- Fixed all-in price solutions give businesses the ability to secure a set price-per-kWh during a designated contract term for the generation portion of the electricity bill. The monthly bill will vary based on usage, but the rate a business pays for the electricity generation will remain the same for the contracted term no matter what happens in the market.
- Fixed all-in product includes energy and all other deregulated components.
- A fixed all-in product is a common buying option for businesses with low risk tolerance seeking budget certainty. It offers a level of predictability, which can help business owners control operational expenses. Cost control should not be confused with immediate cost savings; although a well-timed purchase can produce cost savings immediately and over time.
- Fixed all-in price product is also a very low maintenance choice. Once you have locked in your rate, you do not have to manage your electricity procurement until your contract is nearing expiration.
- Though a fixed all-in product offers you protection against price spikes, it also does not allow you to take advantage of price dips. Timing is important, business may lock into a price that seems low for the moment, but that price can seem high just days or weeks later if the electricity market drops.
- Business owners must weigh the value of waiting to see if the price dips further versus the risk of waiting too long before the prices rise.
- The certainty of a fixed all-in price does come with a cost, called a variable load cost, which reflects the variable risk the Supplier must take on by offering a fixed all-in price over a period of time.
- Swing is the amount of electricity a business customer can use, above or below, the expected usage amount before penalty charges take place. For example, a business customer who is estimated to use 100,000 kWh over 12 months and has a 10% swing variation can use 90,000 to 110,000 during the 12 months. If they use less or more than that range, they will face extra charges.