What Pricing Plans Does Option Energy Offer?

Option Energy provides you with the power of choice. You have a choice between short, variable, or long term plans. Other incentives such as rebates or credits on your bill are sometimes offered. Additionally, utilities cannot offer fixed term utility contracts. We can! Due to lower overhead costs and different purchasing strategies, we can offer the same products for less. Working directly with many different suppliers we will work to find a supplier and a contract that is best for you and your energy needs.

Variable Rate

This price is set monthly by Option Energy based on the price we pay in the wholesale market. This is dictated by supply and demand. That price is passed along to the consumer, with administrative costs built in.

Fixed Rate Contract

This is a fixed price for gas or electricity supply for a fixed period of time. The price and the term are set out in the contract. Your price for Gas Supply will be fixed. The regulated charges from the utility may change if the regulator gives them permission. This type of contract gives you the benefit of knowing your energy costs for that period of time. If prices rise above your contract price, you benefit due to the unchanging security of the Fixed Rate Contract. The marketer is at no risk if prices rise because they buy a fixed price long term gas contract from the wholesale market.

Rate Cap

In this pricing plan, Option Energy will supply natural gas or electricity to the customer at the best price it can. However, Option Energy guarantees that the rate will not rise above a certain amount, regardless of the current market price. This protects the customer from extremely high prices, and allows them to benefit if prices go down.

'Weather Protection' or Fixed Bill Contracts

Option Energy will guarantee that the customer will not pay any more than a fixed dollar amount for their energy for the year. This is based on the customer's usage pattern over the past year and adjustments for weather. This contract type transfers the risk of a long cold winter to Option Energy. It's a form of insurance for which the customer pays a small premium.

Full-Requirements Contract

An electricity supplier agrees to provide all of a company's electricity needs at an agreed price. The supplier does not require that you buy a set amount or buy any electricity on the spot market. This type of contract is common for residential customers but rare for larger customers. It's also known as a 'load following' contract.

Fixed-Volume Contract

In this type of contract, suppliers pass the volume risk and a portion of the current market exposure to the customer. A customer estimates their monthly consumption based on previous years and any expansion plans. The supplier then contracts for that amount on the customer's behalf. The customer is financially responsible for differences between estimated and actual usage bought for them at the current market price by the supplier. This current market buying and selling happens each hour by comparing actual consumption with the electricity purchased for that particular hour.

Blended Rate Contract

A contract that is a combination of fixed and variable rate. Typically, half of the rate is guaranteed for the term of the agreement, similar to a Fixed Rate, and the other half of the rate is a variable. The variable portion is usually reset periodically based upon market pricing. The result is 'some' protection against price increases, but 'some' opportunity to benefit if prices were to decline.

Volume Discount

A type of variable rate based upon the amount consumed over a given period of time. For instance, one month. An example is a gas contract that starts at 31 cents for the first 300m³ used, and drops to 29.5 cents for usage over 300m³ in a month. (Note: m³ is equal to 1 cubic meter)