Clicky

Pass Through & Fixed Contracts

Watt Team

It is important to ascertain the needs of your organisation when selecting a pass through or fixed contract because both contracts have their advantages and disadvantages.

Fixed

AdvantagesDisadvantages
Budget certaintyRisk premiums are built-in
Clear simple BillingNot transparent
Easier to forecast spendNo advantage from lower third part costs
Protected against legislative changesUnsuitable for dynamic response products
Easy to manageLimiting benefits for demand management

Pass-Through

AdvantagesDisadvantages
Greater transparencyRisk of higher third party charges
Benefit from actual third party chargesComplex billing
No Risk PremiumCosts are not secured
Able to take advantage of triad avoidanceCommonly miss-sold
Suitable for dynamic response productsBudget forecasting difficulties