Compare Electricity Prices For Your Business
By comparing business electricity rates, you'll find you could make substantial savings from renewal quotes offered by your current energy supplier.The electricity wholesale market mainly drives prices, but that only accounts for 50% of your tariff. All commercial organisations can procure their contract either directly from their current provider, use comparison services or a specialist energy broker.
Contracts for businesses are different from households because of the terms, government levies, VAT and consumption.
- How To Switch Business Electricity Contracts
- The Key Business Energy Suppliers
- Green and Renewable Energy Providers
- Tips To Securing Your Perfect Deal
Use this guide to see how the commercial gas and electricity market differs from domestic equivalents and find a deal that's right for your circumstances. The links above go straight to each section, or continue reading below.
How To Switch Business Electricity Contracts
The main reason people should consider switching their energy supplier is to save costs.
Most commercially-based contracts consist of a daily standing charge plus a unit cost per kWh that get invoiced monthly.
All providers have fixed-term contracts that last from one year up to five years in length. Only larger organisations benefit from flexible rates based on the current wholesale price.
Tariffs depend on your regional location within the UK, your annual consumption, your meter types and length of contract. Businesses also pay various green taxes plus VAT at 20% on the total bill.
To find out how much you could save, you need to get a comparison of the latest costs by supplier. Use either an online comparison service or a business energy broker.
Top 3 Online Quoting Services
Use one of the following impartial comparison services to get electricity quotes for your business:
Top 3 Energy Brokers
Using a broker could find you cheaper rates for your office or buildings. These accredited consultants also assist with multi-site quotes, half hourly meters and energy management software to manage usage and expenditure on fuels you consume.
Contact Your Supplier
You may find that by contacting your existing supplier could reduce your costs. Going direct means you may find cheaper prices, but it's a time-consuming process that not all companies can manage.
Whatever your decision on the method of switching contracts, so long as you complete the process your new electricity tariff will be lower than your renewal quotes.
The Key Business Energy Suppliers
The following companies make up the so-called "Big Six" energy suppliers with nPower and SSE announcing a merger once passed by the Competition and Markets Authority (CMA).
1. British Gas Business
- Guarantee to beat your renewal prices.
- Fixed term and fixed-price contracts.
- Dedicated account manager.
2. nPower/ SSE
- Choose from one or three-year contracts.
- Fixed electricity pricing available for the term.
- Additional discounts if paid by direct debit.
- Cheaper pricing for dual fuel contracts.
- Fixed tariffs for small to medium businesses.
- A range of flexible plans for large businesses.
- Energy efficiency advice.
- Fixed or variable tariffs with no exit penalties.
- UK based Business Energy Team.
- Expert energy efficiency advice via a partnership with The Carbon Trust.
- Flexible short or long-term contracts.
- American Express Membership Rewards.
- Dedicated 24/7 Live Chat support.
Green and Renewable Energy Providers
Many of the major suppliers and new entrants into the marketplace now offer the ability to choose green business electricity. The main suppliers the renewables market are Good Energy, Ecotricity, Green Energy UK, ScottishPower and SWALEC.
Although this may sometimes cost a little more than standard contracts, there's one company that matches the main six suppliers, and this is Ecotricity.
Ecotricity is a green energy company that invests in wind turbine technology and guarantees to match the Big Six companies on traditional "brown" electric contracts.
- They already power many large blue-chip customers.
- Use green renewal sources including wind turbines.
- Price match largest energy suppliers.
- Various flexible contracts with just 28 days notice.
- Low prices while fighting climate change.
A relatively new entrant to the market is Good Energy. They enable you to purchase electricity from local generators.
- 100% green fuel mix.
- Variable priced contracts with no minimum term.
- One or two-year fixed priced contracts.
Tips To Securing Your Perfect Deal
All commercial contracts for smaller businesses have fixed end dates for at least one year at fixed prices per kWh used. The market is extremely competitive for small and medium-sized enterprises (SME), so it's worth shopping around and comparing all available prices.
If you've not switched in the past 12 months, then you should be able to negotiate a lower deal than your renewal notice.
- Step 1. Make sure you're within the end of your current contract so you can change suppliers.
- Step 2. Notify your existing supplier you want to move.
- Step 3. Get new prices using the methods outlined above.
- Step 4. Your broker or new provider switches your contract for you.
A similar pricing practice applies for business gas supplies where all providers offer competitive pricing. Utilising the services of an energy broker could save you time and money by using their specialised services. They'll find you the lowest prices in the market or direct from the wholesale market for larger corporations.