F&S Energy business energy rates and tariffs
Fixed energy plan
Perhaps the most common type of energy contract in the UK is the fixed-rate contract. As you might expect from the name, a fixed-rate contract is where the price of your contract remains the same throughout its duration.
Fixed-rate contracts offer you the benefit of knowing exactly how much your energy bill will be at the end of the month. This allows you to budget your monthly spending accordingly and helps you keep track of exactly how much your company is spending on gas and electricity.
However, a fixed-rate contract may not be the most cost-effective option. If the price of the typical energy supply drops, you will still need to pay the price agreed on when signing the contract. This may mean you miss out on some fantastic savings.
If you want to end most fixed-rate contracts early, then you may need to pay exit fees. This is where you pay a sum of money to the supplier to end your contract early. You should try to take this into consideration if you're not sure you want to stay with the same contract for its full duration.
A variable contract is an extremely popular choice for larger businesses that operate within the UK. The price of your energy bill, if you choose a variable-rate contract, will be determined by the current market trends.
As the price can vary depending on energy market trends, some months you will be paying slightly more than you expect, whereas others you will pay less than you expected. This works perfectly for larger businesses that want to take advantage of the current market trends and energy usage.
However, the risk associated with a variable-rate contract means that smaller businesses may want to avoid them. You don't want to be suddenly surprised by a bill that is a lot higher than you were expecting it to be.
Most variable-rate contracts will come with zero exit fees, meaning you can end your contract without the need to pay an early leavers fee!
F&S energy offers a single variable rate tariff, which makes sense when you consider that the price changes depending on your usage and market trends. Most UK energy suppliers only offer a single variable-rate contract due to the flexibility that a single variable contract can offer businesses.
Deemed or out of contract rates
Deemed and out-of-contract rates are designed for companies that have either currently moved to a new property or who don't want to sign a contract.
Deemed rates are usually charged when a company moves onto a property that is already being supplied by an energy supplier. Instead of you needing to immediately sign a contract, you will be charged deemed rates for a set period.
Most deemed rates are extremely similar to the supplier's variable-rate contract and you can usually expect zero exit fees. This is because, ideally, a supplier will prefer a contract as opposed to just charging you deemed rates.
On the other hand, out-of-contract rates are where a company chooses not to sign a contract or create an account with an energy supplier. These rates are usually far higher than any other energy bill and should be avoided where possible!
To find out more about how we can help you compare suppliers and avoid paying out-of-contract rates, get in touch with us today!