STEP1 Index is an alternative to traditional fixed-price contracting that can help your business manage pricing and timing risk.
Available for customers using 500MWh or more of electricity per annum per state, it gives you greater control over your contracting and allows you to achieve an averaged energy price. You can agree STEP Index for your electricity costs, environmental scheme costs, or both.
STEP Index is Shell Energy’s alternative to traditional fixed-price contracting option to help customers manage pricing and timing risk. Designed for customers using 500MWh or more of electricity per annum per state, it allows businesses to smooth out the market highs and lows when recontracting.
STEP Index allows you to achieve an averaged price and gives you the ability to control your contracting at a time and price that suit your business.
Under a traditional fixed price contracting structure, if you’re lucky enough to sign your electricity contract when the market is low, you’ll pay that low rate for the term of your contract. However, if you sign your electricity contract when the market is at a peak, you’ll pay that high rate for the contract period.
The best outcome is to lock in your price at a low point in the market. However, if you’re uncertain of when that is, STEP Index allows you to manage the price and timing risk when recontracting.
Once the STEP Index contract is signed, we’ll handle everything from running the index averaging process through to applying the line items on your invoice.
If you want to take an active approach, you can set price alerts to be sent to your phone. This will help you monitor the market price and lock in a price when you think it is favourable to you.
Once you become a STEP Index customer, you’ll gain access to Shell Energy’s secure online portal at no cost where you have the ability to monitor the market price, set SMS price alerts, lock in your price and gain access to quality energy data to help take control of your business energy.
Unlike some of our competitors, we understand that businesses need to be flexible, so we won’t charge you penalties for using more or less energy than your contracted volume.
Just another benefit of being a Shell Energy customer.
• Reduce the risk of locking in your contract price at a high point in the market • Be confident in achieving an average market price • Lower the risk of paying more energy costs than you need to • Manage your exposure to wholesale market volatility • Opt to lock in your index period if the market is favourable • No penalties for using more or less energy with our load volume tolerance • View your index position on our secure online portal
STEP Index is an easy way to manage timing and price risk for your electricity contract. Call us on 13 23 76 for a demonstration or contact your energy advisor to see if STEP Index is a good fit for your business.
Pay a simple average forward-market price for electricity, calculated across a chosen index period to avoid the risk of contracting at the highest point of the market.
Agree electricity prices upfront for the whole contract period based on market prices at the time of signing. This may be at a high point or a low point in the market.
Call us on 13 23 76 for a demonstration or contact your energy advisor to see if STEP Index is a good fit for your business.
STEP Online is our other progressive purchasing contract. STEP Online enables you to lock in your energy prices progressively, in parcels as small as 5%.
1STEP is an acronym for Strategically Timed Energy Procurement.
