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Industry insights

Be flexible when looking for a fixed business energy contract

Amanda Byrne

12th January 2023

The energy crisis has changed the way we all view and manage our electricity and gas - both domestically and commercially. Many businesses have felt forced to 'ride-out' the winter in the hope that energy prices will drop - maybe even return to pre-2021 levels! :-)

This has meant that many business must look at renewing their energy contracts within the next few months and year ahead.

So what options are available? 

Business should NOT feel pressured into signing anything in haste or for a fixed, longer term. Rather, you should be looking at your options now and choosing a contract type that meets your needs financially and strategically, whilst managing your appetite for risk.

Having strong supplier relations and a firm understanding of the current market dynamics, Brownlow is helping businesses of all sizes choose the right energy product, giving honest advice and professional service that is often lacking in the industry.

Fixed v's flexible energy contracts 

FIXED- A fixed price contract allows your business to agree a set price or all inclusive rate for its gas and electricity on the day the contract is signed. This agreed fixed price lasts for duration of the contract which typically runs for roughly 12 to 24-month periods and occasionally up to 36 months.

FLEXIBLE - In volatile energy markets, prices can rise and fall unpredictability. Hence, if managed correctly, a flexible procurement contract or arrangement offers you a great level of freedom and allows you to optimize your energy spend in a dynamic fashion. This helps you take a longer-term outlook on your energy spend, achieving competitive energy rates by fixing and unfixing tranches of energy progressively.

Traditionally energy suppliers would only offer flexible products to businesses who consume 5,000,000kWh a year and above. However, Brownlow has made this an opportunity for all.

Read more on flexible energy purchasing here 

Are you a basket case?

Brownlow has been working with a number of key energy suppliers to create flexible “baskets” in which we purchase energy collectively for a number of businesses. This allows customers who wouldn’t normally have access to flexible products to take advantage of the benefits associated with this method of purchasing.

For our new basket customers, we have adopted a dynamic trading strategy that is relevant to current market conditions, ensuring the price of energy that you pay is more in line with a true reflection of the current energy market and not the inflated prices of the forward market. 

The strategy is constantly reviewed and monitored at Brownlow to ensure we are always doing what is in the best interest of the customers within the basket. Clients receive regular reports to keep in touch too.

Proof is in the pudding!

Brownlow's flexible baskets have been the solution of choice for almost 95% of current and new businesses within the last few months. Some of the clients have seen energy rates 50% below the wholesale market Government Energy Bill Relief Scheme! This has not only kept businesses afloat but also saved our Government paying out whilst helping to rebuild this market.

As the Government's financial relief to businesses starts to change, it is more important than ever for businesses to choose a competitive, flexible deal.

This is something that could help you and your business with their current and future energy situation!

Give us a call today to discuss your options or organise a quick chat here.

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