Fixed vs Flexible Contracts: Which Energy Procurement Strategy Wins in 2025?

In a market full of uncertainty, rising costs, and shifting sustainability goals, energy procurement can feel like a gamble. Fixed or flexible? Control or agility? Simplicity or risk?

At Indigo Swan, we’ve seen it all. And in 2025, our view is clear: fixed contracts are the winning strategy for most businesses looking to take back control of their energy costs.

Let’s break down why.

Fixed Contracts: Stability in Uncertain Times

The biggest advantage of a fixed contract? Certainty. You lock in your rate, you know what you’re paying, and you can forecast with confidence.

At a time when energy markets are volatile and geopolitical risks are ever-present, choosing a fixed contract is more than a procurement decision—it’s a strategic move to protect your bottom line.

1. Budget Certainty = Business Confidence

Your finance team doesn’t want surprises. A fixed contract allows you to plan, allocate, and manage budgets without the stress of price fluctuations. No shocks. No spiralling costs. Just clarity.

2. Forecasting Made Simple

Predictable costs mean smarter forecasting. With a fixed rate, your team can project energy spend alongside other operational costs, giving you a more accurate picture of your financial future.

3. Volume Tolerance That Works for You

Fixed contracts often include reasonable volume tolerance. That means even if your usage fluctuates slightly, you’re protected. It’s a smart way to get flexibility without giving up price control.

Why Flexibility Isn’t Always a Win

Flexible contracts sound attractive—move with the market, take advantage of dips, keep your options open. But here’s the reality:

• You’re paying extra for that flexibility.
• You’re handing over critical commercial decisions to someone outside your business.
• You have no control over market conditions.

And when prices spike? You carry the risk.

Who’s Really in Control?

With flexible purchasing, you’re effectively outsourcing one of your most vital cost decisions. You’re trusting someone else to read the market, make timely calls, and avoid missteps—every single day.

If that makes you feel uneasy, you’re not alone. We work with businesses who’ve experienced the downside of poorly managed flex strategies, and now want to bring certainty back to the table.

Fixed Contracts = Peace of Mind

When markets are unpredictable, smart businesses seek stability. A fixed contract gives you that—clear costs, clear timelines, and a clear path forward.

At Indigo Swan, we help businesses choose the right contract for their needs, but in 2025, that often means championing the power of fixed. It’s not about playing the market. It’s about owning your decisions.

Let’s Change Energy, Together

Whether you’re managing a multi-site operation or overseeing a £500k+ energy spend, we’ll help you buy better energy—with insight, integrity, and heart.

Get in touch to talk strategy. Because energy shouldn’t be a gamble—it should be a strength.

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