Fixed Price Strategy
A “fixed” price strategy, provides businesses the ability to secure an all-inclusive per-kWh price for a definite contract term (which acts as a hedge against volatile energy markets.) It is a simple, stable solution for entities seeking cost stability and budget certainty.
- Cost Stability (your price is protected from fluctuations in the electricity market)
- Potential for Budget Certainty (more easily manage your budget knowing your energy costs in advance)
- Simplicity (limits the need to make ongoing electricity 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
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 offers a variety of hybrid strategies allowing for some amount of budget control while also providing the opportunity to take advantage of lower prices in a falling market. Take a look at our hybrid strategies (link to hybrid strategies) or have a representative contact you.
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