Fixed-price contracts provide a more traditional approach to energy purchasing, where you make your supplier choice at the same time as committing to all of the wholesale price components of your contract.
Advantages:
- Fixed price contracts offer you the benefit of knowing in advance how much you pay for your energy and how long this price is fixed, often referred to as “fixed-price fixed-term”.
- The certainty offered by fixed price contracts can be sufficiently important to many organisations and industries where a flexible contract has to be ruled out.
Disadvantages:
- There is still a risk through the possibility that the price is agreed at a high point in the market. Due to the buyers of this kind of contract rarely reviewing the timing of their decision, this risk is often disregarded.
- ENER-G's experience and commercial expertise can help enormously to ensure the finer details within the suppliers terms are not overlooked. This offers customers the added comfort of knowing their supply contract has been negotiated to obtain the best deal available in terms of price and contract terms.
A Fixed-Price contract can represent an excellent choice for many buyers. The factors that affect value are timing and good negotiation with suppliers over price and contract terms. Get these things right and you are likely to be pleased with the result. Many buyers overlook the impact of supplier terms and conditions and this is where ENER-G's experience and commercial expertise can help enormously.
For more information please contact us on +44 (0)845 300 8882 or email: em@energ.co.uk
