How to Find the Best Business Electricity Deals
- 05 Apr 2023
We’re all always looking out for the best available deals on pretty much anything and everything. Your energy supplier and energy contract are no different. While you might be happy with the supplier you have, you might find an even better deal if you shop around.
You’re more likely to find a better deal than the one you have by switching rather than renewing. With the current trend of increases in energy prices, it’s more important than ever to cut costs where you can. Changing energy suppliers can help you reduce your costs when it comes to your utilities.
The main question is whether you should stick with your current supplier, or switch in search of greener pastures - and better deals! You need to look at where you get the best value for your energy needs. Renewing a contract, and negotiating a better deal can turn out cheaper than switching.
You won’t know which is the choice for you until you compare the deal you’re being offered by your current supplier with the other deals on the market. There are lots of different energy suppliers that cater to specific needs and offer better deals. Do your Business Energy Comparison on a comparison site to make it even easier for yourself!
If you do decide to make a switch, you should look into the prices offered by energy companies that are green or carbon neutral. You may find that they offer better deals than traditional energy suppliers. It can’t be said for every green energy supplier but they are out there!
Of course, the most important part is that you end up spending less on your energy needs than you currently do. This is why you should have your most recent electricity bills on hand so you can keep in mind how much energy you use and how much you typically spend.
The two most important costs are the unit rate and the standing charge The unit rate is the cost per kWh of electricity. The standing charge is a fixed, daily rate that you pay to the company for supplying your business premise with energy.
It’s important to consider both of these costs because the unit rate might be reasonable but the standing charge might be high - and vice versa. Deals can come in the form of a lower standing charge - or no standing charge. Or they can come in the form of lower prices per kWh of energy used.
Tariffs will determine how much you pay on your electricity contract. Tariffs set the unit price per kWh of electricity. There are several types of tariffs that you can choose from, or find yourself paying. Understanding these tariffs will help you better understand the deals being offered and help you secure the best deal for your business specifically.
When you’re on a fixed rate tariff, the price per kWh you pay is fixed for the length of your contract. Basically, this means that any fluctuations in the wholesale market won’t affect how much you're paying monthly.
Your bills can still vary depending on your energy usage but if your usage is pretty consistent, this can be a great way to budget. The downside is that if the wholesale market prices drop, you’re still committed to the fixed tariff.
Variable rate tariffs are more flexible than their fixed-rate counterpart. With this tariff, how much you’re paying per kWh of electricity will fluctuate with wholesale market prices. This means that you’ll pay less if the market rate drops but also that you’ll pay more if the rate increases. This can make budgeting and planning for the month ahead hard.
You want to avoid paying out-of-contract costs at all costs. These tariffs are typically the most expensive that the energy supplier has to offer. You’ll find yourself paying these rates if you don’t renew your contract or sign a new one in time. Your energy supplier will just automatically roll you over onto these rates.
If you’re looking to switch because you’re moving your business to a new location, this is a trap you need to avoid. If you don’t secure an energy contract before you move your business, you’ll find yourself paying deemed rates.
A deemed rate is like an out-of-contract rate; in either case, you have to make sure you have an existing, valid contract. The supplier to that location will automatically charge you their default tariff, which is usually quite expensive.
When you find a deal that appeals to you, take a minute and look at their reviews. You want to sign on with a supplier that has excellent customer service. You should feel confident in your supplier’s ability to professionally and efficiently handle any problems that may arise.
Acting within your renewal period will help you avoid an early cancellation fee. It will also help you avoid finding yourself paying out-of-contract rates. Your supplier isn’t obligated to remind you of your renewal period, so make sure you stay on top of it!
Make sure you’re familiar with the renewal dates of your current energy supplier so that you have ample time to make an informed decision. A business energy comparison site will be your best tool when trying to make the right choice. You’ll have the best deals from top suppliers at your fingertips.