How small business owners can save money on gas and electricity

Business News | 15 Jun |

In general, businesses typically use more power and gas than average households. When it comes to deciding on a new supplier, price is not the only factor to consider, customer service and reliability are equally important. Losing power will negatively impact your finances and credibility. If a problem occurs, you will want to have it resolved as quickly as possible to be able to resume your work as soon as possible.

Business Energy UK offers the ability to compare suppliers of business electricity and gas by comparing prices, reading reviews, and even filtering deals by geography. In addition, they offer several in-depth guides to help you make an informed buying decision.

What savings can I expect if I switch my business’ energy provider?

It will largely depend on the type and size of your business how much you can potentially save on commercial gas and electricity. In addition, you should consider your workforce size and your energy efficiency. Each company is unique, so it is hard to provide a definitive answer.

What is the process of switching and how long will it take?

To switch to a better deal, you need to go through a bit more hassle than switching your home energy provider. Although, the transition should still go smoothly since your gas and electricity will travel through the same cables and pipes. The switch to another supplier must happen during the ‘renewal window’ of your current contract. Normally, this is between one and six months before the contract ends.

As soon as this happens, you should compare deals online. You can then switch from your old tariff to the new one. As part of the switching process, you need to provide some basic information such as your business type, where it is located, and how much energy you currently use. Your latest bill is a good place to start because most of the information you need will be on it.

You will be shown a variety of tariff options based on the information you enter. This list can now be filtered by price and feature before choosing an option. The new energy provider will contact your existing provider and handle the whole process for you.

Will my electric and gas services be disrupted?

Switching commercial energy providers will not disrupt your existing energy supply. To transition from your previous supplier, your new supplier contacting your previous supplier. It is only necessary for you to take an up-to-date meter reading and ensure payment of any outstanding balances.

What are my options?

Choosing a new supplier will require you to consider the following factors:

• Commercial customers will usually have the choice between fixed rate and variable rate contracts. Usually, they range from one to five years. The costs associated with taking out a fixed-term contract will likely be higher. This fixed-rate option will protect you from future price increases.

• There’s no dual fuel tariff for a business energy contract, although you can choose to purchase both gas and electricity from the same company.

• Some companies may offer a discount if you pay by direct debit.

• The use of renewable energy is an excellent choice if you are concerned with the environment.

What about non-profits and charities?

You can get a 15% VAT discount if you are a charity or not-for-profit organisation. Furthermore, you will be exempt from paying the Climate Change Levy (CCL), which is a tax on commercial energy consumption, lowering your bills by an additional 5%.

If your company fits into one of the above categories, contact your supplier and request a VAT declaration form.

What is renewable energy, and how does it differ from conventional energy?

Solar, wind, and wave energy can be classified as renewable energy. In contrast to fossil fuels, which deplete over time, renewable energy is regenerated.

In addition to selecting this type of energy tariff, you can also reduce your carbon footprint by going paperless and implementing an array of workplace measures to reduce gas and electricity consumption.

As we work toward a cleaner and more sustainable future, it is more important than ever to be aware of your environmental impact.

What information will I be required to switch?

It is necessary to have the following information when switching business energy suppliers:

• Current supplier’s name

• Current tariff name and expiry date

• Energy supply type

• How much energy you consume in kWh

If you do not have a recent billing statement, you can still search for a new deal, but your quote won’t be as accurate.

Finally, we hope you have gained a clear understanding of how business energy works after reading our simple guide. Before you sign a new contract, make sure you read the terms and conditions.

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