A complete guide to business energy
If you are paying too much for your commercial energy, now is a great time to compare and switch to a better tariff. Although, before you get started, it makes sense to get a better understanding on how business energy differs from domestic energy. In this guide, we will also look at the different types of tariffs available to you.
How does business energy differ from domestic?
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What types of business energy contract are available?
There are five different types of gas and electricity contracts to choose between. Each one has its own benefits and drawbacks, making it imperative that you are on the right one and not overpaying for your energy. Here are the five main business energy contracts available to customers:
Fixed term contract
On a fixed term contract, you will always pay the same amount per unit (kWh). Although your bill won’t necessarily be the same each month as it will still be calculated based on how much energy you use.
On a variable rate contract, the unit rate can increase and decrease for the length of the contract due to market fluctuations. This contract type has slightly more risk, but you can also take advantage if the price of a unit rate decreases.
Deemed rate contract
A deemed rate contract is also known as an out-of-contract tariff. It’s a rolling tariff with expensive rates that are arranged by suppliers for customers who do not have a formally agreed contract. You will want to avoid this type of deal.
Businesses that haven’t made the switch since the energy market was deregulated will be put on a 28-day rolling contract. The price you pay for a unit rate can increase or decrease on this contract type.
Those that have not negotiated a new deal once their current contract comes to an end will be transitioned over to a rollover tariff by their supplier. The provider will sign you up for another 12 months, often with their most expensive unit rates. You’ll want to avoid this type of deal as quickly as possible.
Think your business is on a contract that is unsuitable for your day-to-day needs? Utility Saving Expert is here to help. Our price comparison tools can help you secure a better deal today.
What happens when my current tariff comes to an end?
Compare quotes and switch to a better deal
Utility Saving Expert has streamlined the process of comparing business energy deals. You no longer have to contact one supplier after the next to get a competitive price for your gas and electricity supply.
To compare quotes, you will need to have the following details at hand:
- Name of your current gas and electricity supplier(s)
- Name of your tariffs, and their renewal dates
- Your energy supply type
- How much gas and electricity your business uses
Once you enter this information, we will be able to display a range of quotes from different suppliers. You will then be able to select the best tariff for your business. The actual switching process normally takes around six weeks to complete. Your new provider will get in touch with your old provider to arrange the switchover date.
You should not experience any disruption to service whatsoever, even on the switching date. No digging or drilling is necessary as the gas and electricity supplied will be transported through your existing cables and pipes.
Once the switch has been completed, you will be asked to submit a meter reading allowing your old supplier to send you your final bill.
We hope that this guide has given you a more comprehensive understanding on energy for business.