Business Energy vs. Domestic Energy
How does comparing business contracts differ from comparing domestic contracts?
If you are looking to compare business and domestic contracts, whether it’s for gas, electricity or both, you will need to be aware of a few key considerations. These include but are not limited to the following:
- Unit rates
- Contract length
- Tariff type
- Business size
- Annual consumption
Also, keep in mind that commercial energy deals do not have dual fuel contracts, if you require both gas and electricity, you will need to obtain a separate quote for each fuel type. However, you can purchase both from the same supplier.
As mentioned previously, in most cases, you will not be able to enter into a business energy contract online, like you would a domestic contract. Commercial contracts require a bit of extra work on your part. Fortunately, Utility Saving Expert has helped simplify the whole process through our streamlined comparison tools which are free to use.
Before a supplier is able to give your firm an accurate quote, they will ask you to provide them with some extra information. In most cases, you will need to contact an energy supplier and provide them with the following details:
- How much energy your company consumes
- The time of day or night your business operates
- The location of the business
- What industry is your business in?
- The number of sites you require energy for
Businesses that have more than one site should consider a multisite meter to save money on their energy bills.
To make life easier, Utility Saving Expert can compare business gas and electricity rates for you, we’ll help you find the best tariff that meets the needs of your business.
As most businesses will be using far more energy than the average domestic user, they also have greater flexibility within the intricacies of the contract, as these are tailored to meet the requirements of the firm after all. Businesses vary by size and industry, and even those that are of similar size or nature may require vastly different terms. Although owners and managers can search for the perfect deal, finding the right option is far more complex as a result when compared to looking for a domestic deal.
For this reason alone, it may prove useful to read our complete guide to business energy, which covers the various aspects and what company managers should look for before agreeing to a new tariff.
In summary, business energy contracts are more complex and have a lot more nuance compared to domestic energy contracts. Although the unit rate is cheaper, they are also typically much longer in duration. The average contract is between three and five years. Most suppliers won’t allow you to switch straightaway and you will need to make contact to give them the necessary information to do so.
Finally, remember to read the terms and conditions and ensure you are happy before you sign up, as there won’t be a cooling off period, and you can’t cancel until you enter the renewal window.