Rising Business Electricity Prices? Here’s How to Cut Business Energy Costs

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BUSINESS

If you own a small business, energy consumption takes up a massive chunk of operational expenses. But like many households in the UK, companies also have the option to compare deals from different energy suppliers and make a switch. But business energy tariffs vary widely, and you need to make sure that you are exhausting all available resources to make sure that you are getting the best value deal.

If you haven’t considered switching energy providers before, you could be overpaying for your energy without knowing about it. In fact, an investigation in 2015 showed that 39% of businesses have never changed energy providers. As a result, these energy providers move you to a higher tariff soon after your current contract expires.

How to compare energy prices

The energy industry is a volatile market. This means that there are several uncontrollable factors which affect how much you pay for energy. That’s why when the prices are low, you need to be able to take advantage of the market price drop by shopping around for a new energy supplier.

When comparing energy prices from one supplier to another, you should begin by getting a detailed breakdown of the rate per unit and other standing charges. It will be easier to use this information in comparing offers from different suppliers because annual estimates can change quickly.

How to get the best energy price

If you want to get the best deal, you need to do your research. You can also use comparison services like Utility Bidder. To find the best energy tariff for your business, consider the following:

  • The first step in comparing energy tariffs is online benchmark prices. Look for a comparison website which provides price quotes.
  • After finding the amount you like, start making calls to suppliers.
  • Try to bring down the price as much as you can. You can haggle while speaking to a broker, or you can contact the supplier directly and negotiate with them.

If you are thinking about getting a fixed tariff, it is possible. However, suppliers will only provide you with an offer that will last for at least two or three years. If you get a fixed-price offer, the cost could be more expensive initially, but you have protection in case energy prices go up in the future.

Suppliers may not provide a cooling off period once you sign the contract. This means that before you make a choice, you should have already checked the deal several times and be happy with what you are getting. Once you sign the contract, there is no backing out from it. Switching mid-contact is also not possible. If you encounter any problems while still locked into a current contract, the supplier may consider a cancellation and waive any penalties.

Aside from switching to a supplier offering cheaper deals, every small business should also consider employing methods that help in reducing energy consumption so that you will not only be saving money, but also helping the environment.