Timing your energy switch to get the best deal sounds like a smart move – after all, no one wants to pay more than they should just because they changed energy supplier at the wrong time.

Many people believe it’s best to avoid switching in winter when demand is high and prices typically rise. And while that might be true for energy providers operating in the traditional wholesale model, with Renewable Energy Direct (RED), it doesn’t matter when you switch. 

When you switch to RED, you don’t need to track the markets. You don’t need a crystal ball. And you definitely don’t need to be an energy expert. With us, there’s no such thing as the “perfect time” to sign – you’re always protected from market swings, no matter when you decide to sign with us

In this blog, we’ll break down how timing affects energy prices, how market fluctuations work in the traditional wholesale market, and why with RED, you’re in safe hands all year round.

How does timing impact energy prices?

As far as time of year is concerned, the best time to lock in energy prices is before the colder winter months set in. As the days get shorter and temperatures drop, people tend to use more gas and electricity for lighting and heating, which drives up demand. This spike in energy usage is a key reason why energy prices often rise significantly during winter.

Additionally, colder weather can also impact energy supply. Harsh conditions may disrupt energy production and delivery, further contributing to price increases – especially for businesses and households relying on traditional energy markets.

In addition to seasonal changes, major global events can also cause energy price volatility. The COVID-19 pandemic, extreme weather events like the "Beast from the East," and political developments such as Brexit have all had a significant impact on energy markets. While it’s difficult to predict exactly when or how these events will affect prices, they often create uncertainty that leads to major price hikes.

Why timing has traditionally mattered in energy contracts

Timing has historically been a big factor when choosing an energy contract because most energy suppliers operate on a traditional utility model in a wholesale market that exposes them to huge price volatility.

The current energy market, tied to fossil fuels like natural gas and oil, is driven more by speculation over geopolitical events than by actual supply and demand. This instability often benefits energy traders, while everyday businesses end up footing the bill for unexpected price spikes.

Energy trading works much like financial markets. Traders buy and sell large volumes of energy from the wholesale market. When disruptions happen – like geopolitical events affecting energy production or distribution – the risk of buying energy goes up. Instead of absorbing that risk, traders pass it along to consumers, forcing businesses to pay higher prices for their energy while they continue to make a profit.

The harsh reality is that those controlling the market are the ones profiting, while those it was designed for, like businesses and families, are left to bear the brunt. The 2021 energy crisis made this painfully clear, with hundreds of thousands of UK businesses shutting down due to skyrocketing energy bills, all while major energy companies reported record profits.

In fact, the energy crisis, and what it did to UK businesses, played a big part in why we launched tem.

How RED keeps you protected

We get it – rising energy prices are a major concern for your business, especially with the impact of recent geopolitical events. But let’s ask a simple question: Has the wind, sun, or rain suddenly become more expensive in the past few months? Of course not.

That’s why, at tem., we’re committed to breaking the cycle that keeps businesses at the mercy of volatile global markets – where wholesale market traders profit while everyone else pays the price.

Renewable Energy Direct (RED) takes a different approach. We manage risk more effectively than even the biggest traditional utilities by bypassing the wholesale market altogether. Instead, we uniquely match your business's energy consumption with power sourced directly from our network of renewable generators.

Our platform operates using a carefully balanced matching engine, which analyses your historical usage data to find the perfect energy match from generators in our portfolio. This ensures you get the best price and the right energy balance. 

Because we cut out the wholesale market entirely, our pricing isn’t impacted by market swings or sudden price spikes. Even during times of uncertainty, our model delivers consistently competitive pricing, so your business can always secure a great energy deal at any time – without any surprises.

What happens if we find you a better match?

Whenever a new business or generator joins RED, our matching engine reviews and re-balances the energy volumes across the entire portfolio. 

Think of it like millions of users playing musical chairs, but in our version, no one is left standing without a seat. When the music stops, our platform may identify a better match for your energy, giving you the opportunity to renew at an even better rate with RED, earlier than expected. This process happens automatically and seamlessly behind the scenes. 

You’ll be notified by our team once you’ve been successfully rematched and are eligible to renew. And the choice is entirely yours whether to take advantage of the new rate.

Ready to break free from market volatility?

With Renewable Energy Direct, you’re always protected from price spikes and market swings – no matter when you switch. We connect businesses directly with renewable generators, cutting out the middlemen and ensuring you always get a fair, competitive price. Plus our fixed tariff rate stays in place throughout your contract, giving you even more stability.

Why wait? Make the switch to RED today and lock in a great energy deal for your business. 

Here’s how to get started in 3 simple steps:

1. Get a personalised quote – Tell us a bit about your business, and we’ll find the right renewable match for you.

2. Sign your contract – Lock in your fixed tariff and say goodbye to market surprises.

3. Enjoy stable energy costs – Focus on running your business while we take care of the rest