Whilst you might be used to having a fixed one, two or three year contract, there’s an alternative that tracks wholesale prices and could save you money when prices fall and help you avoid buying when prices are high – that’s the appeal of our flexible energy contracts.
What’s more, the non-energy or pass-through costs of getting energy to your business can be around 60% of your bill. A flex deal separates these costs from your energy costs, meaning the supplier doesn’t need to inflate prices to reduce their exposure to risk if these costs go up.
You might choose a flexible energy contract through Utilitrack if you’d rather pay less right now but accept that this may go up if wholesale prices or pass-through costs increase. That said, if prices fall further, you could benefit even more.
Conventional energy contracts are set at a fixed price for their whole duration, e.g. one, two or three years. Because they are fixed for a long period of time, suppliers build in a ‘risk premium’ to cover themselves should energy wholesale prices increase.
A Flexible Energy Contract will still run for a fixed period of time; however, there will be no built-in risk premium and you will be able to take advantage of falls in wholesale energy prices whenever they happen. If wholesale prices don’t move, you’ll still benefit from not paying a supplier’s ‘risk premium’.
Fortunately, Utilitrack’s expert team will help you make these buying decisions through market intelligence, monitoring and forecasting your usage. The overarching aim is for you to pay significantly less than you would have paid on a fixed price contract.
The exciting thing about a flex deal through Utilitrack is it’s not exclusively for larger businesses. If you use more than 500,000 kWh we’ll put you in a managed ‘Flexible Basket’ deal with other small and medium sized users. If you’re a big user, e.g. 5 GWh or more, you’ll get your own bespoke deal. With both options, you get to decide whether you want a high, medium or low risk approach to your contract.
If the market is falling and your current contract is coming to an end, you’ll be facing a choice between expensive out of contract rates or locking into potentially higher prices for a year or more. If this is the case, then a flex deal might be the solution.
It’s a bit like your mortgage at home. Do you want to know exactly what you are going to pay each month for the next few years or are you happy to take the highs with the lows and hope you’ll save more in the long run.
A Utilitrack flexible energy contract lasts 5 years with a break option at 3 years; however, during that time you’ll have multiple options to lock-in your prices if wholesale prices rise again.
If you think a Flexible Energy Contract could be the right solution for your business, talk to your Utilitrack broker who will be able to show you how the prices will compare with traditional fixed length contracts.
For your protection and assurance, Utilitrack Ltd is a registered signatory of the TPI (Third-Party Intermediary) Code of Practice with the Retail Energy Code.
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