Business Energy Contracts Explained
Understand fixed, variable, and market contracts for business electricity and gas. Compare and choose the right contract.
Contract types
Fixed-rate contracts lock in usage and supply rates for a set period (e.g. 12 or 24 months). Variable rates can change with market conditions. Market contracts may offer flexibility but less price certainty.
Consider your risk tolerance and budget. Fixed rates provide certainty; variable rates may be lower initially but can rise. Compare options through a comparison tool.
Key takeaways
- Check exit fees before signing
- Understand notice periods for renewal
- Compare total cost, not just usage rate
Frequently asked questions
What are exit fees?
Some contracts charge a fee if you leave before the end of the term. Check the contract details before signing.
Can I switch mid-contract?
You can switch, but exit fees may apply. Weigh the cost of exiting against the savings from a new plan.