Procurement Fundamentals2 / 12
Contract Types (Fixed, Index, Flexible)
Fixed price (budget certainty), index (spot-following), collar (min-max price).
10 min read · Jacob Willis, Net Zero Lead
How an organisation contracts for energy determines how much price risk it bears. The choice between fixed, flexible, and indexed contracts is one of the most consequential procurement decisions - balancing budget certainty against the chance of lower costs.