How to compare business electricity and gas prices
If you run a small business, then just as with domestic energy, it’s possible to switch tariff or provider to slash costs. However unlike with household energy, tariffs are generally bespoke and can vary hugely – it’s all about ringing around and haggling the best deal.
How much can I save?
Depending on the size of your business, the savings can be huge. Some are able to slash £1,000s off bills by switching – but because quotes are usually bespoke, it’s impossible to quote typical bill prices.
On average, however, small businesses spend approximately £5,100 on electricity and £4,100 on gas per year.
A 2015 investigation by the Competition and Markets Authority revealed that around 40% of businesses haven’t switched in the past five years, and 39% have never switched, so many of you could be massively overpaying.
How do I compare prices?
Always get a breakdown of unit rates and any standing charges (the cost of having an energy supply, much like line rental is the cost of having a phone line and you pay extra for calls). This’ll make it easy to compare what you’re being offered – an estimated annual cost isn’t as much help as estimates of annual use can vary.
If you employ fewer than 10 people, from next year you will able to compare energy prices under CMA plans to force suppliers to publish their prices for microbusinesses.
Suppliers will also no longer be allowed automatically enrol you in expensive ‘rollover’ contracts after your initial tariff ends.
How do I nail the best price?
Unfortunately to find the biggest savings you’re going to have to put in the legwork, Jonstar can help with the leg work, as one of Leicesters leading energy brokers, we have the reputation to deliver great savings on your utilities
Should I go for a dual fuel tariff?
Trick question – you can’t. Unlike with domestic energy, you don’t get business energy tariffs covering both gas and electricity, so you’ll have to get separate quotes. But before signing on the dotted line it’s always worth checking whether you can squeeze a further discount out of a provider if you get both fuels with them.
What do I need to watch out for?
There are three key things:
Once you’ve signed a contract, there’s usually NO cooling-off period. So make sure you’re happy with the deal and read the full terms and conditions before committing.
With all business energy deals, you’re locked into a contract. You can’t usually switch mid-contract – though if your business moves or go under, you can cancel penalty-free.
Many deals automatically renew after a certain period, potentially locking you into another contract. If so, then before your deal comes to an end, you’ll have a limited ‘renewal period’, typically between one and six months. Make sure you arrange a new deal then, with Jonstar Energy brokers we can ensure that we contact you well in advance to discuss your renewal.
What do i do next?