Fixed or flexible energy tariffs, which is right for your business?

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When dealing with business energy suppliers you’re likely to run into a number of different plans. They’ll have different names usually depending on the branding of the company you’re dealing with, but broadly speaking energy tariffs generally fall into two categories: fixed and flexible.

The right tariff for you will depend on your needs, here is a quick overview of fixed and flexible energy plans and what they will mean for your business to help you decide.

Fixed plans

A fixed rate tariff means what it says on the tin, the price you pay stays the same for the length of your contract. There may be “set up fees” and a final payment, depending on the specifics of your contract, but generally speaking the price you pay per month or per quarter will stay the same.

The advantage of this is, of course, that you know how much you owe every time, so you can account for it easily and understand what you have to pay. The downside to this, however, is that you will not be able to take advantage of any lulls in the market, if energy prices go down your contract won’t reflect this.

Flexible rate

A flexible energy rate, as you can guess, means that the amount you pay for your commercial electricity or gas per month or per quarter can vary. This means as a business it’s important you think ahead and budget for spikes in the energy market because they will be reflected in the price you pay.

The benefit of this, however, is that whenever there is a downturn and energy prices become lower, your corporate energy rates will also become lower too. This is where doing some research into the trends of the energy market in your area will really come into its own.

The right plan for you

Investing some time in choosing the right plan for your individual commercial energy needs can save you money and a great deal of stress in the long run.

If you’d like more information, or for help finding the right tariff for you, contact Utility Bidder.

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