According to Energy Action’s Head of Trading and Pricing, Scott Easton, progressive procurement is particularly effective in reducing electricity purchase costs in a declining market. We work with our customers to establish controls, risk preferences, governance and cost objectives.
Current market conditions are ideal for progressive purchasing due to the price backwardation that has emerged since November 2019.




This can be seen from the Electricity Futures charts which show the wholesale price of electricity by NEM states (states excluding WA and NT). Since November last year, progressive customers have been taking advantage of the significant decrease in electricity prices, which our fixed contract customers are not able to realise because their rates have been locked in.
Progressive purchasing has been designed as a retail product that eliminates exposure to spot prices. It is not a derivative product so corporates don’t need to change their accounting treatments or disclosure requirements as a result of selecting a progressive purchasing product.