Commercial Services

Commercial Energy Solutions

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Backed by a team of experienced professionals, our strategic services meet the needs of all types and sizes of clients – from small startups to large firms – and deliver lasting changes with measurable growth. Get in touch with us today to learn how D.E.M can help your future success.

Fixed Pricing

Fixed energy pricing is a procurement method used to lock in a buyer’s rate for a fixed term. In contrast to an indexed pricing strategy, fixed pricing has absolute Price Certainty: buyers know up front exactly how much they will pay for energy charges for the duration of their energy contract.

The major disadvantage of this method is the risk that if energy prices fall, the customer pays more for energy than what would have been paid on the open market. Additionally, customers typically end up paying a premium to the supplier to hedge the supplier’s market risk.

Our approach is best suited for those customers who have a low-risk tolerance and a high need for budget predictability. That is why we customize fixed pricing in a manner that is good for customers whose main objective is reaching a set energy spend.

Indexed Pricing

An indexed energy pricing strategy is one where energy pricing is 100% tied to spot market index pricing. While this method allows more flexibility by enabling the buyer to capitalize on market fluctuations, there is very little budget certainty.

Therefore, this approach is best suited for those customers who have a high-risk tolerance and a low need for price certainty during their energy contract. It also requires that a buyer has enough ongoing bandwidth to manage energy pricing as the market moves, so as to fully take advantage of the flexibility of this option.

In the Texas Energy Market, Index pricing is not the recommended product for any long-term investment. In essence, the index pricing strategy is for short-term agreements that can get a customer in a more favorable position for a future-switch Fixed Product.

Block Pricing

A compromise between an indexed pricing model and a fixed pricing strategy is the block and index pricing model. With this energy procurement approach, buyers purchase a segment, or a “block,” of their energy at a fixed price. The remainder of their energy is purchased at spot market pricing. Utilizing this strategy, customers have flexibility in what percentage of their energy is purchased in blocks as well as the duration/time of the blocks (specific options vary by market).

The appeal of this method is that it allows the buyer the flexibility to take advantage of market dips and layer in blocks, thereby enabling a certain degree of budget certainty.

About Us

At our core, we are Brokers. DEM offers a wide range of consulting services to serve a variety of businesses and clients.