If Utilities Kingston charges “cost” for the commodity portion, how can a retailer make a profit?
Essentially the retailer believes they will be able to purchase electricity on the open market at a price less than you pay in the contract. The main difference between the retailer and Utilities Kingston is Utilities Kingston needs to have a secure supply; therefore we will typically lock into longer-term contracts than a retailer. The retailer on the other hand will attempt to time the market and buy on “dips” in prices.