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Comparing business electricity or gas tariffs
Get an energy tariff that suits the needs of your business.
This guide looks at the different business gas and electricity tariffs available, to help you decide what suits your business best.
Many business owners have never switched their business utilities and as a result, are stuck on out of contract rates, paying well over the odds for the energy they use. You can often save by comparing the different business electricity or gas tariffs and rates available, and switching tariff or supplier.
The process can be time-consuming, so for help running a comparison, speak to one of our energy experts. We can save you time by comparing competitive prices from our trusted panel and switch you to a better deal. Get started by filling out the form.
Understanding your business’s usage requirements is useful in securing a new business gas or electricity tariff, as there are several different types available. Fixed term deals are most common among small businesses.
Here are some considerations to make when deciding what contract is best for your business:
- How much energy you use
- Where your business is located
- Your business's financial situation.
Fixed term tariffs
A fixed term tariff lasts anywhere between one and four years, and sets out how much a business will pay for its energy. It includes a specific price per unit for the gas or electricity a business uses, as well as a daily standing charge that’s payable regardless of how much energy a business consumes. The cost per unit and standing charge will not change for the duration of the contract.
Fixed term tariffs help businesses manage the amount they spend on their gas or electricity, as owners and decision makers know how much they’re paying for the energy they use throughout the duration of their deal. A set tariff also protects businesses from expensive out of contract business electricity and business gas rates.
If you have a fixed term deal, it’s important to know your contract end dates to avoid being automatically transferred onto more expensive rates at the end of the term. Allowing your energy deal to expire without organising a new tariff can result in you paying much more than you need to – but this can be avoided by acting early and switching to a better deal before your existing contract finishes.
Finally, business electricity and business gas tariffs are always separate, so can run for varying lengths of time with different start and end dates.
Alternative business energy contracts
There are other, less popular tariffs available for businesses in specific circumstances – for example those that consume a significant amount of energy. These tariffs include:
- Blend and extend tariffs:
These deals allow businesses to reduce the amount they’re paying for their gas or electricity in the long-term. By extending the length of their current contract and averaging it with a better value deal from the same supplier, businesses can keep the costs of their energy consumption down.
- Flex approach:
Larger businesses sometimes look to bulk purchase energy in advance, so they know how much they've paid when it comes to using it. On a flex approach contract, a business can take advantage of favourable energy market activity by purchasing energy for the months – or years – ahead, usually when costs are low. This can be a risky strategy if a business is caught out of contract when energy prices are high.
Our customers save up to £1,150 by switching with us, so speak to one of our energy experts on the number below to run a business gas or electricity comparison today.
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