Electricity Purchasing Strategies
Professionally managed, diverse energy solutions, which combine unique fixed and index rate structures
Fixed Price Strategy
A “fixed” price strategy provides companies with the opportunity to secure an all-inclusive per-kWh price for a specific contract term (which serves as a safeguard against volatile energy markets). For organizations seeking cost stability and budget certainty, it is a simple, secure solution.
Core Benefits
- Cost stability (your price is protected from market fluctuations)
- Budget Certainty Potential (manage your budget better by understanding your energy costs in advance)
- Simplicity (limit ongoing energy management decisions)
- Potential risks include market risk (in declining markets, a fixed rate could result in a higher overall cost than an index-based rate), rate adjustments based on material changes in usage patterns and, in some situations, increased costs for regulatory changes
Can I choose a strategy that allows the advantages of a fixed rate, but also the opportunity to benefit from a lower price if the market drops?
Yes, Selected Power provides a range of hybrid strategies allowing some budget flexibility but also offering the ability to take advantage of lower rates in a declining market. Speak with an energy advisor at Selected Power to help evaluate your needs and decide which strategy best suits your company.