Flexible Energy Buying
Flexible Purchasing – Could It Suit Your Business Needs?
If you’ve managed commercial energy supply contracts in recent years, you’ve likely felt the strain of volatile markets. Global events, geopolitical tensions, and supply chain challenges have made predicting future energy costs increasingly difficult. For many businesses, deciding when to lock in energy prices has become one of the most critical—and risky—decisions impacting overall spend.
Flexible purchasing offers a smarter way to navigate this uncertainty and regain control over your energy strategy.
The Scale of the Challenge
Traditional fixed-price contracts may seem simple: you choose a day to lock in a rate before your contract begins, and you live with that price for the entire supply period. But the timing is everything. A decision made on the wrong day—when prices peak—can lock your business into significantly higher costs for months or even years.
For example, between September 2021 and May 2022, wholesale energy markets surged to record highs, driven largely by the war in Ukraine and global supply disruption. Yet, within the same period, there were sharp dips that created valuable buying opportunities. Businesses that fixed at the wrong time ended up paying thousands, tens of thousands, or even hundreds of thousands of pounds more than those who had flexibility in their purchasing strategy.
The Solution
Flexible purchasing takes a different approach. Instead of committing to a single price on a single day, buyers can make multiple purchasing decisions over time. This spreads market risk and creates an average contract price based on all trades during the buying window.
The advantages are clear:
Risk Mitigation – Avoid exposure to the worst of market highs.
Market Responsiveness – Take advantage of dips and favorable pricing opportunities.
Budget Control – Smooth out volatility with a more predictable, averaged cost.
Strategic Flexibility – Align purchasing decisions with your business’s unique risk appetite and cash flow needs.