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Industry insights

Renewing with a Fixed Rate Energy Contract

Amanda Byrne

22nd September 2020

 
 

We often get asked if Fixed Rate Energy plans are the best option.

This can vary depending on the size of your business, how much energy your business consumes and what your energy strategy is.

The current energy market can also influence buying decisions. With the current uncertainty in the market due to the pandemic and Brexit talks, we are already seeing volatility in electricity and gas prices.

Your buying strategy for energy is more important than your choice of supplier, it can save your business substantial amounts of money when done correctly. Take our free 5 minute energy health check to get your strategy score.

We use our expertise in tender management, supplier negotiations and an understanding of the wholesale energy market to get the best possible outcome, tailored for your business.

 

What is a Fixed-Rate Energy Contract?

A fixed rate energy contract means your energy rates will cost the same for the length of your contract. The cost of bills will vary depending on how much energy you use however, the unit price (kWh) will remain the same for the entire contract term.

 

What are the benefits?

Fixed rate energy contracts are open to all businesses, but typically they are best suited to small to medium sized energy users that want to secure prices. Giving them peace of mind for budgeting going forward.

Fixed-rates of energy offer the following benefits:

  • One purchasing decision required for the entire contract
  • Budget certainty through fixed pricing
  • Protected from energy price increases
 

What are the disadvantages?

Once fixed, your rates are locked in for the length of the contract. 

This means that if the unit price drops, you won’t enjoy the reduction in costs like a Flexible-Rate Plan. Securing a fixed rate energy plan at the right time is crucial to maximise potential savings.

 

Do I need to wait until my renewal date?

You can secure future prices ahead of your renewal. We advise to start looking into your new energy contract as far in advance as possible, this way you have the best chance of securing lower prices.

The closer you get to the deadline of a contract renewal, the higher the risk of energy prices rising.

Even if you are in a contract, Brownlow Utilities can often negotiate better rates on your behalf.

 

My energy contract has expired.

If you don’t renew your contract it can lead to increased costs, budget instability and changes of terms on your contract.

At Brownlow Utilities we will always give you notice when your contract is due to expire to ensure you can secure the best deal going forward.

 

What is the next step?

Speak to our experts. 

We can give your business an idea of contract prices within 20 mins so that you can assess your current market position.

We have industry leading expertise in tender management, supplier negotiations and an understanding of the wholesale energy market that is second to none.

Don’t delay finding out if you can save money for your business...

Book a Call or Email us at hello@brownlowutilities.co.uk to receive free expert advice from our team. We will find the plan that’s best tailored to your business needs.

 

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Your business can save money

Our clients save an average of 24% on utility costs. Get a free health check for your company.

Free energy health check

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