24 March 2026

Gas and Electricity Procurement: A Guide to Flexible Energy Contracts

With energy markets continuing to shift, many UK businesses are moving beyond traditional fixed contracts and exploring more dynamic procurement strategies. Flexible energy contracts -- often referred to as “flex procurement” -- offer a more strategic approach to buying gas and electricity, allowing businesses to engage with the market over time rather than locking in a single price.


But how do flexible contracts work, and are they the right fit for your business?


What is flexible energy procurement?

Flexible energy procurement allows businesses to purchase their energy in multiple tranches, rather than fixing 100% of their volume at one point in time. Instead of committing to a single unit rate, your energy is bought in stages.

This approach is typically used by larger energy users as there are minimum sizes that must be purchased, but it is becoming increasingly accessible to a wider range of organisations. There is also the option of multiple smaller users creating a basket so they can purchase together.


How do flexible contracts work?

Under a flexible contract, your total energy requirement is forecast in advance. You (or your broker) then purchase portions of that volume at different times throughout the contract period. This could be based on market opportunities, risk strategies, or predefined buying windows.

Some contracts offer full flexibility, where buying decisions are actively managed, while others provide a more structured approach -- sometimes referred to as “flex-lite” -- which blends flexibility with elements of price certainty.

At the end of the buying window, any unpurchased volume is typically “shaped” or bought automatically, ensuring your total demand is covered.


The benefits of flexible contracts

The key advantage of flex procurement is the ability to manage risk and a likelihood of achieving a lower average unit rate. By spreading purchases, businesses can avoid locking in all their energy at a market peak.

Flexible contracts also provide greater control. You can respond to market trends, adjust your purchasing strategy, and take advantage of dips in wholesale prices.

For organisations with the right strategy in place, this approach can deliver significant long-term savings compared to traditional fixed contracts.


The potential drawbacks

Flexibility comes with increased complexity. Monitoring the market, deciding when to buy, and managing risk requires time, expertise, and a clear strategy.

There is also an element of exposure. If the market rises consistently, a flexible strategy could result in higher overall costs compared to fixing early.

Many businesses lack the expertise required to make informed decisions in-house, and having a trusted energy partner can be essential for the flex purchase management.



How an energy broker can help

Flexible procurement is not a “set and forget” solution. It requires active management and market insight. This is where an experienced energy broker becomes invaluable.


At SeeMore Energy, we support businesses through every stage of the flex procurement process. From selecting the right contract structure to developing and executing a tailored buying strategy, we ensure your energy purchasing is aligned with your commercial objectives.


We monitor the market on your behalf, provide clear recommendations, regular reports, and help you make informed buying decisions -- the need for in-house expertise.


If you’re considering a more strategic approach to energy procurement – or looking for assistance in managing an existing flex contract -- get in touch today for a free, no-obligation market review. We’ll help you determine whether flexible contracts are right for your business --and how to make them work effectively.

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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