Business Energy

Tips for switching business energy suppliers

Friday 20 January, 2012

By Martin Fagan

As a business energy customer, you’ll know you don’t get Brownie points for staying loyal to one supplier. It’s estimated that rising energy prices will force tens of thousands of small businesses to actively seek better deals on their energy by switching. Here are some helpful tips to help smooth the transition.

In most cases, the rates for a new customer are lower than repeat business electricity customers. If you shop around and switch, this could mean a saving of £2,000 a year for small businesses using just 25,000 kilowatt hours (kWh).

• Begin by comparing rates - All you need to do is visit the Energychoices.co.uk business section, enter the postcode of your premises and your current energy to compare the best deal for you. Rates for a business electricity contract range anywhere from 6.7p to 15p per unit. You can normally save money by finding the least expensive rate.


• Sign up for a contract - Businesses that sign up with an energy supplier on a contract will usually pay lower charges but the business is tied in for a fixed period and will have to pay a financial penalty to exit early. Don’t forget, if you are about to move into new business premises to set up your service immediately and make sure you’re not being charged excessively for not being in a contract.


• Switch as often as you can - Unless you’ve signed a contract that ties you to a particular energy supplier for set period of time, you have no obligation to stay. Be sure to shop around for the best rates, but, if you’ve signed a contract, either honour it to avoid being hit with termination fees or check to see if the penalties are outweighed by the savings made from switching.


• Make a note of your renewal date - Also keep an eye out for a notice in the post from your provider about your services expiring. Accept or reject the new contract in writing. Some providers will automatically roll you into a new contract unless you opt out. With a keen eye you can keep up with your notice period and seamlessly switch to a new provider when your contract is up.


• Is there a chance to save money on other utilities? - Find out what a new electricity supplier might offer you as discount for also switching your water and gas.


• Seek advice - Remember to use comparison sites, such as www.EnergyChoices.co.uk, for advice on the best provider for your business energy services. This impartial help is free of charge. Don’t pay a broker to compare prices for you.


• Don’t return to your previous provider - Even if they offer you a better deal after you’ve switched. Practices like these are monitored by Ofgem and can land you with a raft of fees for cancelling your new service and moving back to your old supplier.


• Shop around - Many suppliers will offer you extra incentives to sign up. These deals change all the time as energy companies think up new ways to attract clients. Assume that all energy suppliers have a deal of some sort, even if they don’t shout it from the rooftops. If you can’t see what you want on the supplier’s website, call them and enquire.