Black and white photo of electricity pylon
Tuesday 9th of July 2019 | Posted In: Buy and Sell, Buying energy

What’s the best electricity contract length for my renewal?

No matter what big purchase you’re making in life; be it a new car, a property or your energy, the risk of the price coming down after your purchase will always be in the back of your mind. Although it is often considered that committing to a longer-term contract when the market is high is a greater risk than a short-term contract, that’s not always the case.

With the cost of energy and third-party costs being on a steady increase each year, and current prices being considerably higher than they were 12 months ago, we are seeing more and more customers make the decision to fix for longer.

Things to consider when choosing your contract length:

  • The time it takes to arrange your contracts each year.
  • Locking in longer term means that if third party and energy market costs increase during the term you’ll have avoided them if you’re in a fully fixed and inclusive contract.
  • You’ll have budget certainty, so will be able to forecasts your costs based on expected usage, long-term.
  • The difference between prices on longer term contracts isn’t always that great, especially when you consider the average energy price increase over the past few years has been in the region of 10-15% per year.

Our advice is to not be afraid of considering longer-term options as they may prove to be financially beneficial overall and could give you some security and reassurance in a rising market.

If the thought of shopping around for the best contract gives you a headache, contact us as we can easily source the best options for you and will guide you through changing supplier.

Give the Contracts Team a call on 024 7669 8885 so we can help you to seek out the best option for you and your business.