Energy Procurement Myth #3: A fixed contract is the least risky

 In Sustainability, Technology

Energy Procurement Myth #3: A fixed contract is the least risky

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goby-logoMany real estate owners are under the false impression that fixing their entire contract at one price is the least risky strategy. While this tactic does provide an element of budget certainty, it’s in fact one of the riskiest strategies available. You’re essentially betting that they day you locked your price was a market low-point.

With energy markets as volatile and fluid as they are, hedging actually produces the most risk-averse strategy. By not shaping a block of energy, you’re able to capture market efficiencies with the assurance that you won’t get burned by outlier market events because a portion of your spend is fixed and predictable. A major supplier recently completed a 10-year study, and found the most risky strategies were fixing 100% of your usage, and indexing 100% of your usage. Goby can help walk you through this analysis and show you why in the long run, partially indexed products do win the day and offer the best opportunity for risk mitigation.

Able has a strategically aligned with Goby, a national real estate sustainability and energy management consulting firm. Goby, via its proprietary software platform SeaSuite, helps its clients actively monitor and reduce their energy consumption. With the launch of its energy procurement division, Goby now helps clients pay less as well by crafting strategic energy plans.

To learn more about Goby and its unique approach to energy procurement services, call 312.242.3016 or email energy@gobyllc.com.

Matt-Cohen

Matt Cohen
Goby Energy

Todd-Brandel

Todd Brandel
Goby Energy

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