Matrix and Custom Pricing

Matrix pricing in retail energy offers standardized, pre-calculated rates for typical commercial customers based on general usage characteristics, providing simplicity and quick quotes with boilerplate contracts. In contrast, custom pricing involves individualized analysis of larger customers' detailed energy consumption, allowing for tailored and complex pricing structures, negotiated terms, and more explicit risk allocation. The choice between these approaches is influenced by market volatility, structure (energy-only vs. capacity), transmission complexities, renewable energy policies, and the availability of innovative energy products. Ultimately, matrix pricing suits straightforward needs, while custom pricing caters to sophisticated users seeking specific solutions and risk management.