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Explore the strategic blueprint behind Just Energy's Business Model Canvas and see how it aligns customer needs, wholesale energy sourcing, and revenue streams across electricity and natural gas offerings in deregulated markets.
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Partnerships
Wholesale Energy Suppliers
Just Energy secures wholesale supply via alliances with large power generators and gas producers, sourcing roughly 60-70% of its retail inventory through portfolio contracts to cover North American operations; this reduces spot-market exposure and supported 2024 hedged volumes of about 12 TWh equivalent.
Local Distribution Companies
The company partners with regulated local utilities that own power lines and gas pipes; Just Energy handles retail, customer acquisition, and billing while the local distribution companies (LDCs) perform delivery and emergency repairs. In 2025 the US average annual distribution capital expenditure per utility is about $350-500 per customer, so this partnership lets Just Energy avoid those upfront costs and operate as a retail provider at scale.
Renewable Energy Certificate Providers
Just Energy buys Renewable Energy Certificates (RECs) and carbon offsets from third-party developers and brokers to sell carbon-neutral plans; in 2024 the company reported sourcing ~120,000 MWh of RECs, covering roughly 35% of its residential load in Ontario.
Independent Sales Organizations
Just Energy uses independent sales organizations (ISOs) and third-party agents for door-to-door, telemarketing, and commercial lead generation, letting sales scale fast without large permanent staff increases; in 2024 similar retail energy firms reported 40-60% of new residential accounts sourced via ISOs.
- Third-party ISOs drive acquisition
- Channels: door-to-door, telemarketing, commercial leads
- Scales rapidly across territories
- Reduces fixed payroll; raises variable commission costs
Financial and Hedging Institutions
The company partners with banks and trading houses to secure credit lines and derivatives (futures, options) that hedge wholesale price risk; these facilities let Just Energy support fixed-price retail contracts and survive spikes-e.g., counterparties provided $450m in credit lines and executed hedges covering ~60% of expected 2025 volume as of Dec 31, 2025.
- Credit lines: $450m (Dec 31, 2025)
- Hedged volume: ~60% of 2025 supply
- Instruments: futures, options, swaps
- Purpose: protect fixed-price margins, maintain solvency
Just Energy: 12TWh hedged, $450M credit & partners cutting $350-500/customer capex
Just Energy partners with generators and gas producers (60-70% portfolio contracts; ~12 TWh hedged in 2024), local utilities for delivery (avoids $350-500 per-customer distribution capex), RECs suppliers (~120,000 MWh in 2024), ISOs for sales (40-60% new accounts), and banks/traders ($450m credit lines; ~60% 2025 hedged volume).
| Partner | 2024/2025 Figure |
|---|---|
| Generators/gas | 60-70% supply; ~12 TWh |
| Local utilities | save $350-500/customer capex |
| RECs | ~120,000 MWh |
| ISOs | 40-60% new accounts |
| Banks/traders | $450m credit; ~60% hedged |
What is included in the product
Detailed Word Document
A comprehensive Business Model Canvas for Just Energy detailing customer segments, value propositions, channels, revenue streams, key resources, partners, activities, cost structure, and governance; tailored to reflect real-world operations, competitive advantages, SWOT-linked insights, and designed for presentations, funding discussions, and strategic decision-making.
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High-level, editable Business Model Canvas for Just Energy that condenses strategy into a one-page snapshot, saving hours of formatting and enabling fast comparison, collaboration, and executive-ready deliverables.
Activities
Energy Procurement and Hedging
Just Energy forecasts load using hourly demand models and buys into North American wholesale markets, managing ~75-85% of expected volumes via forward contracts; in 2024 the company reported hedges covering roughly 80% of retail load, cutting spot exposure.
It runs layered hedging-Futures, swaps, options-monitoring weather, LNG exports, and geopolitical risk; a 10% spot-price swing can change gross margin by ~3-5 percentage points based on recent 2023-24 margin sensitivity analyses.
Customer Acquisition and Marketing
Just Energy spends about CAD 120-150 million annually on customer acquisition (2024 figure), running digital ads, refining sales scripts for 5,000+ agents, and launching time-limited promos to win residential and commercial accounts.
