Should I Fix My Business Energy Prices?

When it comes to securing a business energy plan, you have several options. If you’re trying to get the best possible rates for your energy, one of your main considerations will be if you should fix your energy prices.  

Every business is unique, so what works for one may not work for another. Our guide takes you through the pros and cons of fixing your business energy prices, so you can find the best option for you. 

In simple terms, ‘fixed’ prices mean that the unit rate you pay for your energy will not change for the duration of your contract. This does not mean your bills will be exactly the same every month, as this will vary depending on the amount of energy you use. Fixing your energy prices gives you a better idea of what you can expect to pay each billing period.  

Energy prices are known to fluctuate, often due to market volatility caused by a range of factors such as:  

• Supply and demand: Rates are higher when demand is higher. For example, in the winter months, when more people are using energy for heating systems. 

• Time of day: This is linked to supply and demand; during the daytime when more businesses are open and using energy, rates are often higher than during the night when demand drops. This is why some energy plans have ‘peak’ and ‘off-peak’ rates for different demand periods. 

• Global events: Events such as natural disasters and political unrest can cause disruption or damage to energy generation and transportation infrastructure, slowing down supply and causing a spike in prices.  

To find out more about what drives energy prices, check out our full guides. 

Fixing your prices can help you protect your business from market price volatility, meaning that if the cost of energy goes up, your rates won’t be affected. This prevents any unwanted surprises.  

When you choose to fix your energy prices with a contract, you are likely to be getting better rates than if you remained as an out-of-contract customer. You can also fix your business energy prices at times when prices take a dip, locking in low rates for the duration of your contract.  

A lot of businesses are unaware that they can secure their next business energy rates up to 12 months before their current contract ends. It’s a great idea to start shopping around early, to give you a greater choice of rates and the freedom to lock in when prices are low. 

Many customers opt to fix their business energy prices as a way of gaining peace of mind and security, knowing that they are protected and paying a set rate for their energy.  

Although fixing your energy prices can get you lower rates if you sign your contract at the right time, choosing the wrong time to sign can lead to you paying higher rates, if energy prices drop during your contract. 

It can be difficult to predict exactly when prices are going to change, so keeping up with energy news and world events can help you choose the right time to fix your prices. 

If you’re ready to fix your prices, there are a number of things you can do to ensure you’re getting the best possible deal.   

• Shop around: Before settling on a deal, be sure to ‘shop around’ for different suppliers and gather quotes so you can compare your best options. 

• Consider your business needs: There are different tariffs for different kinds of customer, so you should think about the kind of plan that will suit you best. 

• Read the small print: Once you’ve found a good deal, it’s important to read the terms of your contract thoroughly, so you know exactly what to expect 

For more information on switching suppliers and finding the best time to switch, check out our business energy switching guide.  

As well as fixing your energy prices, there are lots of things you can do to help keep your energy costs down. From getting to know your energy better, to introducing new green initiatives for your business.  

• Conducting a business energy audit is a great first step towards making energy savings. By looking at your business as a whole, you can build up a bigger picture of your energy behavior and identify areas where you can improve your efficiency. 

• Making sustainable swaps is a simple yet effective way to cut down your energy consumption. From swapping out florescent bulbs for LEDs, to looking for appliances with higher energy efficiency ratings, opting for greener alternatives can make a big impact on the amount of energy you use.  

• Smart meters are a useful tool to help you save on your energy bills by letting you keep track of your usage. You can also make sure you’re only paying for the energy you use, with automatic readings and no more estimated billing.  

• We have created a range of energy saving guides to help you make the most of your energy, from quick tips to industry-specific advice.   

Yü Energy offer a range of plans designed with businesses like yours in mind, whether you want fixed or flexible pricing, we can help you take your business energy further. 

Get your free quote today to find out more about how Yü Energy can help you.