Disregarding the type of your company, energy will still be an essential requirement. People claim that most companies don’t realise the fact they have been locked into a contract, while not even understanding the terms of the contract. This is mainly for small companies as they don’t have time to assess and understand the terms of the contract. However, just by understanding the energy contracts you will be able to spot changes in ways of saving money. Since if you find yourself signing a contract that isn’t right for your business, then you may end up paying more for your energy than needed.
This is why we put together 5 questions that business energy customers should ask, we recommend you ask the following questions:
What Are Your Termination Rights?
This is one of the main questions to ask because you would want to know about your termination right. You would be able to request your termination rights before you sign the contract. So, this will ensure you that you are conscious of the rights you have. Most of the time, when you sign a contract it will be mean you are locked in for the term.
What Costs are Included in the Unit Rate?
Another question is generally asking if there are any extra charges in the unit rate. Since some suppliers provide a fixed price but don’t always inform if all costs are fixed. If you enter a contract with a fully fixed rate, it will offer budget certainty and provide price protection from market movements. A fully fixed price might be the best option for you if protection from the market and budget certainty is vital to your business. On the other hand, owning a unit rate with some elements that aren’t fixed might be the best option for your business but it depends on how you consume energy. Most of the time, contacts that don’t have a fully fixed unit rate will be cheaper but leaving a few elements exposed on the market. Therefore, it is vital with any contract to be cautious of exactly what is included in the unit rate.
Which Costs Are Passed Through?
Knowing the costs that are passing through is an important question to ask. Since passed through costs are elements of your unit rate that are not fixed. In addition to this, the passed through costs is charged separately on your bill and will mainly be a variable cost. The passed through costs could potentially be beneficial if you control the times when you consume energy, or else the passed through cost could result in you paying more than you should during the peak periods.
What is Involved in Switching Energy Suppliers?
Switching energy suppliers is actually quite a simple routine but lengthy, it could take up to 4 weeks for you to switch to your new energy supplier. This will involve you deciding the combination of the energy supplier, price, and tariff that suits you. Also, calculating the energy prices, savings and monthly or yearly payments. Choose an energy deal and apply for the best one that meets your requirements and provide the information to the energy supplier they require from your business. After that, you will just have to wait until you are contacted and receive the dates of your energy switch.
How Much Money Could We Save?
This is one of the most important questions and that you should not be afraid to ask. Although, the amount of money you save will depend on some factors. These factors include the number of energy suppliers that will affect the money, especially the ones that are competing in your area and how much energy you use. The average saving is £200 for a business that changes their energy supplier. However, it can be even higher for companies that have never switched before.
Compare Business Energy Online
If you’re looking for a new business energy deal or simply want to compare energy plans online, then please fill out the business energy comparison form and leave it to our saving experts to find the most favourable deal for your business. In the meantime, if you have any questions or if you are unsure of what you are looking for, then please don’t hesitate to contact us.
Call us on 02476 997 901 or you can email us at firstname.lastname@example.org.