These efforts target offsetting ~18% annual churn in deregulated markets so the firm can sustain market share and net adds; acquisition cost per residential customer averaged CAD 420 in 2024.
Regulatory and Legal Compliance
Operating across 20+ US states and 4 Canadian provinces, Just Energy must continuously track local energy rules and consumer protection laws; noncompliance fines averaged US$3.2M per major violation in the sector in 2024, so compliance affects margins directly. Dedicated legal teams manage licensing renewals, monitor tariff and contract requirements, and ensure marketing, contract terms, and billing meet each utility commission's rules, responding to policy changes within statutory deadlines.
Customer Billing and Support
Just Energy runs end-to-end billing and support: processing monthly payments via a billing platform that handles tiered rates and multi-jurisdiction taxes (covers 20+ US states and 2 Canadian provinces) and operating call centers plus digital portals to resolve issues; in 2024 the company reported customer churn near 14%, so timely support cuts cancellations and protects revenue.
- End-to-end billing: multi-rate, multi-jurisdiction
- Channels: call centers, web, mobile portals
- Scale: operations across 22 jurisdictions (2024)
- Metric: 14% churn (2024) - support reduces cancellations
Data Analytics and Load Forecasting
Just Energy uses advanced time-series and machine-learning models on 10+ years of meter data and live NOAA and ECMWF weather feeds to forecast segment-level load, cutting procurement imbalance costs by an estimated 12% and lowering weekly spot buys by ~$1.2M in 2025.
- Uses 10+ years of AMI and smart-meter data
- Ingests NOAA/ECMWF real-time weather feeds
- Reduces imbalance costs ~12% (2025)
- Saves ~$1.2M weekly in spot purchases (2025)
Just Energy: ~80% hedged, 3-5pt spot sensitivity, CAD420 CAC, $1.2M/wk savings
Just Energy hedges ~80% of retail load via layered contracts, cutting spot exposure and keeping margin sensitivity to a 10% spot swing at ~3-5 pts; customer acquisition cost ≈ CAD 420 (2024) with ~14% churn; annual acquisition spend CAD 120-150M; imbalance reductions ~12% and weekly spot savings ~$1.2M (2025).
| Metric | Value |
|---|---|
| Hedge coverage | ~80% |
| Margin sensitivity (10% spot) | 3-5 pts |
| Acq. cost / customer | CAD 420 (2024) |
| Acq. spend | CAD 120-150M (2024) |
| Churn | ~14% (2024) |
| Imbalance reduction | ~12% (2025) |
| Weekly spot savings | ~$1.2M (2025) |
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Business Model Canvas
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Resources
Proprietary Billing and CRM Systems
Just Energy's proprietary billing and CRM systems handle over 3.2 million customer accounts and reconcile complex monthly cycles, serving as the backbone for enterprise operations. These systems ingest utility meter feeds directly, auto-generate accurate invoices, and enable tailored plans and self-service portals, reducing service costs-customer service contacts per account fell 18% after 2024 upgrades.
Market Licenses and Certifications
Just Energy holds retail energy licenses in select deregulated US states and Canadian provinces, a regulatory footprint that in 2025 covers markets representing roughly 3.2 million customer-equivalent accounts and $2.1 billion in annualized revenue rights, creating a high barrier to entry for new competitors.
These licenses are valued as intangible assets and demand ongoing demonstration of net worth, liquidity and compliance with stringent operating standards-regulators typically require minimum net worth thresholds (eg, $5-50 million by jurisdiction) and quarterly reporting to retain approval.
Brand Equity and Reputation
With over 15 years in retail energy and ~1.2 million customer-equivalent accounts nationally (2024), Just Energy's brand is a known alternative to incumbent utilities; that recognition cuts acquisition frictions and raises residential conversion rates by an estimated 8-12% versus unknown challengers. Trust from brand equity also supports higher-margin add-ons and reduces churn risk-average residential churn falls ~3 percentage points when brand recall is high.
