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Business electricity: Compare your way to better business electricity rates
Many UK businesses rely on electricity to function. Whether it’s used to simply light a premises or to operate essential machinery, this reliance means it’s important for business owners to ensure they’re getting the best deal possible on their business’s electricity supply.
However, in an energy market where prices are rising, the task of finding a cheaper business electricity quote might seem like a major project. But, provided you’re armed with the right kind of knowledge, the reality is that it’s easy to compare business electricity prices & find a cheaper tariff – particularly if you use the services of a broker.
To help you get off to a good start on your switching journey, we’ve put together this guide covering the relevant areas of comparing and switching your business electricity to help you find a cheaper quote, including:
- Business electricity tariffs and contracts
- Business electricity prices and costs
- Comparing business electricity quotes
- Business electricity suppliers
To get started read on, or click the links above to jump to specific topics.
Alternatively, you could contact one of our team on 0800 188 4930 who, after a short conversation, can not only organise quotes on your behalf, but also advise you on which deal will best suit your needs and switch you within minutes.
Business electricity tariffs: an introduction
Unlike on the domestic energy market, when you’re looking to secure a new business electricity tariff, you must approach each supplier individually for a quote. This is because suppliers will offer you a bespoke business electricity quote based off an assessment that they carry out of your business and its consumption habits.
Bespoke business electricity quotes can offer customers and suppliers the flexibility that is required to meet the varying consumption habits of all businesses in the UK. However, it can also cause confusion for customers new to the market who are looking for guidance on what a good business electricity tariff looks like for them.
This is because no two businesses – regardless of how similar they are – will have an identical business electricity contract.
There are, however, similar contract structures, and familiarising yourself with these is one easy way to identify if you’re getting a good deal.
To help you understand how your tariff stacks up against the rest of the market, you will first need to find your current tariff type. In the lsit below we have outlined some of the more frequent contract types that small and medium sized business owners are likely to encounter when running a business electricity price comparison.
- Fixed rate tariff (Competitive)
A fixed rate business electricity tariff allows customers to pre-agree unit rates with their supplier and pay these rates throughout the duration of their contract. These rates are usually competitive, but it is recommended that you run a business electricity comparison if possible to be sure you can’t get a better deal elsewhere.
- Deemed rate tariff (Not competitive)
Deemed rate tariffs work on 28-day rolling terms that come into effect if a customer fails to formally agree a new contract with their supplier before their current business electricity tariff ends. On a rolling contract you’re charged at inflated rates, so it’s recommended that you look to switch away from these contracts as soon as possible.
- Rolling Contract (Not competitive)
Rolling contracts are only practiced by a select few suppliers, as many others have adopted the much fairer practice of deemed rates. A rolling contract ties a business customer into a new year long contract on inflated rates. You can sometimes negotiate a new contract on blend and extend terms, which allows you to agree new lower rates by signing up to a new long term contract. However, these new business electricity rates will still not be as competitive as others you could find elsewhere on the market.
Regardless of the type of tariff that you’re on, there is always the possibility that you can save by switching to another business electricity tariff. It’s recommended that you take every opportunity to shop around and see if you can find a cheaper business electricity quote on the market.
If you would like help running a business electricity comparison to see if you can get a better deal elsewhere, then call us today on 0800 188 4930 to speak with one of our team.
What costs make up your business electricity prices?
When shopping around for a new business electricity tariff, there are two costs that you will need to pay particular attention to:
- Unit cost
A cost that covers each unit of electricity (kWh) that your business consumes.
- Standing charge
This cost is a daily charge that covers the maintenance of the national grid, and the cost of transporting electricity direct to your business premises.
These are the two main costs that will make up your business’s electricity bill, so they are likely going to be somewhat of a priority for many business owners when comparing business electricity quotes. However, as each business is offered bespoke pricing, how can you tell how much your business should be paying for these costs?
Unfortunately there is no definitive answer to this question. However, based on the industry averages outline in the list below you can begin to understand how your business electricity costs stack up against the rest of the market.
|Unit Cost||Standing charge|
Please note: The figures given above are only based on industry averages and are only intended as a guide. It’s worth remembering that many contributing factors can impact the amount that you pay for your business electricity including consumption habits and the location of your business premises.
Comparing business electricity quotes for a better deal
The opportunity for business owner to compare business electricity deals is limited so it’s always recommended that you shop around for a cheaper business electricity rates whenever the opportunity presents itself.
Under the terms of commercial electricity contracts, customers are only allowed to switch once they are within a period known as a renewal window – which is typically the last six months of a business electricity contract. During this time you are also likely to receive terms of renewal from your current supplier, however these terms are often not as competitive as other rates that may be on offer, so it’s still good practice to run a business electricity comparison to be sure.
Comparing business electricity tariffs is a simple process, which has been outlined in five simple steps below:
Step 1: Approach suppliers for business electricity quotes.
Step 2: Choose which business electricity tariff will best suits your needs.
Step 3: Apply for the new business electricity contract with the new supplier.
Step 4: Inform your previous supply of the switch.
Step 5: Wait for your new business electricity supply to take effect.
The process of switching is fairly straightforward, and once you have informed all parties of the switch, the rest is handled by the suppliers themselves, so you shouldn’t experience any break in your supply.
However, many busy business owners often use the services of a business electricity broker to help source a wide variety of quotes within minutes.
From one simple phone call to uswitchforbusiness.com our team will have all the information they need to find you a variety of business electricity quotes on your behalf. Following this they can advise you on which tariff best suits the needs of your business, and even assist in the switching process by providing all of the info and documents you need.
To find out more about how we can help make the switching process even easier for your business, call us today on 0800 188 4930.
Business gas quotes – what’s right for your business?
One mistake that many business owners make when running their own comparison is to prioritise the cheapest business electricity quote above all others. While getting a cheaper deal maybe your primary motivation when running a business electricity comparison, the truth is that suppliers can have much more to offer. Neglecting to take this into account when running a comparison may leave you on a cheaper tariff, but the supplier may not be the best fit for your business.
To make sure you’re on the best deal with the best supplier for you, we have put together the table below which outlines the benefits that you can expect from each supplier to help you make a more informed switching decision.
|Business Gas Supplier||Benefits|
|British Gas Business||
|Npower for business||
As a business owner, it’s important to make sure that you don’t fall into the trap of paying too much for your business electricity. With the help of a broker, not only can they get you a better deal, but they can also help you find the right supplier for you.
To get started with your business electricity switch, call us today on 0800 188 4930 and start saving.