Let’s look at the differences between these two Drax products…
Drax Fix Complete and Drax Fix Threshold are two different energy products offered by Drax Group, a leading electricity generation and energy company in the UK. While both products provide fixed-price energy contracts, there are notable differences between Drax Fix Complete and Drax Fix Threshold. Here’s an outline of their distinctions:
Risk exposure:
- Drax Fix Complete: This product offers customers full budget certainty and protects against unexpected increases in both wholesale energy costs and non-commodity charges. Customers have a fixed price that is not subject to market fluctuations or changes in non-commodity charges, providing greater stability in energy costs.
- Drax Fix Threshold: Customers using this product are protected against fluctuations in wholesale energy prices only. Non-commodity charges, which can vary due to regulatory or policy changes, are not fixed. Therefore, customers may be exposed to changes in non-commodity charges and the associated risks.
Flexibility:
- Drax Fix Complete: This product provides customers with complete price stability and long-term budget certainty. The fixed price remains constant for the entire duration of the contract, usually spanning several years. Customers benefit from knowing their energy costs upfront and can plan their budgets accordingly.
- Drax Fix Threshold: While customers enjoy a fixed wholesale energy price, the variability of non-commodity charges introduces some degree of uncertainty in the overall energy cost. However, customers may have more flexibility to adapt to changes in non-commodity charges since they are not locked into a fixed rate for those components.
Customer requirements:
- Drax Fix Complete: This product is suitable for customers who prioritize budget stability and want protection against both wholesale energy price volatility and non-commodity charge fluctuations. It is well-suited for customers who prefer a fixed price approach and want to minimize financial risks associated with energy costs.
- Drax Fix Threshold: Customers interested in fixed-price energy contracts but who are more comfortable with the potential variability in non-commodity charges may find this product appealing. It offers protection against wholesale energy price volatility while allowing for some flexibility in managing non-commodity charge changes.
It’s important to note that the specific details, terms, and conditions of Drax Fix Complete and Drax Fix Threshold may vary depending on the individual contracts and the offerings available at any given time. Customers interested in these products should refer to the contracts T&C to obtain accurate and up-to-date information before making any decisions.
Contact Direct Power today to discuss your individual needs and priorities, we are here to help you determine which contract is a right fit for your organisation.
