Fixed rates make a comeback
After months of volatile pricing, fixed-rate energy deals are becoming available to UK businesses again. Some contracts are now priced below the current price cap, giving SMEs a chance to lock in certainty on their energy bills.
Fixed tariffs remove the risk of price spikes and make budgeting simpler. When you fix your rate, you know exactly what you'll pay for electricity and gas over the contract term – whether that's one year or three years.
Are they worth locking in now?
Whether a fixed deal suits your business depends on your usage, contract end date, and cash flow. Locking in now could protect you if prices rise later. But if your current deal ends soon, it may be worth waiting a few months to see if rates fall further.
Compare the unit rates and standing charges carefully – the cheapest headline price isn't always the best deal overall.
What this means for your business
If your energy contract is within six months of expiry, start comparing fixed options now. Use half-hourly metering data if you have it – this gives suppliers accurate usage profiles and often leads to better quotes. Document your annual consumption, peak usage patterns, and any requirements (like green energy) before requesting quotes. Getting at least three quotes will help you spot a genuinely competitive rate.