Click contract explained for businesses
Direct answer
A klikcontract (click contract) is a business energy procurement contract in which you buy your expected volume in phases by fixing parts of it at moments you choose, each against the forward market price at that moment, until everything is purchased. This way you do not lock in the whole price on one day, but spread it across several click moments and manage price risk more deliberately.
- Clear definition
- Data-driven assessment
- Risks and opportunities visible
- Practical next steps
Click contract explained: scattered information versus Energy Intelligence
Anyone buying energy for a large-consumption business faces a tricky choice: fixing the price for a whole year on a single day feels risky, because that day might be a peak. A click contract is designed to break up that moment. It matters mainly to companies, property managers and institutions with sizeable and reasonably predictable consumption that want to keep control over when they buy their electricity or gas.
- You split your annual volume into tranches and buy them at your own moments, each against the forward market price of that moment.
- The final delivery price is the weighted average of all your clicks; any un-clicked volume is often bought at the spot price.
- Clicking is usually possible per year, quarter or month block, up to a deadline before the delivery period begins.
Insight
Traditional approach
Information is scattered across portals, documents, invoices or separate spreadsheets.
Modern approach
Data, context and interpretation are brought together into a clear decision picture.
Decision-making
Traditional approach
Choices are made based on averages, assumptions or occasional analyses.
Modern approach
Scenarios, KPIs and current measurement data make the trade-off more concrete and repeatable.
Follow-up
Traditional approach
Actions often stay non-committal or disappear into separate reports.
Modern approach
Follow-up actions, monitoring and reporting are linked to the same energy data.
How does a click contract work?
With a click contract you agree a delivery period, for example a calendar year, but you do not yet fix the price. Instead you buy your expected volume in stages by fixing parts of it at moments you choose. Each click is made against the price applying at that moment on the forward market, the venue where energy is traded for future delivery, such as ICE Endex. Clicking is often possible per year, quarter or month block. Your final delivery price is the weighted average of all your clicks. If you do not fix part of your volume in time, the supplier usually buys the remainder at the spot prices applying then.
- You split your volume into tranches and click them independently.
- Each click applies at the forward market price of that moment.
- Clicking is usually possible per year, quarter or month block.
- The delivery price is the weighted average of all your clicks.
- Un-clicked volume is often bought at the spot price.
Why do companies choose this?
The core reason is spreading price risk. If you fix the price for a whole year on one day, your entire energy budget hangs on the market sentiment of that single moment. By clicking in several tranches, you buy across a range of moments, so an unfortunate peak only affects part of your volume. You can also respond to moments when the market looks more favourable. In return, you average the outcome: if the market moves lower afterwards, you do not benefit in full. A click contract therefore does not pick the lowest price, but dampens the extremes and gives you more control over the buying moment.
- One disappointing day affects only part of your volume.
- You can buy at moments you consider favourable yourself.
- The result is an average, not a guaranteed lowest price.
- You trade maximum certainty for more control over timing.
What should you watch out for?
A click contract requires active management and market knowledge. You have to follow the forward market and decide when to click, while nobody knows the bottom in advance. Watch the click moments and deadlines: suppliers publish the day price at fixed times, and after a final date the supplier buys the remaining volume for you, sometimes at less favourable spot prices. Count on discipline too, because postponing in the hope of a lower price can backfire. If time or expertise is lacking, an adviser or energy buyer can carry out the click strategy on your behalf. The limit is clear: this contract suits those who want to steer risk deliberately, not those who mainly seek calm and one fixed price.
- You must follow the market; the lowest price cannot be known in advance.
- Watch click moments, publication times and the final deadline.
- Un-clicked volume is bought in, sometimes at less favourable spot prices.
- Discipline is needed; delaying in hope of a dip can prove costly.
- Without time or knowledge you can have the click strategy executed for you.
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