Fixed vs. variable: which rate fits a commercial load?
Predictability or upside? How to choose a supply structure for your business — and when each one wins.
The single biggest decision in a commercial energy contract isn't the supplier — it's the rate structure. Get it right and your budget is predictable; get it wrong and a "cheap" rate becomes an expensive surprise.
Fixed rate
You lock one price per kWh (or therm) for the full term. Your supply cost stops moving with the market, which makes budgeting simple and protects you from spikes. For most businesses that value predictability, this is the default recommendation.
Variable rate
The price floats with the wholesale market. It can start lower than a fixed offer — but it can also climb month after month, and a default or "month-to-month" variable rate after a contract ends is where businesses quietly overpay the most.
How to choose
- Tight budget / board scrutiny: fixed, longer term.
- Flexible load, risk-tolerant, watching the market: variable or indexed can work.
- Coming off a contract: never roll to the default rate — re-shop first.
Not sure which fits your sites? Compare your rate or talk to an advisor.
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