When is the best time to renew your energy contract? While this is a difficult question under normal circumstances, in the current climate, it is imperative. With inflation and energy prices hitting all-time highs, it is crucial to renew at the right time to avoid missing out on significant deals.
Without a clear plan to manage your energy bills, you could be at risk of rising prices. So, it is important that you secure your upcoming contract renewals as quickly as possible.
Let’s take a look at why you should secure your renewals sooner rather than later.
Deciding when to renew can be confusing. You will also need to consider various contractual terms, which can be time-consuming. To fully understand the best options for your business, you must first understand your current energy usage and areas of high energy consumption throughout your sites. Factors such as the contract length, fee, and rate should also be taken into consideration.
Securing a fixed contract at the wrong time could mean that your business pays more for its energy, compared to the current market rate. This could lead to you falling behind those competitors that chose to renew their energy contracts at a different point in time, or decided to be more flexible. A flexible energy contract allows your energy bills to mirror the peaks and troughs of the energy market. With a flexible contract, you can also spread out the purchasing points – giving you a wider time frame to spread out any risks of fluctuations in the market.
Avoiding high prices
It’s no secret that energy prices are sky rocketing. Many homes and businesses are now slipping into energy poverty, due to colossal price hikes. Choosing the wrong contract could expose your business to these high price risks.
Looking at the renewal options, and obtaining quotes as far ahead as possible, can help to reduce this risk. While waiting it out until prices go down may seem appealing, it is not advised. Putting in place a consistent and reliable plan of action will free up your time and finances – so your business can focus on other priorities.
The energy market can be incredibly hard to predict, so securing the right contract is vital. And flexible procurement allows for long-term planning, which can save you time later down the line. For example, putting in place a long-term flexible contract means that you will spend less time assessing the current energy market, while your flexible contract continues – and our experts can handle the price fluctuations for you.
But good risk management is still vital when deciding on the best time to renew your contract. If you are not due for renewal yet then you have time to think about the most advantageous options for your business.
How can EIC help?
Understanding and choosing the best energy solutions for your business can be confusing and tiresome. There are many factors to take into consideration when deciding which contract is right for you – especially in the current energy climate.
EIC has expertise in flexible energy procurement, which can help reduce your costs. Flexible procurement also offers adaptability, in an ever-changing commercial landscape. Budget certainty will become key to your company’s survival, and flexibility will become crucial.
EIC can scan the energy markets to find a flexible energy contract for you, helping you to make savings. You can count on our expert traders, who constantly monitor the markets to find the best prices. We look to engage suppliers on the basis of their contract features and functionality, transparency around the price-fixing mechanism, and the supplier’s account management fee.
Get in touch today to find out more about how EIC can help you find the right contract for you.