INDEX PRICED
Description: Index priced products (also referred to as market-based products) provide supply at a rate that correlates with a published index (day-ahead or real-time, hourly pricing).
Benefits: An index priced product may provide greater flexibility to take advantage of short-term market opportunities until the timing and market conditions are more advantageous to lock in on a long-term contract with a fixed price product.
Points to consider: If budget certainty is your top priority, an index priced product is not typically recommended as a long-term strategy because of the risk of price volatility. However, it can be a good alternative bridge position to wait out a period of high or rising market conditions. Index priced products are generally used by businesses that want to ride the market for some period of time to assess future market conditions or opportunities.
Description: Index priced products (also referred to as market-based products) provide supply at a rate that correlates with a published index (day-ahead or real-time, hourly pricing).
Benefits: An index priced product may provide greater flexibility to take advantage of short-term market opportunities until the timing and market conditions are more advantageous to lock in on a long-term contract with a fixed price product.
Points to consider: If budget certainty is your top priority, an index priced product is not typically recommended as a long-term strategy because of the risk of price volatility. However, it can be a good alternative bridge position to wait out a period of high or rising market conditions. Index priced products are generally used by businesses that want to ride the market for some period of time to assess future market conditions or opportunities.