The world of third-party electric supply can be a complicated environment to navigate. Prior to committing to a contract, be sure to understand the various product offerings to ensure product selections align with your business goals.

Determining Priorities

When choosing an electricity product, it is important to understand your own business goals and level of risk tolerance.

• Cost Savings: An index product may be the right fit for businesses looking for low cost premiums and comfortable with market risk. An index product can lock in various components of the supply portion of your bill, while passing through the energy cost itself. These variable-rate plans fluctuate with market conditions, offering savings when prices are low but exposing you to potential increases when the market spikes. While you may encounter higher bills during volatile periods, maintaining your strategy often leads to cost savings over the long term.
• Budget Certainty: Many businesses see a great deal of value in being able to set energy budgets for an extended period. For more risk-averse businesses, fixed rate products offer more predictable monthly costs, making financial planning easier and protecting against market volatility. These products often come with price premiums to an index product.
• The ‘Just Right’ Approach: If you seek a healthy balance between budget certainty and market risk, consider a hedging strategy. With a block and index product, you can lock in non-energy components as an index adder. Once you purchase an index product, you can secure percentages or volumes of your energy load over time, allowing the remainder to float on the market. This approach allows for flexibility to react to changing business needs and an evolving energy market. This approach ensures budget certainty up to a certain amount while still allowing you to take advantage of dips in the market.

The Role of an Energy Advisor

Energy markets are volatile and complex, often leaving the decision makers to react with uncertainty. A reputable energy advisor at Atlas Retail Energy (ARE) can help you navigate the intricacies of choosing an electricity supplier and a go-forward energy plan. An advisor will serve as the intermediary between your business and potential suppliers, offering several key benefits:

• Expertise and Market Knowledge: Advisors have in-depth knowledge of the energy market, including trends, pricing, and supplier reputations. They have access to and understanding of data feeds to help analyze historical trends and futures trading to guide your decision-making.
• Access to Multiple Suppliers: Through years of experience, advisors will have established relationships with multiple suppliers, providing access to a wider range of options and potentially better rates.
• Time Savings: Going through the process of evaluating multiple suppliers and products can be daunting and time-consuming. Advisors can streamline this process for you through the handling of negotiations, comparisons, and contract reviews, allowing you to focus on your core business.
• Customized Solutions: Your advisor will assess your needs, goals, and consumption patterns to recommend tailored solutions.
• Ongoing Support: Throughout the contract term, advisors will provide ongoing support in the form of detailed performance analysis, future market advice, and hedge strategies.

Recap

Choosing the right third-party electricity supplier and product is a unique process involving understanding your options, assessing your energy needs and goals, comparing plans, and considering market conditions. An ARE advisor can aid in this process by providing expertise, saving time, and offering access to a broader range of suppliers and solutions. By taking advantage of the help of an advisor, you can make a well-informed decision that aligns with your financial goals and operational needs.

For further assistance in selecting the ideal electricity supply product, feel free to reach out to us at Atlas Retail Energy. Our team of experienced energy professionals is here to help you navigate the process and find the best option for your needs.