As a small business owner, it’s likely you're reliant on energy to support your firm's operations - which means that bills are a cost that you'll need to include in your budget. However, just because your business depends on gas or electricity, it doesn’t mean that your hands are tied when it comes to finding a better deal for the energy that you’re using.
There’s a common misconception among small business owners that the business energy market can be confusing - and that switching energy contracts is difficult. However, all that’s required to find and switch to a better deal is a basic understanding of the way that business energy works.
There are some key differences between the commercial and domestic energy markets that it helps to be aware of. A significant variation is that businesses have their energy supplied on terms defined in their own bespoke contracts, as opposed to selecting a set tariff like those available to households in the domestic energy market.
Another notable difference is that businesses must negotiate their contract - either with a supplier or via a broker - to agree specific unit rates and how long they'd like their contract to last. It’s also important to note that your business requires two separate contracts for energy - one for gas, and one for electricity. Though these can both be with the same supplier, they can't be part of the same deal.
Traditionally, business customers have less flexibility than their domestic counterparts when it comes to switching. For instance, a domestic customer can choose to switch energy tariffs at any point - sometimes at the expense of an early exit fee. A business customer, on the other hand, must wait until they are within six months of their contract end date - a period known as the ‘renewal window’ - before they can secure a new deal for their energy.
Business owners who fail to act within their renewal window are automatically rolled onto ‘out of contract’ rates when their current contract expires, which typically cost more than twice as much as some of the cheapest deals on the market. This is why properly managing your business energy contract is important in order to prevent your business from paying more than necessary for the energy that it’s using.
Why You Should Use a Broker
It’s easy to see why many business owners are hesitant to engage with the energy market - at first glance it can seem complex, and contacting different suppliers to get quotes can be a time consuming process. However, using the services of a broker can help to simplify it.
A business energy broker can not only get quotes from a wide panel of suppliers on your behalf - they can also process your switch and remind you next time that your renewal window opens. This means that you not only get a better deal on your energy, but you also save time and continue to avoid expensive rates in the future.
After a short conversation about your business’s energy needs, Make It Cheaper’s saving experts can search prices to find a fair deal that helps to minimise your business's bills. To ensure that you’re getting a great service from a trusted source, the FSB has carefully selected Make It Cheaper as its responsible broker for its members.
Find out how much you can save. Request a call from an expert - simply complete the form below and let us know when you'd like us to get in touch.