STEP Index

Manage your timing risk

Progressive purchasing made easy

How does STEP Index work?

Phase 1 – Set up and sign up

Firstly, we’ll provide an offer with standard index and supply periods. Typically, the index runs over 12 months before the annual supply period starts. You have the option to choose your preferred set up. These details are then confirmed in your STEP Index contract.

Phase 2 – Indexing period

We will calculate the simple average of forward market prices during your chosen index period.

For added flexibility and control, you have the option to close out the indexing period early to take advantage of favourable changes in market prices. If the price is right, you can close out.

The graph below shows how the average market price is set.

Phase 3 – Supply period

STEP Index locks in your invoice unit prices for each year of your contract. Invoice unit prices are your peak, shoulder (if applicable) and off-peak prices, as well as environmental certificate prices. You will know your prices before each year starts to give you certainty.

STEP Index calculates a simple average of the prices per day over your index period. From there, we multiply the simple average price by pre-agreed STEP factors2 to determine your invoice unit prices.

STEP Index is available for:

Electricity contracts

Environmental schemes

1 Eligible businesses consume more than 500 megawatt hours of electricity per annum per state and have interval meters on sites.

2 Your pre-agreed STEP factors reflect our service costs and is the conversion of a flat price (for all hours of a period) to peak, shoulder and off-peak prices for the period.