3 things to consider when switching business energy suppliers
People across the UK are becoming increasingly aware of how quick and easy it is to switch energy suppliers. Here are three things you should think about when changing who provides your gas and electricity.
There is a great surge of energy-supplier switches happening around the UK.
An Energy UK report revealed that over 650,000 customers switched energy suppliers in April 2021 alone – a nearly 40 per cent increase from the year before. Of these, nearly 100,000 were made by non-domestic customers. The energy trade association also showed that Stockton-on-Tees, a city of 85,000 people, had made more switches than any other city in the country in 2020. One-in-four customers from the County Durham city changed energy suppliers last year. Across the UK, around 6 million customers switched.
These numbers show that customers are discovering the ease and the cost-saving benefits that await them if they want to change who supplies their gas and electricity. The variety of deals and offers found in the energy market are enticing many to make the decision to switch.
While these figures largely represent the domestic market, it does not mean that you as a small business cannot take advantage on switching suppliers and saving money on your energy bills.
Are you missing out on a new and better business energy contract? Here are three things you should keep in mind when you decide to switch energy suppliers, and how quick and easy it is to do it through Business Energy Quotes.
1. Consider the market and changing energy prices
This is a no-brainer, but worth mentioning nonetheless: it is worth paying attention to the prices of gas and electricity when shopping for a business energy contract. Rising gas and oil prices force energy manufactures to spend more, which then has you spending more for your energy.
You should also pay attention to the fuel mix that your potential new energy supplier uses, as fluctuations in the market and government regulations towards certain energy resources have implications on the prices of your energy spend.
You can gain insights from our industry experts to help you stay informed on changes in energy prices. Our Energy Market Updates vlog and Global Procurement Group blog posts provide all you need to know about the fast-moving energy markets.
2. Consider the price per unit and the standing charges at play
It is understandable to assume that you will only pay for the energy that you use, yet there is another cost to consider: standing cost.
The variable unit price per kWh is the price you pay for the energy that you use, whereas standing costs are the fixed fees (otherwise known as service fees) that you pay for simply being connected to the power grid.
These prices can vary significantly from region to region. Customers in switch-happy Stockton-on-Tees, for example, enjoy some of the lowest variable unit price per kWh in the country (about 16.8 p/kWh), but they conversely see the fourth highest standing charges per year (£88.86). Folk in Merseyside and North Wales pay the highest variable unit price per kWh (18.4), but the second-lowest standing charges (£81.34).
You will want to also consider standing charges offered in addition to prices per unit, as these together sum your monthly and annual bills. This is especially worth noting if you are a seasonal business, or one where you are not consuming any power whatsoever for an extended period. While a no standing charge tariff is an option, your price per unit may increase in these kinds of tariffs. You should also factor in the size of your small business, as this can affect how much you pay monthly and yearly.
When shopping for better electricity deals on BusinessEnergyQuotes.com, you can easily check how much you could be paying per unit and for standing charges for every quoted offer. Quoted prices on our website include the price per unit (all units) and standing charges per day. These prices give you the estimated monthly and annual costs, excluding Climate Change Levy (CCL) and VAT.
3. Know your tariffs
The type of tariff you choose affects the complexion of the business energy contract you ink with your new supplier. For example, fixed-rate tariffs are often the cheapest and last for a fixed period, usually one or two years. As the name suggests, the price you pay per unit is fixed throughout the lifespan of the contract, so any drastic price hikes in the market does not make your monthly bill more expensive. Keep in mind that your energy usage dictates how much you are paying. The fixed rate means that the price per unit does not change.
Variable tariffs mean that the variable unit price per kWh can change according to market demands. The obvious upside to this tariff is that if the market price is low, your price per unit is low, too. You can conversely deduce the downside of a variable tariff.
Consider which tariff will be best for you and your business. When you shop for a new energy contract with Business Energy Quotes, you can filter out deals based on fixed or variable tariffs, and even by standard or green energy products.
Finding your ideal energy tariff is a few clicks away
If you are considering a change of energy supplier, BusinessEnergyQuotes.com makes it fast and easy to do so. Our powerful price comparison engine gathers dozens of offers for you to consider and compare in seconds. You can filter deals out by supplier, term length or biggest savings. Choose the offer you want, enter your payment details and you are on your way!
BusinessEnergyQuotes.com not only helps you save on your business energy bills, but it provides access to your own Business Account Manager, where you can look after your contract throughout its duration. We will take care of the admin work and ensure that your business receives a fluid, hassle-free switching experience.