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Business energy FAQs

Business energy FAQs

When you’re running a business, every penny counts. Making sure you’re getting the best deal possible on your business energy is a simple way to cut your monthly costs and help your business run as efficiently as possible. It doesn’t cost anything to compare deals, and it could save you a significant amount on your overheads. Here’s everything you need to know about finding the best deal for your business.

How is business energy different from domestic energy?

Business energy tends to be cheaper than domestic energy, because suppliers bulk buy enough commercial energy to last the duration of your contract, rather than buying it on a monthly basis. This means suppliers can charge a lower unit rate for gas and electricity, although extra charges like VAT and the Climate Change Levy can increase costs.

Most business energy contracts are longer than domestic contracts - they can last up to five years. It can be very difficult to end your contract early, and you won’t be able to switch to a new energy deal until your contract is in its renewal window, usually between one and six months before the end date.

Energy suppliers don’t offer dual fuel contracts for businesses, so you have to get a separate tariff for gas and electricity. Businesses also don’t get standard ‘off-the-shelf’ tariffs - instead, suppliers will assess your business’s needs and offer you a bespoke quote. This can make it difficult to compare deals, but running a quote with us saves you time and helps you make sure you’re getting the best deal available.

This is important because once you sign your business energy contract, you’re locked in - unlike domestic energy, commercial deals don’t have a cooling-off period.

What type of business energy contracts are available?

You’ve got a number of options when you’re looking for a business energy contract, including:

  • Fixed term contract: you pay a fixed amount per unit (kWh) of energy. This doesn’t mean that the amount you pay every month is fixed.
  • Variable-rate contract: your unit rates can fluctuate throughout the duration of your contract, depending on market activity.
  • Deemed rate contract: also known as an out-of-contract rate tariff, this is a rolling contract for customers who don’t have a formally agreed contract, and it usually comes with expensive rates.
  • 28-day contract: a contract for businesses who haven’t switched since the energy market deregulation came into effect.
  • Rollover contract: if you don’t agree an alternative deal when your current contract ends, you’ll be put on a rollover contract - the rates on these contracts are usually among the supplier’s most expensive.

What happens when your business energy contract ends?

When your business energy contract comes to an end, your supplier will move you onto a more expensive standard tariff. This means you’ll have to pay more for your business gas and electricity, and it usually happens because you haven’t cancelled your old plan. But, you can avoid this eventuality by making sure you cancel your initial contract, and renegotiating a better deal elsewhere.

Why compare business energy deals?

Shopping around means you can make sure you’re on the tariff that best suits business’s needs and budget. It’s a simple way to manage your monthly outgoings, and avoid overpaying on your overheads.

How long does it take to switch business energy?

On average, it takes around four to six weeks to switch to a new business energy supplier. But, this can vary - it can take longer if, for instance, your business is still under contract with another supplier, or if your new supplier doesn’t have all the information they need. To help make your switch as quick and smooth as possible, it’s best to have all the information about your current contract to hand when you run a comparison.

How much does it cost to switch business energy?

It doesn’t cost anything to switch your business energy. Our comparison and switching service is completely free to use - we make our money from commission payments from suppliers each time someone switches their energy with us.

What if your business has more than one premises?

If your business has more than one premises, you might want to consider a business multi-site meter. This means that one supplier provides the energy for all your premises, and while it can keep things simple from a billing point of view, it can sometimes mean that some of your business’s locations may not be getting the best possible deal for them.

Alternatively, you could have a separate business energy contract for each individual premises. This could mean having more than one supplier, and whilst it can make your bills more complicated, it means that each premises will be on the best deal for that specific site.

To start saving on your business energy bills, call Make It Cheaper today on 0800 970 0077. Or, if you’d prefer, leave your details in the form at the top of the page and we’ll call you back.

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