This is a question we often get asked – the short answer is that it depends on…. 

The best time to lock in a new energy deal depends on market conditions, wholesale price trends, and your own risk tolerance.

However, here’s what to consider before making a decision:

1. Wholesale Energy Prices

• Risk-tolerant buyers may choose to wait if wholesale prices are falling, aiming for further savings.

• Risk-averse buyers might prefer to lock in a deal sooner to secure current rates and avoid potential market volatility.

• Check industry forecasts and supplier trends before committing.

2. Seasonal Trends

• Historically consumers would renew close to their contract end date and energy was generally speaking less expensive in spring and summer than in autumn and winter.

• However these ‘norms’ no longer apply and in 2024 February was the best month to energy driven by excess gas storage after a mild winter amongst other factors.

3. Supplier Competition

• Often during a market crisis suppliers will only offer contracts to existing customers. When more suppliers are looking for new customers and offering competitive rates, there’s a better chance of finding a good deal

• Suppliers are like any other business and sometimes will lower prices to hit end of month or quarter targets.

4. Your Own Usage & Budget

• If you prefer price stability, a longer-term deal may be best, even if you don’t lock in the absolute lowest price.

• If you’re okay with some fluctuations and can handle potential increases, shorter term contracts might or even flexible contracts might be the best option for you.

• If you are a large user, then any small fluctuation in prices might have a major impact on your budget

5. Contract Expiry & Renewal Windows

• When most business energy contracts end, you’ll be moved to an expensive out-of-contract rates if you don’t renew in time or move to another supplier so it's important to be aware of this date and take action.

• Most energy suppliers will quote up to 12 months in advance of a contract start date so it’s worth being proactive to secure a good deal.

As a Here’s the Plan client you will benefit from our energy contract renewal service. Your contract end date is logged on our system and we will be in touch to offer renewal options usually around 6 months before your existing contract end date but possibly earlier if the market rates are looking attractive.

If you have any questions, please get in touch

☎️ 01738474630

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