Each of these pricing strategies hedges against inherent uncertainties. Each carries a different type of risk.
You pay a fixed price for energy for a defined period of time. Works best for businesses that require price certainty and budgetary control. 100% of the supply cost risk is on the supplier.
You pay the variable hourly price for each kilowatt-hour (kWh) of electricity consumed. Works best for businesses that can adjust their operations in response to changing hourly prices. 100% of the supply cost risk is on the purchaser.
This strategy strikes a balance between price certainty and price variability. A percentage of supply is purchased on both a fixed and variable basis. Works best for large businesses that have the ability to predict and actively monitor and manage electricity usage.
This strategy allows you to buy a percentage of your energy over time. Works best for large companies looking to secure budget stability over the long run. This option also allows you to maintain buying flexibility for market dips.