Energy isn’t cheap but switching to a different tariff could save you money on your business electricity.
It can take a little longer to compare business energy deals than domestic ones. Happily, you can save time by letting Bionic, our energy expert partner, do all the hard work for you. Click on the Get quotes button to investigate your options.
Business energy differs from home energy in a few key ways. First, business energy rates are usually cheaper, but you’re locked into the contract for longer. This is because business energy is bought in bulk to cover the contract term in its entirety.
While this can make your business electricity cheaper, your contract could last as long as five years and there’s usually no way of getting out of it before the renewal window, which appears between one and six months before the contract’s end date. There’s also usually no cooling-off period, so make absolutely sure you’re getting the best deal before you sign anything.
Additionally, business energy tariffs are single fuel only, so you’ll have to buy gas and electricity separately – there are no dual-fuel options.
Considering how important energy is to your business – and how long you’ll be tied into a single tariff – it’s vital to know your business needs and the options available to suit them.
There are four main types of business electricity tariffs available to compare:
Fixed: this tariff works in the same way as a domestic fixed tariff, where a set price is charged per unit of energy used
Variable: this tariff works in the same way as a domestic variable tariff, where market conditions can mean that the rate charged per unit of energy changes as the supplier raises or lowers prices
Deemed and out-of-contract rate: this is a contract you’ll be put on if your previous contract expires without you signing up to a new one or switching supplier. This can also apply if you move to a new premises and don’t agree a contract with the supplier. You’ll probably be paying the supplier’s most expensive rates in the same way a domestic customer would if their fixed contract expired and they were put on a standard variable tariff but you can switch at any time
Rollover: this is a contract you’re put on by your supplier if you haven’t agreed a new contract or told it that you plan to switch before your current one ends. It usually lasts for a year and you can’t switch during this period
Other options may also be available:
Smart meter: your electricity usage is monitored half-hourly which means more accurate bills
Multi-site: your energy company may offer a deal to supply electricity across several business locations
Renewable: the electricity comes from green sources, like solar power
Check your annual turnover, the size of your office space and the number of staff you employ, as this all affects your business electricity rates.
If you plan to move premises, or if your business runs seasonally, a short-term contract gives you more flexibility to switch.
Check previous bills to see how much electricity you use each year. If you’re a new business, our energy expert partner Bionic can help estimate your usage.
If you only use electricity during the night or early hours of the morning, you may be able to get your energy for less.
You'll need to source a range of business electricity quotes from different energy suppliers to find the best business electricity supplier and tariff for you.
If you have an existing tariff in place, start comparing other deals as soon as you get a renewal offer from your current energy company.
Here’s more information about how to switch your business electricity tariff.
To compare business energy quotes with Money.co.uk, simply hit the button at the top of the page, enter your business’s postcode into the entry box, and our partner, Bionic, will do the rest.
Bionic will search the market for the tariff that best suits your needs and call you to discuss potential options.
If you don't use a lot of energy as part of running your business from home, it may be cheaper for you to get a home energy deal. However, it's worth considering a business electricity deal if you’re using a lot of energy for your business.
Yes, some suppliers offer contracts that only last six months. If you’re a new business or plan to move, this could give you the flexibility you need as many fixed business energy plans last longer than typical home energy deals.
Usually. This is the daily price you pay for your supplier managing your account, no matter how much energy you use. You can get tariffs with no standing charge, but they’re not always cheaper. If your energy usage is very low, it might be worth considering this option.
Unless you’re on a deemed contract, it's only possible to switch if you are in your renewal period or your contract has ended. Your supplier should give you plenty of notice before your contract ends so you can start to shop around. You can find out how to switch supplier here.
No, business energy companies do not offer dual-fuel rates. You need separate contracts for your business electricity and gas. You might find that the same supplier offers the best deal for both business electricity and gas, but it won't offer a dual-fuel contract like your home energy supplier might.
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