What is a fixed energy contract?

A fixed contract locks in your unit rate for a set period, typically 1–3 years.

Benefits can include:

• •Price certainty
• •Easier budgeting
• •Protection from market increases

Considerations can include:

• •You won’t benefit if market prices fall
• •Less flexibility once locked in
• •Possible exit fees

For many businesses, fixed contracts provide stability and predictability — especially in uncertain markets.

What is a flexible energy contract?

A flexible contract allows you to purchase energy in stages, rather than locking everything in at once. This means you can respond to market movements over time.

Benefits can include:

• •Opportunity to secure lower prices
• •Greater control over purchasing strategy
• •Ability to react to market trends

Considerations can include:

• •More exposure to market volatility
• •Requires active management
• •Not always suitable for smaller businesses

Flexible contracts are typically used by businesses wanting a more strategic, hands-on approach to procurement.

Fixed vs flexible: what’s the difference?

At a high level:

• •Fixed = certainty
• •Flexible = opportunity, with more risk

The right choice depends on how your business balances those two.

Which is right for your business?

There’s no one-size-fits-all answer, but here’s a simple guide:

Fixed contracts may suit you if:

• •You prefer predictable monthly costs
• •Budget stability is a priority
• •You don’t want to actively manage energy buying

Flexible contracts may suit you if:

• •You’re comfortable with market movement
• •You want to optimise pricing over time
• •You have support or expertise to manage it

What most businesses actually do

In reality, many businesses don’t actively choose between fixed or flexible. They renew what they already have, stick with the same supplier, or make decisions under time pressure.

That often leads to missed opportunities — either paying more than necessary, or taking on risk without fully realising it.

A smarter approach

Rather than defaulting to one option, the best approach is to:

• •Understand your current position
• •Assess your risk tolerance
• •Review what the market is doing
• •Choose a strategy that aligns with your business

Energy shouldn’t be a reactive decision — it should be a considered one.