1. The Energy Piece

Energy represents 60% - 85% of your businesses total cost and it is also highly volatile which makes establishing your budget, let alone attaining it a big challenge. However, a liquid Energy market exists, which enables companies like GDF SUEZ Energy Resources to provide customers with as much or as little Energy price certainty as their business drivers dictate.

• The output of a generator + losses and congestion
• Majority of total energy cost
• Highly volatile, but also highly liquid
• Determined by market forces

2. The Delivery Piece

Delivery is actually made up of many different line items, but they generally fall into a few sub-categories. Reliability, Regulatory Compliance and Transmission Costs are obviously there to cover different things, but they have a number of common threads. They all represent costs associated with getting the energy from the out-put side of the generator to your meter. They all represent costs that are driven more by regulatory bodies and Independent System Operators than by market forces. Finally, they all represent costs that are smaller and far less volatile than the Energy component. Suppliers have little to no control over these costs and cannot truly hedge them. Most suppliers will assess risk premiums against them to try to provide for some of the uncertainty, but when a material change is made to the cost, it may be passed along to you. Alternatively, GDF SUEZ Energy Resources allows you to float Delivery charges in a manner where costs are allocated to you as they are assessed to our portfolio.

• The cost of getting Energy from generator to meter
• Smaller portion of total energy cost
• Low volatility, but not very liquid
• Determined predominantly by regulatory bodies and ISO's

Energy Pyramid by ISO