Choosing between fixed and flexible energy procurement isn’t just a technical decision; it directly affects your energy costs, operational risk, carbon strategy, and financial planning. As part of Inteb’s comprehensive energy procurement service, we help commercial clients across the UK navigate this decision with confidence, clarity, and long-term value in mind.
In this guide, we break down the key differences between fixed and flexible energy contracts, provide guidance on hybrid strategies, and show you how to align procurement with your unique business goals in 2025 and beyond.
What Is Fixed Energy Procurement?
Fixed procurement contracts allow you to lock in a set energy price (per kWh) for a defined term; often 12, 24 or 36 months. This means your unit cost remains unchanged, regardless of what happens in the wholesale market.
Why businesses choose fixed:
Fixed pricing enables easy cost forecasting
Budget holders gain certainty for financial planning
Reduces administrative effort across billing and validation
Best suited for: Low Energy Users or multi-let buildings
Smaller businesses and managed portfolios often benefit from fixed contracts because:
They offer budget certainty — perfect for organisations with limited financial flexibility, especially where service charge budgets need to be set 12 months ahead.
The administration is simple, avoiding the need for energy market expertise as the rate remains the same throughout the contract.
Organisations with low tolerance for market volatility
Risks of fixed energy contracts:
You won’t benefit from any dips in wholesale prices
Flexibility is limited if usage drops unexpectedly
You may be subject to volume tolerance penalties for over- or under-usage
Less transparency in how costs are broken down.
Inteb ensures you understand all commercial terms; including consumption thresholds, pass-through costs and termination clauses; before locking into a fixed agreement.
Understanding infrastructure needs for Fixed vs Flexible Business Energy Procurement decisions.
Energy-intensive systems like HVAC and boilers influence Fixed vs Flexible Business Energy Procurement choices.
What Is Flexible Energy Procurement?
Flexible procurement lets you buy your energy in tranches; typically over months or quarters; rather than locking in your full volume all at once. This allows for greater responsiveness to market conditions and a more strategic approach to timing purchases.
Why businesses choose flexible:
Purchases can be timed to market lows, reducing average costs
Allows layering of purchases for better cost smoothing
Enables a more dynamic approach to demand variability and seasonality
Best suited for:
Businesses with high or variable consumption across sites
Energy-intensive sectors such as manufacturing, data centres, logistics or estates
Organisations aiming to integrate sustainability with procurement
Considerations for flexible contracts:
Requires active management and trading insight
Budget forecasts may need to account for market fluctuation
Strong supplier relationships and monitoring are essential
With Inteb, you’re not navigating this alone; our risk team supports you with detailed strategy design, ongoing market updates and actionable advice.
What’s Shaping Energy Procurement in 2025?
The energy landscape has changed dramatically, and 2025 brings new challenges:
Continued wholesale market volatility due to geopolitical, environmental, and regulatory factors
ESG and compliance pressures, including SECR, TCFD and Scope 2 emissions reporting
Procurement complexity, with more contract options, green requirements, and supplier variation
Businesses are seeking procurement partners who can offer a strategic, risk-managed, and sustainability-conscious approach. Flexible and hybrid strategies are becoming the standard for organisations looking to remain agile.
Renewable integration, like solar and wind, plays a vital role in What’s Shaping Energy Procurement in 2025.
Smart infrastructure like EV charging is key to Hybrid Energy Procurement – Combining the Best of Both.
Hybrid Energy Procurement – Combining the Best of Both
A hybrid procurement model uses a blend of fixed and flexible elements. This approach offers the cost certainty of fixed pricing for a base load, while reserving the option to benefit from favourable market movements for remaining volume.
Example hybrid approach:
Fix 70% of your expected demand for 12 months, and buy the remaining 30% flexibly in monthly tranches; monitored and advised by Inteb’s procurement team.
This model is increasingly adopted by clients across healthcare, commercial property, industrial manufacturing, and multi-site estate portfolios.
Benefits of hybrid:
Reduces overexposure to either model
Improves resilience against market spikes
Provides procurement leverage while protecting budgets
What is our risk tolerance for energy cost fluctuation?
Do we have in-house energy expertise or need third-party support?
How much energy do we consume across sites and seasons?
Are we working toward a carbon reduction or net zero goal?
What’s our procurement governance or approval process like?
Inteb helps answer these through energy audits, usage analysis, and strategy workshops; helping your organisation make procurement decisions that align with operational and environmental outcomes.
Exploring a building project helps illustrate How to Decide – Questions to Ask Internally about your energy strategy.
Understanding buy and sell strategies is key to grasping Fixed vs Flexible Business Energy Procurement models.
FAQs – Fixed vs Flexible Procurement Explained
Is flexible procurement cheaper? It can be; but only with careful timing and strategy. It offers opportunity, but also exposure. Inteb works with clients to manage this balance and maximise value.
Can we combine fixed and flexible? Yes. A hybrid approach is highly effective and increasingly common. Inteb builds these strategies around your profile and goals.
Does flexible procurement support green energy? Absolutely. Green energy can be integrated into both models, and REGO-backed options are available for flexible agreements.
What if we’re a multi-site or public sector organisation? Inteb specialises in multi-site aggregation, framework support, and compliant procurement for NHS Trusts, councils, universities and more.
Partnering with Inteb for Smarter Energy Buying
At Inteb, we don’t just find contracts; we help you build a resilient energy strategy. Our procurement services include:
Strategy planning for fixed, flexible and hybrid models
Supplier benchmarking and negotiation
Energy risk assessment and market monitoring
Support with net zero and SECR reporting
Transparent pricing with no hidden broker fees
Whether you’re managing energy for 1 building or 100, our team offers expert, impartial support.
Request Your 2025 Energy Procurement Review
Need help deciding between fixed or flexible energy procurement for your business? Inteb is here to guide you with a fully transparent insight, risk-managed advice, and proven results.
Book Your Strategy Consultation Today or let us know if you would like a face to face meeting
