What Types of Business Energy Deals are Available?
Some businesses take the somewhat naive stance that their current business energy provides them with the most competitive rates available by default. Even whilst you may assume you don’t have the absolute floor price out of all the company suppliers out there, you probably don’t even have the best deal that your provider has to offer if you’ve never given time to doing your research, comparing and negotiating. In most instances, renewal letters will provide prices above the market average.
History of the Market
There were many problems with the classic ‘big six’ oligopoly model of the British energy market 10+ years ago, such as potential price-fixing. However, one of the upsides for customers was that there were manageable suppliers to choose from and DIY comparisons weren’t necessarily an impossible task. Now that the big six has been shaken up and there are new business energy providers on the scene, such as OVO and Shell Energy, the market has become more competitive.
This has helped to restrain price increases and, at times, pushed providers to offer better services in the hope of outdoing their competitors. These two things are undeniably positives, but one of the downsides of all this choice is that it’s easy to get overwhelmed and arguably, with all the noise, also more accessible for suppliers to trick you.
Whilst sitting with a spreadsheet in front of you and collating all the available data to find a business energy supplier that’s right for your company would be a near-impossible task, things don’t need to be so difficult. The increased choice in the energy market can be capitalised on thanks to the fine-tuning of one specific type of tool.
How Using Comparison Sites Can Help you Figure Out the Best Types of Business Energy Deals
Luckily, websites like Business Energy and Uswitch can help make this potentially painful process a smooth ride with a money-saving outcome. In as little as 60 seconds, you can compare business energy prices online. Even better, teams are available that help finds custom energy tariffs since every business is unique. Finding some wiggle room on both sides makes it easier to reach agreements that leave everyone satisfied.
One great benefit of business energy comparison sites is that they usually have strong partnerships with most of the leading energy suppliers in the UK. Often, they also help out by getting the whole process started for you once you’ve chosen a deal. This can be a great time saver as experienced experts will work through that admin a lot quicker than everyone else, which leaves you with time to focus on the things your company does best.
Business energy provider comparison websites will typically just need some basic information to work their magic, such as your company’s address, business name and energy usage. This is enough information to find the most reasonable prices for your electricity and gas requirements. Suppose the brevity of such an easy process doesn’t provide enough interaction time to assure you that you’re getting the right deal. In that case, you can generally rest assured that specialist teams are available to discuss the provided energy quotes further.
For larger companies, you can typically get an even better deal if discussion options on things like half-hourly meters or the most efficient way to provide energy to an operation working in more than one building.
Turning to green energy is not only an essential step for companies to start making for the planet’s sake but can also be an invaluable part of a more comprehensive marketing strategy. With customer behaviour increasingly influenced by social movements and the values that people hold closely, your customer base is likely to appreciate you making an effort to play a positive part in the planet’s future. Of course, just quietly switching to renewable energy won’t be enough and will have to be accompanied by a relevant marketing campaign that incorporates the company’s effort to be eco-friendly.
Luckily, there are green business energy tariffs out there. These are typically worked out in tandem with independent suppliers outside of the big six. Working out a green deal with such a supplier is an excellent opportunity to improve brand image and make sure you’re getting the best bang for your buck at the same time.
What Types of Deals Can You Get For Your Business Energy?
There are four main types of deals in total that can be struck with business energy providers. Fixed-term contracts are a great choice when the market price is below average and means when market prices rise in the future; Your company will be insulated from any shocks. On the other hand, variable-rate contracts can allow you to start with a cheaper rate relative to the market price but may end up costing dearly if prices go up.
This is the option for companies who know they can ride bumps out and probably save money in the much longer term, although these deals are riskier for smaller businesses. The two others, rollover contracts and deemed rate contracts, should be avoided when the others are available. These provide rates when you haven’t got round to agreeing to one, and although it’s better than having your energy turned off, they’ll be far above market price.
Get onto a business energy comparison site to find the right fixed or variable (or maybe even green) deal and prevent your company from sliding into the expensive world of rollover contracts and deemed rate contracts.
Other useful links about Business Energy
EDF Business Energy
Deemed Rate Energy Contracts
What is an Energy Performance Certificate
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