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.
What is a fixed business energy tariff?
A fixed business energy deal is a type of energy contract where the price of energy is fixed for a period of time, typically 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 fixed business energy tariffs
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 who 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 happens when my fixed energy tariff is nearing its end?
You should start to look around for a new energy supplier once your current contract is nearing its end, which can help you to prevent your contract ending and your business 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 contact 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 fixed 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 roll-over period and how long it lasts for. If a roll-over period isn’t something that was agreed prior to 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 for expensive fees.
Drawbacks of 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 difference in price 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 a number of business energy contracts available, including:
- Fixed tariffs
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 move 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 a number of factors to make sure you consider, including:
- Compare the price 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 fixed business energy deal
To get started and enable us to prepare an accurate comparison for you, we will need to get some information from you to begin the process. The details will all be on your latest utility bill, this will be your meter number, payment amount and tariff information. If you’re unsure on where to locate this information or if you have any other queries relating to your business energy tariff call us today and we will provide you with advice, solutions and cost-effective business energy tariffs.