Fixed energy contracts offer commercial energy at a fixed rate for periods of anything up to three years. Flexible energy contracts are normally available to larger industrial customers and allow you to spread the risk of your purchasing decisions throughout the year.
Fixed Energy Contracts
Fixed contracts offer commercial energy at a fixed rate for periods of anything up to three years. Prices are set at the beginning of the contract and historically this type of contract gives customer’s peace of mind and confidence in their budget projections.
Additional changes in the way pricing is now managed due to the increasing commitment of suppliers to renewable energy also means that cost management is ever more difficult for customers.
Due to volatility in the wholesale markets some suppliers are now passing on price changes and the ‘certainty’ that this type of contract provided in the past is now .. uncertain. Combined with “Take or Pay” clauses it makes more sense than ever to let professionals like esave manage this for you.
Flexible Energy Purchasing
Flexible energy contracts are normally available to larger industrial customers and allow you to spread the risk of your purchasing decisions throughout the year.
In a flexible contract you set up a framework agreement with a supplier for a period of time and buy when you believe it is advantageous to you to do so – this allows you to take advantage of wholesale price movements and spread your risk. The process can be complex and depends on having up-to-date market information available to help you decide when the purchasing decisions should be made and identify how much of your energy requirements are exposed to the market at any time.