What kind of Corona contract do you want?
Historically gas and electricity contracts have fallen into three key categories: Fixed, Non-Fixed (aka Pass Through), and Flexible. The key difference being that Fixed contracts offer price certainty, whilst Non-Fixed (aka Pass Through) and Flexible contracts are subject to price variation. To learn more about these options read here.
As if the choice wasn’t confusing enough, suppliers are increasingly offering what you could refer to as “Semi-Fixed” offers. i.e. the price is fixed based upon a supplier’s best guess forecast, with the option that the supplier may re-visit prices should their forecast prove to be incorrect. Suppliers don’t always make the subtleties of the “Semi-Fixed” contract instantly obvious, which makes comparing offers on a like-for-like basis very difficult. One supplier, amongst many others, that offers an array of Fixed, Semi-Fixed and Fully Flexible contracts is Corona. Here is a brief overview of how Corona’s Fixed and Semi-Fixed contracts compare, according to them:
STANDARD (POWER) – The cost of DUoS, FiT, RO, TNUoS, BSUoS, CfD and CM are included in the price but may be subject to pass-through if costs increase more than what has been included. In addition, any new industry charges/changes are not included in our offers and will be charged on a pass-through basis. All pass-through charges will be charged at the prevailing market rate.
STANDARD (GAS) – Price may be subject to pass-through if costs increase more than what has been included. In addition, any new industry charges/changes are not included in our offers and will be charged on a pass-through basis. All pass-through charges will be charged at the prevailing market rate.
FULLY PASS THROUGH – Charges exclude: BSUoS, DUoS, RO, TNUoS, CfD and CM and any new industry charges/changes. Charges include: FiT is incorporated within in the day and night unit rates, but will be subject to pass-through. Any new industry charges/changes are not included in our offers. All pass-through charges will be charged at the prevailing market rate.
FIXED – The offer provided is fixed for the contract duration. Any new industry charges/changes are not included in our offer and may be charged on a pass-through basis. All pass-through charges will be charged at the prevailing market rate. Subject to T&C’s
Given that it is harder to predict accurate third party thresholds on longer term contracts, the longer term Corona Standard contracts have more opportunity for the supplier to change prices mid-contract.
In Conclusion….
Always read the fine print of the contract, or ask your account manager to address any questions you may have before signing. Re-opening contract prices mid-term takes time, damages reputations, and costs money for a supplier to manage. It is realistic to expect suppliers to only enact a mid-contract price adjustment when the positives outweigh the negatives for them. i.e. when they under-forecast so much that it is worth the burden of altering prices mid-term. If you have any questions regarding a Corona contract type, or from any other supplier, please do not hesitate to get in contact with Direct Power for some guidance.
