If you’re looking to cut costs for your business, then finding the best prices for business gas and electricity rates is essential. Almost all tariffs have two elements – the unit rate and a daily standing charge. Each supplier’s prices vary so you need to compare business energy deals. Below are 10 tips to help you find the best quotes and deals for your business’ gas and electricity.
Compare gas and electricity prices for your business
The quickest and easiest way to find the cheapest business energy deals is to use a price comparison site such as ours. In just a few minutes you can get quotes from a wide range of energy suppliers, from which you can select the best one for your business needs. We can save you time as well as money!
Don’t be too fixed on trying to reduce the unit rate per kWh. Some tariffs do have lower unit costs, but these don’t always work out better as the standing charges are often higher. Therefore, it is best to compare the overall annual cost of your bill rather than focusing on individual rates.
All business energy deals have a formal endpoint. Knowing when this is will mean that you can terminate the contract when the terms allow it. You then avoid rolling over your contract, where prices can increase by up to 85% depending on your supplier.
Get quotes annually from all the Big Six energy suppliers and smaller companies too for your gas and electricity supply. Suppliers change their prices and energy deals all the time, so you should compare business energy deals as often as possible to make sure you’re not overpaying for your gas and electricity.
When you’ve shopped around for a few quotes, it’s a good idea to then ask your current supplier to beat the lowest price you found. Often, they don’t want to lose your business and so will offer you additional discounts to stay with them.
A way you can easily get additional discounts is to pay monthly by direct debit. Depending on your supplier you can get reductions of up to 5%.
Speaking with your colleagues or friends about who they use for their energy will give an insight into the different levels of prices. It also means that if you do choose to change your supplier to one that someone you know uses, you can be sure they are trustworthy and reliable.
You could consider pooling your purchasing power with other businesses in the area, then approach the suppliers and see if they will offer any further discounts. Some brokers offer this type of group buying service with many customers to leverage purchasing power.
Once you have found the best price, you might want to consider fixing it long-term if you believe energy prices will rise. The longest fixed-rate contracts usually last for 5 years. Prices negotiated today at these levels will not rise or fall even if the wholesale prices change. By fixing a long-term agreement you can help your business’s budgeting and cash-flow management.
You can also get additional services from your energy supplier. You can receive access to specialist energy managers and management software. This helps you to reduce consumption and allows you to monitor your usage. Most suppliers provide these free of charge, but if you don’t ask you don’t get.