Business energy tariffs work in the same way as regular energy tariffs, but they are specifically designed for businesses to use. Businesses are more likely to sign up for a set amount of time (usually between one and three years) and pay a set fee for their energy use, rather than opting for a rolling contract. This means that they won’t be affected by price changes in the way that some domestic customers are.
Businesses can also expect to pay more for their energy use than domestic customers. Their energy rates are charged at the current rate of VAT of 20%, while the VAT for domestic energy is charged at 5%. As of 2001, they were also required to pay the Climate Change Levy (CCL) on their gas and electricity use.
Most of the energy suppliers who supply domestic customers will also have dedicated options for businesses. The big six remain popular options, but smaller names which are able to offer more cost-effective business electricity and gas are beginning to take a greater market share. For a full list of options that could be suitable for you, the best thing to do is get in touch with the team at a business energy price comparison who can present you with a list of routes to take.
There is no answer that applies to everyone when it comes to revealing the best business energy supplier. Because everyone’s circumstances and requirements are different, the best business energy supplier will have to reflect those needs. You’ll only find out which business energy suppliers are best for you when you get in touch with a price comparison broker and hear about the different deals on offer.
There are a number of things to consider when choosing a business energy deal:
Location - where you’re located will naturally have an effect on how much you’re charged. Some companies will be more expensive than others. If you have multiple offices in different parts of the country, you may need more business energy deal to ensure you’re getting the best rates possible in each office.
Unit rates and standing charges - this is what will make up the bulk of what you’re required to pay. The more energy your business uses, the more you’ll pay, but it’s always defined by the unit rate and standing charges.
Out of contract rates - if you stay with a supplier past the end of your contract with them, you might be moved onto a more expensive contract with variable rates, which could mean the amount you pay skyrockets.
Discounts - if you sign up to a lengthy contract, some suppliers may give you a discount. Additionally, if you sign up for dual fuel (both gas and electricity) as opposed to just one, suppliers may offer you a discount, so it’s worth taking it into consideration when making your decision.
The best deal will be different for every business. The only thing you can do is compare what’s on offer with what you’re after and make your decision from there.
Unlike domestic energy customers, businesses cannot compare potential energy deals online. You can contact all the business electricity or gas suppliers individually to find out what their rates would be for your company, or you can use a price comparison broker to quickly find out the best business gas prices or business electricity prices (or both). Business energy comparison involves calling brokers rather than going to a website and entering your details, as you would if you were looking for a domestic energy deal. They will compare business electricity or gas rates for you, and then tell you the available business energy prices and deals that match what you’re looking for.
The best way to get a cheap business gas or electricity deal is to first check your existing contract to see whether you can switch without incurring an early exit fee. If you are allowed to do so, get in touch with a business energy price comparison broker which will be able to pull together a shortlist of the best deals based on your needs and location for you to go through. You can then make your final decision and confirm the switch of your business energy supplier.