Human Capital and Expertise
The workforce of specialized energy traders, risk managers, and regulatory experts drives Just Energy's procurement and hedging, supporting gross margins-traders reduced spot exposure by 42% in 2024, which helped stabilize EBITDA to a positive CAD 18.7m in FY2024.
The internal knowledge base on market dynamics and customer behavior guides pricing and retention decisions, cutting churn by 1.8 percentage points in 2024 and improving customer LTV by ~12%.
- 42% less spot exposure in 2024
- EBITDA CAD 18.7m FY2024
- Churn down 1.8 pp in 2024
- Customer LTV +12%
Financial Liquidity and Credit Lines
Just Energy needs large liquidity and credit lines to post collateral and bridge timing gaps between wholesale purchases and customer receipts; as of 2025 peer data show typical collateral requirements of $10-50/MWh, meaning monthly working capital needs can exceed $100m for mid – sized retailers.
Strong credit ratings cut supplier margins and protect during stress-firms with investment – grade ratings save ~50-150 bps on forward gas power swaps versus sub – investment grade peers.
- Collateral: $10-50 per MWh
- Monthly working capital: often >$100m
- Credit spread benefit: 50-150 bps if investment grade
Just Energy: 3.2M Accounts, $2.1B Revenue Rights & >$100M/month Working Capital
Just Energy's billing/CRM supports 3.2M accounts and $2.1B revenue rights (2025); licenses span deregulated US states and Canadian provinces with net – worth tests ($5-50M) and quarterly reporting; collateral needs ~$10-50/MWh implies >$100M monthly working capital; FY2024 EBITDA CAD18.7M; churn down 1.8pp; LTV +12%.
| Metric | Value (2024/25) |
|---|---|
| Accounts | 3.2M |
| Revenue rights | $2.1B |
| Collateral | $10-50/MWh |
| Working capital | >$100M/mo |
| EBITDA | CAD18.7M |
Value Propositions
Price Stability and Predictability
Just Energy offers fixed-price plans that shield customers from wholesale price swings-U.S. residential electricity futures rose 22% year-over-year in 2023, so locking a rate lets households and businesses forecast costs reliably. These plans appeal to budget-conscious buyers: in 2024, 41% of U.S. consumers cited bill predictability as a top energy choice driver, and fixed rates help avoid seasonal spikes during heat waves or supply shocks.
Environmental Sustainability Options
Just Energy sells green tariffs using renewable energy certificates (RECs) and carbon offsets so customers cut carbon without buying solar panels; in 2024 RECs prices averaged $1-$6/MWh in the US, keeping green premiums low versus $15k-$25k for a residential solar install.
By funding wind and solar projects, Just Energy targets eco-conscious consumers-35% of US households said they'd pay more for green power in 2023-supporting scalable renewables while claiming measurable CO2 reductions on customer bills.
Customized Commercial Solutions
Just Energy offers tailored commercial energy solutions-demand-response programs and efficiency consulting-that cut consumption and costs; clients report up to 15% average bill reductions and peak-demand savings worth $50-$120/kW annually (2024 pilot data).
Bespoke services align operations with ESG goals; our 2023 commercial portfolio reduced Scope 2 emissions by 12% year-over-year for medium and large clients, improving compliance and lowering carbon-related risk.
Convenience and Bundled Services
Just Energy bundles electricity and natural gas in multiple US and Canadian markets, simplifying procurement into a single bill and provider; as of 2025 the company reports serving roughly 1.2 million residential and small-business accounts, cutting average switching time to under 7 days.
User-friendly digital tools - web portal and mobile app - increase retention: customers using digital billing show a 12% lower churn and 18% higher on-time payments year-over-year.
- One-stop billing for electricity + gas
- ~1.2M accounts served (2025)
- Average switch time <7 days
- Digital users: -12% churn, +18% on-time pay
Flexible Contract Terms
Flexible contract terms let Just Energy offer month-to-month and varied-length plans so customers match service to housing or business cycles, avoiding long-term lock-ins; this broadens appeal to renters and short-term firms, supporting customer acquisition and reducing churn risk.
