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Should Your Business Opt For Variable Business Energy Tariffs?

While it is tempting to opt for a variable business energy tariff, you should be aware that it can cost your business more money than you expect. There are several factors that can help you determine whether a variable tariff is right for your business. For one, it is essential to choose the right supplier. Some suppliers update their unit rates more frequently than others, so your bill could end up being higher than you expected. This can be a major problem if you have an annual budget.

Fixed And Variable Business Energy Tariffs

Fortunately, choosing between fixed and variable business energy tariffs is not difficult. These tariffs can lower your monthly bill or make your energy bill higher. But, you must keep an eye on factors that affect the price of energy. To make the most informed decision, you should consider what factors can influence the price of your energy. There are a few things to consider before signing a contract. If your business uses a lot of electricity, you can choose a tariff that suits your needs.

Price Of Energy

Another thing to consider is the price of energy. While fixed-rate contracts are more stable and predictable, variable-rate contracts change in response to market activity and fluctuate month-to-month. Therefore, it is important to understand how these two types of energy deals compare. As a business owner, you should try to avoid such contracts as much as possible. Even if a fixed-rate contract is cheaper, you should switch to a variable business energy tariff as soon as possible.


Variable-business energy tariffs offer greater flexibility than fixed-rate contracts. But you should be wary of the risk that the rate may go up or down each month. It’s important to ensure that your financial strength can withstand any rate rises. You can opt for a fixed-rate tariff that pays less than the current market prices, but it’s important to remember that the fixed-rate contract costs more than double what a variable-rate deal does.


As mentioned, variable business energy tariffs differ from fixed-rate contracts. This means that the rates can be lower or higher depending on the market activity. In this case, it is important to assess the risks and decide if your financial situation will allow you to survive the rate increase. If you think that the rates will stay low, the best option is to switch to a fixed-rate contract. If you can’t do so, you can also opt for a fixed-rate business energy tariff.

In Summary

As you can see, variable business energy tariffs differ from fixed-rate tariffs in many ways. However, they can save you money if you can find the best deal. Usually, they come with cancellation fees. To avoid paying these fees, you should always opt for a fixed-rate business energy tariff. These plans are more flexible, but the downsides are the risk involved. If you choose a variable-rate contract, you need to monitor the market carefully.

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