Maximizing Cost Savings with a Capacity Pass-Through Approach

The EnerNova Client Strategy Team advises customers to separate the capacity cost from the contracted energy price and use a capacity pass-through product for several key reasons:

1. Cost savings potential: Customers will benefit from lower costs if capacity prices decrease starting in June 2026.
2. Full transparency: Customers pay exactly their cost of capacity, ensuring clear and straightforward billing.
3. ‍Fair comparison of suppliers: This approach allows for an equitable comparison between suppliers, as it separates the cost of capacity from other charges.‍
4. Avoidance of risk premiums: Suppliers often include a premium when bundling capacity costs, which is avoided with a capacity pass-through approach.‍
5. Lower initial costs: Contracts beginning before June 2025 may offer lower initial costs.‍
6. Opportunity for cost reduction: Customers can actively participate in peak load management to potentially reduce their capacity costs further.

Reach out to your EnerNova Consulting Team today for more information!

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