Just as with your domestic electricity, switching your electricity tariff or provider can make your small or medium-sized business substantial savings.
While residential customers can simply choose from easily available pre-made electricity contracts, commercial businesses must contact suppliers directly to negotiate bespoke deals. What’s more, business consumers can’t avail of dual fuel tariffs which mean commercial gas and electricity contracts need to be arranged separately.
Companies use far more electricity than the average household and to keep your bills as low as possible, you’ll need to arrange a business electricity contract to benefit from lower rates.
Unlike domestic electricity tariffs which are generic and easily comparable on the market, business electricity contracts are drawn up on a bespoke basis for each individual company. Commercial electricity rates are based on a range of factors including type of business, size, usage pattern and location. While most domestic electricity contracts fix a unit price for an initial 12-month period, fixed business electricity contracts can be longer, setting unit prices for up to five years.
Fixed-rate and variable-rate contracts are the electricity deals most commonly-offered to small and medium-sized businesses.
Fixed-rate contracts charge the same price for each kWh of electricity used for the duration of the contract. While your bills will go up and down according to how much electricity you use, the price you pay for your unit cost will stay the same. Fixed-rate contracts provide a measure of security that can be extremely helpful when budgeting. On the other hand, if you want to switch tariff or supplier, you’ll have to wait for your switching window to come up which can be anything up to six months before your contract’s end date.
Variable-rate contracts tie the unit cost to electricity market fluctuations. While this means that your business can take advantage of decreases in the market price, you’ll also have to be prepared to pay more should the price of electricity go up. Variable-rate contracts allow businesses to switch suppliers with just 30-days’ notice and can be a good option for companies that don’t want to be tied into a deal for an extended period.
To get the best possible business electricity rates, you’ll need to compare quotes and switch when you find the best deal. To do this, business consumers will need to contact a range of suppliers and negotiate bespoke quotes from each. Securing a great business electricity contract often involves spending time on the phone and haggling to get the best possible price.
To save yourself time as well as money, let our comparison team do the hard work for you. After a quick phone call to discuss your electricity usage, we’ll negotiate and compare quotes from a panel of trusted suppliers. It’ll be helpful to have a recent electricity bill to hand when you call as we’ll need to gather the following information from you:
Once we find you a deal you love, we’ll make all the necessary arrangements, so you can start enjoying cheaper electricity as soon as possible.
It’s important to be aware that your business will be subject to a credit check and a poor credit score may mean your application to switch is not successful. The switch might also be rejected if you’re in debt with your current supplier.
To qualify for a micro business electricity contract, your company must either employ less than 10 employees, have a yearly turnover of less than €2 million or use no more than 100,000 kWh of electricity or 293,000 kWh of gas per year.
Micro businesses benefit from extra measures to help ensure they don’t end up paying more than they should for their electricity. These include benefiting from a reduced switching notice period of just 30 days, a limit on back billing and rollover contracts, greater clarity of invoicing and end dates and clearer terms and conditions.
Many a small or medium business started life in the home of its founder. If you run your business from your home, it can be worthwhile seeing if you can swap your household electricity deal for relatively cheaper commercial electricity.
To qualify for cheap commercial electricity, you’ll need to use 50% or so of your home electricity to run your business. Using lighting and heating for your business can be enough to make you eligible, but you must be careful to deduct usage from appliances that would be running regardless of whether you would be operating a business or not, such as your fridge.
To find out more about how we can help save your small or medium-sized business money on its electricity bill, call one of our energy experts today on 0800 156 0871.
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