Variable Rate Supply Contracts

Responsible Energi: Your Partner in Advanced Energy Procurement

At Responsible Energi, our variable supply contract service targets a 15% saving against traditional fixed price offers.

We do this by providing lower consuming businesses with access to products normally only accessible by industrial or large corporate organisations.

By allowing your price to track the energy market price fluctuations on a daily or monthly basis (like a tracker mortgage) rather than fixing all of your energy in advance, you are able to take advantage of reduced risk premiums and any drop in energy prices.

Advantages of Variable Rate Contracts

Reduced Risk Premia

When a supplier provides a fixed price supply offer, they do so not knowing what the future holds. As such, they build in a sensible level of premium into the rates. Variable rates have a lower risk to the supplier and as such they include less risk premia in their offers.

Near-Term Pricing Advantage

Energy purchased close to the time of consumption tends to be priced lower than energy bought far in advance. Variable contracts let you benefit from this natural market dynamic.

You Can Fix At Any Time

If the wholesale energy price falls to a point that is really attractive, we are able to fix the remaining 'open' energy volume for you. Providing the opportunity to maximise your chances of getting the lowest price while creating budget stability.

Win Win Mentality

A variable rate enables you to increase your chances of getting a lower price but retaining the option of fixing at any time. This level of flexibility enables businesses to manage their energy costs more dynamically, creating a win win situation.

Risk Strategies for the Advanced Buyer

The Rolling Hedge

This is where 100% of your forecasted annual energy consumption is purchased 3, 6 or 12 months ahead of delivery. As an example, on a 6-month rolling hedge strategy, your October renewal would be purchased no later than the end of March. This is a low-risk approach to flexible purchasing.

Fix & Float

You purchase 25%, 50%, or 75% of your contracted energy volume prior to the contract starting. The remaining energy is purchased a quarter before the month of delivery. e.g. you purchase 50% of your energy needs and then buy the remaining 50% of each month 3 months prior to that month starting.

Aggregated Purchasing

Many businesses do not use enough energy to qualify for a flexible contract. Leverage the buying power of many other UK businesses by joining one of our gas or electricity purchasing baskets and access flexible buying strategies.

Dynamic Purchasing

Responsible Energi would create a tailored risk management strategy specific to your business. This would include a number of risk workshops to help you define your requirements and make the most informed decision.

Choose Responsible Energi for Advanced Energy Procurement

Our Variable Gas and Electricity Supply Contract Procurement service enables businesses to mitigate against the high rates seen following the energy crisis of 2022.

Leverage the expertise within Responsible Energi, so that you can focus your time growing your own business.

Contact us today to learn how we can empower your business with energy cost stability and savings.

Why Variable Contracts Work for SMEs

Lower Risk Premiums

Fixed-price contracts are priced to protect the supplier against future uncertainty. With a variable contract, that risk buffer is reduced, which typically means a lower base rate.

Real Market Pricing

Energy is generally cheaper the closer you are to the point of consumption. Variable contracts allow you to benefit from near-term wholesale pricing rather than paying a long- range fixed premium.

The Option to Fix

A variable position does not mean you are permanently exposed. If wholesale prices fall to an attractive level, we can lock in remaining volume at that rate — giving you the best of both approaches.

Active Management

We monitor your contract position throughout the term. If market conditions shift materially, we will contact you with a recommendation rather than waiting for renewal.

Sustainability Integration

Variable contracts can be structured to incorporate green tariff options. If reducing your business's carbon footprint is a priority, we can factor this into your procurement strategy.