Market / index swap: the essentials
The market / indexed swap moves the contract from the market price to the indexed price, or the other way round, when a threshold set in advance is reached. The switch applies a written rule: it is not decided day by day.
Who is it for, and for what uses?
It suits large local authorities whose finance department has defined a purchasing policy: large municipalities, EPCI, energy syndicates, landlords. The thresholds and their validation rules must be settled internally before the tender.
What it changes for you
You write the purchasing rule in advance, so it can be presented to elected members before it applies. Switches follow this rule, and you receive an explanation of each change.
Our solution
The mechanism rests on three elements:
| Criterion | With Eneffic |
|---|---|
| Thresholds | Price levels that trigger the switch, validated by your authority |
| Switch | Automatic move from the market price to the indexed price, or back |
| Review | Regular reassessment of thresholds with your finance department |
Thomas's take, our expert
A swap is there to apply a rule, not to guess the market. The rule must be explainable to a council: we write it together, then review it regularly.
Thomas, Energy expert
Our support
A single contact supports you at every step, from the initial analysis to long-term follow-up.
YOUR PROJECT STEP BY STEP
Reading the tender
We study your specifications and validation rules.
Calibrating thresholds
We test thresholds against your buildings' history.
Setting up
We contract the switching mechanism.
Periodic review
We reassess thresholds with your finance department.
Key takeaways
A rule written in advance
The switch follows validated thresholds, not the market's mood.
Calibrated on your data
Thresholds rest on your buildings' actual consumption.
An explanation for each switch
You can present it to your elected members.
