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STEP Index

With STEP Index, businesses can access the benefits of a progressive purchasing contract, minus the complexity.

STEP Index is a flexible electricity agreement that works by smoothing out the market highs and lows, letting you pay the average market price of the indexing period for your electricity and environmental certificates. STEP Index makes sure you never pay the highest price in a volatile market.

Manage your contract timing risk

Avoid locking in your rate at a high point in the market

Be confident in achieving an average market price

Lower the risk of paying a lot more than your competitors

Manage your exposure to wholesale market volatility

Opt to close out your index price early if you think the market is favourable

STEP Index Progressive Purchasing Product

How does STEP Index work?

PHASE 1 – SIGN UP

We’ll help you set up your STEP Index agreement.

PHASE 2 – INDEXING PERIOD

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

For added flexibility and control, you can benefit from the option to close out the index early to take advantage of a drop in market prices.

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

PHASE 3 - SUPPLY PERIOD

Your invoice unit rates will be fixed for each year of your contract to give you price certainty for the year ahead.

We calculate your unit rates by using the simple averaged energy price multiplied by your pre-agreed STEP factors. STEP factors convert the average energy price into unit rates of peak, shoulder, and off-peak.

STEP Index is available for:

Electricity contracts in the National Electricity Market

– Queensland

– New South Wales

– Australian Capital Territory

– Victoria

– South Australia

– Tasmania

Environmental schemes:

– Large-Scale Renewable Energy Target (LRET)

– Small-scale Renewable Energy Target (SRET)

– Victorian Energy Efficiency Target (VEET)

– NSW Energy Savings Scheme (ESS)

Get in touch to find out more

Get in touch with us today if a simple progressive purchasing contract might meet your needs.

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Eligible businesses consume more than 500 megawatt hours of electricity per annum per state and have interval meters on sites. STEP Index may not be suitable for all eligible customers and does not guarantee a better price outcome. You should seek independent advice about whether this pricing model is suitable for your business.