Why Securing the Cheapest Business Energy Deal Is More Critical Than Ever in a Volatile Market
Recently, businesses across the United Kingdom have faced significant changes in their energy bills. It is estimated that within the period of 2021 and 2023, the average energy price for UK non-domestic users increased from 14.82 pence per kWh to 28.39 pence per kWh.
With increasing energy costs, certain global political factors, and changes in energy supply and demand, it is clear that securing the most affordable business energy deals is more important than ever. As the market remains volatile, businesses are expected to develop long-term energy strategies to safeguard their profitability.
Importance of Energy Management in a Volatile Market
The energy market in the UK has always been subject to significant changes due to certain factors, including supply & demand, global energy prices, and environmental policies. However, the market has recently experienced increased volatility due to supply chain disruptions, geopolitical issues, and changing regulatory environments. This volatility makes it difficult for business owners to predict and manage their energy costs.
This is why gaining access to the most affordable business energy deals proves to be a crucial step.
Ways to Secure the Cheapest Business Energy Deals
- Compare Energy Prices Regularly
One of the simplest ways to secure the best and most affordable business energy deals is to compare energy prices regularly across multiple suppliers. Prices change frequently. Therefore, you can make use of reliable comparison tools or platforms to look into available deals and make sure that your business is not overpaying. - Variable or Flexible-Rate Contracts
If your business can accurately predict when energy prices fall, a flexible or variable-rate contract is an ideal choice. This type of contract helps you to take advantage of reduced energy prices. However, when energy prices rise, you have to face the risks as well. - Fixed-rate Contracts
You can choose a fixed-rate energy deal to achieve more stability and predictability for your business. This is especially important in a volatile market. With the help of a fixed-rate contract, you are expected to pay the same price per unit of energy for the fixed tenure of the agreement. This policy protects you from sudden price hikes. - Flexible Billing & Payment Options
Some energy suppliers offer flexible payment and billing terms. You can negotiate these terms to avoid large, lump-sum payments that could damage the overall cash flow. This is immensely beneficial when the market conditions are volatile. - Working with a Specialist Energy Broker
Most businesses benefit from working with a specialised energy broker. These brokers specialise in helping companies access the best energy deals. Brokers usually have access to the best rates and can negotiate on your behalf to obtain the most competitive pricing. - Energy Efficiency Initiatives
A significant part of minimising energy costs in the long term is to improve overall energy efficiency. Consider investing in energy-efficient equipment, lighting, insulation, and heating appliances to minimise your overall energy consumption.
Why is It Important to Secure the Best Energy Deal?
In modern, volatile market conditions, securing the most competitive business energy deals for UK organisations and companies is increasingly important. Some additional benefits of this consideration are:
- Competitive Advantage: If you tend to operate in an industry with tight margins, any type of cost-saving practice will offer you a competitive advantage. As you can secure the best energy deals in the existing market, you can reduce the overall operational costs. This, in turn, helps free up funds for other core areas of the business, including product development, marketing, or expansion.
- Financial Stability: Usually, energy costs tend to be one of the highest operating expenses for most businesses in the UK. According to a study, it is believed that UK manufacturers face one of the highest industrial electricity prices globally, with an average of £258 per megawatt-hour (MWh) in 2024.
- As businesses seek lower rates, they can maintain consistent financial management. This minimises the chances of budgetary shortfalls due to unpredictable energy price changes.
- Protection Against Unexpected Market Events: In a highly volatile market, businesses that secure energy deals with stable pricing can better weather unexpected market events, such as natural disasters, geopolitical events, or economic downturns.