Choosing The Right Energy Contract For Your Needs
In short, it’s generally agreed that long-term energy contracts are favorable when market prices are low, and short-term contracts are favorable when prices are high. The longer-term option allows you to lock in low energy rates, while shorter-term plans can act as hold-over agreements when waiting for prices to fall.
Choosing to go long or short, however, is based on your individual energy needs. If energy costs are an important factor in your business’s profitability, then you might want to consider getting more aggressive with trying to time the market. If budget certainty is more important to your organization, then a long-term deal might be right for you.
Need Help Deciding On Your Next Energy Contract?
If you are thinking about renewing or switching your energy contract, or your energy contract is nearing its expiration date and you’re deciding on your next move, we can help! Our team of energy contract experts has over 100 years of combined experience advising our commercial and industrial customers on energy contract terms and conditions. Contact us today to start the discussion.