Switching your electricity supplier to get cheap business electricity is a great way of saving your business money in the short term and long term. Between 2016 and 2017 the average cost of business electricity bills increased by 3.5%.
Swapping is easy especially now suppliers can no longer charge exit fees, meaning you are no longer locked into a contract. Unlike domestic suppliers there is no 14-day cooling off period when you switch business energy, so make sure the supplier you are choosing is right for you.
No disruption will be caused to your business when you switch supplier as all equipment will stay the same.
Energy suppliers offer both fixed rate and flexible rate tariffs for your electricity. Fixed rate tends to be the most popular as fluctuating prices won’t affect your bill, so it offers a bit of protection. Flexible tariffs are the opposite and follow the market so therefore don’t offer any protection from price hikes.
Switching supplier is easy and everything you need can be found on your bill.
- Current supplier’s name
- Tariff end date
- Supply type
- How much electricity your business uses
If your business produces its own electricity, then you will be entitled to money back. This is done by selling any unused electricity back to the National Grid.
Smart meters show how much energy your business is using and how much it is going to cost. By 2020 most homes and businesses will have a smart meter.
If you don’t switch when your contract ends, then you will be switched over to your supplier’s out-of-contract rates. These are usually much higher in cost and will result in a much larger energy bill. Most suppliers will not suggest you move rates as this is very beneficial for them, so you need to decide on switching before your contract ends.
Businesses must pay what is called the Climate Change Levy or CCL for short. There is an exception to this though and that is any renewable energy you use is not subject to the CCL charge. It is important to consider this charge when you are considering your energy supplier.
Overall the easiest way of saving money on your energy costs is to shop around or use a price comparison website to see which tariff is right for you. Sometimes the right tariff is not always the cheapest and there may be other benefits provided by the energy supplier.