German utility RWE is planning to offer three-year fixed-price contracts to its retail clients starting January 1, 2008, management board member Berthold Bonekamp told Financial Times Deutschland, according to Thomson Financial.
Thomson Financial reported that prices would be fixed by the utility’s regional energy suppliers, while the firm itself would risk higher wholesale power prices.
The revelation comes at a time when German utilities, including RWE, are preparing to hike electricity prices by 10%. The German power market is considered to be fairly price-sensitive and this could lead customers wary of price hikes to switch to RWE.