Fixed vs. Variable Business Energy Tariffs
Choose the Best

Which One is Best for Your Business in 2025?

Topics Covered in This Guide

What Are Fixed and Variable Energy Tariffs?
Fixed Tariffs: Pros, Cons
Variable Tariffs: Pros, Cons
Which Tariff is Best for Your Business?
How UtilityKing Helps You Get the Best Tariff
Avoiding Common Mistakes When Choosing an Energy Plan

What Are Fixed and Variable Business Energy Tariffs?

Understanding how fixed and variable tariffs work is essential to making the right choice for your business.

Fixed Tariff - Locking in a Stable Price

Your energy price per kilowatt-hour (kWh) stays the same for the entire contract period.
Contracts typically last 12-36 months, ensuring predictable costs.
You won’t be affected by market price increases.

Variable Tariff - Prices Change With the Market

Your energy price fluctuates based on market conditions.
If wholesale energy prices drop, your business pays less.
If energy prices rise, your business pays more.

Fixed Tariffs: Pros, Cons

Pros

Predictable Costs: Easier budgeting.
Protection from Price Increases: Your rate stays constant.
Stable Contracts: Great for long-term planning.

Cons

Less Flexibility: You won’t benefit from market price drops.
Early Exit Fees: Leaving before the contract ends may result in penalties.

Variable Tariffs: Pros, Cons

Pros

Potential for Savings: If energy prices drop, you pay less.
Flexible Contracts: Some variable tariffs allow you to switch without penalties.
Short-Term Advantage: Best for businesses that monitor the market closely.

Cons

Uncertain Costs: Your bill may change every month.
Higher Risk of Price Spikes: Rates may increase unexpectedly.
Harder to Budget: Costs fluctuate unpredictably.

Fixed vs. Variable Tariffs: Which One is Best?

Feature	Fixed Tariff	Variable Tariff
Price Stability	Yes - Locked in	No – Changes Monthly
Potential Savings	No - Stays the Same	Yes - If Prices Drop
Protection from Price Increases	Yes	No
Contract Length	12-36 Months	Monthly – 12 Months
Best for Budgeting?	Yes	No
Risk Level	Low	High
Protection from Price Increases	Yes	No

How UtilityKing Helps You Get the Best Tariff

Compare Business Energy Rates – Real-time quotes from top suppliers.
Choose the Best Tariff – Based on your business needs.
We Handle the Switch – Hassle-free and smooth.

Compare Business Rates Now & Secure Your Savings!

Avoiding Common Mistakes When Choosing an Energy Plan

Staying on an out-of-contract rate.
Choosing the wrong tariff for your business.
Not checking for hidden fees or exit penalties.