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Fixed price and price guarantee.

Predictability needs a clear scope.

Understand the term ↗
ENERGY GLOSSARY / ALL TERMS ↗

Procurement

What do fixed price and price guarantee mean?

A fixed price establishes a contractually defined price for a period. A price guarantee describes which changes are excluded. Without the associated contract terms, neither expression means that every component of the energy bill remains unchanged.

Check price coverage, guarantee period, volume provisions and adjustment clauses. Supply duration and price guarantee duration may differ. A professional portfolio must also consider whether new or removed supply points fall under the same agreement.

AT A GLANCE

  1. Price coverageWhat is fixed?
  2. PeriodHow long does the commitment apply?
  3. ChangesWhich clauses apply?
NeoBid’s own overview.

PROPERTY PRACTICE

What does this mean for your portfolio?

Before approval, prepare a short comparison showing the fixed energy component, variable pass-through items, start and end of the commitment, and rules for demand changes. This is more useful for internal budget approval than the general label “fixed price”. Planned disposals or refurbishment should also be addressed before signing.

An example.

Our own practical example: an office portfolio fixes the energy component for two years. Its budget must still account for other billing components that remain variable under the contract. An additional heat pump may also increase volume even though the unit price is unchanged.

This is a review framework, not an interpretation of a specific supply contract. Individual clauses must be assessed against their actual wording.

WHAT MATTERS

Three questions for your portfolio.

01

Exactly what is fixed, and for which period?

02

Which adjustments remain possible?

03

How are volume and property changes handled?

Make the distinction clear

Stable prices, stable volumes and stable total costs are three different things. A fixed price also does not guarantee, in hindsight, the cheapest purchasing date.

Sources reviewed: 18 September 2026 · Editorial team: NeoBid

Federal Network Agency · Energy prices and price components
Federal Network Agency · Supplier switching: technical process and contractual commitment

Examples and diagrams are schematic. Their application depends on your data and contract terms.

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35 terms

Markets and prices

Baseload

In electricity trading, baseload describes a standardised profile with constant power throughout the defined product period.

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Markets and prices

Capacity charge

A capacity charge prices the power demand relevant for billing, often in euros per kilowatt per year.

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Property practice

Communal electricity

Communal electricity is a common term for electricity used by shared areas and systems within a building.

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Data and metering

Energy supplier

The energy supplier sells and supplies energy under a supply contract.

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Procurement

Fixed price

A fixed price establishes a defined price for an agreed period.

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Markets and prices

Forward market and forward price curve

Products for future periods are traded on the forward market.

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Procurement

Full supply

Full supply is a model in which the supplier covers agreed energy demand and takes on key procurement and settlement tasks.

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Data and metering

Gas conversion factor

The gas conversion factor is a dimensionless factor used to convert measured gas volume from operating conditions to the specified standard conditions.

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Sustainability

Green electricity and additionality

Green electricity describes electricity products with agreed renewable origin characteristics.

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Data and metering

Gross calorific value

Gross calorific value describes a fuel’s energy content under defined conditions and includes heat recoverable when water vapour condenses.

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Green electricity and evidence

Guarantee of origin

A guarantee of origin documents the renewable origin of a quantity of electricity.

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Data and metering

kW, kWh and MWh

The kilowatt (kW) is a unit of power.

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Data and metering

Load profile

A load profile describes how energy demand is distributed over time.

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Data and metering

Market location

A market location is a place in the energy market where energy is generated or consumed.

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Markets and prices

Merit order

The merit order describes a supply ranking ordered by costs or bid prices.

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Data and metering

Meter number

The meter number identifies a specific metering device.

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Data and metering

Metering location

A metering location is the place where energy is measured.

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Data and metering

Metering operator

The metering operator is responsible for operating the metering point.

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Markets and prices

Network charges

Network charges pay for use of the electricity or gas network.

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Data and metering

Network operator

The network operator operates the local energy network and enables energy transmission or distribution within its area of responsibility.

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Markets and prices

Peakload

Peakload describes a standardised electricity trading profile covering a defined subset of hours within a product period.

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Procurement

Power purchase agreement (PPA)

A power purchase agreement is an individually negotiated electricity offtake contract.

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Procurement

Price guarantee

A price guarantee is a contractual commitment to keep specified price components stable for a defined period.

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Property practice

Property changes and vacancy

Property changes or vacancy may alter a supply point’s use, contracting party and consumption.

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Procurement

Residual electricity demand

Residual electricity demand is the electricity requirement that must be covered in addition to defined self-supply or allocated deliveries.

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Data and metering

RLM – interval demand metering

RLM refers to recording power demand at successive time intervals.

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Data and metering

SLP – standard load profile

A standard load profile is a typical consumption pattern over time.

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Procurement

Spot market and indexed procurement

Energy is traded at short notice on the spot market.

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Markets and prices

Standing charge

The standing charge is a fixed, time-based tariff component, such as an amount per month or year.

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Property practice

Supplier switching and notice periods

Switching supplier replaces the energy provider at a supply point.

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Procurement

Supply point aggregation

Aggregation combines several supply points in a single procurement process.

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Property practice

Tenant electricity

Tenant electricity describes a supply model for building occupiers, often incorporating locally generated solar electricity.

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Procurement

Tranche procurement

Tranche procurement spreads price fixing for the expected demand across partial volumes and several purchasing dates.

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Markets and prices

Unit rate

The unit rate is a price related to the amount of energy consumed, for example in cents per kilowatt-hour.

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Procurement

Volume tolerance and excess or shortfall

A volume tolerance defines a contractually agreed range around a reference volume.

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YOUR NEXT STEP

Let’s start
a conversation.

In our first meeting, we discuss your portfolio, upcoming contract deadlines and objectives. Together, we identify useful documents and next steps. You do not need a complete dataset to get started.

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