Whereas a Fixed contract has all the cost elements locked in for the duration, including the commodity or energy element, a Flexible contract does not have the energy part factored in when the contract is signed.
Non Commodity Costs can be Fixed or Pass Through in a Flexible energy contract but the energy pricing is done throughout the duration of the contract – you will always be supplied energy and to set the price of your energy it is done through trading.
HOW DOES IT WORK?
Your baseload level is calculated based on your annual consumption, and this volume can be ‘traded’ in the wholesale markets. The volume outside the baseload level can also be traded or just priced using another calculation
- Swing Premium – this use is given a one off charge. The more you use in the peaks the higher it will be
- Residual – the ‘shape’ that’s not baseload can be traded i.e. Peak or Overnight periods
- Cash-out – what you use, or don’t use, can be priced against an hourly index. So if you use less in the expensive periods it helps bring your bill down
WHAT IS FLEX TRADING?
DB Group’s Energy Trading and Risk Management team have relations with the trade and optimisation desks of the suppliers and work with you in procuring energy through Flex Trading.
We follow, analyse and report the markets and let you know what the prices are doing and forecast where they could be going. It is in our best interests to know when and how to get the best prices and keep you updated every step of the way, including
We don’t just buy power and gas for you, but can sell it back to suppliers to achieve better rates that go into your monthly bill.
WHO ARE THEY FOR?
Our blog post here may provide more information but generally for electricity most suppliers will accept your HH portfolio or HH+NHH if it’s around 8GW per annum or higher, and gas if you use over 100 therms of gas per day which is an AQ of roughly 1GW and above.
- Advantage: Take advantage of falling market prices during your contract period
- Flexibility: There are many different pricing mechanisms to use, from trading to published index to settlement
- Extend: at any time to take advantage of longer dated prices if that suits you
- Hands off: once signed your contract will run for the duration and shouldn’t need any further involvement
- The price is the price: Whatever price you achieve (trading, going on an index or settlement) is the price you pay, there is no mark up like Fixed energy costs
- Wholesale prices: if the market starts to rise you need to react straight away so you aren’t paying high prices
- Strategy: you need the right strategy for you. There isn’t a one size fits all. Talk to our Energy Trading & Risk Management team to find out more
- Involvement: Monitoring the wholesale market, calculating & forecasting budgets takes time. With our access to trading screen, market intel, weather systems and experts we are here to work with you, or take the resource off your hands
- Experience: Knowing what the market is doing and the right time to buy is paramount. Take on board our reports and make your own decisions or talk to DB who will advise accordingly