Fixed Price Strategy

A “fixed” price strategy provides businesses the ability to secure an all-inclusive per-unit price for a given volume and definite term for their natural gas needs. It’s a simple, stable solution for entities seeking cost stability and budget certainty.

Key Benefits

  • Cost Stability (price is protected from fluctuations in the natural gas market)
  • Potential for Budget Certainty (more easily manage your budget knowing your energy costs in advance)
  • Simplicity (limits the need to make ongoing natural gas management decisions)
  • Potential risks include market risk (in declining markets a fixed rate can lead to a higher overall cost than an index- based rate), rate changes based on material changes in usage patterns, and in certain cases, additional costs in the event of regulatory changes or commodity peak situations
  • Fixed supplier contracts may be subject to “usage bands” in which the all-inclusive price is limited to a range of usage (usually a percentage above and below historical or projected usage amount); otherwise an index or other variable rate applies to the overage or clients may be charged for the underage

Can I choose a strategy that allows the benefits of a fixed rate but also the ability to take advantage of a lower price if the market drops?

Yes, Patriot Energy does offer a hybrid natural gas strategy allowing for some amount of budget control while also providing the opportunity to take advantage of lower prices in a falling market. Speak with an energy advisor at Patriot Energy today to better assess your needs and determine which strategy is the best fit for your business.

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