23 March 2026

Gas and Electricity Procurement: A Guide to Fixed Energy Contracts

For many British businesses, energy procurement is one of the most important, yet often overlooked, areas of cost control. With markets remaining volatile, fixed energy contracts continue to be one of the most popular strategies for managing gas and electricity costs. But what exactly is fixed procurement, and is it right for your business?


What is fixed energy procurement?

Fixed energy procurement refers to securing your gas and electricity supply at a set unit rate, and often standing charge, for a defined period -- typically between 1 and 4 years. This means your business pays the same price per kWh regardless of fluctuations in wholesale energy markets.


For businesses seeking stability and predictability, fixed contracts provide a clear and structured approach to energy procurement.


The benefits of fixed contracts

The primary advantage of a fixed contract is price certainty. In an unpredictable market, locking in rates protects your business from sudden price spikes. This allows for more accurate budgeting and removes the risk of being exposed to short-term volatility.


Fixed contracts are also simple to manage. With a set rate agreed upfront, there’s no need to track wholesale markets or make frequent purchasing decisions. This makes them particularly attractive for businesses without dedicated energy management resources.


If you can time your renewal well, fixed contracts can also give a competitive advantage. If you lock a price in and the market goes up, this means many competitors will end up paying higher unit rates for their energy. However, this can involve some luck with timing and is somewhat restricted by contract end dates.


The potential drawbacks

While fixed contracts offer stability, they also come with trade-offs. The most notable is the inability to benefit from falling market prices. If wholesale costs drop after you’ve locked in, your business remains committed to the agreed rate.


There may also be less flexibility. Fixed contracts typically involve longer commitments, and exiting early can result in significant termination fees.


Finally, timing is critical. Locking in at the wrong point in the market cycle can mean missing out on more competitive rates later. This is why having a clear procurement strategy is essential.


How the procurement process works

The process of securing a fixed energy contract starts with gathering accurate consumption data. This includes your MPAN (electricity), MPRN (gas), annual usage, and current contract details.


From there, suppliers are approached to provide quotes based on your business profile and preferred contract length. These quotes must be carefully compared on a like-for-like basis, taking into account unit rates, standing charges, and any additional costs.

Once the most suitable option is identified, contracts are agreed and secured -- often within a limited timeframe, as supplier prices can change daily in line with the market.


How an energy broker can help

Navigating the energy procurement process alone can be time-consuming and complex. That’s where an experienced energy broker adds real value.


At SeeMore Energy, we manage the entire procurement process on your behalf. From data collection and market engagement to supplier comparison and contract placement. We work with a wide range of UK suppliers, allowing us to identify not just the cheapest option, but the most appropriate contract for your business.


We also provide insight into market timing, helping you decide when to fix your rates, and which contract structure best aligns with your risk appetite.


If you’re approaching renewal or want to explore your options, get in touch today for a free, no-obligation market review. We’ll help you secure the right fixed energy contract -- saving you time, reducing risk, and ensuring that you stay in control of your energy costs.

February 2025 Review

by Craig Watson • 27 March 2026
With consumer spending declining and OFGEM raising their price cap, you would be forgiven for seeing February as a month where negative news was at the forefront, but in the energy markets, this was not the case.

2024 Review

by Craig Watson • 27 March 2026
In a year that began with falling energy prices, there were recurring catalysts that led to prices climbing steadily higher. Geopolitical uncertainty and the perennial threat of escalating conflicts meant fear would maintain a constant presence in the wholesale markets. We will look back at the key energy stories from 2024, and how the energy markets are likely to shape up in 2025. Quarter 1  The year began with cautious optimism as the UK’s gas reserve levels were healthy and prices for the Summer’24 season were in freefall. In February, prices pulled back to their lowest levels since 2021, and for the first time in a while, we identified that there was greater potential for upside risk than for further downward price movement: “ there now (exists) an asymmetrical element of risk should the market encounter a supply-side problem of significance. ” During February we had advised customers on flexible contracts that this was an ideal time for making purchases. March would see prices begin to ascend again as international conflict would create problems with LNG imports, and we would highlight the geopolitical risks as an area for concern moving forwards: “ fears remain and there are potential negative catalysts that could lead to prices rising further, with the main factors to watch out for being based on geopolitical unrest. “ For a business that purchases their energy in advance, this quarter was the optimal time for purchasing during 2024. In February, electricity prices for Winter’25 were down to 7.75p/Kwh, and as low as 6.05p/Kwh for Summer’25. Winter’25 ended the year with prices above 11.1p/Kwh, with Summer’25 prices exceeding 9p/Kwh. For a company that uses 500,000Kwh of electricity per month, the difference between buying at the February low point compared to today’s prices would represent a yearly saving of over £200,000.
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