Read our latest article by Business Development Manager, Glen Christie on progressive purchasing – an energy contracting option.

Progressive purchasing – an alternative to locking into an energy contract

Progressive purchasing allows corporate users to spread their timing risk by progressively locking in their energy prices over a long period, helping to smooth out the market highs and lows. Therefore, avoiding the timing risk of being forced to lock into a contract at a high point in the market.

Typically, this option has only been available to very large electricity users, but now smaller customers have access to the benefits of progressive purchasing without the complexity.

The Step Index Platform is used by those businesses who want to manage energy risk.

So how does it work?

In a nutshell, by using the Step Index platform a business will buy a small amount of energy every day. This strategy avoids price peaks and troughs and instead gives the customer an average price.

The key principle is the longer your indexing period, the better, as your average price is more stable.

What if prices go down and I want to exit?

Customers are not locked in and can opt for a ‘early closeout’ should the market reach a certain price, and they wish to fix the remainder of their contract at that target level.

If your business is interested in learning more about this progressive purchasing platform, send an email to energy@sustainablees.com.au or fill out our contact form.