Similar to electricity, a fixed price natural gas contract sounds simple, easy and low risk; however, the contract term and supplier are important factors. Some price components may be truly fixed while others may be passed through or adjusted. Contract provisions around consumption bandwidths, material changes, credit provisions, and changes in the law can be significantly tilted in the supplier’s favor.
Power Connection understands these contract provisions and our goal is to ensure our clients capture the desired market opportunity, avoid unwanted risk and outcomes, and achieve their specific needs. With the appropriately structured fixed price electricity contract, clients can be guaranteed a consistent rate for their electricity supply. Fixed price electricity contracts protect clients from rising market changes but do not provide lower costs in declining markets.
With the appropriately structured fixed price natural gas contract, clients can be guaranteed a consistent rate for their gas supply. Fixed price natural gas contracts will protect clients from rising market prices but will not provide lower costs in declining markets. When the utility tariff is less expensive than what can be obtained in the marketplace (as a result of market conditions and regulatory filing timing), Power Connection advises its clients and will typically recommend the client stay on tariff until conditions become more favorable.