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How to run an energy comparison for business

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When you run a business, it’s easy to overlook the importance of essentials – like your energy and how much you pay for it. But just because it’s a necessity doesn’t mean you want to fork out more than you have to. Which is why it’s always worth taking the chance to look for savings when you can – here’s what to consider when it comes to comparing energy for your business.

Business Energy

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Find out how home and business energy differ

Business energy isn’t like gas and electricity for your home and there are some significant differences, such as:

  • Switching – switching supplier is a sure-fire way to cut the cost of your energy, but with commercial contracts you’re locked into the agreement until your renewal window opens (usually six months before the contract ends). Domestic users on the other hand can switch supplier at any point although early exit fees may apply.
  • Available tariffs – unlike domestic energy, you can’t pick and choose business energy deals because commercial tariffs are designed to meet the specific needs of your business, which means is you’ll need to contact each supplier separately in order to get a quote.
  • Dual fuel – home energy users can benefit from dual fuel tariffs offered by suppliers who are keen to gain more business, but dual fuel isn’t an option for commercial users so if you use both gas and electricity, you’ll need a separate contract for each one.

All these differences make searching for business energy time consuming and confusing. After all, if there are no off-the-shelf tariffs how can you make accurate comparisons?

Work out the average business energy prices

One of the easiest ways of comparing business energy prices is to look at the unit cost and the standing charge:

  • Unit cost – this is the amount you pay for each unit of energy you use, measured in kilowatt hours (kWh).
  • Standing charge – this is a daily charge and covers the cost of having a meter point and supply to your premises. •Unit cost – this is the amount you pay for each unit of energy you use, measured in kilowatt hours (kWh).•Standing charge – this is a daily charge and covers the cost of having a meter point and supply to your premises.

What you pay will depend on what you’ve agreed with your supplier so no two businesses will be charged the same.

To make sure you don’t pay more than you have to, it’s vital to compare rates by provider before you even consider signing on the dotted line.

Run an energy comparison for business

Although tariffs are tailored to reflect your business needs, contracts are broadly divided into a handful of main types:

  • Fixed term – the price you pay per kWh stays the same for the length of the contract although the amount you pay will vary according to how much you use. If your energy use is consistent then a fixed term can help you budget and plan. Contracts are typically available in one, two, or three-year terms.
  • Variable rate – the price per kWh is linked to the energy market so unit costs can go up or down. There’s an element of risk with variable terms and whilst you’ll benefit from market dips, you also need to ride out any increases too.

Energy providers want the security of your business so you’ll typically get the best deals by agreeing to either a fixed or variable rate contract.

Not agreeing to a new deal when your existing one ends means you could unwittingly end up on a tariff charging significantly higher unit costs, such as:

  • Deemed rate tariff – similar to what’s known as a 28-day contract, it’s easiest of think of this as your supplier’s default or ‘out-of-contract’ tariff. You could end up on this if you haven’t sorted out a new deal or changed provider since the market was deregulated.
  • Rollover contract – if you haven’t negotiated a new contract your existing deal simply rolls over into a new agreement, like deemed rates, the cost of energy is usually high.

At MoneyMagpie, we’ve made it our mission to bring you the best business energy quotes. To make sure we find exactly what you need, grab a recent bill and let us know:

  • Who your current energy suppliers are
  • What tariff you’re currently on, the end date and when your switching window opens
  • Whether you need gas, electricity, or both
  • How much energy your business uses

Having this information means we can run more accurate searches saving you time and hassle. If you find a deal you like the look of, we’ll even sort out all the paperwork. Of course, it’s not just price you need to look at – double check you’re happy with the things that mean a lot to you – like customer service or commitment to renewals.

So, if you want to save money on your business energy bills and boost your bottom line, then contact us today, our service is free and our experts are on hand right now – call us on 0800 138 9060.

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