Is it possible to overpay on your business utility bills? The answer to this question is an overwhelming yes. Energy suppliers around the UK get an excess profit of £500 million because many companies are paying more than they would if they had switched to a new provider. If you take the time to shop around for a new provider, you can save up to 40% annually on your company’s energy bill.
Many companies feel intimidated by the prospect of switching from one energy provider to another. There is a misconception that the process is tedious, time-consuming, and inconvenient. On the contrary, it is simple enough if you know the steps and what is involved in the process of switching. Luckily, if you compare business electricity prices using a comparison website, it is likely that you will quickly find a more competitive rate for your company.
The dos of switching energy suppliers
Before you pick up the phone to start the process of switching, you need to keep in mind that changing your business energy supplier is not as straightforward as that of residential consumers. Here are the best practices that every first-time switcher needs to keep in mind:
- Review your current contract and take note of the expiration date. Business energy tariffs are typically set for a certain period ranging from one to three years. For business tariffs, it is not advisable to switch when your contract is not yet due. Pay attention to the specific time allowed by your current provider for you terminate the contract and use this as your time frame for switching to a new supplier.
- Do consider a fixed term. Although flexible tariffs may allow you to take advantage of low rates, the volatile energy market is difficult to predict, and you may end up taking the hit when the prices suddenly increase.
- Do use the services of a broker or a comparison website to help you with the switch. Their services can ensure that you find the best rates possible according to your company’s needs.
- Do take time to research the company you are signing a contract with. Although the big six sounds like the natural choice for businesses, you may find unexpectedly better deals by considering smaller suppliers.
It takes time to find the right supplier and the best rates for your company, but once you have made a choice, the process becomes more straightforward and easier.
What not to do when switching suppliers
Perhaps the biggest mistake a company will make is to allow a current contract to expire and be rolled over to a higher tariff. You do not need to pay more if a little leg work can ensure that you will pay less. If you are a first-time switcher, the process could be daunting, but do not be discouraged by the process. Once you have tried switching energy suppliers, it will be easier the next time. What is most important here is not the hassle or amount of time you spend, but the significant savings your company will enjoy after moving to a new provider.