When it comes to deciding the best energy contract, we know there are many options available to you. Below we have highlighted some of the benefits of the main types of contracts typically chosen by customers.
This type of contract allows the price of energy to fluctuate in line with the market, providing the customer with the flexibility to take advantage of market dips, but also exposing them to market spikes.
- Cost Savings: When energy prices are low, customers can take advantage of lower prices and potentially save money on their energy bills.
- Flexibility: With a variable-price contract, customers can respond to changes in the market and adjust their energy usage accordingly, rather than being locked into a fixed rate.
- Market Awareness: This type of contract can help customers stay informed.
Green energy contract
This allows the customer to choose an energy supplier who sources their energy from renewable sources, such as solar, wind or hydro power. This type of contract is an environmentally conscious choice, as it helps reduce the customer's carbon footprint and supports the growth of clean energy sources.
- Environmental Benefits: By choosing a green energy contract, customers are directly supporting the growth of clean and renewable energy sources, reducing their carbon footprint and contributing to a cleaner environment.
- Increased Energy Security: Renewable energy sources are typically less vulnerable to price swings or supply disruptions than fossil fuels, which can be subject to geopolitical tensions or natural disasters.
- Cost Predictability: The cost of renewable energy is expected to continue to decrease over time, making it a more predictable and stable option compared to fossil fuels.
- Positive Brand Image: By choosing a green energy contract, businesses and households can demonstrate their commitment to sustainability, which can enhance their reputation and appeal to environmentally conscious consumers.
Fixed price contract
In this type of contract, the price of energy is fixed for a set period of time, usually 12-48 months, insulating the customer from market price fluctuations.
- Budget certainty: With a fixed-price contract, the customer knows exactly how much they will pay for energy over the course of the contract, which helps them better manage their budget.
- Protection from price spikes: If the market price of energy spikes, the customer is protected because they have already agreed to a fixed price.
- Reduced administrative burden: With a fixed-price contract, the customer does not need to regularly monitor energy market prices or adjust their energy procurement strategy, which can save time and reduce administrative burden.
- Improved planning and forecasting: By knowing the exact price they will pay for energy, the customer can make more informed decisions and improve their planning and forecasting efforts.
- Easy to understand: Fixed-price contracts are simple and easy to understand, making them a popular choice for customers who prefer a straightforward energy procurement process.
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