Author, Sam Taylor, develops TPI and intermediary partnerships at Good Energy, supporting brokers and consultants with forward-thinking renewable procurement strategies. He works closely with partners to navigate market volatility, regulatory change, and evolving hourly matching requirements, helping structure commercially sound solutions that balance risk, cost control, and decarbonisation..<\/p>\n<\/div>\n\n\n\n
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Best energy tariff for budget certainty, cost controls, and ease of management.<\/strong> <\/p>\n\n\n\n A fixed rate tariff<\/a> gives your business an agreed unit rate for the duration of the contract<\/strong> and will span in duration from one to three years. This rate won\u2019t change, regardless of market movements, which makes this a popular choice for small and medium sized businesses who value budget certainty. <\/p>\n\n\n\n <\/p>\n\n\n\n Pros:<\/strong><\/p>\n\n\n\n Cons:<\/strong><\/p>\n\n\n\n There are also variations of fixed contracts where certain non-commodity costs, such as transmission, distribution and policy charges, are passed through at cost rather than fully fixed. Often referred to as fixed with non-commodity pass-through<\/strong>, this structure keeps the wholesale element stable while allowing network and system charges to move in line with actual costs. This may suit buyers who want overall price certainty but are comfortable accepting a limited degree of variability to ensure they are paying the true cost of those non-commodity elements. <\/p>\n\n\n\n Best energy tariff for competitive rates, active risk management, and bespoke contracting terms.<\/strong> <\/p>\n\n\n\n A flex energy contract<\/a> allows energy to be purchased in stages over time<\/strong> instead of locking in all your volume at once. <\/p>\n\n\n\n For larger organisations with higher energy spend, a flex contract can be the best energy tariff structure because it enables a more strategic approach to risk. Energy can be bought when market conditions are favourable, and purchasing can be spread to avoid committing everything at a single point in time. <\/p>\n\n\n\n <\/p>\n\n\n\n Pros:<\/strong><\/p>\n\n\n\n Cons:<\/strong><\/p>\n\n\n\n Businesses considering a flex approach often benefit from procurement expertise or external support to manage their strategy effectively. For businesses with the internal capability to monitor markets and make informed purchasing decisions, flex contracts can deliver strong results over time. However, they work best when supported by clear risk parameters and a defined buying strategy.<\/p>\n\n\n\n <\/p>\n\n\n\n Best energy tariff for off-peak consumption, unknown volume requirements, and new connections.<\/strong> <\/p>\n\n\n\n An index-linked tariff<\/a> tracks a wholesale market index (an index is a commodity price live view) meaning your business pays a price that will rise and fall in line with the market<\/strong>. Index-linked energy tariffs are best suited for businesses that understand market dynamics and can tolerate short term price swings. <\/p>\n\n\n\n <\/p>\n\n\n\n Pros:<\/strong><\/p>\n\n\n\n Cons:<\/strong><\/p>\n\n\n\n Without hedging any energy, this contract type comes with the fewest volume controlling terms, such as volume tolerance, benefitting customers with newly connected supplies but unknown consumption profiles, ramp up periods or future site plans. It also adds an advantage for customers that will mainly be using a decent amount of energy in the cheapest periods of the day, as their weighted average rate will typically be far lower than a standard fixed offering. <\/p>\n\n\n\n Best energy tariff for sustainability, reducing your company\u2019s impact on the environment, and supporting British generators.<\/strong> <\/p>\n\n\n\n For some organisations, the best energy tariff isn\u2019t a traditional supply contract at all, but a Power Purchase Agreement (PPA), or a Corporate PPA. <\/p>\n\n\n\n PPA (Power Purchase Agreement):<\/strong> A longer-term agreement to buy electricity directly from a renewable generator, such as a wind or solar farm. These agreements can be for any duration. <\/p>\n\n\n\n CPPA (Corporate Power Purchase Agreement):<\/strong> A longer-term agreement used by businesses that see energy as a strategic sustainability decision. These are typically for durations of three years upwards. <\/p>\n\n\n\n <\/p>\n\n\n\n Pros:<\/strong><\/p>\n\n\n\n Cons:<\/strong><\/p>\n\n\n\n These agreements are most often used by larger organisations across the public and private sector with predictable demand and defined sustainability targets. For those businesses, a PPA can move energy purchasing from a cost exercise to a strategic commitment.<\/p>\n\n\n\n Selecting the best tariff for your business is only part of the decision. Choosing the right supplier matters just as much. Energy is no longer just an operational cost for many organisations. It\u2019s tied to sustainability commitments, investor scrutiny and Scope 2 reporting: with your choice of supplier supporting or harming your wider ESG strategy. <\/p>\n\n\n\n Hourly renewable energy matching<\/a> is becoming increasingly significant. As we approach 2027 and emissions reporting standards tighten<\/a>, it will no longer be enough to claim renewable electricity on an annual basis. Hourly matching ensures the power you report was generated at the exact time it was consumed. <\/p>\n\n\n\n For organisations focused on long-term decarbonisation and credible Scope 2 reporting, this level of transparency helps strengthen reporting integrity and reduce the risk of greenwashing. Good Energy is already supporting all large business energy customers with this, by providing fully auditable hourly energy matching data.<\/p>\n<\/div>\n\n\n\n Another factor to consider is your supplier’s approach to rising non-commodity costs. These costs, which include network, policy and system charges, often account for over 50% of your unit rate and the majority of your standing charge. While these elements are largely outside a supplier\u2019s direct control, there are emerging ways to manage them more proactively, making tariff structure and supplier approach increasingly important.<\/p>\n\n\n\n\n
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<\/figure>\n<\/div>\n<\/div>\n\n\n\nPower Purchase Agreements (PPAs) & Corporate PPAs<\/h3>\n\n\n\n
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<\/figure>\n<\/div>\n<\/div>\n\n\n\nChoosing the best energy supplier for your business<\/h3>\n\n\n\n
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