We are accustomed to fixed prices in the free market for electricity contracts, tied only to an inflation index.
Similarly, regulated consumers pay fixed tariffs that are adjusted annually.
However, in reality, we know that there is a list of variables that change costs in real time, even significantly:
The level of hydroelectric reservoirs (rainfall),
Market demand according to economic activity (GDP),
Supply involving the entire production chain of the electricity sector,
Climatic phenomena that can interfere with energy delivery,
Limitations caused by accidents and/or incidents,
Etc., etc.
The conclusion is: energy costs are indeed variable. It would be more competitive if we recognised this reality and made the price and tariff modelling more aligned with the costs actually incurred.
I suggest we delve into this topic to explore the possibilities for achieving a new level of quality in the electricity sector.