New York, NY (Top40 Charts) If you are putting up or already having a business in the United Kingdom, you should know the difference between a business and domestic energy. You must know that to get the best energy deal for your business.
The global energy demand is increasing. The increase in demand makes it possible for more energy suppliers to penetrate the UK energy market. These energy suppliers try to woo customers by offering the best business electricity prices.
If you are a new business owner, here are some tips for finding the best business electricity deals in the UK.
Tip #1: See the other deals of your current energy supplier
Many businesses do not consider their expenses with their business energy. This factor makes them pay more for an energy deal.
Seeing other deals that your current energy supplier is offering will help. These deals will help you gauge how much you can save in your business energy deal.
You may need to consider the following:
- your current business energy rate
- current discount, if any
- customer service of your current supplier
- are you saving anything
- satisfaction with the current energy service and supply
Tip #2: Compare the prices
Comparing business energy prices is a way to find a suitable energy deal for your business.
Here is how you can compare the rates and prices of energy deals:
Look for special discounts.
Many energy suppliers offer discounts for energy consumption. See how long these discounts will run and compare them with others.
Find hidden energy charges.
There are energy suppliers that will make you pay fees you are not aware of, this including:
- non-commodity charges
- added value charge
Compare the standing charge and consumption charge.
Standing charge
A standing charge is a fixed amount you have to pay daily, no matter how much energy you have used. This charge covers the cost of your supplier delivering the electricity to your business.
Consumption charge
A consumption charge is the energy amount you have used in a billing period.
Tip #3: Find the suitable payment schedule and method for your business
In selecting a business energy deal, find the best payment schedule and method suitable for your business. In the UK, direct debit is one of the cheapest methods. Paying with this method will help you save about £100 a year compared to other payment methods.
Tip #4: Paperless billing option
Some energy companies offer discounts to businesses enrolled in paperless billing. You receive an electronic bill when you get your business in paperless billing. The billing is available in your online accounts.
There are a lot of advantages of enrolling your business in paperless billing, this includes:
Convenience
A business energy bill sent to your email is much better than waiting for the paper bill in your mailbox.
24/7 payment
Paperless billing needs an online transaction. You can pay your energy bill anytime and anywhere as long as you have an internet connection.
Flexible payment options
Paperless billing can access different payment options. The payment options vary from:
- online bank account payment
- bank transfer payment
- debit card payment
- credit card payment
- autopay
- mobile applications
- smart home activation
Do you save money
Paperless billing has an impact on the operational cost of your business. This billing reduces the time and resources on paper transactions. The saved time will make your business operation more efficient and help you save more money.
Minimal carbon footprint
You can need to go paperless for environmental reasons. Enrolling in paperless billing will allow your business to help the earth. Sustainable paperless billing will help by cutting down the use of paper.
Security
Paperless billing has security methods that store all your business's information. The security of this billing method will help you be free of the risks of fraudulent actions.
Tip #5: Switch energy suppliers to get a better deal
Many businesses in the UK save more on their energy costs by switching suppliers. When your business energy contract is about to end, you should consider switching energy suppliers. Switching suppliers is ideal. If you do not switch suppliers, your current energy supplier will add you to a new contract. This new contract comes with a higher default rate.
The benefits of switching energy suppliers are as follows:
- you can save more money for your business
- you can get the best energy deal for your business
- you can receive discounts from your new supplier
Tip #6: Know when your business energy contract will end
Knowing when your business energy contract will end will help you plan. Once aware of the contract's end, you can start looking for quotes to compare business energy deals. Here are the different types of business energy contracts you need to know:
Fixed contract
This energy contract will charge you a set rate.
Variable contract
This contract varies. The basis of the charge comes from market demand and activity.
Deemed and out-of-contract
This contract applies when you move into a new business location. A deemed out-of-contract happens when your supplier continues to supply you business energy even after your contract ends.
Rollover contract
The rollover contract is when your current energy contract is about to end, and you did not cancel. Your business energy supplier will automatically sign you up for a new contract.
Tip #7: Read the energy supplier's review
Before buying a new energy supply, compare the reviews you can read first. The reviews will let you know if the supplier offers a great customer experience. The reviews will also help you see the level of service that the supplier can offer.
Tip #8: Know your current tariff rates
It is necessary to know your current tariff rates. Knowing will help you calculate your business energy savings accurately.
There are different types of business energy tariffs that are available, this includes:
Fixed-term tariff
This tariff has a period ranging from one to four years. During this period, the unit cost and standing charge do not change. This tariff will protect your business from price hikes.
Blend and extend tariff
Blend and extend tariff allows extending a contract. The contract with your current business energy supplier extends. The extension is in exchange for a reward or lower rate. This tariff is best when you want to save money. This tariff is also applicable if you are happy with the service of your current supplier.
Pass through tariff
The pass-through tariff will split your energy bill. This tariff is risky and suited to educated business energy customers. The two elements are:
- fixed wholesale energy costs
- varying unit rates
Flex approach tariff
The flex approach tariff will enable you to buy energy in bulk. This tariff is best for large businesses. Large businesses can take advantage of lower wholesale rates.
Tip #9: Know your current usage and consumption pattern
When finding the best business electricity deal in the UK, you need to know your business's current usage and consumption pattern. A small office consumption is much lesser than a company with ten floors.
Study your past business energy billings to help you find the best energy deal for you.
Tip #10: Keep your credit score in good standing
Your credit score will help your business receive the best energy rates and deals. You will get cheaper energy deals if your credit score is 40 or higher. So, you will have fewer options if your business has a low credit score.
Here are some reasons why your credit score is necessary for securing the best energy deal for your business:
- suppliers need to protect their business
- it lowers the chances of your risks to debt
- A good credit score will mitigate financial problems
In addition to your business score, energy suppliers also look at other information.
This information will help them give you the best energy deal:
- size of your business
- industry of your business
- annual energy consumption on average
- location of business
- current business energy supplier
- length of business energy contract
- business energy quotation
