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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:
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.
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 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 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:
A cost that covers each unit of electricity (kWh) that your business consumes.
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.