Gas and electricity costs can have a real impact on a business’ outgoings. If you’re overpaying due to an expensive energy tariff, these costs can seem to spiral. Despite this, it’s easy to overlook gas and electricity costs as you focus on running your business. Switching suppliers can appear to be a time-consuming exercise that’s easy to put off.
Yet businesses that fail to switch or renegotiate their energy deal could be left on expensive out-of-contract rates. This can leave your business paying 80% more for your gas and electricity than those on a negotiated tariff.
Always Compare
Comparing energy prices will often allow you to find better rates than when going it alone. Your energy comparison allows you to view tariffs from a wide range of suppliers and benefit from the relationships broker’s have built with providers.
As energy brokers can provide suppliers with high levels of business, they are often able to negotiate preferred rates that may not be available to a regular customer. Going it alone when switching business gas and electricity can be time-consuming, especially if you’re gathering quotes from multiple suppliers.
An energy comparison service allows you to view quotes from the widest possible range of suppliers quickly and easily. You can even view the full estimated yearly cost of each energy tariff, including your standing charges and government levies.
Note – Once you’ve selected the right tariff for your business, many energy comparison services will handle the switching process on your behalf.
Avoid Out-of-Contract Rates
Although you may expect your supplier to contact you as you enter your renewal window, suppliers are not legally required to provide renewal letters to all businesses.
- Ofgem requires energy suppliers to contact microbusinesses towards the end of their contract to explain their renewal options. However, there is no obligation to contact larger businesses before the end of their contract.
- Ofgem considers a microbusiness to be any organisation with less than 10 employees, or an electricity usage below 100,000 kWh per year, or gas usage below 293,00 kWh per year.
