Managing a business involves many factors to look at but wise financial choices are an important one to analyse with care, and energy contracts are part of that. Getting in touch with the top energy supplier can minimise costs and ease worries. But these contracts often seem tricky with their prices, conditions, and hidden charges.
This guide breaks it all down for you. We will help you understand what to look for in a business energy contract and share tips to make the process easy.
Why Do Business Energy Contracts Matter?
Business energy contracts aren’t one-size-fits-all. Unlike domestic energy deals, they are according to your usage and needs. Comparing energy contracts is always the key to avoid hefty charges and hidden costs. Because every contract has different clauses. The energy suppliers in the UK offer you variable and fixed energy contracts. It is then your choice to analyse and choose the best fit for your business.
Choosing the misfit can cause you to deal with complex and higher bills. And you can get stuck in terms and conditions that might seem confusing. So it is always better to choose the right one in order to run your business with the right energy supplier by your side and prevent hassles.
5 Things to Check Before Signing
Focus on these key points to make the right choice for your business while choosing an energy supplier.
Unit Price of Energy
Check how much you will pay per unit of energy (measured in kWh). Look for two main types of pricing:
- Fixed prices stay the same for the duration of your contract. These provide stability and make budgeting easier.
- Variable prices change with the energy market. These might save you money when prices fall.
Decide which type of pricing works best for your business needs.
Extra Costs
Always check for any additional charges. These might include:
- Maintenance fees
- Costs for meter upgrades or installations
- Extra fees if you pay late
- Always ask for a full breakdown of costs. Read the terms carefully to know what you are agreeing to.
Contract Length
Business contracts often last from 1 to 5 years. The length you choose matters because:
- Short contracts provide flexibility to adapt to changing needs.
- Long contracts offer stability and predictable energy costs.
Check if there is a fee for leaving early and be sure the contract length suits your business energy needs.
Notice Periods
When you are set to switch energy supply, keep in mind that notice periods are crucial. Energy contracts from different business energy suppliers differ in their terms and conditions. For example, some contracts state that you must provide a 30 or 90 days notice period.
Cooling-Off Period
Business energy suppliers don’t offer cooling-off periods, unlike domestic energy contracts. There can be exceptions for some microbusinesses, but it is always worth checking first before getting into any contract.
Simple Tips to Compare Like a Pro
Here is how you can choose the best energy supplier for your business energy needs.
Tip 1: Get Multiple Quotes
Always compare energy suppliers and their services. See what they are offering and their offerings differ from one another. You can do this via contacting a broker or by simply visiting the official websites of energy suppliers. Call their support team and get your concerns addressed.
Tip 2: Know Your Energy Needs
Have a clear idea of your business’s energy usage. Look at past bills to identify patterns. Are there any peak hours when you consume more energy? This information can help you negotiate better deals.
Tip 3: Read the Small Print
Seems boring right? Nobody wants to read prints of course. But as a business owner, you must know all the details regarding your energy supply contract. Stay updated terms on price increases, hidden fees, and renewal rules.
Tip 4: Avoid Automatic Renewals
If you don’t act before your contract ends, suppliers might renew your deal automatically. These renewal rates are often higher. Don’t get trapped. Keep track of your contract end date and shop around for a new deal early.
Tip 5: Ask for Help
Energy suppliers do provide customer support to assist you at every step. Better choose an energy supplier whose support and assistance stays hyperactive. If you need further guidance on your rights, you can reach out to the Citizen Advice Bureau (CAB UK) for free support. Visit their website at citizensadvice.org.uk for further guidance.
| Why does dedicated customer support matter?
Because who wants to stay on long holds! Having dedicated customer support by your side is important when you are dealing with energy supply concerns at your business premises. It not only saves you time but also gets your queries addressed swiftly and adequately. |
Why is it Worth the Effort?
Taking time to compare and understand contracts pays off. A well-chosen energy contract helps your business grow by keeping costs in control.
Start comparing deals today. Take your time, ask the right questions, and be bold in negotiating. By making informed choices, you can protect your business from hidden fees and restrictive terms.
For more advice, head over to the Citizen Advice Bureau and get started on securing the right energy plan for your business.
