Understanding Fixed vs. Variable Energy Contracts: Insights from Engie CEO

2023-06-30 06:18:00

This Friday, Thierry Saegeman, boss of Engie, was the guest of 7:50 Bel RTL Matin.

An important question that still bothers many people: is it more interesting to take a fixed or variable contract? “It depends on customer preferences“, he notes.”The fixed contract is there for customers who need stability and who would be willing to pay a premium. Prices have come down well, but remain high compared to before 2021“.

The variable contract, the prices are more competitive, but they can go up and down depending on the market“. But then, with the agreements reached with the government, the price could therefore fall more than go down? It’s not that simple, according to Thierry Saegeman.

Gas and electricity prices fluctuate depending on what is happening in the world, as we have seen with the crisis in Ukraine. I don’t have a crystal ball, so it’s hard to say“, explains the boss of Engie.

What about the contract of the Engie boss himself? “I have a fixed contract for now“, he assures Christophe Deborsu.

Tihange and Doel will normally be ready for 2025

After long negotiations with the government, Engie managed to obtain the extension of Tihange 3 and Doel 4, two nuclear reactors. Only, why two and not the five available in the country?

‘Cause that was the deal that was struck“, explains the boss of Engie. “We never asked for five, because two was the most feasible. The others are no longer technically extendable, because they no longer correspond to the standards in force.“.

Only, this extension is being prepared. Tinne Van Der Straeten, Minister of Energy, estimates that we will have these reactors for the winter of 2025. But are we at Engie so sure? “To restart, we must have fuel and be sure that the facilities are safe as well. There is still a study and realization path to be done, but our teams will do everything to get there.“.

When Christophe Deborsu, at the helm of this interview, asks what percentage of chance Thierry Saegeman estimates that the reactors will be operational by 2025, the boss of Engie remains vague. “We will do everything to succeed, it’s never 100%, but we will do everything for it, because it will be good for prices, for the consumer. There would no longer be these price peaks that we experienced in the summer of 2022“.

7:50 a.m. on RTL
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