When managing your business energy costs, choosing the right gas tariff is a key decision that can significantly impact your bottom line. In the current UK energy market, with price volatility and ongoing market uncertainty, it’s crucial to understand the difference between fixed and flexible gas tariffs—and which is right for your business.
At Scalex Technology, we help businesses make informed choices based on usage, risk tolerance, and future planning. Let’s break it down.
What Is a Fixed Gas Tariff?
A fixed gas tariff means you agree to pay a set price per kWh of gas for the duration of your contract—usually 1 to 3 years.
✅ Pros:
- Price certainty for budgeting
- Protection from market price spikes
- Simpler billing and forecasting
❌ Cons:
- You won’t benefit from market price drops
- Early exit fees may apply
- Less flexibility in fast-changing markets
💡 Ideal for: Small to medium businesses that need financial stability and want predictable energy bills.
What Is a Flexible Gas Tariff?
A flexible gas tariff (also called a pass-through or market-linked tariff) allows you to take advantage of market changes. Your gas price varies based on wholesale market rates.
✅ Pros:
- Potential savings when market prices fall
- Ability to buy energy in bulk at strategic times
- Custom buying strategy with broker support
❌ Cons:
- Exposure to market price increases
- Requires active monitoring or energy consultancy
- Not ideal for tight cash-flow situations
💡 Ideal for: Large or multi-site businesses with high energy usage and an appetite for strategic purchasing.
Fixed vs Flexible: Key Differences
| Feature | Fixed Tariff | Flexible Tariff |
|---|---|---|
| Price Stability | ✅ Stable | ❌ Variable |
| Budgeting Ease | ✅ Easy to forecast | ❌ Harder to predict |
| Savings Potential | ❌ Limited | ✅ Possible with smart buying |
| Contract Complexity | ✅ Simple | ❌ More complex |
| Risk Level | ✅ Low risk | ❌ Higher risk |
Which Gas Tariff Is Right for Your Business?
Ask yourself:
- ✅ Do you need predictable monthly costs? → Fixed
- 📈 Are you energy-savvy or working with a broker? → Flexible
- 🏢 Do you operate across multiple sites or have high usage? → Flexible
- 💼 Are you a small or medium business looking to lock in a rate? → Fixed
Scalex Tip: Hybrid Approach
Many businesses today are opting for hybrid contracts—a mix of fixed and flexible purchasing to spread risk and gain savings when possible. Our brokers can help build a custom strategy for your specific gas usage profile.
How Scalex Technology Can Help
We provide:
- Free comparison of fixed and flexible tariffs
- Tailored advice based on your energy usage
- Contract negotiation support
- Market monitoring and switching alerts
- Ongoing bill analysis and validation
📞 Speak to a Scalex gas broker today and make your next contract work harder for your business.
Final Thoughts
Whether you go fixed or flexible, the key is choosing a tariff that aligns with your business’s needs, risk tolerance, and financial goals. With energy markets fluctuating, now is the perfect time to review your options.
🔎 Need help deciding?
Request a free gas tariff review today from Scalex Technology—and let our experts guide you to smarter energy decisions.
