Several retailers still offer a Fuel Indexed (FI) electricity price plan which propagate two broad value statements.
1. It’s good for businesses in the petrochemical, energy industry, or industries whose operating costs are tied to oil prices.
2. It allows businesses to increase operational production/output, when oil prices and by extension, electricity prices are cheaper.
A fixed rate electricity plan is one where the consumer is charged a fixed tariff in $/KWh for a tenure of at least 12 months. It is most commonly touted as a risk-free plan which provides security and stability in your monthly spend for electricity. A plan that makes budgeting easy. Let’s challenge this narrative.