Should I Fix My Energy Prices Until 2024?
A fixed-rate contract allows you to lock in a fixed electricity or gas unit price for a set period.
Fixed-rate tariffs are often seen as the most affordable way to pay for business electricity. But with energy and business electricity tariffs falling and the market still volatile, what is the best strategy for 2023/4?
Households and organisations face different decisions.
For household energy, there is fairly wide agreement that you shouldn’t fix your energy prices now unless you can find a fixed tariff better than the existing price cap of £2,074. The price cap will be revised on 1 October 2023 and many analysts expect the cap to fall below £2,000.
In mid-2023, no energy suppliers were offering a switch to a fixed tariff lower than £2,074. More tempting offers may come to market after July.
Business electricity and gas customers
Companies that took out fixed contracts for 24 or 36 months while gas and business electricity prices were at their peak will be feeling the pain now with prices a good deal lower. You may sign a fixed tariff deal today and feel the same way if prices fall in 2024.
A higher price environment is expected to last for a while. Plus market volatility is still very much a factor. There’s a case to be made for fixing your rates until 2024 because you will be protected against volatility and possible sharp price rises over this next uncertain period.
That depends on finding a good price and a favourable 12-month or 24-month contract. Which might be hard.
A great way to access more affordable commercial gas and electricity is to compare business electricity prices and gas deals. Business Energy Comparison can perform a comprehensive business gas and business electricity comparison for you. Changing business electricity supply has been a game changer for many clients.