I was watching one of those “World’s Most Amazing Videos”-type shows the other day, and saw a video where a bungee jump almost went disastrously wrong, with a television crew there to catch the whole thing. I don’t remember exactly what happened during the jump…there are an awful lot of these videos of extreme stunts going wrong on television these days…but I do remember what the jumper said to the television interviewer after they got safely to the ground.

The interviewer asked whether, in retrospect, the jumper would rather not have risked the jump.

The jumper responded that, even knowing what they now knew, it would still have been worse to go through life never knowing whether they had the courage to actually take the jump.

This story encapsulates everything you need to know about the risks you face as a customer in today’s energy market.

While there are all kinds of hedges available to you…and at Cost Containment Intl., we are strong advocates of hedging whatever energy plan you choose…your energy plan will be based on one of two basic approaches. You can lock in a fixed rate. Or you can ride the market with a variable rate.

The choice is traditionally presented as being fixed=no risk, variable=risk. Looking back at 2008 and the lessons it taught us, we need a new way to look at risk. As the bungee jumper shows us, it’s really a question of what kind of risk bothers you the most.

Fixed rate plans offer predicability. Stay within your contracted usage, and you’ll know exactly what your energy costs will be for the length of your contract.

Variable rate plans offer flexibility. If you’re positioned to control use, you can maximize your savings and minimize your loss by matching highest use to lowest price.

With a fixed rate plan, the risk you run is that you’re going to see prices dip below your fixed rate and regret the flexibility you no longer have. The sure price is not the sure bet.

With a variable rate plan, you run the risk that prices will go high and then keep going higher, and regret the fixed rate you could have locked. The water is often deeper than it looked when you dove in at the shore.

As 2008 has shown us, we are entering a new age of volatility in energy prices, when traditional predictors and traditional patterns are not as reliable as they once were. Which means that you, the consumer, must develop a new understanding of your own tolerance to risk.

It starts with a simple question. Which would bother you more: the risk you took and lost, or the risk you never dared to take? When you know the answer, you will have the foundation for the right energy plan for your future. Cost Containment Intl. is ready to help you find the right answer.