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| Since the mid to late
1990’s, businesses throughout the Northeast and New England regions
have had the ability to purchase their natural gas and electric
supply from competitive suppliers other than their local utility.
This ability, also known as “customer choice”, allows businesses the
opportunity to move from the “one size fits all” approach that
characterizes utility rates to the competitive marketplace, where
the key elements of a supply contract – price, product, terms and
length – can be negotiated. Customers considering purchasing their
natural gas and/or electric supply from a competitive supplier will
need to consider several factors, including the following: 1. Product Type – suppliers offer “full requirements” or “volumetric” products. Full requirements agreements provide a contract price for all the energy you consume; the price for a volumetric agreement will vary if you use more or less energy than you have used historically. 2. Price Type – most suppliers offer contracts that can either be at a “fixed price”, where your unit cost for energy remains the same throughout the term of your agreement, or a “variable / indexed price”, where some or all of the components of your energy price vary each month depending on market conditions. Briefly stated, a fixed price provides stability and certainty, while under a variable price you will pay lower prices in a falling market (but higher prices in a rising market). 3. Contract Length – contract terms available vary from a minimum of a few months to a maximum of up to five years, depending on the supplier. Risk Services Group, Inc. has established relationships with the key suppliers in the Northeast and the knowledge of available contract and pricing types. We will work with you to match your needs with the supplier who can best serve you. | ||||