- Month-to-month available
- Plans of multiple lengths
- Targets renters, short-term businesses
- Reduces churn by matching customer lifecycle
Just Energy: 1.2M accounts, fixed-rate green plans, 15% savings, digital lifts retention
Just Energy sells predictable fixed-rate and green energy plans, bundles electricity+gas for ~1.2M accounts (2025), and cuts bills via efficiency/demand-response (≈15% savings); digital users show -12% churn and +18% on-time pay, while flexible terms (month-to-month) boost acquisition.
| Metric | Value |
|---|---|
| Accounts (2025) | ~1.2M |
| Fixed-rate appeal (2024) | 41% cite predictability |
| Avg commercial savings | ~15% |
| Digital user impact | -12% churn, +18% on-time |
Customer Relationships
Dedicated Account Management
For large commercial and industrial clients, Just Energy assigns dedicated account managers as a single point of contact to handle complex energy needs and contract renewals, improving retention: in 2024 enterprise accounts under dedicated management showed a 92% renewal rate and accounted for roughly 58% of corporate revenue (about CAD 420m of CAD 725m). This high-touch model drives long-term loyalty and upsell opportunities.
Digital Self-Service Portals
Just Energy's digital self-service portals and mobile apps let residential customers view usage history, pay bills, and change plans 24/7, cutting live-agent interactions; in 2025 similar utilities report 60-70% of bill payments via digital channels and digital-only customers reduce service costs by ~40%.
Proactive Communication and Alerts
Just Energy sends monthly usage trend updates and market alerts to 1.2M business customers, and automated messages flag savings when price spikes exceed 8% versus prior month. Alerts also remind customers 60 days before contract expiry, boosting renewal rates-reported at 72% in 2024-so customers feel informed and partnered.
Community Engagement and Support
Just Energy runs local community initiatives and charity programs-sponsoring 45 events in 2024 and donating CAD 420,000-to boost brand goodwill and local ties.
These efforts deepen emotional bonds with customers, improving retention; pilot programs showed a 6.2% higher 12 – month retention in communities with active engagement.
- 45 events sponsored (2024)
- CAD 420,000 donated (2024)
- +6.2% 12 – month retention in engaged areas
Loyalty and Referral Programs
Just Energy runs loyalty and referral programs offering bill credits, gift cards, or discounted rates for long-tenured subscribers to boost retention; in 2024 similar US energy retailers saw referral-driven new customer acquisition rates of 12-18% and programs cut CAC (customer acquisition cost) by ~20% year-over-year.
These incentives convert satisfied customers into ambassadors, lowering churn-utility sector median annual churn fell to 9.5% in 2024 where strong loyalty schemes were used.
- Rewards: bill credits, gift cards, discounts
- Impact: referral share 12-18% (2024 peers)
- Efficiency: CAC down ~20% (2024 peer data)
- Retention: churn ~9.5% with programs (2024 median)
Just Energy: 92% enterprise renewals, CAD420M revenue, digital & referral-driven growth
Just Energy uses dedicated account managers (92% renewal, CAD 420m of CAD 725m revenue, 2024), digital self – service (60-70% digital payments industry 2025), automated alerts (72% renewal 2024 for alerted customers), community programs (45 events, CAD 420,000 donated, +6.2% retention), and loyalty/referral (referral 12-18%, CAC -20%, churn ~9.5% 2024 peers).
| Metric | Value |
|---|---|
| Enterprise renewal | 92% (2024) |
| Enterprise revenue | CAD 420m of CAD 725m (2024) |
| Digital payments | 60-70% (peers 2025) |
| Alerted renewal | 72% (2024) |
| Events/donations | 45 events; CAD 420,000 (2024) |
| Retention lift | +6.2% (pilot) |
| Referral impact | 12-18% new customers (2024 peers) |
| CAC change | -20% (2024 peers) |
| Sector churn | ~9.5% (2024 median) |
Channels
Corporate Website and Online Enrollment
The company website is the primary digital channel where prospects compare plans and enroll directly; in 2024 online sign-ups accounted for ~62% of new business and reduced acquisition cost to about $120 per customer versus $350 for brokers. The site is optimized for conversion with transparent pricing, an easy enrollment flow, and an integrated portal for account management, making it the most cost-effective acquisition hub.
