Earlier this year, an Energy UK report revealed that nearly 100,000 commercial businesses switched energy suppliers in the springtime of 2021. Numbers like these show just how easy it is to switch energy suppliers. The variety of deals and offers found in the energy market are enticing many to make the decision to switch.

You and your small business can also take advantage of switching suppliers and saving money on your energy bills. Here are three things you should keep in mind when you decide to switch energy suppliers.

  1. Pay attention to the energy market

It is worth paying attention to the prices of gas and electricity when shopping for a business energy contract. Rising gas and oil prices force energy manufactures to spend more, which then has you spending more for your energy. This especially affects you if you choose to purchase a flexible tariff: you could be paying less when commodity prices are low, but then you could be paying more than others on a fixed-price contract if market prices rise sharply. 

You should also pay attention to the fuel mix that your potential new energy supplier uses, as fluctuations in the market and government regulations towards certain energy resources have implications on the prices of your energy spend. 

  1. Be aware of the price per unit and the standing charges of energy contracts

As you may know, your business does not just pay for the energy that you use. There are also standing costs, or the price of simply being connected to the energy grid,  that you pay.

The used energy you pay is referred to as the variable unit price per kWh, whereas standing costs are the fixed fees (otherwise known as service fees) that you pay for simply being connected to the power grid. These prices can vary significantly from region to region, and these prices together sum your monthly and annual bills. 

Energy comparison services like BusinessEnergyQuotes.com reveal both the variable and standing unit prices of business energy quotes. This is a hugely helpful tool for you to use when you are shopping for a better energy contract. You can see plainly how much you could be paying per unit and for standing charges for every quoted offer. 

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  1. Understand the different kinds of tariffs

The type of tariff you choose affects how you will be paying for your business energy. For example, fixed-rate tariffs are often the cheapest and last for a fixed period. The price you pay per unit is fixed throughout the lifespan of the contract — prices are not affected by changes in the market. 

Variable or flexible tariffs mean that the variable unit price per kWh can change according to market demands. The obvious upside to this tariff is that if the market price is low, your price per unit is low, too. You can conversely deduce the downside of a variable tariff. 

Consider which tariff will be best for you and your business when you compare energy contracts. A fixed energy tariff will give you peace of mind knowing that the price per unit will stay the same throughout the life of the contract. However, if you want to take advantage when energy prices drop in the market, flexible tariffs may be the ones for you. 

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