Hybrid Electricity Procurement

Electricity expenses make up a large portion of a facility’s operational costs, so it is important to effectively manage this spend over time. 

Traditionally you are billed at either a fixed or index rate, which are two equally risky alternatives depending how the future market performs. However, there are other options available, so why not reduce price risk with a purchasing strategy that includes both fixed and indexed? A hybrid purchasing strategy offers flexibility and can help facilities save on their bottom line.

Mantis Innovation makes it simple to execute a customized hybrid electricity purchasing strategy to realize long-term benefits.

Hybrid Solutions Key Points:

• Fix in a percentage of your electricity usage at a determined rate and settle the remaining volume on an hourly index over the term of the contract.
• Good for clients who want to reduce price risk and have more flexibility in managing their electricity costs.
• The fixed percentage amount remains the same as selected every hour of a contract, unlike old block and index products.
• Solutions can offer protection from future market prices moving up or down by diversifying costs between fixed and index.
• A structured, systematic plan that reduces exposure to electricity price volatility through an automated, time-diversifying, percentage fix-in program developed at time of contract.
• Employ the principles of market timing and price targets to eliminate guesswork.