When you’re looking for the best business energy option for your company, it is very important to compare the various deals that are on offer from a variety of suppliers. This will ensure that you don’t enter into a contract that is not right for your particular business energy needs.
We’ve outlined some of the benefits that come with comparing business energy suppliers and deals below.
How Business Energy Differs From Domestic Energy
Business energy can be cheaper than domestic energy, but it does carry a significantly higher VAT charge – 20% compared to the 5% charged on domestic energy. There are also a lot of additional levies and tariffs that are added to the price, such as various climate change-related levies.
The contracts for business energy are more flexible than those for domestic energy, and will offer a variety of billing periods. This makes it possible for a business to choose an option that best suits their turnover and cash flow.
Reasons To Compare Business Energy Suppliers
Every business energy deal on offer is unique, and many suppliers will work with you to make the best possible deal for your business. There are many different factors that will impact your deal, such as location, business size, contract length, billing periods etc.
An important note: while domestic energy contracts have a 14-day cooling-off period, where you can back out of the contract should it not suit you, business energy contracts do not have this. So be sure to read the fine print and do your research properly before going ahead with a switch.
Best billing period
Not all business energy suppliers will offer the same billing period options. If you shop around beforehand, you’ll be able to find the option that works best for your company and its needs. Some suppliers will cater only to the bigger companies and will have longer billing periods. This can have a negative impact on the cash flow of smaller businesses.
Better option for smaller businesses
Comparing suppliers will allow you to find the best possible option for your business size. Smaller businesses have smaller turnovers and are often more stressed about cash flow than bigger businesses.
Finding a supplier that caters to small businesses will mean that the deals they offer will be more likely to aid the growth of the business rather than hinder it. They also will have an understanding of how small businesses work and should be able to advise you on how to best manage your energy usage.
Varying contract lengths
Different suppliers offer different contract lengths. If you don’t shop around, you may be stuck with a supplier that isn’t the right fit for you for a long time. Make sure to compare the various options available to you before making a decision. Finding a supplier that offers a contract best suited for your business is important.
There are some business energy suppliers that only operate in a specific region. By doing proper research, you may be able to find a local supplier who can offer a better deal than some of the national suppliers. It is also great to support local whenever you can!
Your location can also have an influence on the pricing of your energy, so that is something one must bear in mind when shopping for a supplier.
Other Ways To Reduce Costs
While changing your energy provider is one good way to reduce your expenses, there are other things that can be done in-house to reduce your energy consumption.
Switching to energy-efficient lights and appliances can have a big impact on your consumption and can also reduce replacement expenditure – energy-efficient light bulbs often last much longer than their standard counterparts.
Make a habit of switching off unused lights and turning computers off overnight and at the weekends. Just doing this can reduce energy consumption by as much as 75%, research has shown.
Lastly, keeping the heating at a consistent temperature; making sure that it isn’t too warm can also have a positive impact on your energy consumption and reduce your costs. Changing the temperature on the heating regularly, even by 1 degree, can increase expenditure by up to 8%.
Each business is different and will have its own specific needs when it comes to energy usage. With there being so many business energy suppliers, it is important to do the research and compare the offer you receive in order to choose the best possible deal for your company.