Businesses can choose from a variety of electricity supply plans in deregulated markets. The most common is a fixed‑rate plan, which locks in a single per‑kilowatt‑hour rate for the length of the contract. Fixed plans provide budgeting certainty and protection against market volatility.
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Variable‑rate plans, by contrast, float with changes in the wholesale market. The per‑kWh price is reset periodically based on current market conditions, so bills may go up or down from month to month. Indexed plans tie the customer’s rate to a published market index—such as a day‑ahead or real‑time wholesale price—plus a supplier margin. These plans can offer savings when wholesale prices are low, but there is no cap if prices spike.
Some suppliers also offer block‑and‑index plans. Under this hybrid structure, a portion of the customer’s expected usage is purchased at a fixed price (the block), while the remainder is billed at a market index rate. This approach provides partial price stability while allowing the business to benefit from lower market prices when they occur.
Other specialized options include green or renewable energy plans that source electricity from wind, solar or other renewable resources, and plans with demand‑response incentives that reward customers for reducing load during peak events. The right plan depends on your company’s risk tolerance, consumption pattern and sustainability goals.