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What is a Fixed Business Energy Deal?

Are you looking for a new business energy deal? It could be that a fixed business energy tariff will provide exactly the stability and certainly that you’re looking for. The guide below will provide you with everything you need to know about fixed business energy quotes and deals.

Business energy contract due to renew? Call us on 0800 9777 000 or fill in our business quote form to see how much you could save…

What are fixed business energy tariffs?

A fixed business energy deal is a type of energy contract where the price of energy is typically fixed for one to three years. This means that businesses can budget for their energy costs with confidence as they will know how much they will be paying per unit of energy for the duration of the contract.

Benefits of a fixed energy tariff

Fixed business energy prices can help businesses to budget for their energy costs with confidence. As the price of energy is fixed for the duration of the contract, businesses will know exactly how much they will be paying for energy each month. This gives businesses peace of mind knowing their prices won’t rise so long as their usage remains constant.

Unexpected price rises can hit businesses hard, especially smaller ones that may struggle financially as energy usage increases throughout the winter.

For small businesses, knowing how much you’ll be spending on your energy bills will allow you to be more competitive within your field. As your prices will already be locked in you can budget accordingly.

What should I do before my energy contract ends?

You should start to look around for a new energy supplier once your current contract is nearing its end, which can help you prevent your contract from ending and your business from being put onto a rolling tariff.

Your current supplier will contact you to let you know your energy deal is nearing its end, and will usually offer you a new contract to stay on with them. This might not be as good as your current one, which means you should shop around to find a better deal.

What happens when my energy contract ends?

The contract that you originally signed may have offered you a ‘roll-over period’. This allows you to agree to a new contract, and you can check with your supplier to see if you have a rollover period and how long it lasts. If a roll-over period isn’t something that was agreed before signing your contract you’ll be placed on an out-of-contract tariff which is usually one of the more expensive tariffs offered by energy suppliers. This makes it the ideal time to switch to a new contract before you start paying expensive fees.

Are there any drawbacks to fixed business energy deals?

Fixed business energy deals offer less flexibility than variable business energy suppliers’ deals. For example, businesses with a fixed deal may not be able to take advantage of lower energy prices if they become available in the wholesale market.

This can mean that fixed business energy contracts are typically more expensive than variable energy deals. However, the price difference can be offset by the budget certainty and protection from price rises that fixed deals offer.

Some business energy deals also have exit fees. This means that businesses may have to pay a fee if they want to switch to a different electricity and gas supplier before the end of their contract.

Who should consider a fixed business energy deal?

Fixed business energy bills and tariffs are a good option for businesses that:

✔ Want budget certainty
✔ Want to protect themselves from price rises
✔ Are concerned about the risk of energy price volatility
✔ Want to improve their competitiveness

What other business energy contracts are available?

There are several business energy contracts available, including:

✔ Fixed tariffs
✔ Variable
✔ Flexible
✔ Feed-in
✔ Green

Fixed energy tariff vs variable energy tariffs, what’s the difference?

Fixed-rate tariff

✔ You’ll pay the same price per unit of energy for the entire contract
✔ You will agree to a set time that your contract will last, this may be 1 year or 5 years
✔ If you’d like to switch to a new business energy contract, you will likely have to pay an exit fee, some plans will not have an exit fee

Variable rate tariff

✔ The cost per unit of energy will fluctuate
✔ There is no set date for your contract to come to an end
✔ There may be no exit fee and you will be free to leave whenever you decide

How to choose the right fixed business energy deal

When choosing a fixed business energy deal, there are several factors to make sure you consider, including:

✔ Compare the prices of different fixed business energy deals to find the best deal for your business.
✔ Fixed business energy contracts are typically available for one, two, or three years. Choose a contract length that is right for your business needs.
✔ Some fixed business energy deals have exit fees. If you are not sure whether or not you want to commit to a long-term contract, choose a deal with no exit fee.
✔ Choose a fixed business energy deal from a reputable supplier. You can read reviews of different energy suppliers online or ask other businesses for recommendations.

How to switch to a new fixed business energy deal

Many of the UK’s energy suppliers can provide fixed energy deals to business customers, but much like any product or service. It’s advisable to shop around when choosing a new energy deal to ensure you’re getting the best one available to your business.

When embarking on your search for a new deal, the Internet has made things so much easier for people to research and learn about the service providers as well as the services on offer. However, much like in any industry, you may find that some energy suppliers either exclusively deal with energy brokers or provide energy broker-only deals. So you will need to check with your chosen supplier for more information.

As so, you may find it easier and more beneficial to use the services of dedicated business energy brokers, who have the knowledge and experience of the business energy markets to help ensure you find the right deal for your business needs.

Our team of expert business energy brokers have worked with businesses of all sizes and in a whole range of industries. Building upon that experience to better understand the needs and requirements of all sorts of businesses when it comes to securing new business energy deals.

Compare and switch to a fixed business gas and electricity deal

✔ Our customer support team is one of the best in the industry
✔ Contact Exchange Utility to switch your energy tariff in as little as 5 days
✔ We have years of experience comparing business gas and electricity
✔ We have built a solid reputation for being a reliable, independent and trustworthy comparison company
✔ We can compare gas prices from industry leaders to find you competitive rates
✔ Whenever a business gets in touch with us, we always work hard to get them the right rates for their business
✔ Don’t just take our word for it see what our customers are saying about us on Trustpilot

If you have any other questions, take a look at our business energy guides section. Or contact our expert team of business energy brokers who are also available to answer any of your questions about our business gas and electricity comparison services.

Business energy contract due to renew? Call us on 0800 9777 000 or fill in our energy quote form to see how much you could save…