Utility Bidder Energy Insights 2022 - Flipbook - Page 20
When should I start
looking to renew my
contract?
Fixed or Flex?
There are pros and cons to deciding whether to opt for a fixed tariff or a flexible
one. Again, this is heavily dependent on your business activities. Here is a bit of a
It’s never too early to start looking at
renewing your energy contract and
even if you have a year to run with
round up which may help with your decision:
Fixed tariff
your current provider, Utility Bidder’s
advice is talk to us now so that we can
A fixed price business energy tariff does what it says on the tin and fixes your
reviewing the market for you right
energy price for an agreed amount of time – usually between 1 – 3 years, although
away, this way we can provide you with
you can sometimes opt for a 5-year term. Having a fixed energy tariff means that
the right advice for your business.
each unit of energy you use is set at a fixed price. This does not mean your bill
remains the same each quarter, as your business will consume different energy at
Too many businesses are burying
different times of the day or the year – and so your bill will vary. However, you can
their head in the sand – assuming that
be assured that the price you are paying for a unit of energy remains the same.
by the time they come to renew their
The pro’s:
The con’s:
expert view (see page 3) suggests it
• This will protect your business from
• If energy prices fall, you won’t
won’t. Now, finding an energy provider
any significant price hikes (as we are
benefit from any savings
has never been such a risky business.
seeing now)
• You are tied into a contract and may
The energy market is a difficult to
• It gives you some idea of energy
have to pay a penalty if you want out
navigate but also almost impossible to
costs and so allows you to plan
forecast. It essentially comes down to
• It’s usually cheaper than a variable
what you feel is best for your business
rate
contracts things will have returned
to normal. Perhaps they will, but the
based on sound advice from those that
are in working in the industry.
Variable tariff
We believe there will be a drop in
Variable gas and electricity tariffs are energy price plans that can change according
prices at some point, but from all
to wholesale energy price rises and drops. Unlike fixed rate plans, your unit price
market information we can expect that
is not set at a certain amount. This means that the amount you pay for each unit of
its going to get worse before it gets
energy could vary from one month to the next.
better. What we do know is, Variable
The pro’s:
The con’s:
you are a glass half full kind of person
• You are free to shop around and can
• It’s difficult to budget in what is a
or not, it will not make business sense
switch whenever you like and so when
volatile market
to leave your contract to run over
prices fluctuate you can move where
• The overall unit price is often
and enter these rates. So, if you are
you want, when you want.
higher as the variable market is less
coming to the end of your contract, we
• If prices do drop – you should
competitive
urge you to act now. Get information
benefit too.
Price Plans or Out of Contract rates
will be incredibly high. So, weather
on supplier price point, what contract
would be most suitable for your
business operations and how you can
save money in alternate ways to try
Working with Utility Bidder will support you in this
volatile market
and buffer the increase.
Utility Bidder can help you decide which is the best option for your business –
however, don’t forget in the current climate, there is not a great deal of choice.
You have nothing to lose by speaking to a Utility Bidder expert for advice – but
possibly everything to lose if you don’t. We are seeing prices changing daily with
suppliers pulling their prices instantly with no warning at all. In addition, many
suppliers are still dangerously over exposed and could join the list on page 2 with
little warning.
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