Sippin Energy Capped Price Program: Customer Information Guide
This guide will provide valuable information regarding Sippin Energy Products capped price program. It will outline the features and benefits of this program and cover enrollment and pricing. Contract pricing also provides full protection by Sippin Energy Products and is regulated by the Connecticut Department Of Consumer protection. You can also get direct information about available pricing programs by logging on to MY ACCOUNT which is the Sippin Energy customer web portal.
Sippin Energy Products provides a number of different contract pricing options for purchasing heating fuel and propane. Fuel purchase contracts provide protection rising, falling or volatile energy prices. Different types of contract pricing provide different benefits and serve different purposes depending upon the desired outcome in the market conditions in place.
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- Fixed Price Contract
The most common type of price contract is a fixed-price contract. This is a relatively simple contract where fuel is provided for a predetermined term, a predetermined price, for a predetermined amount of volume. Fixed-price contracts are often provided with prepayment discounts, which are referred to commonly as pre-buys.- Benefits:
- Protects consumers against rising prices
- Has no upfront fees
- Is generally available with a prepayment discount
- Disadvantages:
- Does not protect consumers against falling prices.
- Usually includes early termination penalty clause.
- Benefits:
- Capped Price Contract
A capped price contract is one that includes a predetermined ceiling price, but also provides lower prices in a falling market.- How does capped pricing work?
Capped price contracting works by monitoring the posted retail rate for Sippin Energy Products. The posted retail rate at Sippin Energy Products is based upon current market costs and is always within the average or below Connecticut retail price postings is monitored by the state of Connecticut Department of consumer protection. Consequently, if the Sippin Energy Products retail posted delivery price is below the contracted capped price, the customer will receive the delivery at the lower price. Capped pricing is not based on direct commodity price movement, as that is not a direct reflection of prices in the local marketplace. - How is this protection provided?
This protection is provided using commodity options purchased by Sippin Energy Products expressly for this purpose. The cost of these options become a direct pass through to the consumer and are charged in cents per gallon at the time of the contract agreement execution. Sippin Energy Products provides this benefit as a direct pass through, and is not marked up for profit in any way. - Benefits:
- Provides pricing protection from increasing prices
- Provide protection for decreasing prices
- Does not carry any significant early termination fees or penalties
- Is available with a prepayment discount
- Can be included in a 12 month budget plan
- Discounts available for auto bill pay and paperless statements
- Disadvantages
- This type protection includes a premium fee
- How does capped pricing work?
- Fixed Price Contract