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29 May

Businesses Can Switch Energy Supplier

by Simon Thompson

Businesses can switch energy supplier and make a big impact on reducing their overheads and more firms are being encouraged to follow this path.

The government and the industry regulator Ofgem want more firms to shop around every year when their energy bills come up for renewal.

This is regardless of the business sector they are in and there are some effective ways of comparing energy deals and switching suppliers.

The first step is to speak with the current energy supplier to see whether they have any better offers and this will act as a benchmark when it comes to analysing other supplier’s deals.

It should also be appreciated that firms can only switch suppliers during a window of opportunity before the contract is renewed.

This means the firm will need to understand their current contract because the terms will define when the contract ends and when the client can tell the supplier that they want to switch.

Contracts will allow an energy switch to take place

The contracts will only allow an energy switch to take place at certain times.

However, should a firm not switch suppliers then their contract may be rolled over onto an automatic contract which will probably be costing them more than it needs to.

Indeed, these ‘deemed’ contracts are the default for suppliers and the supplier has a legal obligation to inform their clients about other contracts that are available and how their client can find out more.

The next step is for the firm to look at their meter readings on a regular basis so they understand what their energy consumption is over a period of time.

By using this information, they can ask a supplier to give a bespoke quote which could be a quick win for saving cash.

Also, while it’s important that the firm understands its current energy contract, they should also take the time to understand and appreciate the contract being offered by a new energy supplier.

They must do this before they sign up and be wary about agreeing to a contract during a telephone conversation.

Cheap business energy deals

It’s also important that firms appreciate that most cheap business energy deals do not offer them a cooling off period which is a way of canceling the contract within an agreed number of days.

By not understanding the contract, means the firm may be stuck with an energy deal that’s not only unsuitable but is more expensive than their current offering.

To avoid issues with energy contracts and understanding how to switch energy suppliers efficiently, contact the experts at D-Energi for more help and advice.