Why compare business energy?
There are many things which are needed to keep any business running. Electricity is certainly one of the most important. From powering printers to firing up computers, a reliable electricity supply is a must for your business. As well as reliability, there is one other thing to think about - the cost. Finding a supplier who can give you a constant supply of energy at competitive rates is crucial.
How can you get the best business electricity deal?
Although it works in broadly the same way, switching to a more competitive business energy contract isn't quite as simple as sorting out a new domestic deal. Corporate energy deals are calculated differently with no dual fuel option to take advantage of usually. If you are a big company which uses a lot of energy, for example, you may find yourself being charged every half hour or have multiple electricity meters installed on-site for clearer readings. Don't worry though! To help you find out more about how to compare business electricity contracts and explain more about getting the top tariffs on the market, we have put together the below guide.
Save an average of 31% by making a business electricity comparison now.
What electricity tariffs for business are most common?
As noted above, business electricity deals come in a range of options to suit the needs and budgets of all UK companies. This often sees bespoke contracts offered by energy suppliers to businesses. These bespoke deals take into account details about your business and how much electricity you use on average.
But how does this tie in with getting the best deal you can? The only way to be sure is by comparing quotes you get from every supplier around. This can be very time-consuming though and also complicated. How do you know what a good deal looks like if you are no expert?
This is where using a reputable company who specialises in comparing business electricity deals comes in. Companies like this do all the hard work for you and check the market to find the best deals around. In addition, they will also have expert staff to advise you on what the best deal might be for your organisation.
What types of business electricity contracts are there?
Of course, it never does any harm to know a few basics when comparing deals. The below shows the most common type of contracts for business electricity:
Fixed-rate tariffs allow you to agree in advance with the supplier what unit rates you will pay. These rates will then be fixed for the whole period of your contract. The rates you get on these contracts are generally decent, but check business electricity prices with a price comparison site to double-check first.
- Deemed rate tariffs, which are set up on a 28-day rolling set of terms. These are normally used if you disagree on a new contract with a supplier before your existing one finishes. Deemed rate contracts usually come with higher rates, though, so be careful!
- Rolling contracts, which see your business tied into a one year deal on higher rates. You may be able to work out a new agreement on a blend and extend basis. This enables you to agree to a lower rate by agreeing to a new, longer-term arrangement. These rates are still unlikely to be the best around, though.
The critical thing to remember is that you could still reduce your energy spend by moving to a new supplier no matter what contract you are on. Trawling around every supplier on the market to do this is a real hassle, though. Why not make it easier on yourself by using a business electricity comparison and switching service to help?
How are commercial electricity rates calculated?
As you may guess, working out your monthly business energy rates involves a few different variables. There are two main ones to factor in when shopping around for a new deal, though. These are:
- Unit cost, which is the price you pay for each kWh of electricity used.
- Standing charge is a daily charge to cover national grid maintenance and the cost of delivering electricity to your premises.
Both these charges are significant influences on how much you pay per month for electricity.
The issue many entrepreneurs have here is knowing what a good deal looks like. It is worth getting a handle on this to know which contracts to sign-up for when comparing quotes. While it is impossible to give a definitive answer to this question, the below figures outline how much you should expect to shell out for business electricity on average:
- Microbusinesses = 14.4p to 15.9p per kWh unit charge and standing charge of 23p to 29p per day
- Small businesses = 14.3p to 15.1p per kWh unit charge and standing charge of 23p to 28p per day
- Medium businesses = 14.3p to 14.7p per kWh unit charge and standing charge of 23p to 27p per day
While the above-average figures are only a guide, they at least give some idea of what to look for when comparing quotes.
What is the best way to compare business electricity deals?
Most business electricity contracts mean that companies can only move to a new deal in the renewal window. This usually is about six months before the existing contract is up. Once you enter this window, your current supplier should send out an offer to renew your deal. Be warned, though - these new terms are often not competitive! Therefore, it makes sense to look around to compare them against other suppliers. Comparing business electricity deals can be done in a few simple steps:
– Approach business energy suppliers for quotes
- Select which tariff best suits your businesses requirements
- Apply to the new supplier for the contract in question
- Let your previous supplier know you will be switching
- Wait for your new deal to come into effect.
Sounds simple, right? However, it gets more complicated when you think about repeating the above steps with every supplier on the market. Comparing is the only way to be sure of getting the best deal after all. However, once you begin to do this, you soon realise how much time and hassle it involves. Many businesses will choose instead to let an expert energy comparison company handle their search for a new deal and look after switching suppliers. Using a comparison tool takes all the work away from you and allows you to get on with running your business.
Remember, it is not all about price.
It is true to say that most businesses switch suppliers to save money, which is one significant benefit—getting the best deal, though it is not all about what you pay. It would help if you also thought about what any supplier offers in special promotions, customer service, reliability and flexibility. Be sure to look at the price and whether the supplier is the best fit for your organisation.
Comparing deals for business electricity makes sense. It does make lots of sense to keep on top of your business energy spend and compare the best deals for your electricity supply. Doing this will help your organisation reduce the amount you spend on energy per month and have more to re-invest back into the business itself. Remember to use a company that can compare the best deals on the market for you and help you switch over to any new agreement.