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When it comes to changing your energy supplier for your business, the process can vary depending on the size of your enterprise. Larger businesses will need dedicated business energy deals, while smaller ones, known as microbusinesses, might not require this level of complexity. In this blog, we will walk you through the key aspects of switching your business energy supplier and how to go about it.
Switching business energy deals is different from switching domestic energy plans. You can switch business energy deals under several circumstances:
Deemed Energy Contracts: These are often set up when you move into new premises or if you haven't agreed to a new deal at the end of your current fixed plan. It's a good idea to switch from these contracts as they can be costly.
End of Fixed Term: You can also switch when your fixed-term contract ends. Keep in mind that some suppliers may require notice even after your old plan has expired. Suppliers are obligated to explain your options if they won't let you switch once your existing deal is over.
Cost: Determine whether you want a fixed or variable plan, depending on your budget and market conditions.
Type of Business: The nature of your business, operating hours, and energy usage will impact the tariff that suits you.
Equipment: High-energy equipment may require dedicated meters.
Renewal Periods: Suppliers may allow renewal only toward the end of your contract.
Meters Installation: If your new premises lack gas or electricity, you'll need to pay for meter installation.
No Cooling-off Period: Unlike household energy, commercial energy contracts typically don't have a cooling-off period. Therefore, it's crucial to explore your options before committing.
Switching business energy suppliers is more involved than switching domestic plans, but it's essential for optimizing costs. You can compare rates and deals for your business via a postcode on online comparison websites. They've partnered with business energy experts, to make the process smoother. Once you find a suitable deal, call your energy expert and they'll guide you through the switch.
Microbusinesses in the UK have more flexibility in arranging gas and electricity contracts. As long as you have more than 30 days remaining on your current contract, you can secure a new deal. Your supplier should notify you about your energy usage and available deals around 60 days before your contract ends.
Uses less than 100,000 kWh of electricity a year OR
Uses less than 293,000 kWh of gas a year OR
Has fewer than 10 employees (or their full-time equivalent) and a yearly turnover of no more than 2 million pounds.
For micro businesses, the Ofgem changes have removed rigid timeframes for switching. You're no longer bound by strict switching windows.
Rates for microbusinesses vary based on usage, location, and supplier. On average, you might expect rates like:
Electricity (5,000 - 15,000 kWh): 29.5p per kWh, with a 51.9p daily standing charge.
Gas (5,000 - 15,000 kWh): 10.1p per kWh, with a 46.9p daily standing charge.
Note that these figures can vary based on your meter type and location.
If you're a microbusiness owner looking to switch suppliers, it's best to contact an energy consultant a couple of months before your existing contract expires. Start comparing offers as soon as your current supplier contacts you with a renewal offer. This allows energy experts to provide accurate quotes for a new contract, and a good consultant can set this up for you.
If you're not currently in a contract or your old one recently expired, arrange a new deal as soon as possible to secure better rates and reduce your bills. If you think your current deal doesn't suit your business, or you're paying too much, consider reaching out to the business energy expert, for assistance.
Switching your business energy supplier can lead to significant savings, so it's worth exploring your options to find the best deal that suits your specific business needs.