So what exactly is a fixed price for energy?
A fixed price in energy is given for either a pre-determined amount of energy or is given for an “all you consume”. You can think of it as either paying for an entire dinner or returning again to the buffet tables.
In the instance of a fixed price with a closed or set amount, the amount of energy used that exceeds a customer’s historical usage is charged at market price there the market price must be defined in the agreement.
Under a fixed price for open quantity agreement, all usage should be charged at the same rate. If there are circumstances beyond what is considered normal, other costs can be passed through; those circumstances must be defined in the agreement. Typically an examination of these terms doesn’t take place until the circumstances arise.
A winter vortex is anything but normal conditions.
Niagara Falls has frozen due to the 2014 Winter Vortex
The costs for delivering energy this winter has far exceeded any reasonable planning. Hence utilities and marketers are looking to pass through weather-related costs to the customers. As the article mentions, COMED, along with every utility, will be increasing costs associated with this winter.
Realgy knows our costs and settles them monthly. This prevents the cost recovery process or delay that utilities go through.
Realgy’s offers fixed prices for both open (all-you-can-eat) and closed (set amount) quantities. For this winter, our PriceWatchTM was offered as open quantity. Realgy typically offers seasonal fixed rates or for one year periods. This avoids having to have “re-openers” or uncertainty for both ourselves and the customer that are part of multi-year contracts.
Check out the whole Crain’s Chicago Business article “Frigid temps spur suburban power supplier to hike prices”
What is PriceWatch™?
Realgy Energy Services offers our PriceWatch™ winter fixed-price program to all of our Natural Gas customers who have a valid email address on file.
PriceWatch™ utilizes Realgy Energy Services’ proprietary trading and computer services. PriceWatchTM is designed to send out alerts when fixed pricing is such that it can reduce costs over the winter months.
It’s that time of year again when Realgy’s staff of Energy Advisers start to look into the future to see whether locking in your natural gas at a certain price for the winter months will save you money.
Our Energy Advisers start monitoring the market prices of natural gas in early August and continue to monitor prices through September and October. Historically, natural gas prices are lower in September and October before rising again in the winter months due to rising demand.
Realgy’s staff of Energy Advisers monitor future prices every day to recommend the best time to lock in a price so our customers save the most money on their natural gas usage this winter season.
PriceWatch™ is time-sensitive and requires all customers who want to participate to have a valid email address on file with Realgy Energy Services.
Our Energy Advisers need a response within 48 hours in order to lock in the best price.
PriceWatch™ Benefits
- We monitor the market and recommend pricing
- We charge no additional fee
- You choose to participate
- You are protected against rapid price increases
- Not a one-time purchase but proactive consultation
If you have any further questions please feel free to contact a Realgy Energy Services Customer Service Representative by phone, (877) 300-6747, by email, support@realgy.com, by fax (860) 233-3884, or by mail, 675 Oakwood Avenue, West Hartford, CT 06110.