How to save money by switching business electricity
Every day presents a new challenge for those that are running a business. You’ve got to think about boosting sales figures, keeping costs in check, potential future opportunities to grow and how the evolving economy will affect your business plan. Most of these will give you little room to manoeuvre, especially in an uncertain economy.
Most of us will never have experienced a life changing event such as the coronavirus (COVID-19) in our lifetime. To say that the magnitude of change taking place every day is consequential would be putting it lightly. Now more than ever business owners and managers need to think about the best ways to save money by making decisions that will have the lowest negative impact on the company in the future. One of the most efficient ways to cut costs is by comparing and switching business electricity tariffs. Using an online comparison site such as Utility Saving Expert has made the process easier than ever.
We have put together this guide to help you make an informed decision when comparing commercial electricity and gas suppliers. We’ll be exploring how business energy differs from domestic plans, in addition to what types of contracts are on offer.
How is business electricity different from domestic energy?
For many consumers, switching their home energy plan will be relatively easy to understand. Yet, when comparing and switching business electricity tariffs and/or suppliers, there’s a lot more you need to know to get a suitable deal that is right for your firm.
First and foremost, business electricity rates are comparatively cheaper to typical home rates. The main reason for this is commercial energy providers purchase their gas and electricity supply in bulk, this is to ensure that the energy will last for the duration of your contract. Even though you will be taking advantage of a lower unit rate, you will be tied to this contract for typically three plus years, making an early contract termination very expensive.
Business energy contracts for gas and/or electricity last for a longer duration of time. It doesn’t matter if you opt for a fixed-rate or variable rate tariff, as most contracts on both plans will normally run for between three and five years. You can only compare and switch suppliers once you enter the renewal period of your current contract, this will normally be in the final six months of your current deal. It may be helpful to note this date down in the company calendar or a diary.
Remember that business energy tariffs are single fuel only. This means that if you need both gas and electricity for your firm, you’ll need to compare these separately. It’s worth noting that some suppliers may be able to provide you with a discount if you buy both fuel types from them. Before you do make the switch, make sure you are satisfied with the terms and conditions, as most commercial energy contracts will not include a ‘cooling off’ period.
What business electricity contract types are available?
Each commercial energy supplier will feature a number of different contract types. We have briefly explained the main difference between each type below to help you make an informed decision on what tariff is most suitable for your business’ needs.
You will be charged a set price per unit (kWh) for the duration of the contract. This does not mean that the amount you pay each month will be fixed. Your monthly cost will still be based on your consumption.
You will be charged a unit rate (kWh) that is dependent on the wholesale market price. Fluctuations in wholesale pricing may increase or decrease your monthly bill.
This is considered to be a business energy supplier’s most expensive tariff. If your current contract lapses and you haven’t switched or agreed a new deal with your existing supplier, you will be moved over to this tariff on a rolling basis.
Similar to a deemed rate contract, this will be used when you haven’t agreed to new terms with your existing supplier once you are in the renewal window.
This is for businesses that have not switched since the energy market was deregulated.
How do I compare and switch business electricity suppliers?
You can easily compare commercial electricity supplier online. Before you start, make sure you have your most recent energy bill with you as this will include some useful information that you will need. Here’s how to compare and switch business energy:
- Visit a business energy comparison site such as Utility Saving Expert.
- Choose whether you want to compare commercial electricity or gas.
- Enter some basic information about your business, including your energy consumption (this can be found on your latest bill).
- You will be presented with a list of available deals from each supplier, giving you important information such as price, contract type and duration.
- Select the supplier and tariff that meets your business’ requirements.
- Confirm you’re happy and proceed to payment.
Hopefully this guide has given you the information you need to make the right purchasing decision for your company. Comparing business electricity and gas doesn’t have to be complicated. Thankfully, Utility Saving Expert has made the whole process easier than ever, saving you valuable time and money.