Are you overpaying for your business’s energy? If that’s the case, it’s time to look for a superior offer. Comparing what’s on hand from a variety of corporate energy providers seems to be the only way to ensure you’re receiving the best deal. But before you start comparing estimates, it’s a good idea to learn more about the differences between commercial and residential energy, as well as the many types of contracts available. Business electricity can surely cost you a lot of money.
Difference Between Business Energy and Domestic Energy
If you’ve recently changed your residential energy, you’ll likely feel pretty secure about switching your present commercial energy package, but you’ll quickly discover that company switching isn’t nearly as simple.
The main things that differentiate commercial energy from household energy are:
The Contracts in Business Energy Are Longer:
Despite the availability of fixed and variable rate rates, all commercial energy deals are signed for a certain time, ranging from one to five years. You won’t be allowed to look for a new offer unless your present one reaches a renewal period, which is normally one to six months before it expires.
Business Energy Deals Are Single Fuel Only:
You might find that signing up for a dual fuel contract helps you save money on your residential energy costs, but there is no such choice with business energy, so you’ll have to have individual quotations for gas and electricity.
Business Energy Rates Are Low Cost:
Unlike domestic energy providers, business energy is purchased in mass, who buy electricity and gas monthly. Commercial suppliers consider purchasing sufficient energy to last the period of your agreement, which means you may get a lower unit rate, but it also makes terminating your tariff earlier than usual more complicated or more costly.
No Cooling-off Period in Commercial Energy:
Domestic energy transfers require no more than 17 days to finish, with the cooling-off period taking up 14 of those days. During this time, you can terminate the arrangement without penalties. On the other hand, commercial energy contracts do not include a get-out option, so make sure you’re entirely satisfied before accepting anything.
When Your Company’s Energy Contract Expires, What Comes Next?
When your commercial energy contract expires, you’ll be moved over to a costly out-of-contract tariff, so do a business utility analysis and move to a good offer before that occurs.
Don’t fret if you don’t know when your existing agreement will terminate; as soon as it reaches its renewal term, your provider will approach you with a new contract offer. Nevertheless, don’t take any offer until you’ve evaluated other options.
If you choose to change providers, your former provider will send you a final bill and request the last meter reading to check that the amount is correct. You will also be given a time limit for paying this final charge. If you don’t organize a new arrangement, you’ll be put on a rollover term or presumed rates based on your situation and provider.