Direct Sales and Field Marketing
Just Energy uses door-to-door teams and retail kiosks to deliver face-to-face sales, enabling reps to explain complex plans and answer questions on the spot; field teams closed about 18% of new residential accounts in 2024, per company channel data.
Telemarketing and Inside Sales
Just Energy runs internal and outsourced call centers that make outbound calls and handle inbound inquiries, using targeted lists to offer tailored energy plans; in 2024 call-center sales accounted for about 18% of new customer acquisitions, per company disclosures.
This channel is efficient for re-engaging former customers and following up digital leads, with conversion rates around 6-9% on targeted campaigns and average customer acquisition cost about $220 in 2024.
Commercial Broker Networks
Just Energy sells to businesses via independent commercial brokers and consultants who compare suppliers and negotiate contracts; in 2025 brokers sourced roughly 45% of Just Energy's commercial book, unlocking large industrial deals averaging $1.2m annualized revenue per account.
- Access: brokers reach enterprise clients outside retail channels
- Scale: avg $1.2m ARR per commercial account (2025)
- Share: ~45% of commercial book sourced via brokers (2025)
Mobile Applications
Just Energy's mobile app is a primary customer channel-66% of utilities' retail interactions shifted to mobile by 2024-letting users get push alerts, view real-time usage when smart meters are present, and pay bills instantly, boosting retention and reducing call-center costs.
- Push notifications: instant outage/price alerts
- Real-time usage: smart-meter sync, kWh tracking
- Payments: in-app, saved cards, 24/7
- Impact: lower churn, fewer support calls, higher engagement
Low – cost web CAC $120, brokers drive $1.2M ARR and mobile lifts retention
Website (62% new, CAC $120 in 2024) is primary low-cost acquisition; door-to-door/retail (18% new in 2024) enables complex-plan closes; call centers (18% new, CAC ~$220 in 2024) re-engage leads; brokers drive 45% of commercial book (2025) with avg $1.2M ARR per account; mobile app (66% retail interactions via mobile by 2024) boosts retention.
| Channel | 2024-25 Share | CAC / Key metric |
|---|---|---|
| Website | 62% new | $120 CAC |
| Field/retail | 18% new | - |
| Call center | 18% new | $220 CAC |
| Brokers (commercial) | 45% commercial (2025) | $1.2M avg ARR |
| Mobile app | 66% interactions (2024) | higher retention |
Customer Segments
Residential Homeowners
Residential homeowners-individual households seeking stable energy prices for primary residences-favor long-term fixed-price contracts to shield family budgets from seasonal heating/cooling spikes; as of 2025, fixed-rate plans made up about 62% of Just Energy's customer contracts, delivering predictable revenue.
Small and Medium Enterprises
Small and medium enterprises (restaurants, retail, local offices) need reliable energy at competitive rates; SME commercial customers made up ~42% of US small-business electricity spend in 2024, so Just Energy offers tailored commercial plans for that demand.
These businesses want price stability plus flexibility as they scale; Just Energy's SME plans include fixed-rate, month-to-month, and usage-tiered options with contract terms from 3-36 months to match variable consumption patterns.
Eco-Conscious Consumers
Eco-conscious consumers, now ~36% of US energy buyers per 2024 Pew data, prioritize environmental impact over price and pay premiums of 5-12% for green plans; they seek products backed by renewable energy certificates (RECs) or verified carbon offsets. Just Energy targets them with branded green plans and quarterly transparent reports showing REC retirements and estimated CO2 reductions (e.g., 1,200 metric tons CO2 avoided annually per 10,000 subscribers).
Large Industrial and Commercial Clients
Large Industrial and Commercial Clients include manufacturing plants and office complexes with very high, complex energy needs; Just Energy serves them with tailored procurement that blends fixed and index-based pricing to cut volatility and cap costs.
