Index Price Electricity Solution

When choosing your electricity plan for your business, you must make many decisions, including how much risk you’re willing to take on. An index price electricity plan is an excellent choice for companies looking for greater flexibility at lower rates. By partnering with Freedom Energy for all your electricity needs, you will have a team of experts to help you secure an optimal energy solution for your business.

An index price electricity plan is when a provider ties the price of your electricity to another underlying variable. For some providers, this variable can be a publicly available index such as the monthly closing price of natural gas.

Your electricity provider must fully disclose the underlying variable they will use to calculate your bill. Consumers also have the option to fix their index rate for the length of their contract based on the closing price on a specific date.

When considering if index price electricity is right for your business, it’s essential to weigh factors like risk tolerance. Our team works directly with clients to understand their business objectives as well as considerations like:

• Is your business more likely to be aggressive or conservative regarding electricity index rate risks?
• Are your current electricity options making you more likely to take on a higher level of risk?
• What are your priorities as a company — price certainty or cost over time?

Index price electricity plans are ideal for companies with large budgets, as they enable these organizations to pursue competitive pricing while capitalizing on value. Some additional benefits of pursuing an index price electricity plan are:

• More flexibility at lower costs over time compared to plans such as a fixed price contract.
• You will pay commodity closing costs without the risk of hedging into future markets.
• Opportunity for better performance — if markets do not perform as predicted on the day you execute your commodity agreement, your index price electricity can outperform fixed rate contracts.

When you choose Freedom Energy for your energy needs, we can help establish agreements that automatically execute when the markets reach the desired price. As a team, we will work to understand your electricity objectives and find the right solution for your specific goals. We invite you to complete our online contact form to learn about our electricity solutions.