Is a fixed or flexible energy contract best for my business?

Fixed energy contracts guarantee a stable gas and electricity tariff at a locked-in rate for a designated term that can span from one to five years. The goal is to protect your business from market volatility and the rising rates of both commodity and non-commodity costs, by securing a contract at the lowest possible price - with the right supplier - at the right time.

A fixed rate contract features a host of benefits, including budget certainty and greater administrative ease. This more risk-averse energy purchasing option is ideal for small to medium energy consumers, or those simply seeking the most low-stress and hassle-free option. Together, we'll design a progressive risk mitigation strategy, so your business steers clear of the inevitable peaks of the energy market.

Keeping your options open

If you’re willing to take on slightly more risk, a pass-through contract may be more suitable for your needs. Pass-throughs generally feature a secure commodity rate but allow for customers to take advantage of potential reductions in non-commodity taxes and levies. However, these type of contracts can be more complicated and as non-commodity rates continue to rise and now make up almost 60% of your utility bills, a pass-through contract also runs the risk of increasing your costs. 

Get in touch with our team today to learn more about our array of wholesale energy purchasing options and procurement solutions. We'll conduct a thorough account audit, validate historical energy bills to recover lost revenue, and perform a risk assessment to determine whether a fixed or flexible contract is best for your business.

Speak to us on 0800 862 0861 or send us a message.