Firms Flock to FixedFlex to get the Best Energy Deal
Since its launch a month ago, Utilitywise's FixedFlex contract has taken off, with 700 businesses signing up for it so far.
Energy is a major overhead for many companies, especially in manufacturing, but it’s always been difficult deciding whether to have a fixed price or flexible contract.
Like homeowners agonising over which mortgage to choose, timing is critical for businesses when choosing an energy contract. Fix a price when the market is high and you know what your energy will cost, which gives budget certainty. However, you can miss out on the advantages of price lows.
But with the FixedFlex contract, businesses no longer need to worry about how and when to buy an energy contract.
Go with the flow
Utilitywise, which is a leader in the utilities field, launched its new fixed flexible procurement option to help businesses protect themselves from price increases, while taking advantage of price drops.
Marketing manager Tony Hitchens said: “We have seen an impressive uptake because FixedFlex is a win-win for companies.
“If electricity and gas prices increase they’re protected – the price stays the same. If they fall, they can change their business energy contract by re-fixing the price to a lower rate and extending their contract.”
Taking away the guesswork
Nothing is certain in the energy sector. Wholesale electricity and gas prices fell in 2015, according to Ofgem, the Office of Gas and Electricity Markets, but they’re now beginning to rise.
With the FixedFlex contract, businesses don’t need to wonder whether prices are going to increase or decrease. They can concentrate on running their own business, while Utilitywise organises the contract with their existing supplier.
If prices fall, the client will hear from the FixedFlex team who will renew the contract on the new rate and extend it for a further 12 months.
“Another advantage of the FixedFlex is it comes with a full Utility Management Plan,” said Tony. “It’s designed to reduce companies’ energy usage and provides expertise on managing their energy accounts.”
At the moment, prices look as if they might rise into winter but could remain steady if the weather is mild.
“Either way, businesses on FixedFlex can look forward to having their (Christmas) cake and eat it!” said Tony.