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Electricity bills going down
So, 3rd month in a row electricity bills are going down, nordpool at least shows stabilization signs. Personally for me, price got down from 0.55 EUR/kwh to 0.25 EUR/kwh.
Now, the big elephant in the room: providers. How's going with the prices which was jacked up in regards to "energy costs increased dramatically". Are those prices going down as fast as they were put up?
Or maybe you will choose one of these excuses:
- Contracts are made for X amount of months with higher price with electricity vendor / DC. We are bound to it;
- Business is entirely different from homes, don't compare us!
- Our CEO bought a new girl(s) and there is demand for new yacht;
- People can pay more and they will pay more. You are free to cancel your services;
- Our pricing schema revised once in 24 months. Maybe after revision we will offer some discounts;
Comments
We did not increase existing Customer prices - but - not a single datacenter that we use globally has so far reduced the prices of electricity charged.
Even tho the energy situation in europe is interesting, i have not done any pricing adjustments so far.
In general:
An important thing to keep in mind, when it comes to datacenters, is that just because energy pricing fluctuates on the open "market", most sensible companies will have longer term contracts with fixed/predictable pricing with their energy suppliers. So even if the rates where to permanently go to a lower level on the market - it will likely be months or in some cases years before the pricing goes down for data-center tenants.
The other thing is long-term predictability. Just because "market price" is now X, does not mean that when fall comes around (as electricity is somewhat interacting with the gas price - wich will fluctuate depending on the season/depand/temperatures). Personally i'd rather have a stable price and not adjust every few months, as this avoids giving users a "roller coster" ride when it comes to pricing.
Third, but not last, your "25 cents per kwh" quote is just the baseline. In any normal datacenter application you also have to factor in the additional electricity usage for cooling, ....
@LTniger which eu country are you from?
Lithuania. Hence the nickname: Lithuanian niger. Nigerian citizen living in Lithuania
Nice.
It won't happen for a while, no one likes uncertainty.
Thanks for making me laugh, I have 0 way of checking the current price except calling the provider.
EU is still a no-go for new deployments(at least in my case, colo).
Politics are all over the place, and electricity is especially fucked.
A few providers in the EU I talked to, got 1/2 year power contracts which guarantee no power increase, but yeah - its still expensive and uncertain.
I wish it changed, but I doubt it will happen anytime soon.
Many (not only EU) countries make a distinction between the electricity prices that private consumers pay and the electricity prices that businesses pay, not to mention that electricity prices can vary significantly across countries (even within the EU)
Which means that what you happen to pay in Lithuania ("Personally for me") may not indicative of much at all, as far as businesses in other countries are concerned
Lithuania had hoghest rates of kwh when icrease hit. So it is safe to say, that if there is price decrease on my country - this also happens in other EU countries which are trading in nordpool.
Now, private vs business - business always receive lowest possible rates due to massive usage. So if homes get 0.25€, business can get way less then that.
Anyway, tendency to not decrease prices as fastas they come up is clear. Greed is playing a nasty role.
Perhaps providers are waiting for the situation to stabilize. You'll never know when a global superpower would decide to blow up some pipelines to sell its gas at 4 times its domestic price.
When the remaining pipelines were blown up, you could be sure the situation had stabilized.
(3) is most likely. Yacht prices are still increasing.
As a rule, with very few exceptions, I have not seen climbing prices due to external costs returning back down in my lifetime. The few exceptions are some commodities like fuel, coffee...etc... I don't expect the providers that hiked up the prices due to energy costs to reduce them again.
In the UK at least, the usual strategy is to subtly reduce the size of products while maintaining the same price. Often in percentage terms, these end up being much more than inflation - e.g. a pack of biscuits going from 8 per pack to 7.
With fuel, the usual strategy is to increase the prices within a day or two of any world event that increases prices, but then take a month or two to lower prices gradually on the way back down.
Lucky you in LT, here it climbed from ~0.25/ two years ago to 0.55 today and will decrease to 0.45 two months from now (for private consuming).
i think this entire nordpool thing is crap. if you take a look at their sudden price increases and power demands on graphs/reports, it looks very dodgy. everything there seems to be like "price increase on demand". this nordpool project needs big reforms.
You are correct 100%, but this is not aligned with fat bosses feeding from this pool.
Equinix and Cyxtera even increased 15% per additional kVa this year.
Are they really? I'd expect with all the Russian yachts taken offline from sanctions and sold at auction would bring the global prices down.
If you have to ask, you can't afford one. I didn't ask.
Our data center just sent an email saying electric is going up in cost. We are not in normal times right now. I trade commodities. Right now 1 million metric tons of Natural Gas is about $2, the lowest it has been since they started charting natural gas prices. Is your home NG bill less or more this year? Commodities in energy are very manipulated right now because of the war. Basically we want everyone to buy energy from us not Putin until the war is over and fake lower prices accomplishes that.
At the datacenter provider level I am yet to see even one example of a facility that increased prices as electricity was becoming (in 2022) more expensive reduce or eliminate the surcharges. Such is inflation... prices go up, and very rarely come back down.
Yeah I literally have not had any bills go down at all in the last 3 years or so lol.
I did notice that the retail price of eggs at the grocery store has started to come down...
Otherwise it is still inflation hell here in Florida.
Where there is also a situation w yachts
Are you business customer? For private users it was 0.24€ before 2023 and 0.28€ until July with state compensation here in LT. There could be some different cases, but majority of users should pay these rates.
If try to follow this all electricity liberalization scam, last years we're going through, then yes, now electricity price in market is going down. But that is not so unexpected when economy is slowing down.
Mine's the highest it's ever been for eggs, but in Canada, our eggs system is a bit fucked.
We pay around 0.16€ kw/h, plus VAT.
Nothing changed much here in terms of electricity price. But did so for other commodities etc.
we pay something
idk
as far as i can tell we can afford it so its cheap
also honestly the prices in india haven't really rose up