When you run a business, keeping costs in check is vital for success. The lower the costs, the more profit you can make. One area where you can check for cost-savings is with your energy supplier. When you start a contract with your energy supplier, you’re often given deal rates. When your contract is out, you’ll be moved from those onto out-of-contract rates.
These rates can be 50% higher or more than the rates you were previously paying. That is why it is worth investing some time to compare business energy and ensure that you have the best deals for your business.
Won’t I be offered the best rates at the end of the contract?
Your energy supplier is not legally obligated to give you the best rates at the end of the contract. Therefore, they are likely to move you onto a ‘default’ out-of-contract plan that is higher and more profitable for them. As there is little benefit for them to advise you on switching rates, they tend not to notify you of better rates you can go on.
According to surveys, about 45% of small businesses (those who employ less than ten people) were stuck on their energy supplier’s most expensive tariff. Collectively, this group of businesses alone were paying more than £180 million more than they should have been.
The rate at which you pay might not be increased in one big jump either, the rate can increase in small increments over a longer period. This can make it more challenging to see the increase.
What do I need to do before I plan to switch business energy?
The first thing you will need to do before you switch business energy is to ensure that you have paid off all bills from your current supplier. You can contact your supplier and check you’ve done this. At the same time, you can get the usage rates and the contract end date from your business energy supplier.
You should also consider whether you’re best placed to choose the top energy deal for your business. If you’re very busy, then you might want to use a company like Amvia, that collects the best deals available to your business and allows you to compare them side-by-side to see which deal is better for you. This can potentially save you thousands every year.
Can I get dual fuel tariffs?
Like residential customers, you can also combine your electric and gas bills into one contract. This is easier for you to manage and sometimes can offer you a better deal. But if you’re on different contracts for these now and their end dates are not the same, this can be more challenging.
What do I need before I switch business energy providers?
When you decide that you want to switch energy providers, you need to collect some information. This is to make sure you get the deal that is right for your business. The first thing you should get is your current contract from your energy supplier. This will tell you the rates that you were on when you started the last contract and when the contract started.
The next thing you might find useful is the last bill you received from your current supplier. This can make finding the information you need much easier. If there are any questions from potential energy suppliers, you should be able to find the answers on the last bill. Finally, it will make it easier for you to compare your current deal with all the potential suppliers.
Next, you need some simple details, including where you are based. Different locations get different energy deals, therefore, this is an important piece of information. If your contract is ending with your current business energy supplier and you’re moving premises, you might want to consider telling them where you’re moving to as well.
You will also need to provide energy companies with your meter numbers. If you’re not sure what these are, you’ll find them on your bill or meter. Look for the MPAN for electricity and the MPRN for gas supply.
Another piece of information that might be useful is any changes to your business in the last 12 months or in the next 12 months. If you’ve made a switch to LED lighting, increased your staff numbers or had the building insulated recently, then this can affect energy usage and should be noted.
Switching business energy is an important business activity, it can save you thousands a year that can help you maintain a healthy business profit. But you don’t need to do it alone. With the information above, you can get the best business energy deals by using Amvia who have helped other businesses of all sizes make savings on their electric, gas and water bills.