Fixed-rate plans lock in a single price per kilowatt-hour for the duration of your contract. They offer budget certainty and protect you from market volatility because your rate doesn’t change regardless of wholesale price swings. These plans are ideal if you value price stability and predictability when planning your operating expenses.
Indexed plans, sometimes called market or variable rate plans, tie your rate to an underlying market index. Your price may fluctuate monthly or hourly based on wholesale market conditions. Indexed plans can offer savings when market prices are low, but they also expose you to potential increases during periods of high demand or fuel cost spikes. They suit businesses with risk tolerance and operational flexibility.
Choosing between fixed and indexed plans depends on your appetite for risk and your ability to adjust usage. A hybrid approach is also possible: some suppliers offer products that blend fixed and indexed components. Review your historical consumption patterns, cash-flow requirements and market outlook to select the plan that aligns with your goals.
Need help evaluating fixed versus indexed plans? Contact us for a tailored analysis of your options.