Ostrom Preisbremse: Energy Price Cap for Peace of Mind


Dolly H


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Introducing the Ostrom Price Cap: Protection against high energy costs

In recent years, global energy markets have seen large fluctuations caused by events such as Russia’s war on Ukraine — leading to a surge in electricity costs. The "Strompreisbremse" initiative was Germany's answer to offer consumers relief from rising prices. But as 2023 came to an end, Germany announced its Strompreisbremse would, too. Spurred on by positive energy industry trends, it does reflect good news to some extent but leaves customers wondering about negative impacts on their energy costs. This transition, however, is met with a brand new initiative from Ostrom for electricity price protection.

The Importance of Electricity Price Protection

The discontinuation of the "Strompreisbremse" signifies a noteworthy shift in Germany's approach to managing energy costs. While it highlights an overall positive trend in energy, it also presents a need for alternative measures to protect consumers from price surges. For many customers, particularly in Germany, a “Preisgarantie" comes to mind.

At Ostrom, our customers know, we are not keen on price guarantees. They lock customers in at a price that is often higher than market price and mean we cannot pass on price drops to customers. So while they may offer stability for managing household budgets, price guarantees exclude customers from fairer pricing overall.

Introducing the Ostrom Price Cap: A New Era of Preisgarantie

In response to the evolving energy landscape, we are instead proud to introduce the Ostrom Price Cap (Preisbremse). We will continue to offer variable pricing with our SimplyFair tariff and all its benefits but from 2024 will also offer an initiative designed to provide our customers with additional electricity price protection. This program offers value and security, ensuring that our customers can enjoy the best energy prices with added reassurance, even in a post-"Strompreisbremse" era.

Navigating Energy Prices with Confidence

Our SimplyFair customers have the choice to select this additional protection as a kind of “add-on” for an annual fee of 49,90 €. You will be billed as normal based on your consumption and averaged local market costs. However, based on an annual fee, any time market prices push your electricity costs over the agreed price, we’ll cover it. Take a look at this chart for reference:

The Ostrom Price Cap guarantees that your unit price will not rise above 35 cents/kWh* for a year. During that time you will never pay more than this price cap, even if the energy market fluctuates, and you’ll still benefit from price drops.

Shield Yourself from Rising Costs: Ostrom Price Cap

With the Ostrom Price Cap, we are committed to empowering our customers, enabling them to navigate energy bills with assurance and predictability.

The Ostrom Price Cap is available to all SimplyFair tariff customers, provided their estimated annual electricity consumption is below 15,000 kWh. It cannot be paired with our SimplyDynamic tariff. You can select it directly when you sign up to the SimplyFair tariff with Ostrom or contact us.

Find more details about the Ostrom Price Cap here.

*Price as of Feb 2024. Check the Price Cap page or talk to us for current specifics.