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.


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


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