Index based (variable) Price Strategy
An index-based price strategy offers the flexibility of pricing that reflects wholesale market conditions and often includes the ability to make adjustments when the market drops.
- Index-based pricing offerings from electricity suppliers, based on regional wholesale “spot” market without market risk premiums
- Often provides flexibility to respond to favorable market conditions while floating on market prices
- Additional potential savings opportunities for clients whose energy usage tends to be traditionally off-peak hours and those who can adjust their energy consumption to better take advantage of lower priced periods
- Potential risks include market risk when electricity prices are highest or have sustained upward trends (allows for potential savings, but at times you could be subject to the highest prices)
What if I’m not sure if an index-based price strategy is the best option?
Patriot Energy Group also offers a flexible, “light” plan in addition to our standard Independence Plan contract, which allows an initial 90-day trial period. At the end of the 90 days you may extend your contract, opt-out entirely, choose a fixed rate strategy, or choose a hybrid strategy.
Can I choose an option that allows the benefits of an index-based price strategy but also mitigate my exposure to the highest prices?
Yes, Patriot Energy offers a variety of hybrid strategies that can help you do so. Take a look at our hybrid strategies (link to hybrid strategies) or have a representative contact you.
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