How to set budgets in a volatile energy market

9 Nov 2022

 How to set budgets in a volatile energy market

If you're looking for the certainty of a fixed-price energy deal but are wary of locking in higher rates, an innovative British Gas Business product might be for you

With the continuing volatility in the energy market and the recent announcement of the government's Energy Bill Relief Scheme (EBRS) guaranteeing support this winter, now could be a good time to explore a fixed price energy contract.

Fixed-price tariffs can give peace of mind when you're setting business budgets. They can help provide budget certainty– so you can plan accurately.

But after recent rises in wholesale energy prices, you may be concerned about 'fixing' energy prices at rates that are higher than they were available before – especially at a time when markets are volatile.

So how do you get price assurance now whilst taking advantage of future energy market conditions? One option is Step, from British Gas Business.

What is Step?

Step is a different kind of fixed-price product. It works by giving you two pricing periods. The first period fixes the highly volatile Winter 22 season (out to 31/03/2023), then, the second period which is also fixed and will begin on 1st April 2023, once the first period contract ends. The second period can be up to a maximum duration of 12 months.

So instead of having one fixed price, there are two pricing periods – That way, you can get budget certainty even in today's fluctuating market

What is Step?

Why might Step suit you?

Step can help you in the following ways:

Budget certainty.

Step may suit you if you prefer budget certainty of a fixed-price energy deal. This may be the case if:

  • You use energy intensively– in which case energy will be a relatively large proportion of your business expenses, so it's important to know what you'll pay in advance
  • You need to price up production contracts over a period of years – so you need to know what your input costs will be
  • You are concerned about inflation – in which case a fixed price may help you make business decisions more confidently
  • You simply want to know how much you're paying in advance, to avoid surprises later.

We're Zero Carbon as standard

If you're not sure where to kick off your sustainability journey, switching to an energy supply tariff with a Zero-Carbon or renewable option is a quick and easy place to start.

All new British Gas Business electricity contracts are Zero Carbon as standard, backed by electricity from renewable energy sources and nuclear generation.

And for greater sustainability, it's also possible to upgrade your supply contract to 100% natural renewable electricity or carbon-neutral gas at a premium

We are committed to helping tackle climate change and it's important to us that you know the origin and quality of your renewable energy.

Out of more than 220 registered electricity suppliers, only three have been certified by the Carbon Trust for their business renewable electricity products. We’re proud to be the largest energy supplier to receive this assurance.

Respond to high energy prices with energy efficiency

Today's businesses are operating in a landscape of disruption and uncertainty. Finding ways to become more efficient and reduce costs wherever possible is a top priority.

The good news is energy efficiency is one area where there are lots of opportunities to reduce costs for businesses, no matter what industry you are in. With energy price at an all-time high, reducing energy consumption represents a significant opportunity to improve the bottom line.

Find out more

Discover how Step can benefit your business – by providing budget certainty and Zero-Carbon electricity as standard.

Read our introduction to Step

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