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  1. Home
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  5. Energy Procurement

Fixed Energy Procurement

Securing price certainty in volatile energy markets. Fixed energy contracts provide businesses with a stable and predictable approach to energy procurement.

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Take advantage of market movements and reduce energy costs with flexible procurement strategies supported by real-time market intelligence.

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Why Choose Fixed Energy

Budget Certainty

Fixed contracts provide clear and predictable energy costs, supporting accurate financial planning.

Protection from Market Volatility

By locking in rates, businesses avoid exposure to sudden increases in wholesale energy prices.

Simplicity & Ease of Management

Fixed contracts are straightforward to manage, with minimal ongoing decision-making required.

Cost Control

Options are available to fix both commodity and non-commodity elements, providing greater control over total energy costs.

What Is Fixed Energy Procurement? 

 

A fixed energy contract allows businesses to secure a fixed unit price for electricity and gas over a set period, typically between one and five years.

 

This means that:


  • Energy prices remain stable throughout the contract term
  • Businesses are protected from wholesale market fluctuations
  • Budgeting and forecasting become more predictable 

 

Flexible procurement is particularly effective in volatile market conditions, where timing has a significant impact on contract pricing.

 

Fixed Energy Benefits

 

  • Stable and predictable energy pricing 
  • Protection from wholesale market volatility
  • Simplified contract management
  • Greater control over energy and non-energy costs
  • Improved budget planning and forecasting 

 

 

Fixed Energy Contract Options

Fixed procurement strategies can be tailored depending on business requirements.

Fully Fixed Contracts

Both commodity and non-commodity costs are fixed for the duration of the contract.

  • Maximum cost certainty
  • Minimal exposure to market changes
  • Ideal for budget-driven organisations

Fixed Commodity with Pass-Through Costs

The wholesale energy cost is fixed, while non-commodity charges are passed through.

  • More competitive initial pricing
  • Some exposure to external cost changes
  • Commonly used procurement structure

 

Structured Fixed Contracts

A hybrid approach where elements of pricing can be fixed at different times.

  • Greater flexibility
  • Ability to respond to market conditions
  • Balance between fixed and flexible strategies

Flex Basket Procurement

 

Through our flex basket framework, Nationwide Utilities enables smaller and mid-sized organisations to access flexible procurement strategies.

By combining the energy demand of multiple clients, we create a larger aggregated portfolio, allowing businesses to benefit from flexible purchasing that would not typically be available on an individual basis.

 

This approach makes flexible energy accessible to a wider range of UK businesses.

Is Fixed Energy Right for Your Business?

 

Fixed energy contracts are typically suited to organisations that: 

 

    • Prioritise budget certainty and cost stability
    • Prefer a low-risk procurement approach
    • Have limited time or resource to actively manage energy purchasing
    • Want a simple and predictable contract structure 


    They are particularly appropriate for small to medium-sized businesses or those seeking a more hands-off procurement strategy. 

 

Fixed vs Flexible Energy Procurement 

 

Fixed and flexible contracts represent two different approaches to managing energy risk. 

 

  • Fixed energy provides certainty and simplicity
  • Flexible energy offers potential savings through active market engagement 

 

Many organisations adopt a strategy that balances both approaches depending on their operational needs and market conditions. 

How Nationwide Utilities supports Fixed Energy

Step 1: Procurement Strategy Assessment

We assess your energy usage, contract position and risk profile to determine whether a fixed strategy is appropriate.

Step 2: Market Timing & Pricing Insight

Our market intelligence ensures contracts are secured at competitive rates based on current market conditions.

Step 3: Supplier Engagement & Negotiation

We manage supplier negotiations to secure favourable contract terms and pricing structures.

Step 4: Contract Structuring

We tailor contract options to align with your budget, operational needs and long-term strategy.

Step 5: Ongoing Contract Support

We provide continued support to ensure your contract remains aligned with market conditions and future procurement planning.

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Frequently Asked Questions

Fixed energy contracts provide price certainty, protect against market volatility and support stable budgeting through locked-in energy rates.

What is a fixed energy contract?
A fixed energy contract locks in the price of electricity or gas for a defined period, protecting businesses from market price fluctuations.
How long do fixed energy contracts last?
Most fixed contracts last between one and five years, depending on business requirements and market conditions.
Are fixed energy contracts cheaper?
Fixed contracts provide price certainty rather than guaranteed lowest cost. In some cases, they may be higher than market lows but protect against price increases.
Can non-commodity costs be fixed?
In some contracts, both commodity and non-commodity costs can be fixed, while in others certain charges remain variable.
Should I choose fixed or flexible energy?
The right approach depends on your organisation’s risk appetite, budget requirements and procurement strategy. Many businesses use a combination of both.

Nationwide Utilities Limited

346 Kensington High Street
London
W14 8NS
United Kingdom

  • 020 3475 2000
  • enquiry@nationwideutilities.com 

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