Knowing when to sign your next electricity contract can be tricky for even the most advanced energy managers. To help answer that question, let’s look at how rates have trended over the previous 12 months.
Signing a minimum of six months in advance proved to reduced risk and return the best rates. Five months before contract expiration, price risk increased by more than 450% with an average rate increase of 10%. Those who waited to renew the month of expiration paid an average of 12% more.
Currently, energy prices are discounted into the future, meaning you’re able to get a better deal on your next contract the further out you sign. Prices are at a great spot coming off the summer months, so I encourage you to see what’s available for your next contract.