The process of switching between energy suppliers for a business is not quite as simple as the process of setting up a new energy tariff for a household. For instance, you cannot choose from a selection of predefined tariffs, as you would be able to do when switching the energy provider for your home.
Instead, you will need to contact providers one at a time to obtain information regarding the business gas prices provided by each one. After that, each provider will evaluate your company, considering various factors, including your location, typical patterns of energy usage, and even your credit history, before providing you with a price for business gas based on your provided information.
This bespoke service ensures you receive a deal tailored to your company’s requirements. On the other hand, because it is extremely unlikely that any two companies will ever have identical business gas contracts, it may be challenging to determine which tariff is the most appropriate for your organization.
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What Are The Different Tariff Options?
When it comes to selecting a tariff for the gas that your company uses, there are primarily two options from which you can choose:
Fixed-Rate Tariff
You will be responsible for paying a predetermined amount per kWh throughout your contract’s lifetime, which will typically range from one to four years. Because you know what unit price you’ll be paying each month, this is the most popular tariff. Additionally, this type of tariff is typically more competitive than other types of tariffs.
However, there is a possibility that you may be bound to the provider for an extended period and won’t be able to switch until you are in the renewal window, which is often around six months before the end of your contract.
Flexible-Rate Tariff
You make one large payment in advance to cover the cost of your gas. Larger businesses may find this a beneficial tariff because it allows them to take advantage of lower prices when their gas consumption is high. Most flexible rate tariffs operate on a rolling 30-day plan, which means you are free to move providers with only a 30-day notice. Therefore, a flexible-rate tariff can be a good option for you if you are on a short-term lease, such as operating a pop-up restaurant.
On the other hand, depending on the market, the price of individual units might go up or down; thus, flexible-rate tariffs are typically more expensive than fixed-rate tariffs.
Comparing Business Gas Quotes
There is always the possibility of finding a better bargain on the market, even if you believe that the energy rates offered by your present provider are competitively priced. However, according to the rules of commercial energy contracts, companies are only permitted to transfer providers after these contracts have entered a “renewal window.” This period typically begins six months before the agreement is scheduled to expire.
Your existing energy provider should send you a renewal offer whenever your energy plan reaches its renewal window. However, these conditions are rarely competitive, so it makes sense to perform a business gas comparison to check if there are better prices on offer.
Utilizing a broker or price comparison service can help you save a significant amount of time and effort compared to making your phone calls to several providers.
The Importance of Comparing Business Gas Suppliers
Comparing different commercial gas providers may appear to many people to be a time-consuming procedure because of the amount of research that is required. Because of this, companies may spend more money on their gas and electricity bills than is necessary.
If you use an energy broker to compare the most recent costs a few months prior to the end of your contract, you can avoid having to pay the more costly deemed rates and keep the wonderful bargain you have been enjoying.
Your first renewal quotation will rarely be the best available price, similar to how it is with many other goods, such as insurance. You can easily learn how your renewal quotation matches up against a broad choice of reputable business gas providers if you compare the most recent pricing and see how they compare.
If you are satisfied with your current provider’s services, you are free to continue working with them. The more volume you buy through an energy broker, the more likely you will obtain reduced prices from your existing energy supplier.
How to Get the Best Deal for Your Business?
The most challenging aspect of acquiring a superior estimate for business gas is comprehending your company’s requirements and determining which package will be the ideal match for your organization. You would believe the lowest gas tariff is the greatest offer for your business. Still, although having a lower rate will no doubt be your first concern, if your provider is unreliable or has bad customer care, it might wind up costing you more in the long term.
Compare multiple business energy suppliers to ensure you receive the best possible rate from the most suitable provider. This will enable you to make a more educated decision regarding whether or not to switch providers and ensure that you receive the best possible service.
The Bottom Line
When your current gas supply contract is about to expire, it is a good time to shop around for new service when you want to see if you can obtain a better price or a cheaper rate on your commercial gas supply.
The location of your company’s headquarters, the amount of energy it uses, the length of the contract it has with its energy provider, and the company’s credit rating all have a role in the prices it can obtain.
Although you might not be able to change where you work or your company’s size, you might be able to modify the length of your contract to obtain a better deal on the price.
In the same vein, in the time leading up to your search for a new business gas contract, you should work to take actions that will enhance your company’s credit score.
