With rising energy costs, companies across the UK are looking to switch their business energy suppliers to reduce costs and save money. And it’s not just a question of cost. With growing public concern for social and corporate responsibility, there is the added pressure of sourcing green and sustainable energy. With the current instability in the market, it can be hard to know what type of contract to choose. The process is relatively straightforward, but there are some things you should be aware of before making any decisions. Here Sara Tweedie from our Bureau and Client Services team explains how switching works and how you can find the best deal for your business.
Should you switch business energy supplier?
If your business uses a lot of energy, then it can be very beneficial to switch your business energy supplier. Switching could suit you if you want to cut costs and reduce your carbon footprint. But there are also ways to save money without changing suppliers, so don’t rule these out before looking at other options. Switching suppliers may not make sense for smaller businesses; it might not be worth it if the savings aren’t significant. Other measures, such as insulation or improved efficiency, might save you more money.
When to switch your business energy supplier
Switching when your contract ends is a good move if you have a fixed-rate tariff. You can start the process six months before your old contract ends. This will give you time to review the available plans and choose the right one for your business. You may also have to provide notice to your old supplier under your contract, so starting the process early will ensure you are ready to switch as soon as it ends.
If you’re on a contract that you haven’t chosen – for example, a new premises or a fixed-term contract ended, and you didn’t sign up for a new energy deal, you can usually switch immediately.
Your energy contract will contain the end date and any notice period you need to give your old supplier.
How switching energy suppliers works
Switching your business energy supplier is a simple process that can save you money on your bills if you’ve got the right deal. There will be no interruption in supply, and the process of reading meters is usually simple – either automated if your meter is HH (half-hourly) or fitted with an AMR (automatic meter reading) device. If not, you may need to simply submit a manual read via email or your supplier portal.
The process used to take up to 21 days to complete, and on average, it’s around 17 days. Under new Ofgem regulations that went live in July 2022, some energy suppliers now offer customers the ability to switch in 5 working days. The regulations were designed to make the process easier, faster, and more cost-effective. You can also choose a date in the future to suit you – based on when your current contract ends.
You will need your meter numbers, and again, these can be found on your energy contract or a recent bill.
Finding the best deal
There are several important factors to consider when you switch energy suppliers. First, you will need to know how much you currently pay (or will pay at the end of your contract) for your units and standing charges. Secondly, your consumption – how much energy you use annually. When you have this information, you can start to compare options, but remember to think about the following things when comparing:
- Check the tariffs – understand the price per unit and any standing charges. Look at the business tariffs and large business tariffs (if applicable).
- Supplier’s customer service – read customer reviews of the suppliers.
- Sustainability – is the supplier using environmentally friendly “green” energy? Are their policies in line with your own corporate social values?
- Type of contract – is it fixed, flexible, hybrid or green?
- Contract terms – is it flexible to end without a fee? What notice period do you have to give? What are the terms for switching or terminating a contract early? What happens if you move premises?
- Incentives – can you get cashback or other free incentives as part of your switch?
- Additional costs – for example, maintenance charges, tenant re-charging, or change of tenants.
- Cooling off periods – most business energy contracts don’t offer a chance to change your mind, so make sure you’re happy before you sign the contract.
With so much to think about and the pressures of running a business, it can be a good idea to use an energy consultancy like ours! They can use their expertise in the market to ensure you find the right deal for your business. They may also access deals that aren’t available on the open market.
After you switch business energy supplier
Switching business energy supplier to a better tariff can be a relatively painless task. But ongoing monitoring, reporting, and ensuring you’re being billed correctly remain important. And then, you need to ensure that you stay on the best tariff in the future and are prepared for when your new contract ends.
Using an energy consultancy to do the hard work for you
If you don’t have the knowledge or the time to understand what the best options are for you fully, then an energy consultancy can add value to the energy buying process. As mentioned, they may access rates and deals that are not available on the open market. Using the information from your current contract and energy bills, a consultancy can source various options from different suppliers. With their expertise in the energy market and experience working with similar types of businesses, they can answer your questions about the options they present.
Ultimately the decision is yours, but an expert helping you make the decision will make you feel more confident about the whole process. They will then make all the arrangements to switch business energy suppliers for you and handle all the admin.
Post-switch support
The other ongoing benefit of using a consultancy is the reporting and analysis that they can provide. For example, our online portal Eos, accessed remotely, is fully customisable, meaning you can get live reporting on your business’s energy portfolio. They can also help with bill validation and auditing to ensure that billing is accurate and correct. They are even helping you recover unjustified charges and errors.
The ongoing management of energy data is critical to maintaining a cost-effective energy portfolio. So, using an energy consultancy will allow them to store all the data relevant to your contract. This can also be used to set up automated tenant re-charging and manage the change of tenancies. Knowing that you have a team of experts monitoring what’s going on means you can be sure to avoid out-of-contract charges. And you are ready to switch business energy suppliers again when the time is right.
Save time, money, and the environment.
One of the most important things about running any business is keeping running costs to a minimum. For many companies, energy costs can be one of their highest costs. So, it’s essential to do your research before switching. As energy tariffs change every six months, using an energy consultancy ensures that you’re always on the best deal available. Involving a consultancy at the beginning of the process can save you time and money.
With their help, they will ensure that your business’ energy consumption is as low as possible whilst remaining productive and competitive. Meaning you’ve positively impacted your bottom line whilst also contributing to a greener environment.
Here at Logical Utilities, we make this switching process simple and hassle-free, allowing you to focus on other things! If you want to discuss your business energy needs and how a switch in business energy suppliers could save you time and money and help us create a more sustainable future, then get in touch.