As the pandemic looms, more businesses are thinking of how to save money in their business as the market looks uncertain. Gas and electric contracts are almost certainly a consideration as part of this. It’s a good time to find better deals on electric, due to the decreased demand in the use of coal. In fact, the UK had its first coal-free month recently, helping reach the goals towards being carbon-free.
There has also been less need for electricity, due to businesses temporarily closing during the pandemic. Lower demand is likely to lead to suppliers offering better deals to businesses. This is also as more businesses are encouraged to opt for green energy sources.
As a result, energy consultancy services have seen an increase in business inquiries asking for help with finding a better tariff. Consultancies can provide the right help to break down what their contract involves and analyse their business to explore energy use.
With business energy in particular, the contents can vary so much, and take time to fully understand. The jargon, meanings and the conditions attached to them. That’s why many turn to either an online provider or a consultancy service to get an energy audit and help better make sense of it.
Business contracts can vary from their domestic counterparts, but many people aren’t sure exactly how.
Understanding some of the key differences and knowing the terms used can help you understand it better so that you have a sense of what to look for – and what to avoid.
Here’s some ways that business gas contracts are different:
Fixed Term Electric Contracts
This is a set rate per unit of electric charged. The amount you pay each month can vary depending on how much electric you use. Energy consultancies can analyse at what points on site you use more energy, at what times of the day and what times of the year. They can help see patterns of usage and identify whether this tariff would work for you.
Rates for businesses can often be lower, especially as they tend to use more of it over a longer period of time. Suppliers usually buy enough wholesale energy to last the duration of a contract, rather than as a pay-as-you-go type model. This means that as it’s cheaper for suppliers to work this way and works out to be more cost-effective for your business, too.
Different Types of Tariffs
Businesses are offered slightly different tariffs, compared with households, which is due to different needs. Tariffs include:
This means businesses can bulk-buy gas and use it over the duration of their contract. This can be useful for large-scale sites, such as industrial or construction locations, where a lot of energy is needed daily. It works out well because a business can bulk-buy energy when it is low in price.
This is a short contract that automatically rolls over into a new period at the same rate. If you want a different tariff, the contract needs to be cancelled with the right notice.
Could your business create its own green energy? This means that if your business creates its own solar energy, your energy supplier will pay you for any excess energy you create from your solar panels or wind generators.
This is when your contract has ended and you have automatically been put onto a different tariff, which can often be more expensive than what you had before.
Single Fuel Deals
Electric contracts will never be part of a combo deal with your gas. Whereas households can benefit from saving this way with a dual fuel contract, there is no option like this for businesses. Both electric and gas contracts are run separately, but rates are cheaper overall, which balances it out.
Businesses can often be given much longer electric contracts than a 12 -month domestic agreement. These can often be as long as 3 or 4 years, giving a straightforward process. The only drawback is that they’re not easy to get out of if you’re advised about a better energy deal elsewhere.
And…..No Cooling Off
Those first 14 days of your contract where you can get to change your mind and escape out of your contract? Businesses don’t have this opportunity, which is why it’s so important to get it right the first time.
Save Money on Electric Contracts
Are you keen to save money on your energy but not sure where to turn? For better deals, comparison sites aren’t available for businesses. Business energy consultancies work with business owners to assess their business. Together, you can explore different elements to put together a tailored contract that works for you.
Contact Concise Energy to find out about saving money on electric contracts. We can put together a bespoke agreement to suit your needs. There’s a free assessment and it’s easy to get started by booking an appointment here or call 0800 195 7831.