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Finding the Best Energy Supplier for Your Business

Finding the Best Energy Supplier for Your Business

Competitive energy markets offer businesses an excellent opportunity to save on energy costs. In order to find the best energy supplier for your business, you’ll need to understand how the deregulated energy market works and what factors to consider when comparing energy providers.

According to Scotsman, there are 6 big companies that supply energy to businesses in the UK. These companies are British Gas, EDF Energy, EON UK, Npower, Scottish Power, and SSE. The energy market is complex and ever-changing, so it can be difficult to understand how these suppliers compete with one another. Good thing there is a business energy comparison uk website available to help you make the right decision.

In order to find the best energy supplier for your business, you’ll need to consider the following factors:

1. Energy Price

The first thing you’ll need to consider is the price of energy. Energy prices can fluctuate significantly, so it’s important to compare prices regularly from different suppliers. Prices are typically quoted in pence per kWh (p/kWh).

Most energy suppliers offer fixed-rate energy deals, which means that the price you pay per kWh will be fixed for a set period of time, usually 12 or 24 months. This can give you some certainty about your energy costs and help you budget more effectively.

2. Contract Length

The length of your contract is also an important consideration. Most energy suppliers offer both short and long-term energy contracts. Short-term energy contracts are typically for 1 to 6 months, while long-term energy contracts can last up to 5 years.

  • The main advantage of a short-term contract is that it gives you the flexibility to switch suppliers more frequently if you find a better deal elsewhere. However, short-term energy contracts can also be more expensive.
  • The advantage of a long-term energy contract is that it gives you price certainty for a longer period. This can be helpful if you want to budget more effectively or if you’re worried about energy prices rising in the future. However, long-term energy contracts can be more expensive if energy prices fall.

3. Payment Type

The type of payment you make can also affect the price you pay for energy. Direct debit is typically the cheapest way to pay for energy, as it allows energy suppliers to offer discounts of up to 10%. However, not all businesses are eligible for direct debit payments.

4. Usage

Your energy usage will also play a role in determining the best energy supplier for your business. Businesses that use more energy will typically pay more for their energy than businesses that use less energy. To get an accurate energy usage estimate, you can either use an online energy calculator or contact your energy supplier for an estimate.

For example, if your business uses 15,000 kWh of electricity per year, you would be classed as a medium-sized business user.

5. Location

The location of your business can also affect the price you pay for energy. Energy prices vary depending on where you live in the country. For example, companies in London and the South East typically pay more for their energy than businesses in the North East. This is because energy prices are higher in these regions.

The best way to determine how much you should be paying for energy is to compare prices from different suppliers.

6. Renewable Options

Some businesses may also want to consider switching to a renewable energy supplier. Renewable energy is generated from renewable sources, such as wind, solar, or water. This energy type is considered more environmentally friendly than traditional fossil fuels. Renewable energy suppliers typically charge a premium for their energy, but government subsidies and tax breaks can offset this cost.

7. Customer Service & Strategic Support

You’ll also want to consider the customer service and strategic support offered by the energy supplier. This is especially important for businesses that are new to the energy market or have complex energy needs. The best way to assess an energy supplier’s customer service is to read online reviews and contact the supplier directly with any questions you have.

Common Questions That Every Business Should Ask

To learn more about business energy, check out our guides on the most frequently asked questions below:

1. What is the best time of year to switch energy suppliers?

The best time of year to switch energy suppliers is typically in the spring or summer. This is because energy prices are usually at their lowest during these months. However, comparing energy prices before switching is important to ensure you’re getting the best deal.

2. How often can I switch energy suppliers?

You can switch energy suppliers as often as you like. However, comparing energy prices before switching is important to ensure you’re getting the best option.

3. What happens if I switch energy suppliers mid-contract?

You may have to pay a cancellation fee if you switch energy suppliers mid-contract. Your current energy supplier will typically charge this fee.

5. What happens if my business grows and I need more energy?

If your business grows and you need more energy, you can contact your current energy supplier and ask for a contract amendment. This will allow you to increase your energy usage without switching suppliers.

6. What happens if my business shrinks and I need less energy?

If your business shrinks and needs less energy, you can contact your current energy supplier and ask for a contract amendment. This will allow you to decrease your energy usage without switching suppliers. You can switch back to your original energy supplier when things improve.

8. What is a green energy tariff?

A green energy tariff is an energy tariff that uses renewable energy sources, such as wind or solar power. Green energy tariffs typically cost more than traditional energy tariffs. Government subsidies and tax breaks, however, might reduce the additional expense.

In Conclusion

Regardless of your business size, carefully consider the different factors that affect energy prices. By comparing prices from other suppliers and renewable energy providers, you can ensure you get the best deal on energy for your business. Remember to review your energy contract regularly to ensure you’re still on the best deal. Also, keep in mind that energy prices can fluctuate, so it’s important to stay up-to-date on the latest market trends.

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