Hybrid Energy Products

Hybrid Energy Products2023-07-25T15:37:48+00:00

Custom Energy Supply.

Hybrid Energy Solutions

Sometimes a standard energy supply plan is not what’s best for your business. In order to take advantage of market conditions, we can offer our customers:

  • Block + Index Power
  • Power Hedging
  • On-Peak/Off-Peak
  • Energy Storage


Inertia Resources offers an array of custom power solutions to meet our customers’ individual needs. In deregulated energy markets, large energy consumers often employ a strategy known as “hedging” to manage their energy costs. This approach involves fixing a portion of their energy costs with a fixed-rate contract while allowing the rest to float on the index market.

The fixed-rate portion provides price stability and predictability, shielding the business from potential price spikes in the wholesale energy market due to factors like supply-demand imbalance, weather events, or changes in fuel costs. It allows for better budgeting and forecasting of energy expenses.

On the other hand, the index-based portion gives the business the opportunity to take advantage of potentially lower prices when market conditions are favorable. If wholesale prices fall, an index-based rate can provide cost savings.

By balancing fixed and floating energy costs, businesses can mitigate the risks associated with volatile energy markets and potentially benefit from market lows. This strategy provides both stability and flexibility, allowing businesses to manage their energy costs effectively and align with their risk tolerance and budgetary needs. Let’s explore some of these plans in more detail.

Block + Index Rate

A block and index electricity plan provides a balanced approach to energy procurement. This strategy allows businesses to purchase a portion of their energy usage, the “block,” at a fixed price, providing budget stability and protection from market volatility.

The remaining energy usage is priced according to real-time market rates, the “index,” offering potential cost savings when market prices are low.

Load-Following Block Rate

A load-following block and index electricity plan offers businesses flexibility, stability, and potential cost savings. These plans are similar to block and index, however, instead of having to purchase a block of power, customers can lock-in percentages of their load.

This is advantageous for those customers with unpredictable power usage patterns.

Time-Of-Use Electric Rates

Time of Use (TOU) electricity rates are pricing structures that vary based on the time of the day. Prices change to reflect the cost of producing electricity during different periods: typically divided into off-peak, mid-peak, and on-peak hours.

On-peak hours, usually when demand is highest like weekday afternoons and early evenings, have the highest rates. Off-peak hours, such as late nights and early mornings when demand is lower, offer the cheapest rates. Mid-peak hours fall between the two.

Frequently Asked Questions

What is a block and index electricity product?2023-07-21T20:59:28+00:00

A block and index electricity product is a hybrid energy purchasing strategy. A portion of your energy, the “block,” is purchased at a fixed price, while the rest is priced at a variable rate that fluctuates with the market, the “index.”

How does a block and index strategy benefit my business?2023-07-21T20:59:12+00:00

This strategy offers both budget certainty and the potential for cost savings. The fixed-price block provides stability and predictability for a portion of your energy costs, while the index portion allows for potential savings when market prices are low.

What risks are associated with a block and index strategy?2023-07-21T20:58:58+00:00

While the index portion can provide cost savings, it also exposes your business to price increases when market prices rise. However, by correctly balancing the fixed and indexed portions according to your risk tolerance, these risks can be managed effectively.

Can I adjust the size of the block or the index portion in my plan?2023-07-21T20:58:40+00:00

Yes, the size of the block and index portions can often be adjusted to align with your business’s energy usage patterns, risk tolerance, and budgetary needs.

What is a load-following block and index plan?2023-07-21T20:58:23+00:00

In a load-following block and index plan, the block portion is adjusted in response to your actual energy usage. This ensures the fixed-price block consistently aligns with your consumption, minimizing the risk of over or under-purchasing the fixed block.

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