on 1 January and 1 July 2022 were limited and now appear to be insufficient to cover the real costs. According to the organization, the price increase and the change in the price system that will take effect on November 1 are not aimed at generating a profit, but to cover the real costs and to avoid large losses in the last quarter of 2022. With the changes from 1 November, Ecopower will monitor the financial health of the cooperative.
From now on Ecopower will use a price formula that charges half a fixed price of 23 euro cents per kilowatt hour and half the weighted average of the hourly prices published on the spot market per month. Ecopower only knows this variable part at the end of the month, which is why it publishes an estimate in advance. For November 2022, for example, that is 89 euro cents per kilowatt hour.
Based on 50 percent to 23 euro cents and 50 percent to 89 euro cents, Ecopower customers pay 56 euros per kilowatt hour for electricity. This excludes grid costs, VAT and levies, so that the total price would be 73.5 euro cents per kilowatt hour in the calculation example.
The graph above shows the electricity price excluding VAT on the EPEX market (blue), the current forecast of the future market price (yellow) and the Ecopower price (only the electricity part, green).
In the long run, Ecopower aims to have sufficient electricity available at all times to meet the demand of its members. The cooperative proposes to do a lot of research into automatic control, storage and behavioral change. In a first step, a dynamic price formula will be introduced for customers with a digital meter who have the option of automatically steering based on price signals.