September 15th 2021
FIXED VS FLEXIBLE ENERGY CONTRACTS: WHAT'S THE DIFFERENCE?
When it comes to reviewing your business energy contract, sometimes it can be difficult to decide which option is the best and most cost-effective for you and your organisation. A lot of people are left wondering what is the best approach: a fixed or flexible contract?
Fixed Energy Contracts
Fixed energy contracts are the most popular choices for most businesses. This is because they provide the highest level of budget certainty and provide protection against spikes in the energy market. By doing this, an organisation is able to set a fixed price for their gas and electricity and will continue to pay this price for the duration of their contract.
These types of contracts don’t come without their downsides, however. They only provide a one-day window to purchase energy for the duration of your contract. This therefore means that whilst you are protected against increases in the market, once you make your decision you are unable to take advantage of further opportunities to save in a falling market.
Flexible Energy Contracts
With a flexible energy contract, you are able to take a more a controlled approach to the purchasing of your business energy. By choosing a contract of this type, it enables an organisation to make multiple purchasing decisions 12 months or more before a contract start date. Organisations are also able to take advantage of fluctuations in the market and maintain control whist also saving money.
At Lily, a flexible contract would mean that we source the market every 12 months to find the best offer for you.
We are committed to saving you money on your energy contract, whether it’s with a fixed or flexible approach. We can save you up to 40% on your business energy bill. Start saving with Lily today by getting in touch to speak with one of our energy specialists.