When you’re running an organisation, there’s enough unpredictability in your day without adding your energy bills to the mix. Yet every year, I see too many organisations falling into the potential minefield of variable energy rates.
It’s an easy mistake to make. On paper, variable rates can look flexible. You’re possibly not tied to a long contract, and you might think you’re benefiting from the odd dip in market prices. But realistically: for most organisations, variable rates are a dangerous gamble that can cost you thousands — and sometimes even threaten your long-term financial stability.
The Price Rollercoaster
Variable rates move with the wholesale energy market. That means when prices go up (which they often do), so does your bill.
Just in the last few years, we’ve seen wholesale prices spike by huge amounts during periods of instability. For an organisation with a tight budget, that kind of increase can’t simply be “absorbed” — it forces difficult choices, from cutting services to delaying essential projects.
With a fixed rate, you know exactly what you’re paying for the duration of your contract. No surprises. No nasty shocks… unless you have that employee who leaves the lights on every weekend or is obsessed with the air conditioning unit.
Budgeting Becomes a Nightmare
One of the biggest challenges for organisations is forecasting costs accurately. Variable rates make this almost impossible.
If your bills swing dramatically from month to month, how can you plan staffing, maintenance or community projects? I’ve worked with schools who saw their energy bills jump unexpectedly mid-year, forcing them to freeze recruitment and slash extracurricular activities.
Market Timing is Rarely in Your Favour
Yes, there are times when variable rates drop — but waiting for that moment is like waiting to win the lottery. By the time the market drops, you may have already spent months paying more than necessary. And unless you’re glued to market reports, there’s a good chance that—if your broker isn’t on the ball (as many aren’t)—you could miss the dip entirely.
Risk vs Reward – The Reality Check
Think of variable rates like driving without insurance in the hope you won’t have an accident. Sure, you might be fine — but the risk is huge, and the consequences are severe.
In today’s volatile energy market, risk management is just as important as cost management. A fixed-rate deal (whether individually or through an energy basket like ours) gives you both: predictable costs and protection against market spikes.
My Recommendation as an Energy Expert
If you’re on a variable rate, review your options now. Even if wholesale prices look stable today, geopolitical tensions, supply chain disruptions or seasonal demand can send them soaring overnight—especially in a world where unpredictable leaders can change the game in an instant. At 2buy2 Energy, we help organisations secure competitive fixed-term contracts or join our energy basket — combining the buying power of hundreds of organisations to negotiate even better rates. This way, you can focus on your mission, not the market.
Final thought: Variable rates may seem flexible, but in reality they bring uncertainty, stress, and unnecessary financial risk. Fixed rates offer the stability and control you need to plan with confidence. Some see playing the market as exciting when they win—but the losses can hit far harder than the gains.
If you’d like to find out how we can help you move away from variable rates and secure a cost-effective fixed deal, contact our team today.
