Understanding the risks and benefits associated with different electricity
products or pricing plans is key to identifying the solution that best meets your business objectives and risk tolerance. ConEdison
Solutions will work with you to assess your risk tolerance and identify the products that best suit your profile.
In order to determine the appropriate products for your business, we address the risks associated with the different elements of pricing in each product. Electricity prices are made up of three primary cost components (explained below), each of which impacts the level of risk associated with different products.
For example, buying electricity on a full-requirements fixed price plan, where all of the costs components are included in the fixed price, presents virtually no price risk to your business. On the other hand, a fully-variable plan that passes through all components of pricing, places the full price risk on your company. In between these two products are a range of products that split price risk – placing some of the risk on your business and some with ConEdison Solutions. Each product contains different benefits and different degrees of risk. By working together, we identify which product will best meet your business objectives while taking your risk tolerance into account.
Key Components of Electricity Supply (Generation) Explained
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