Flexible Energy Contracts

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.

Who Does A Flexible Energy Contract Suit?

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.

Why Consider a Flexible Energy Contract from Utilitrack:

• Maximise market lows.
• Avoid market peaks.
• Buy energy at the same rates as the UK’s largest companies and organisations.
• Complete transparency on all your energy costs.
• Spread purchase decisions over time rather than fixing costs for future years on a single day.
• Support from Utilitrack’s flexible contract experts and analysts with more than 25 years utility industry experience.
• Unlike a fixed contract where there are tolerance usage penalties of +/- 20%, with our Flex Option, there are no tolerance penalties if you use much more or much less energy than expected. This could be ideal if you are gearing up or gearing down operations.
• You won’t pay a ‘risk premium’ that’s built into long-term fixed price contracts to protect the supplier if wholesale prices rise.
• Utilitrack’s Flexible Contract Energy comes with a green 100% renewable option.
• Full reporting of energy usage and savings.
• Contract break clause if you want to switch back to a fixed price contract.

How Does A Flexible Energy Contract Work?

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.

How Big Do You Have To Be To Have a Flex Deal?

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.

When Should You Choose A Flexible 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.

How Long Does A Flexible Contract Last?

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.

What Do You Get From Utilitrack?

• Account Management – Monthly bespoke reports and regular meetings to review performance and costs. We’ll also show you savings against conventional fixed price contracts.
• Energy Sourcing – We will find you a supplier that meets your usage profile and company values.
• Energy Strategy – Energy prices can fluctuate considerably, so based on your appetite to risk versus budget certainty, we can give you a choice of a low, medium or high risk purchasing strategy.
• Invoice Validation – Ensuring the correct data is used when calculating your bills.
• Access to real time dashboard showing your energy usage when you ask us to set up your Meter Operator Contract.

What Should You Do Next?

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.