Anyone who owns a business understands the importance of keeping costs and overheads as low as possible.
Gas and electricity are two of the most expensive bills for many companies. That is why verifying that you are paying enough for your energy expenses is critical.
Many corporate energy contracts roll over when they expire, which means you could be paying significantly more than you should if you’ve never switched providers or haven’t switched in several years.
You can keep track of your energy expenses by using Business Energy Comparison a tool and a resource online that you can explore and find various energy suppliers. You can check out Power to Choose Corpus Christi for an easy way to compare Texas electricity rates. This will also guide you if you have a plan on switching to a better offer when your contract expires.
That could help save your company hundreds of pounds yearly.
To know more, you can check out or read below for more details.
How do you switch your business energy contract?
You can typically only transfer business energy contracts if your current one is about to expire. Therefore, it would be best if you started looking into switching deals at that point, or you will pay your supplier’s exorbitant ‘out-of-date’ contract fees.
Only be concerned if you know when your contract expires. Your provider will contact you when your contract’s’renewal’ window opens – usually one to six months before the expiration date.
As soon as your provider contacts you, utilize our comparison tool to obtain a business energy quote and determine whether switching will save you money.
If you do this, your new contract will be in place when your current one expires.
When comparing deals, it’s a good idea to have your most recent energy bill handy because you’ll need to enter information like:
- your existing gas and electricity suppliers’ names
- the tariffs you’re on and their expiration dates
- your source of supply
- how much energy your firm uses in kWh, or how much you generally pay each year.
If you locate a better offer and decide to change providers, your current supplier will request the last meter reading and send you a final bill. Your new supplier should handle the remainder of the switching process.
Be aware that, unlike residential energy tariffs, there is no cooling-off period with corporate energy contracts, so you will be unable to nullify penalty-free if your mind changes.
Domestic customers have 14 days to amend their minds and prevent the transition from taking effect.
How long does it take to switch?
It’s important to know that switching energy suppliers does take time. Changing commercial energy contracts typically takes four to six weeks.
Your new supplier should coordinate with your current supplier to handle the switch and notify you of the changeover date.
The great news is that there are several ways in which you can make sure that your switch goes smoothly and without any problems.
Will your energy supply be affected?
No. Your gas and electricity will continue through the correct pipes and cables, so there will be no digging or drilling at your business, inside or out, and your energy supply should not be disrupted.
What type of tariff should you choose?
Typically, you can pick a fixed-term tariff or a variable-rate tariff.
Fixed tariffs allow you to pay an agreed-upon amount for each unit of energy consumed over a specified period, usually between one and five years.
This means that regardless of how much energy you use throughout this period, there will be no additional costs or charges.
However, if you go over your allowance during this time, it could cost more than if you had gone with another type of tariff.
Thus, longer-term contracts are frequently more expensive simply because price increases for longer, and you may believe that’s a price worth paying.
However, if you need to quit your fixed contract early, exit fees might be expensive, and you may only be allowed to leave after the end of the term.
With a variable rate tariff, the rate you pay for your energy fluctuates based on wholesale energy market movements. As a result, this tariff can be more pricey than a fixed rate tariff, but if wholesale costs decline, a variable tariff can follow suit, whereas a fixed tariff cannot.
Consider a green energy contract in which suppliers match some or all of the energy your company consumes with the amount they buy from renewable sources such as solar, wind, or hydropower.
Dual fuel energy rates are also available where the same energy supplier supplies your gas and electricity.
They usually are not available for business energy contracts, so you’ll need to hunt for separate pricing for gas and electricity – but this can still be from the same company.
What if you have more than one premises?
Most suppliers cater to multi-site operations, so you need one contract for gas and electricity across your locations.
If you already have separate contracts for multiple locations, talk to your supplier about the benefits of merging them into a single contract or locate a new supplier that can.
What if you are a micro business?
Your company will be classified as a micro business if at least one of the following conditions:
- You have fewer than ten employees, and your yearly revenue is less than €2 million
- Each year, you use less than 100,000 kWh of electricity.
- Each year, you use less than 293,000 kWh of gas.
If you own a micro business, energy contracts function slightly differently. New contract renewal regulations were implemented on April 30, 2015, indicating that:
- A maximum notice period of 30 days is required to terminate an energy contract (it was previously 90 days)
- If you have a fixed-term contract, you must get your renewal letter at least 60 days before the contract expires.
- Current pricing, new prices, and your annual energy consumption must all be within your letter.
- You can only rollover contracts for a maximum of one year.
What happens if you move business premises?
If you are relocating, you must notify your current energy supplier at least a month before departure. You’ll also need to inform them of your move address because you’ll have the last bill to pay or you may be due a refund.
On the day you move out, take the last meter reading and send it to your supplier to ensure you only pay for the energy you consume.
Some suppliers will allow you to transfer your old business energy arrangement to your new address.
However, if this is not possible, you should arrange a new energy contract for your new premises as soon as possible to avoid being placed on an exorbitant ‘deemed tariff.’
If you stay with the same supplier, they may waive any penalty fees for leaving your existing contract early. Though keep in mind that switching may still be cheaper, even once the payment is factored in.
If the prior tenant did not pay their bills or cancel their lease, this is a possibility, and you may be required to pay a reconnection charge.
This is also true if there was previously no business energy supply.
However, if there are no issues with the energy supply and you’ve negotiated a new contract, you’ll need to take a meter reading immediately as you move in and send it to your new supplier.
After that, you should be ready to go.
Trying to cut down on energy costs by switching suppliers can be daunting. First, you must research which provider will offer you the best deal and terms.
Always remember that energy providers change their deals regularly, so it’s worth keeping an eye on the market to ensure it’s still offering the most competitive rates.