Understanding Forward Locking Rates (Future Dating Contracts)
Did you know forward locked rates are typically always better than immediate starts?
And that natural gas prices affect electricity rates and those rates are different based on its utility zone, in the image are Oncor, AEP & CenterPoint in Houston.
In the image below, you will see regardless to the fluctuations in the market... The rates are lower the further the contract is out!
The Yellow line (2023) rates are typically always better than those on on the Gray line (2022). And the Orange line (2021) is typically always better than Immediate Starts (Blue line).
The best way to take advantage of current low market prices while still in a contract may be to contract your next energy term.
So, if your existing supply contract is due to expire between now and December 2021 or 2022, now could be a good time to lock in a low fixed rate starting now.
You don’t have to wait until your existing contract is coming due for renewal to start thinking about your next contract. It’s best to negotiate rates while the market is low! As you will either find a savings or price protect your business.
Regardless of which option makes sense for you, energy prices going down is generally good for your business. As your trusted energy consultant, we encourage you to take a proactive and forward looking approach to purchasing your energy.
Locking in a price at any particular point in time is a risk management strategy not simply a mechanism for timing the market.
Now is the perfect time to either find you a savings for your business... Or price protect your business!
We can help you develop a long term procurement plan and provide expert guidance on purchasing energy in timely increments to achieve your budget and cost management goals. Scroll down our profile to see our products.
Send us a copy of your commercial electric bill and allow us to pull your historical usage and we can have a quote for you in less than 24 hours.
Allowing us to quote puts you in a Win Win scenario... you will need to get the best rate from earth or your current provider would have to adjust their plan to compete with us either way you win!
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