Small businesses in particular need to be smart with money, and it’s no different when it comes to commercial electricity and gas.
Avoid overpaying on your energy bills by regularly switching providers to maximise profits, so you can put your money back where it belongs: your business.But what constitutes a small business? And how do small business energy deals work?
When it comes to comparing business energy deals, tariffs are determined by business size and are categorised as Micro, Small or Medium. Small businesses are often referred to as Small and Medium-Sized Enterprises, or SMEs for short, but in this guide, we’ll also talk about Micro businesses – the teeniest of all. Okay, here we go:
Now that you’ve got a feel for where you fit, you can start to compare business energy deals.
As a small business, what you ultimately pay will depend on a multitude of factors – not just employee numbers and turnover!
Location plays a big role; energy has to travel, so rural premises typically cost more to supply than their city counterparts. Other variables include standing charges; what type of tariff you want; whether you’re looking for a green plan; and what meter you have installed.
What we’re saying is this: there’s no one-size-fits-all when it comes to small business electricity prices. Plans are bespoke and individually designed for the business; however, don’t let that stop you shop around for deals. Use our site to compare the best deals.
Our best advice is to start by determining what type of tariff you want, and then run a small business electricity price comparison online. You’ll get rough quotes, but you’ll want to speak individually to suppliers to iron out exactly what’s on offer. Plan to expand your business next year? Then consider a shorter contract, so you can change suppliers to fit your needs. Want control over your expenditure for budgeting and planning? Then look for a longer, fixed-rate tariff to better plan your finances.
Or, you could call your current supplier and see if they can offer a better deal. If not, switch to save.
The type of tariff you have access to will depend on what size category your business falls into.
Businesses enter contracts for their electricity and gas. It’s unusual to get dual tariffs for businesses, meaning that you can separately choose your gas and electricity supplier. This means you can shop around to get the crème de la crème of options for your energy supply!
Once you’ve found your dream deal, you’ll enter into a contract lasting typically 1-3 years, a contract you can’t terminate early. So, (and at risk of sounding like a broken record) make sure you’re grabbing the best deal!
Comparatively, Micro businesses are really small enterprises, and so do have access to a few benefits when it comes to available tariffs. Unlike SMES, they’re able to terminate their business energy contracts at any time and switch to a better deal, much like we can with our household energy.
So, if you’re a Micro business owner, it pays to be frequently looking for cheaper energy deals – jump on the bargains, as there’s no guaranteed prizes for loyalty here!
If you run your business from home, then it is still possible to get a business energy tariff. The general rule is that you’ll need to prove that at least 50% of the energy you consume in your house goes towards the business – be that lighting, heating, or the kettle for morning coffee. Items you would need regardless, such as fridges, will not count.
Should you use a lot of energy in working from home – from running tech to cooking – then it’s worth keeping a log of your usage and shopping around for business energy deals. You may wonder why you shouldn’t just stick to your home’s domestic tariff, but as business energy tariffs are designed for commercial organisations, there can be some benefits. For example, business energy tariffs usually feature cheaper unit rates, and fixed terms mean that it’s easier to budget for your business.