Right now, commercial and industrial electricity consumers are reeling. Whether they’re about to renew their next contract or just looking at their monthly bill, it can be hard to believe where prices are shaping up to be.
After an initial dip at the beginning of the pandemic, natural gas and power markets have rallied over the last 6 months - and in some places it’s over 100%. That means, for one of the first times in a decade, contracting for energy supply is more expensive than it was at this time last year.
Buyers are waking up in the morning “short” electricity prices. That means that prices going up hurts right in the wallet, and prices going down brings that mood back up. But this global market uncertainty isn’t going to steady itself overnight, and it’s worth thinking about how to, at best, use this fluctuation advantageously and, at least, how to make sure you don’t get taken for a very very unfun ride.
Remember, change is the only constant. And making an energy purchase right now, whether long or short term, doesn’t mean you are locking those prices in forever. Moreover, those who buy “high” right now will always have the opportunity to buy again in the future. (And, let’s be real, prices are projected to go higher before they go lower.)
But, at the end of the day, you’re looking for the best value at the most consistent rate so you can get back to business.
Here are some things you can do to lower your electricity costs right now and lock some of those prices in for the long haul. (Not all of them, of course, in case prices drop again).
Fixed Price Electricity Contract
A fixed price electricity contract from Catalyst Power will fix your prices within any start and end date combination that serves your business best. You can make that decision by yourself on our website or with the help of our energy advisers.
50% Fixed 50% Market Flex Electricity Contract
You could also talk to one of our experts and get a 50/50 contract for 12 to 36 months. This would eliminate some risk while still leaving open the option to lock in the remaining months if the market comes back down.
Connected Microgrid Solar Project
Or, if you’re really looking to make big moves for the future, you could work with Catalyst Power to develop your very own Connected Microgrid solar project which would undercut your current costs by as much as 10% over 20 years and lock in those rates for the long term (in your face, inflation). You’d still be able to ride the market for the rest of your energy needs in rolling 3 year contracts that you can bid out either on your own or in consultation with your personal adviser.
Nothing
This is actually not an option. Don’t do this.
Just because prices are up right now doesn’t mean they can’t go higher. Don’t miss out on the opportunity to take control of your power needs and manage your future overhead costs while also decreasing your carbon footprint. A win-win-win.
