My Fixed Energy Tariff is Ending: Steps to Take Now - EIC Partnership

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My Fixed Energy Tariff is Ending: Steps to Take Now

Picture of Rachael Thatcher
Rachael Thatcher

Head of Fixed Pricing

Is your fixed energy tariff ending? Learn essential steps to manage energy costs, avoid expenses, and secure the best new tariff for your business efficiently.

Overview

Energy costs are a significant part of any business’s overhead, and managing these expenses effectively is crucial. 

If you find yourself in the position where your fixed energy tariff is ending, you might be wondering what steps to take next. 

This blog post will guide you through the essential actions to ensure your business continues to manage energy costs efficiently and avoids any unnecessary expenses.

What to Do when Fixed Energy Tariff is Ending

Understanding Fixed Energy Tariffs

What is a fixed energy tariff?

Simply put, a fixed energy tariff is an agreement between your business and your energy supplier that locks in the price you pay for energy for a specified period, usually ranging from one to three years. 

This means that no matter how much the market prices fluctuate, your energy rates remain constant.

Why Fixed Energy Tariffs Matter

Fixed tariffs offer predictability, which is invaluable for budgeting and financial planning. 

They protect your business from sudden spikes in energy prices, providing a stable cost structure that makes it easier to manage your finances.

My Fixed Energy Tariff is Ending: What Should I Do?

If you are on a fixed energy tariff and your contract is about to end, what you do next can significantly impact your energy costs. 

Here’s a step-by-step guide to help you navigate this transition smoothly:

  1. Review Your Current Contract
    Before your fixed energy contract ends, review the terms and conditions. Understand the exact end date and any notice periods required for switching suppliers. This will help you avoid any penalties or fees for early termination or late renewals.
  2. Compare New Tariff Options
    Start comparing new tariff options at least a few months before your current contract ends. Look at several fixed tariff options to understand which offers the best value for your business. Consider consulting with energy brokers who can provide insights into the best deals available.
  3. Assess Your Energy Consumption
    Analyse your energy consumption patterns. If your business has grown or your operations have changed, your energy needs may have increased or decreased. This assessment will help you choose a tariff that matches your current usage.This may also prevent additional charges from being applied if your new contract includes a volume tolerance threshold. 
  4. Negotiate with Your Current Supplier
    Don’t hesitate to negotiate with your current supplier. They may offer you a better deal to retain your business. Use the quotes from other suppliers as leverage to get a competitive rate.
  5. Consider Long-Term Needs
    Think about your business’s long-term needs. If you expect energy prices to rise, a longer fixed-term contract might be advantageous. However, if you anticipate changes in your energy usage or industry prices, a shorter-term or a variable tariff might be more suitable.
  6. Plan for a Smooth Transition
    Ensure a smooth transition by confirming the end date of your current contract and the start date of the new one. This will prevent the possibility of being moved to a more expensive standard variable rate automatically.
  7. Stay Informed About Market Trends
    Keep an eye on energy market trends and government policies that might affect energy prices. Staying informed will help you make better decisions regarding your energy contracts.
 

When your fixed energy tariff is ending, taking proactive steps is essential to maintain control over your energy costs. 

By reviewing your current contract, comparing new options, assessing your consumption, negotiating with suppliers and planning for the future, you can ensure that your business remains energy-efficient and cost-effective. 

Remember, the goal is to find a tariff that provides the best balance of cost stability and flexibility for your business’s unique needs.

By following these steps, you can navigate the end of your fixed energy tariff with confidence and continue to manage your energy expenses effectively.

A person signing a new fixed energy contract

How EIC Partnership Can Help

Navigating energy tariffs can be complex, and EIC Partnership is here to simplify the process for UK businesses. 

As a leading energy and utility consultancy, EIC Partnership offers expert advice and comprehensive services to ensure your business secures the best energy deals.

We can help you find the most competitive tariffs, by leveraging our extensive supplier network. Afterwards, we handle contract renewals and negotiations, ensuring you always have favourable terms.

We will also carry out extensive energy consumption analysis—detailed insights into your energy usage to help you make informed decisions and identify savings opportunities.

Moreover, our expert team monitors the market continuously and keeps you updated ahead of industry changes.

EIC Partnership tailors its services to your business’s unique needs, whether you’re a small business or a large enterprise. Our expertise allows you to focus on your core operations while we manage your energy needs efficiently.

Partner with EIC Partnership to ensure a smooth transition when your fixed energy tariff ends and secure the best energy options for your business.

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FAQs

See a selection of our most frequently asked questions.

Which suppliers does EIC work with?

EIC stands out from other energy consultancies because we’re completely independent.

This independence allows us to offer supply options from a wide range of energy suppliers, all of whom are unrelated.

Our energy advice is unbiased, giving you the freedom to make informed decisions for your business.

We have a proven track record of skilfully negotiating cost-effective contracts, ensuring you consistently get the best energy prices when you partner with us.

What if I am already with an energy consultancy?

If you’re already working with an energy consultancy, it’s a good idea to start exploring your options well in advance, preferably 18 to 24 months before your current supply contract expires.

It’s essential to distinguish between your energy supply contract and your energy consultancy agreement.
You have the flexibility to switch your energy consultancy while keeping your current energy supplier intact.

What happens after the energy procurement step?

Our comprehensive account managed service provides our clients with peace of mind throughout the entire energy procurement process.

When you choose our fixed energy procurement service, we’ll assign an account manager to you, someone equipped with the expertise and abilities to provide a customised solution that aligns with your unique needs and requirements.

The professionals who make up our dedicated procurement team are well-versed in resolving inquiries and skilled in engaging with energy suppliers to negotiate contracts on your behalf.

When is the best time to renew my energy contract?

The timing for transitioning to a new energy contract is flexible; you aren’t bound by a fixed schedule or renewal date.

Given the ongoing high volatility in the global energy market, it’s increasingly crucial to look beyond traditional renewal dates when contemplating a new contract.

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