What is the difference between electricity and gas procurement
Electricity procurement revolves around demand patterns, wholesale spot exposure, network charges, and contract timing. Gas procurement is shaped by physical supply constraints, storage access, pipeline capacity, and seasonal price swings. Both share the same label, yet they behave like two entirely different species. A simple way to think about it is this. Electricity is a flow that cannot be stored easily at scale, so prices react almost instantly to demand shifts. Gas is a commodity that can be stored, traded, and physically moved, which creates its own set of behavioural drivers and market quirks. How does electricity procurement actually work? Electricity procurement hinges on understanding demand flexibility and contract structure. Many Australian businesses default to fixed rate contracts because they feel safer. That is a classic example of loss aversion at play. In practice, electricity buyers look at: Peak and off-peak consumption Wholesale market volatility ...