Energy: what’s a competitive price?

This question is essential for those who are responsible for deciding on the contracting of energy sources for future delivery.

Of course, everyone wants to buy “cheaply”! To enable the operation of their activities competitively.

What is a reference that can be used to “qualify” a price? What I have used (and very successfully)  for many years is the marginal expansion cost (MCE).

In the case of electricity, it corresponds to the cost of new power plants to be built. From the perspective of entrepreneurs, the MCE is the one that offers results that justify the investment made.

If the prices offered by the market are below the MCE, this is a good opportunity to close contracts. If they are above, it is better to wait! In other words: choosing the “time” to negotiate contracts is extremely important!

If you would like to learn more about this proven method, get in touch and let us set up a virtual meeting and within an hour you will incorporate this methodology.