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28 Jun

Compare Business Energy Deals Effectively

by Simon Thompson
 

A crucial element when it comes to sourcing a new energy supplier is the ability to compare business energy deals effectively.

By doing so, you will be reassured that you are getting the best deal possible for meeting your needs at that time.

To do this, you will need your current energy supply contract and know when it ends, and how much you are currently paying.

With this information, you are ready to compare deals between potential providers.

In addition, they will be wanting to know your unit rate and standing charges, how much energy you use every year and how much notice you must give your current supplier.

Compare business electricity providers

You may decide to compare business electricity providers first because these bills tend to be higher than for gas.

The proposed tariff will consist of two prices that you will need to focus on and these are the unit cost and the standing charge.

  • Unit cost: this is what you will pay with the unit of energy is measured in kWh (kilowatt hours)
  • Standing charge: this amount varies and is the daily charge paid to the National Grid for delivering energy.

Understanding the difference is important because a potential supplier may offer much cheaper unit rates but have a higher standing charge so the deal may not actually work out to be cheaper at all.

Compare business gas providers

As mentioned, when you compare business gas providers you will need the same information as well as the type of contract you want to choose.

This will boil down to either:

  • A fixed term contract: with a fixed term deal the price per unit of energy is fixed for the contract’s duration
  • A variable rate contract: the amount you pay per unit will vary during the contract and will usually be connected to wholesale market activity. When prices rise, then your unit cost will increase. If prices fall then you will benefit.

If you haven’t switched for several years, then you may be on a ‘deemed rate’ contract, which tends to be higher and these are also known as out-of-contract rates.

It does appear that there is a lot of information to take on board and you’ll still need to contact suppliers, either directly or using a comparison site aimed at business owners.

Alternatively, you could contact experts who understand how you can compare business energy deals effectively and deal with the switchover process which means contacting the experts at D-Energi.