A quarter more for the same electricity. According to Cornwall Insight, a typical 12-month electricity contract for a larger retail or leisure site cost 25% more in August 2026 than it did in February, as conflict in the Middle East pushed wholesale prices higher.
Nothing about those sites changed in six months. The only difference was when they signed.
That is the uncomfortable truth for any operator with a 2027 renewal on the horizon. Nobody can tell you where prices go next, but you can decide how exposed you want to be.
Fix or Float: What You Are Really Choosing
Most SMEs think of this as a price decision. It is actually a risk decision.
Fixed contracts
A fixed contract locks your unit rate for the term. You give up the chance of catching a price drop in exchange for a number you can put in a budget and stop worrying about.
Flexible contracts
A flexible contract buys energy in blocks over time, so your price tracks the wholesale market. It can beat a fix when prices fall, but you need the time, the volumes and the appetite to ride out the months when they don’t.
Start With Your Risk Appetite, Not the Forecast
Before comparing a single quote, answer three questions honestly:
- Could your margins absorb a sudden 20–30% jump in energy costs mid-contract?
- Do you need a fixed figure for lenders, landlords or your own cash-flow planning?
- Is anyone in the business realistically going to watch the wholesale market each month?
If your answers are “no, yes, no”, a fix is probably your natural home. The real question then becomes when you lock it in.
Why Timing Beats Tariff Shopping
Tariff shopping happens in the final few weeks before renewal, when you take whatever the market offers that day. Two businesses on identical tariffs can end up paying very different prices simply because one signed in February and the other in August.
Timing also protects you from the costliest mistake of all: missing the renewal window and rolling onto out-of-contract rates. Those decisions are made months earlier, not in the last fortnight. Watching the market well ahead of renewal lets you fix when conditions suit you, rather than when the calendar forces you.
What This Means for Retail Operators
You don’t need a crystal ball. You need visibility of your current contract, a clear view of your risk appetite, and a renewal plan that starts early enough to give you options.
disruptmyenergybill brings your energy, contracts and emissions data together in one place, so you can monitor, optimise and purchase energy at the best prices without broker commissions. Before renewal, it runs an AI analysis of your contract, gives you visibility of costs and usage, identifies hidden risks and provides insights for your next renewal.
During renewal, it looks at business fit and contract structure, benchmarks prices, secures direct pricing and manages the process end to end.
Find Out What Your Next Renewal Could Save
TDH research shows 8 in 10 UK businesses are unknowingly overpaying on energy. Use the free disruptmyenergybill calculator to see your savings potential in 60 seconds, then plan your next renewal around it.
