Hedge Against Volatile Summer Electricity Costs with Chariot Energy

Navigating the complexities of selecting the right electricity provider for your business can be daunting. With fluctuating prices, various term lengths, and unique electricity demands, it’s essential to find a provider that offers both stability and savings. Chariot Energy, a leading Texas retail electricity provider, offers expert insights and solutions tailored to meet the needs of commercial and industrial clients. In this article, we explore key points from a Q&A with Krishnan Kasiviswanathan, Chief Risk Officer, and Ryan Ulk, Head of Wholesale Supply and Trading, to help businesses make informed decisions about their energy solutions.

Understanding the Texas Summer Electricity Supply

This summer, Texas faces tight supply conditions and elevated electricity prices driven by increased demand from population growth and industrial expansion. Krishnan Kasiviswanathan (CRO) highlights that “businesses can benefit from the oversupply of solar electricity, particularly during late afternoon hours when prices are reduced.” Solar energy plays a crucial role in reducing energy costs, especially during peak sunlight hours, providing significant savings for businesses with high afternoon energy consumption.

The emphasis on solar energy’s role in cost reduction is insightful, especially for businesses looking to leverage renewable energy to cut expenses.

Fixed-Rate Plans vs. Time of Use (TOU) Plans

Choosing between fixed-rate plans and time of use (TOU) plans can significantly impact a business’s bottom line. Kasiviswanathan explains, “Fixed-rate contracts are essential for stabilizing operating costs, offering protection against price volatility around the clock.” On the other hand, Ryan Ulk notes, “TOU contracts, although less common, provide businesses the opportunity to take advantage of lower prices during periods of high solar generation.” Chariot Energy stands out by offering TOU contracts, helping businesses save on energy costs during peak solar production hours.

It’s clear that Chariot Energy’s diverse plan options provide businesses with tailored solutions, balancing stability and potential savings.

The Risks of Index Rate Options

Index rate options, while sometimes offering savings on operating expenses, come with significant risks due to the lack of price protection. These plans expose businesses to market price fluctuations, which can lead to unpredictable and potentially high electricity costs. Kasiviswanathan advises, “Chariot Energy recommends fixed-rate or TOU contracts to safeguard against these unpredictable price swings, ensuring cost stability and predictability.”

The caution against index rate options underscores the importance of stability in managing business energy expenses effectively.

Preparing for Contract Expirations

For businesses with expiring index rate or fixed-rate contracts, securing new fixed-price or TOU contracts is crucial. Kasiviswanathan emphasizes, “Fixed-price contracts provide the predictability needed to manage energy costs effectively.” By partnering with Chariot Energy, businesses can achieve both cost savings and a reduced carbon footprint, positioning themselves for long-term success. Chariot offers expert guidance and a comprehensive range of solutions designed to meet the unique needs of commercial and industrial clients.

The proactive approach to managing contract expirations highlights Chariot Energy’s commitment to long-term customer success and sustainability.

What Sets Chariot Energy Apart

Chariot Energy differentiates itself through deep industry expertise, robust financial backing, and a commitment to innovative energy solutions. Kasiviswanathan proudly states, “As part of the Hanwha Group, a Global Fortune 500 company, Chariot has the resources to hire top talent and compose world-class teams.” With over 150 years of combined energy trading experience, Chariot’s supply trading desk provides tailored electricity solutions that anticipate market trends, offering customers the best possible recommendations.

The extensive experience and robust backing of Chariot Energy provide a strong foundation for reliable and innovative energy solutions.

Managing Continued Volatility in the Energy Market

Chariot Energy is well-equipped to handle ongoing volatility in the energy market through a multifaceted approach. Ulk explains, “The expert team continuously monitors market conditions and leverages advanced modeling tools to forecast trends.” By combining deep industry knowledge with innovative technologies, Chariot provides stable, sustainable, and cost-effective energy solutions tailored to the specific needs of businesses.

The strategic approach to managing market volatility showcases Chariot Energy’s forward-thinking and adaptive capabilities.

About Chariot Energy

As a proud member of the Hanwha Group, Chariot Energy stands as a top Texas retail electricity provider, solving some of the state’s most complex energy problems. Chariot leverages its affiliate value chain from the manufacturing of best-in-class solar modules and energy storage solutions to the development of utility-scale solar power plants. This integrated approach allows Chariot to offer sustainable energy solutions to homes and businesses throughout Texas, modernizing and simplifying electricity consumption.

For more information, visitwww.chariotenergy.com or call 866.320.7951.