Pricing Options Available with Competitive Suppliers
Company’s have options when it comes to choosing their generation supply. Their decision should be based on the Company’s business goals & objectives.
If your Company’s goals and objectives are to stabilize the generation supply cost over a period of time, then a fixed price contract for a 1, 2, or 3 year term should be the option of choice.
If your Company’s goals & objectives are to maximize savings, then a market-based index pricing option should be studied to determine potential savings.
ALLMass Energy, LLC has the ability to provide you with an analysis of what your cost would have been over the past 12 months on a market-based pricing option. The study normally yields a savings of between 10 – 15%.
Fact: 1. On a fixed price contract the competitive supplier takes the risk and keeps the 10 – 15% as profit.
2. On market-based contract you assume that risk and keep the 10 – 15% as savings.