Adapt & Save: Navigating Seasonal Energy Costs
the DayAhead Flex Plan
The energy sector has faced considerable volatility, particularly last winter when prices soared. As we approach another cold season, experts predict a similar trend. In this environment, businesses are understandably concerned about how fluctuating costs might affect their operations.
To address these challenges, ABC Energy is partnering with Great American Gas & Electric (GAGE) to offer the DayAhead Flex Plan. This pricing model aims to give businesses a more predictable and cost-effective energy solution.
How the DayAhead Flex Plan Works
The DayAhead Flex Plan employs a fixed adder structure. Most of your costs are stable, except for the energy cost, line loss, and transmission charges, which are passed through at published rates. This balance of fixed and variable components offers a blend of stability and market responsiveness.
Key Features of the DayAhead Flex Plan
No Early Termination Fees: You have the option to exit this plan without incurring any early termination fees, providing you with financial flexibility.
Freedom to Convert to a Fixed Rate: Should market conditions drastically change, you can lock in a fixed rate. However, please be aware that Fixed Rate Plans do carry Early Termination Fees if contracts are terminated early.
Quantitative Insights
Our data up to August 2023 indicate strong advantages for choosing the DayAhead Flex Plan:
On average, prices settled at 51% of forward curve prices.
Average savings of 5.7 cents per kWh were achieved compared to fixed-rate contracts as of August 2022.
Blue line is forward curve prices as of Aug 2022
Orange line is actual settles.
Preparing for the Winter Season
As colder weather approaches, it’s prudent to consider energy-saving measures:
Proper insulation can go a long way in reducing heating costs.
Using energy-efficient equipment can lower your electricity consumption.
FAQs
Q: How straightforward is the switch to the DayAhead Flex Plan?
A: Our team at ABC Energy will guide you through a simple and seamless transition process.
Q: Can I switch plans if market prices drop?
A: Yes, you can transition to a Fixed Rate Plan to take advantage of lower market rates. However, please note that Fixed Rate Plans come with Early Termination Fees.
The Right Time for a Change
As businesses prepare for the uncertain winter months, now is an excellent time to reevaluate your energy strategy. The DayAhead Flex Plan offers a solid option for businesses looking for both stability and savings.
Get Your No-Obligation Quote Today
Interested in taking a proactive step in managing your energy costs? Click here for a no-obligation quote and make the switch to the DayAhead Flex Plan today.
