The Purpose of Fixing
Many customers ask whether now is a good time to fix their electricity or gas prices. It is a reasonable question, and there is no single correct answer.
Nobody can predict future wholesale energy prices with certainty. The purpose of fixing is often to provide certainty and help businesses budget, rather than to guarantee the lowest possible price.
Why Businesses Choose Fixed Contracts
A fixed contract locks in the agreed unit rates for the duration of the term. For many businesses, the main benefit is knowing what the energy will cost.
Budget certainty
You know what the unit rates will be for the duration of the contract. This makes it easier to forecast energy costs and plan cash flow.
Protection from price increases
If wholesale prices rise during your contract term, your agreed rates are not affected. The supplier carries that risk, not you.
Confidence when planning
Businesses that need to quote for work, set budgets or plan ahead benefit from knowing their energy costs will not change unexpectedly.
Avoiding Variable Business Rates
When a fixed contract expires without a renewal in place, most suppliers move the account onto Variable Business Rates. These are almost always higher than a well-timed fixed contract.
Worth noting: A fixed contract only fixes the agreed contract prices. Standing charges may still vary between contracts agreed at different times, and your actual bill will still depend on how much energy you use.
Reasons Some Businesses Choose Not To Fix
Fixing is not always the right approach. There are circumstances where remaining on a flexible arrangement makes sense, at least for a period.
Waiting for market movements
Some businesses prefer to wait if they believe prices may fall before their contract needs to be agreed. This involves a degree of risk and requires careful monitoring.
Very short-term occupation
If a business is only occupying premises for a few months, a long fixed contract may not be appropriate.
Possible business closure or relocation
Where a business is uncertain about its future at a particular address, committing to a fixed contract needs careful consideration.
Redevelopment
If premises are due to be redeveloped or significantly altered, the energy requirements may change substantially.
Uncertain energy requirements
A business expecting significant changes to its operations may prefer flexibility until its future consumption becomes clearer.
Whether staying variable is sensible depends entirely on the individual business and its circumstances. It is not a decision we would make for a customer without understanding their situation first.
Questions We Normally Ask Before Recommending Anything
Before we suggest anything, we try to understand the business. The questions we usually start with are straightforward.
When does your contract end?
This determines how urgently a decision needs to be made and what options are available.
How much energy do you use?
Annual consumption affects which suppliers and tariffs are available and how competitive the pricing is likely to be.
Do you have several meters?
Businesses with multiple supplies may benefit from aligning contract dates or reviewing all accounts together.
Do you expect your usage to change?
Planned changes to the business, equipment or premises can affect which contract length and structure makes most sense.
Are you likely to move premises?
A fixed contract at one address may have exit provisions that need to be understood before committing.
Do you prefer certainty or flexibility?
Some businesses prioritise knowing exactly what they will pay. Others are comfortable with some variability in exchange for potential savings.
One Thing That Catches Businesses Out
Many businesses spend weeks trying to predict where the market is heading but forget to renew altogether. The result is often being placed onto Variable Business Rates when the fixed contract expires.
Variable Business Rates are set by the supplier and can change at short notice. They are almost always higher than a well-timed fixed contract. The businesses most likely to end up on them are those who left the renewal too late or assumed the supplier would contact them in time.
From Our Experience
Most businesses are not trying to beat the market. They simply want predictable costs and to avoid unpleasant surprises on their energy bills.
The customers who tend to manage their energy costs most effectively are those who review their contracts regularly, understand when they expire and take time to compare the available options before the end date arrives.
Every recommendation should be based on the individual business rather than headlines in the news.
How We Help Customers Decide
We do not tell customers what to do. We review the available information, explain the options and let the business make an informed decision.
Common Mistakes
Waiting until the contract has already expired
Once a contract expires, the account usually moves onto Variable Business Rates. Reviewing options before the end date gives more time to compare and negotiate.
Only comparing unit rates
The unit rate is one part of the picture. Standing charges, contract length, exit provisions and the supplier's billing practices all affect the overall cost and experience.
Ignoring standing charges
A low unit rate with a high standing charge can cost more overall than a slightly higher unit rate with a lower daily charge, particularly for businesses with lower consumption.
Assuming the existing supplier is automatically cheapest
Loyalty does not usually result in the best price. Comparing the market before renewing is straightforward and often worthwhile.
Believing nobody can switch until the contract ends
In many cases, a new contract can be agreed several months before the current one expires, with the new rates starting from the end date of the existing contract.
Frequently Asked Questions
Related Guides
Not Sure Whether To Fix?
Send us your latest bill or renewal letter. We will review your current contract, renewal date and available options and explain them in plain English. There is no obligation to switch and no pressure to make a decision on the spot.