There can be many beneficial features of signing onto a business energy contract, however, what is a business energy contract. Well, it is the same electricity and gas that is powering your home but also powers your business. It belongs to the same source and travels through the same pipes and cables. In addition to this, there are energy companies who will treat the supply of gas and electricity differently if you are in a business.
If you are planning to switch or already have switched your business energy, then you be wondering what the difference between a business energy to a domestic energy is. Here are a few differences between the two:
- Business energy rates are cheaper – While domestic energy suppliers will need to purchase and sell energy on a monthly basis. Whereas business energy is purchased in a volume. Most commercial suppliers will purchase enough to last them through the duration of your contract, and this may be beneficial as it could make your unit rate cheaper, however, it will make it more difficult to end your tariff.
- No Cooling-off period – When you switch to domestic energy it will not take more than 17 days to complete, where 14 of the days are used by the cooling-off period. Within this time you will be able to cancel your contract without any consequences. However, business contract deals will not have a cooling-off period, so it is best to make sure that the contract is for you before you sign it.
- Business Contracts are longer – In most cases, business contracts are longer than domestic contracts, since most business contracts are taken out for an agreed term. This can last up to five years and you will not be able to purchase a new deal until the current one has entered a renewal window. This mainly happens between one and six months before its scheduled.
Benefits of Business Energy Contract
- It will allow the customer to lock in prices within the contract term period. So, when an appealing price appears then it can exploit with the existing contract whereas you cannot in a fixed price energy deal.
- Customers have locked in a set price and will not be affected by price fluctuations during the contract period if the market falls over the contract period.
- The costs are generally lower since your business is likely to use more energy than a typical household.
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.