Just Energy assigns dedicated account teams, offers bespoke hedging and demand-response solutions, and targets savings of 5-12% on energy spend-typical contracts exceed $1M annual energy value for clients over 5 MW load.
- Clients: plants, campuses, large offices
- Needs: high kW demand, load variability
- Pricing: mix of fixed + index contracts
- Support: dedicated account teams, hedging
- Impact: 5-12% estimated savings, >$1M/year contracts
Renters and Short-Term Residents
Just Energy targets renters and short-term residents by offering month-to-month and short-duration plans with no long-term commitment, avoiding heavy cancellation fees; in 2024 US Census Bureau data shows 36.4% of US households rented, a sizable addressable market.
The approach captures customers who value flexibility and mobility, improving acquisition in urban ZIP codes where average renter churn exceeds 25% annually and allowing pricing that reflects shorter contract life.
- 36.4% US households rent (2024, US Census)
- Urban renter churn >25% annually
- Month-to-month reduces cancellation losses
Segmented Energy Plans: Fixed Residential, Flexible SME, Green Premiums, C&I Savings
Residential (62% contracts, fixed-rate), SMEs (3-36mo terms, tailored; ~42% of US small-business spend 2024), Eco-conscious (~36% buyers 2024; pay 5-12% premium), Large C&I (>5 MW, >$1M/yr; 5-12% savings), Renters (36.4% households 2024; >25% urban churn; month-to-month).
| Segment | Share/Stat | Key Offer |
|---|---|---|
| Residential | 62% contracts (2025) | Fixed-rate |
| SME | ~42% small-business spend (2024) | 3-36mo plans |
| Eco | 36% buyers (2024); 5-12% premium | REC-backed green plans |
| Large C&I | >5 MW; >$1M/yr | Hedged + index mix |
| Renters | 36.4% households (2024); >25% churn | Month-to-month |
Cost Structure
Energy Procurement Costs
Energy procurement-buying electricity and natural gas from wholesale markets-forms Just Energy's largest cost, representing roughly 60-75% of COGS in 2024 energy retailers; spot prices and hedging premiums determine actual outlays. Efficient hedging (forward contracts, swaps) and timing cut volatility: a $10/MWh swing in power price changes gross margin by ~2-4 percentage points on a typical retail portfolio.
Customer Acquisition Costs
Just Energy spends heavy upfront capital on agent commissions, advertising, and promotional credits-reports show sales and marketing ran ~18-22% of revenue in 2024, with average upfront acquisition cost per residential customer ~USD 250-320; payback often takes 9-14 months from monthly margin, so matching CAC to estimated lifetime value (LTV ~USD 1,100-1,600) is a persistent financial pressure.
Operational and Administrative Overhead
Operational and administrative overhead covers corporate offices, IT systems, and customer support centers; in 2024 similar mid-sized utilities spent 8-12% of revenue on these functions-about $15-25m annually for a $200m revenue firm. Salaries for finance, legal, HR, and customer service are major fixed/semi-variable items and must be trimmed to keep margins above the sector median of ~3-5% EBITDA.
Regulatory and Compliance Expenses
The company faces ongoing costs to maintain licenses, pay regulatory fees, and comply with diverse state and provincial laws; in 2024 US retail energy firms reported regulatory & compliance spend averaging 0.5-1.2% of revenue, roughly $8-20 million for mid – size providers.
This also covers legal counsel for disputes and policy changes; given heavy regulation, these costs are permanent and scale with market footprint and tariff complexity.
- License fees: recurring per-jurisdiction charges
- Regulatory filings: 0.5-1.2% of revenue (2024 benchmark)
- Legal counsel: dispute & policy advisory
- Scale factor: rises with number of states/provinces
Bad Debt and Credit Risk
Just Energy incurs significant bad-debt risk when customers default on bills, requiring reserves and higher collection costs; retail energy peers saw residential receivable write-offs jump ~40% in 2023, so Just Energy must provision similarly and monitor charge-off rates monthly.
The firm must invest in credit monitoring, collections, and strict vetting for new accounts; if unemployment rises 1pp, industry bad-debt expenses historically rose ~10-15%, raising reserve needs materially.
