Savvy business owners are always looking for ways to save money, and cutting energy costs is a great way to do that. But it can be tricky to know if you’re getting a good deal on your business energy contract.
For example, if you last switched energy suppliers a while ago or your current contract automatically renews, you could be paying more than necessary. This post will explain some things to look for when negotiating or reviewing your contract to ensure you’re getting the best possible deal.
Can I Switch Business Energy Suppliers?
In most cases, you can switch suppliers for your company if:
- You’re enrolled in an unplanned plan, such as a considered or default energy plan. These are common if you have moved into a new building or your current energy contract is ending, but you still need to sign a new one.
- Your company’s commercial energy contract has ended, and you are now free from its stipulations. Some commercial energy contracts need advance notice. If you are unsure about the notification period, it is best to check your terms or contact your supplier directly.
If a provider refuses to allow you to switch, they must provide a thorough explanation as quickly as feasible. In addition, they must explain your alternatives if you believe you should be allowed to make a change.
Even if your current contract prevents you from switching providers, you may still be able to negotiate a new one.
How Do I Change The Energy Plan For My Business?
You will only be able to switch to a new supplier if your current energy contract expires. When this happens, it’s time to start thinking about moving providers before you’re stuck paying your supplier’s “out-of-date” contract pricing.
Don’t stress if you are unsure of the last date of your contract. Your supplier will contact you when your contract reaches the “renewal” window, usually between one and six months before the expiration date.
As soon as your current energy supplier contacts you, use our comparison tool to get a business energy quote and find out if switching will save you money. Then, if you plan, you can have the new agreement in place as the old one expires.
To get the most accurate price quote, have your most recent energy bill handy and provide the following information:
- The label for your tariffs and when they expire
- What kind of energy source do you use, how many kilowatt-hours (kWh) your company consumes every year, and what are your average annual energy costs?
- current gas and electric provider information
If you decide to transfer providers because you found a better offer, your current service provider will ask for the last meter reading and send you a final bill. After that, your new provider should handle the rest of the transition.
Remember that if you no longer want a business energy contract, you will be charged a cancellation fee, unlike residential energy tariffs, where you have a cooling-off period.
Will It Affect My Energy Supply?
There will be no need for trenching or drilling at your place of business, either inside or out, and there should be no interruption to your gas and electricity service.
How Long Would It Take To Switch Electricity Suppliers?
Energy contract switching for businesses often takes four to six weeks. Your new supplier’s responsibility is to coordinate the transfer with your current provider and let you know when the switch will occur.
Choosing The Best Deal
There are different business energy contracts out there that claim to provide you with the best; however, be sure you fully comprehend the following before signing:
- Contract’s end date or term of the agreement
- minimum amounts of time between contracts that must elapse if a party wishes to make a change
- per-kilowatt-hour rates and fixed monthly fees for utilities.
Switching energy providers can be time-consuming, but the potential savings are worth it. In addition, additional safeguards may be extended to micro businesses throughout the transition period. For example, when your fixed-term contract is due to expire, your supplier should give you notice of your termination choices. If they don’t, you can complain to your supplier.
You should also see if you can transfer providers and compare their pricing (including your current one).
When moving into a new location or when your current lease is about to expire, it’s in your best interest to shop around for a new lease to save money.
What If I Can’t Switch To A New Supplier?
It’s still worth calling your provider to see if switching to a cheaper rate is possible.
It’s a good idea to call your supplier and see if they can offer you a better deal and beat their current price. If switching to a more affordable plan is possible, they are obligated to let you know, but it may require you to enter into a new agreement.
If they give you new charges, read the fine print carefully. Most commercial energy contracts have a duration of one to three years, so be prepared to commit to that length of time if you want to sign up.
In that case, you should look into the following:
- To what extent the new contract limits your ability to negotiate the price per unit of energy, and for how long.
- It is essential to communicate with your supplier if you have financial difficulties paying your bills. A smart meter may be one solution to this problem.
Don’t feel rushed into deciding on the phone; if you need more information, request it.
If you can switch, check the pricing offered by different providers and choose the best one. If you are having trouble paying your business energy bills and cannot switch providers, you should research what to do.
It’s easier to say if you know more about your business and energy contract.
Generally speaking, it’s a good idea to shop around for the best energy deal possible. Compare rates from various providers, and ask for quotes to see what kind of savings you could make.
However, it’s essential to be aware that not all deals are created equal. So, read the fine print to know exactly what you’re signing up for. And always consult with an expert if you need clarification on what’s best for your business.