It is always important for businesses to try and save money wherever they can, and one area in which businesses tend to pay out too much is on their energy. What may once have been the best deal, could now be a tariff which you could get much cheaper if you shopped elsewhere.
Energy suppliers know that business owners are busy and probably don’t have a lot of time to sit down and search through every energy supplier for a new deal each year; instead finding it easier to simply let their current tariff run year after year regardless of changes in energy costs.
Finding a better deal for business energy may not be as straightforward as finding a more affordable home energy supplier. There are a few ways in which your business energy differs from domestic energy that you should know about:
Cheaper Business Rates
Energy suppliers deal their gas and electricity differently for domestic and commercial use. Domestic suppliers buy on a monthly basis, whereas business energy is bought in bulk. Commercial suppliers will buy enough energy to last the entire duration of your contract, which will make your unit rates cheaper, but will unfortunately make it much more difficult if you need to end your tariff early for any reason.
Longer Contracts For Businesses
People move home. By supplying domestic properties with energy on shorter contracts it makes it easier if they need to get out of it. Business properties may move too, but it is much less likely. Commercial energy is usually taken out for an agreed term of anywhere up to five years. During this time, you won’t be able to move to a different supplier until you reach your ‘renewal window’, which is usually between one and six months before your tariff ends.
No Cooling-off Period
Domestic energy suppliers will give their customer a 14-day cooling-off period. In this time, they can decide to cancel the contract without any penalties. Commercial suppliers offer no such option. With no get-out clause, it is important that you are completely satisfied that the tariff is the right one for you before signing any contracts.
Most homes have both their gas and electricity supplied by the same provider to save money through a ‘dual-fuel’ deal. Businesses have to run separate quotes for both their gas and electricity. With both fuels running on separate tariffs, it is more important than ever to compare business energy quotes, so you aren’t being crippled by expensive energy bills.