- Bad-debt reserves: budget for +40% stress vs prior year
- Collections & monitoring: ongoing NPV-positive if reduces charge-offs >10%
- Credit vetting: tighten thresholds when unemployment >6%
High procurement costs drive margins; CAC, O&A, and credit risk key levers
Largest costs: energy procurement (60-75% COGS; $10/MWh swing → ~2-4pp gross margin change), S&M CAC ~$250-320 (18-22% revenue; payback 9-14 months; LTV $1,100-1,600), O&A 8-12% revenue, regulatory 0.5-1.2%, bad – debt reserves +40% stress; credit costs rise ~10-15% per 1pp unemployment increase.
| Item | 2024 Benchmark |
|---|---|
| Procurement | 60-75% COGS |
| CAC / S&M | $250-320; 18-22% rev |
| O&A | 8-12% rev |
| Regulatory | 0.5-1.2% rev |
| Bad – debt | +40% stress |
Revenue Streams
Fixed-Rate Contract Revenue
The primary income is from customers paying a fixed per – unit price for the contract term, giving Just Energy predictable revenue-about 68% of 2024 retail sales came from fixed – rate plans, supporting cash flow forecasting and hedging. The firm earns a margin by buying wholesale energy lower than the fixed retail rate; in 2024 average wholesale purchase cost was ~US$0.045/kWh versus retail fixed pricing near US$0.12/kWh, yielding gross spreads to cover ops and risk.
Variable-Rate Monthly Sales
Variable-rate monthly sales let customers pay prices that move with wholesale markets; as of 2024 about 18% of Just Energy's retail book was on non – fixed plans, letting the company pass through price swings and cut its commodity exposure by roughly the same share. These plans appeal to customers avoiding long contracts and willing to accept volatility-average monthly price variance spiked 22% in 2022-2023 during market stress.
Green Energy Premium Fees
Just Energy adds a high-margin revenue stream by charging a green premium-typically $0.01-$0.03 per kWh or a $5-$15 monthly add-on-so customers pay extra to match usage with renewables and carbon offsets. By sourcing renewable energy certificates (RECs) at scale (e.g., 2024 REC purchases up 28% year-over-year), this upsell boosts gross margins while adding predictable recurring revenue.
Commercial Energy Management Services
Beyond commodity sales, Just Energy earns service fees from energy audits, demand-response participation, and advisory projects, which in 2024 accounted for about 18% of commercial revenue-roughly CAD 45M of its CAD 250M B2B top line.
- Energy audits: fee-based, recurring insights
- Demand-response: payments per kW curtailed
- Consulting: project fees, SLAs for high-value clients
- Diversifies income, raises client retention
Administrative and Late Fees
Administrative and late fees - including late payment, reconnection, and early termination charges - form a secondary revenue stream that both incentivizes timely bills and adds to income; for example, utilities often report these fees as 1-3% of total revenue (Just Energy's peer group median ~2% in 2024).
These charges offset costs of delinquent account handling and contract breaches, lowering net churn and covering collections, back-office work, and lost-margin recovery.
- Typical share: ~1-3% of revenue
- Common fees: late payment, reconnection, early termination
- Purpose: cover collections, reduce churn, recover lost margin
Just Energy: Stable fixed-rate revenue, diversified by green premiums & B2B services
Just Energy earns predictable revenue mainly from fixed-rate retail plans (~68% of 2024 sales), gross spread ~US$0.075/kWh (retail US$0.12 vs wholesale US$0.045); 18% on variable plans reduces commodity exposure; green premiums (US$0.01-0.03/kWh or US$5-15/mo) and B2B services (~CAD45M of CAD250M in 2024) plus admin fees (~1-3% revenue) diversify income.
| Stream | 2024 share | Key metric |
|---|---|---|
| Fixed-rate | 68% | Spread US$0.075/kWh |
| Variable | 18% | Reduces exposure |
| Green premium | - | US$0.01-0.03/kWh |
| B2B services | 18% of B2B rev | CAD45M |
| Fees | 1-3% | Late/ETC |
Frequently Asked Questions
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