Variable, fixed or winter-secured? Which electricity contract suits a restaurant's load profile?
Restaurants have a distinct load profile – evening peaks, high weekend consumption, and seasonal fluctuations. Here’s how the three most common contract types actually work for your operations.
Why the contract type plays a bigger role for restaurants than you might think
A restaurant does not consume electricity like an office. You have short, high peaks around service times and low base consumption during other hours. This means that the same contract type that suits your office-based neighbour can be expensive for you.
The three contract types – pros and cons for restaurants
- Variable contract. Follows the spot price hour by hour. Advantage: you pay market price without risk premium. Disadvantage: evening service often coincides with the most expensive hours of the day – you “buy” the peak.
- Fixed contract. The same price for the entire period. Advantage: budget predictability. Disadvantage: the supplier's risk premium is added – in normal markets, you pay 8–15% more than variable over time.
- Winter-secured / hybrid. Variable base price with a price cap during the winter months. Often the best compromise for restaurants with heavy evening operations from Oct–March.
Three questions that determine the choice
- Can your cash flow withstand a month with a double electricity bill? If not – choose winter-secured or fixed.
- Do you have a power/demand tariff? Then the hourly price is only part of the cost – power/demand dominates.
- Are you in SE3 or SE4? South of Lake Mälaren, price volatility is significantly higher during winter.
Do you want a personal review?
This guide provides free knowledge from Savera and is intended to give you concrete things to check on your own. We are an independent advisor in business electricity – if you would like us to specifically review your contracts, invoices, or consumption, you are welcome to book a free initial consultation.
Tip: Always ask to see a backtest calculation – not just a forecast – when the supplier recommends a contract type.