The UK business energy market is complex, often confusing, and sometimes unfair. Choosing the wrong contract can leave businesses locked into expensive rates, while failing to manage renewals can lead to rolling onto costly out-of-contract tariffs. This guide explains everything you need to know about energy procurement — from contract types to supplier management — so you can make informed decisions that protect your business.
1. What is Business Energy Procurement?
Business energy procurement is the process of sourcing, negotiating, and managing your gas and electricity contracts. It goes beyond simply “shopping around” — effective procurement considers contract type, market timing, risk management, and long-term business needs.
2. Types of Business Energy Contracts
Fixed Contracts → A set price per unit for the entire contract term. Predictable but less flexible if market prices fall.
Flexible Contracts → Energy purchased in tranches over time, allowing you to spread risk and potentially benefit from market dips.
Basket/Group Contracts → Multiple businesses combine buying power to secure stronger terms.
3. Common Mistakes Businesses Make
Leaving renewals until the last minute.
Rolling onto out-of-contract or deemed rates.
Accepting the first offer without market comparison.
Not reviewing historical consumption data.
4. How Procurement Works with a Broker
A broker like Choice Utility:
Benchmarks suppliers across the whole market.
Analyses half-hourly or smart meter data to match contract terms to usage.
Negotiates pricing and terms.
Manages billing, disputes, and renewals throughout the contract.
5. The Benefits of Smart Procurement
Cost Control → Avoiding surprise price hikes.
Risk Management → Tailoring contracts to your cashflow and risk appetite.
Time Saving → Leaving supplier negotiations and admin to experts.
Sustainability → Access to renewable tariffs and carbon reporting options.
Conclusion
Smart energy procurement is more than just choosing the cheapest deal. It’s about securing the right contract at the right time, and managing it with ongoing support. At Choice Utility, we specialise in tailored procurement strategies that protect businesses now and in the future.