Flexible Contract

Key takeaways

A flexible contract generally means your energy is bought in stages rather than fixed all at once.

It can reduce the risk of locking all your volume on a single expensive day, but it also exposes you to market movements.

Flex tends to suit higher-usage businesses that can track purchasing and consumption.

What is a flexible energy contract?

A flexible (flex) contract is an approach where pricing is built up over time.

Instead of fixing 100% of your expected usage in one go, you purchase portions (often called tranches) across a period, and your eventual average price reflects what you bought and when.

This staged purchasing approach is commonly described as buying energy in blocks to take advantage of favourable market conditions, while managing risk.

How flex differs from fixed

Fixed

• One agreed price structure for the term (more predictable)

Flexible

• Price is shaped by when tranches are bought (more variable)
• Often needs active management and reporting

Who flex contracts suit best

Flex is usually a better fit if you have:

• larger, more predictable volumes
• multiple sites, or significant consumption
• the ability to monitor and manage purchasing decisions

If you just want simple budgeting, fixed pricing is usually simpler.

Sources

1. British Gas Business: Flexible contract description (buying/selling in blocks with wholesale exposure).