Most brokers treat the energy forward curve like background noise — something the supplier worries about. That’s a mistake. Right now, that curve is handing you one of the cleanest closing arguments you’ll see all year. It’s called backwardation, and if you’re not using it, you’re leaving deals on the table.
What’s Actually Happening
Backwardation occurs when spot and near-term energy prices are elevated relative to future delivery months — the forward curve slopes downward. In New England, this happens when demand spikes (think late winter cold snaps), gas pipeline constraints drive up prompt prices, or grid stress creates scarcity premiums that the market expects to resolve over time.
The result: locking in a 12-, 24-, or 36-month fixed price right now can actually cost less per unit than rolling short-term contracts month to month. The customer who waits for their current contract to expire — assuming they can get a better deal later — is betting against the curve.
ISO-NE’s constrained pipeline infrastructure means backwardation isn’t rare here — it shows up every time winter demand collides with limited gas supply. Brokers who understand this have a seasonal edge most of their competitors ignore.
Why This Is Your Sales Window
The backwardation premium doesn’t last. Once supply normalizes or weather breaks, the curve flattens. The window to present this to customers — credibly and urgently — is measured in weeks, not months.
The Pitch — In Plain Language
“Right now, the energy market is pricing near-term power higher than it expects future power to cost. That’s unusual, and it creates a specific window: locking in a fixed rate today gives you a price that’s lower than what you’d pay rolling short-term through this period. I want to show you the numbers for your specific account before this window closes.”
That’s it. You’re not teaching them economics. You’re telling them there’s a limited-time arbitrage on their energy bill — and you’re the one who spotted it.
Work Your Book — Now
The accounts worth prioritizing right now: any customer on utility default service, any account on a contract expiring in the next 60–120 days, and any account you haven’t repriced in 18+ months. In a backwardation market, that’s where the largest dollar-value savings opportunities sit.
Gridwealth can run a curve analysis against specific accounts in your book. If you have a customer on default service or a near-term expiration, let’s put numbers to it this week.
Get a Curve Analysis for Your Book
Send us your expiring accounts. We’ll show you exactly where backwardation is creating a closing opportunity — with your name on it.
GRIDWEALTH ELECTRIC
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