Natural Gas Purchasing Strategies
Professionally managed, diverse energy solutions, which combine unique fixed and index rate structures
Natural Gas Fixed Price Strategy
A “fixed” price solution provides businesses the ability to secure an all-inclusive per-unit price for a given volume and specific term for their natural gas needs. It’s a simple, stable solution for entities seeking cost stability and budget certainty.
Core Benefits
- Cost Stability (your price is protected from fluctuations in the natural gas market)
- 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.