Variable Rate Supply Contracts
Mindful Energy: Your Partner in Advanced Energy Procurement
At Mindful Energy, our variable supply contract service targets a 15% saving against traditional fixed price offers.
We do this by providing lower consuming businesses with access to products normally used by industrial or large corporate organisations.
By allowing your price to trackg the energy market price fluctuations on a daily or monthly basis (like a tracker mortgage) rather than fixing all of your energy in advance, you are able to take advantage of reduced risk premiums and any drop in energy prices.
Advantages of Variable Rate Contracts
Reduced Risk Premia
When a supplier provides a fixed price supply offer, they do so not knowing what the future holds. As such, they build in a sensible level of premium into the rates. Variable rates have a lower risk to the supplier and as such they include less risk premia in their offers.
Leverage Market Fundamentals
All things being equal, the cost of gas or electricity is normally cheaper the closer to the time you consume the energy. A variable rate contract enables you to take advantage of this lower price, reflecting in cheaper bills.
You Can Fix At Any Time
If the wholesale energy price falls to a point that is really attractive, we are able to fix the remaining 'open' energy volume for you. Providing the opportunity to maximise your chances of getting the lowest price while creating budget stability.
Win Win Mentality
A variable rate enables you to increase your chances of getting a lower price but retaining the option of fixing at any time. This level of flexibility enables businesses to manage their energy costs more dynamically, creating a win win situation.
For those customers that are familiar with variable/flexible supply contracts, more bespoke strategies might be required. Mindful Energy's core strategies are defined below.
Risk Strategies for the Advanced Buyer
The Rolling Hedge
This is where 100% of your forecasted annual energy consumption is purchased 3, 6 or 12 months ahead of delivery. As an example, on a 6-month rolling hedge strategy, your October renewal would be purchased no later than the end of March. This is a low-risk approach to flexible purchasing.
Fix & Float
You purchase 25%, 50%, or 75% of your contracted energy volume prior to the contract starting. The remaining energy is purchased a quarter before the month of delivery. e.g. you purchase 50% of your energy needs and then buy the remaining 50% of each month 3 months prior to that month starting.
Aggregated Purchasing
Many businesses do not use enough energy to qualify for a flexible contract. Leverage the buying power of many other UK businesses by joining one of our gas or electricity purchasing baskets and access flexible buying strategies.
Dynamic Purchasing
Mindful Energy would create a tailored risk management strategy specific to your business. This would include a number of risk workshops to help you define your requirements and make the most informed decision.
Choose Mindful Energy for Advanced Energy Procurement
Our Variable Gas and Electricity Supply Contract Procurement service enables businesses to mitigate against the high rates seen following the energy crisis of 2022.
Leverage the expertise within Mindful Energy, so that you can focus your time growing your own business.
Contact us today to learn how we can empower your business with energy cost stability and savings.
Benefits of Variable Gas and Electricity Contract Supply Contracts
Cost Optimisation
The rhythm of real-time translates into competitive pricing, ushering in perpetual cost optimisation that captures the most auspicious market conditions for sustained energy expense benefits.
Strategic Pliability
The art of adaptability. Our contracts furnish you with the acumen to gracefully navigate fluid market dynamics, empowering you to craft timely decisions that resonate with your fiscal aspirations.
Risk Guardianship
Immersed in perpetual energy market vigilance, we safeguard against abrupt price escalations and mitigate exposure to market volatility. Our preemptive strategies erect an impervious barrier against unforeseen cost eruptions.
Eco-Conscious Endeavors
Seamless sustainability. Our flexible supply contracts can seamlessly integrate renewable energy, allowing your business to radiate an aura of environmental conscientiousness.
Operational Synergy
Tailoring your energy supply to your operational cadence ensures a harmonious allocation of resources, fostering operational efficiency, productivity, and waste reduction.