Switching your energy suppliers is always one of the easiest ways to reduce how much you pay for your energy. One of the benefits of the energy cap bill is that supplies cannot charge you an exit fee if your business tariff is one of those affected by the energy cap. When you can save hundreds of pounds simply by switching to a new supplier and a new tariff, it makes sense that avoiding those fluctuating energy prices and benefiting from more long-term savings is only good news for your bottom line. There’s also the fact that many gas suppliers are already experiencing high demand in energy switching, which means that there are more deals and benefits available than ever.
If you currently have a fixed price energy tariff, you have agreed to pay a set price for a single energy unit. That price will be locked in for the duration of your contract. The more units of energy you use, the higher your bills will be. However, with a fixed price energy tariff, your business will not be vulnerable to gas and electricity’s fluctuating price. For many businesses, the duration of that contract will usually be between one and three years, although more suppliers are offering more long-term contracts for businesses that want to benefit from some additional services and offers. The best thing about fixed-rate tariffs is that you will always know more about the amount that you will be charged with every bill. Not affected by global supply and demand, what you’ve agreed to pay will be what you pay. With the world as unpredictable as ever, it simply makes sense that a fixed price energy tariff is the smart move. Fixing your energy prices until at least 2022 is definitely the option to consider if you want to be able to focus more on business growth than tackling unexpected energy costs.
It certainly looks likely. As vaccines are being rolled out in the UK very efficiently, the prospect of high streets and offices reopening is closer than ever. That’s going to lead to rising demand for gas and electricity. Whenever there is a high level of demand, the price of energy goes up. 2020 saw energy demand drop considerably, so the cost of energy will likely rise with it as that demand returns. So, by fixing your energy prices now, you could end up saving a lot more than you usually would.
All businesses are different, and no two businesses use energy in the same way. What’s best for one business model can be a costly mistake for another. When it comes to energy bills, having a fixed price energy tariff over the next two years will be a major advantage over variable price tariffs. As the UK economy starts its recovery from the events of 2020, demand is going to be high for gas and electricity supplies. By using a fixed rate energy tariff, you won’t be leaving your business exposed to rising prices that will limit your business budget., The bigger your business, the bigger your energy bills. When those bills rise quickly, they can halt workflow and cost your business more than you can afford. Having an agreed set price that can’t be altered by global disruption is simply the smart way to go.