Flexible trading: A guide for businesses

There are different approaches to negotiating business energy contracts, and for each method, there is an element of balancing financial goals with risk. In this article, we will introduce you to the flexible energy procurement strategy and how it compares to a fixed trading strategy.

What is flexible trading?

Flex trading, also known as market-responsive energy procurement, gives UK businesses the room to adjust their energy contracts based on their needs. The price of energy procurement with a flexible framework works differently than with a fixed framework and has less certainty. However, it can have many advantages for businesses and make acquiring energy more in line with their financial goals, if negotiated correctly.

What’s the difference between flex and fixed?

Flexible differs from fixed as it doesn’t involve locking in fixed prices and allows for securing energy while the market rates are more favourable. It’s a useful technique for effectively managing the energy procurement process and the variation in the heading period leading up to delivery.

Benefits of flexible energy procurement with Amber

Experienced team of consultants: At Amber, we have a team of energy consultants and energy analysts who are experts in helping clients meet their energy goals. They help clients negotiate flexible contracts that meet their financial framework requirements.

Transparency: Amber specialises in making energy procurement clear and streamlined for our clients without hidden costs or agendas, providing concise market commentary and recommendations. We are proud to have a reputation for pioneering fee transparency within the sector.

Dedicated Relationship Manager: We want to work closely with our clients to ensure they are happy every step of the way. That’s why we assign a Customer Success Manager to be your primary point of contact to help ensure you have a successful experience with us.

Is flexible trading right for your business?

Flex trading works well for organisations who are looking to find a way to lower their costs as the energy market fluctuates. We have a range of flexible trading strategies that offer a sliding scale between budget certainty and risk, to help find what will work best for your organisation’s needs. If your organisation consumes more than 3GWh annually, it could be wise to opt for a flexible contract to take advantage of dips in the market. If you are consuming less than 3GWh there is still an opportunity for you to take advantage of flex trading by joining one of our baskets.

Speaking with our flexible energy procurement experts can help you assess what will be the right path for you. They can help you purchase energy at different times and in varying quantities throughout your contract with your supplier. This way, it is possible to purchase more energy to suit your needs, if your business profile changes over time.

If you want something less risky, and easier to budget, the fixed trading approach might be more suited to your needs. Alternatively, Amber can help you with budget certainty by procuring all the energy you need prior to delivery and can be set up depending on your risk appetite and requirement for budget certainty.

How can Amber help?

We are dedicated to finding our clients an energy procurement solution that meets their desired level of risk and financial goals. If you want to learn more about developing a procurement strategy with the help of Amber’s expert team, contact us to book a call.